HomeMy WebLinkAboutAppraisal 120821_Residences at Escaya_V1
The Residences at Escaya
1925 Avenida Escaya, Chula Vista,
CA 91313
NKF Job No.: 21-0157164-1
Appraisal Report Prepared For:
John P. Stoecker
California Municipal Finance Authority
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
Prepared By:
Newmark Knight Frank
Valuation & Advisory, LLC
18401 Von Karman Avenue, Suite 150
Irvine, CA 92612
Newmark Knight Frank
18401 Von Karman Avenue, Suite 150
Irvine, CA 92612
www.ngkf.com
December 8, 2021
John P. Stoecker
California Municipal Finance Authority
2111 Palomar Airport Road, Suite 320
Carlsbad, CA 92011
RE: Appraisal of a Multifamily Property located at 1925 Avenida Escaya, Chula Vista,
CA 91313, prepared by Newmark Knight Frank Valuation & Advisory, LLC (herein “Firm” or
“NKF”)
NKF Job No.: 21-0157164-1
Dear Mr. Stoecker:
The Residences at Escaya is a 2019-built, 272-unit apartment in the City of Chula Vista. The site
totals 9.06-acres and is improved with 14 three-story buildings. Building 6 is a 10,366 square foot
community building on a 0.94-acre site that is excluded from the subject property. The subject
has a total gross building area of 402,195 square feet with 261,125 square feet of residential
rentable area and 20,272 square feet of rentable retail area. The unit mix includes (141) one-
bedrooms, (111) two-bedrooms and (20) three-bedroom units. The project includes 30 units
designated for low and moderate-income households. As of the provided rent roll, dated October
25, 2021, the property is 97.1% occupied.
Project amenities include on-site retail, dog parks, picnic areas, playground, hiking trails,
clubhouse, fitness center, mail parcel center, lounge area, resort-style swimming pool, spa,
cabanas, lawn areas, and bike storage. Parking is provided by 637 garage and carport spaces.
Units include 9' ceilings, vinyl plank flooring, base moldings, in-unit washer/dryers, coat closets,
recessed and pendant lighting, dual panel doors, linen closets, dual bathroom sinks, stainless
steel appliances, quartz countertops, kitchen islands, ceiling fans, carpet, walk-in closets and
private patios/balconies.
The retail space at the subject is on the ground floor of a larger mixed-use development and totals
20,272 square feet. The space is divided into 15 units and is 37.6% percent leased (the vacant
suites are actively on the market). The current tenants are local and service-oriented and include
a market, barber shop, pet groomer, and restaurant.
Key Value Considerations
Strengths
Property is in very good condition.
December 8, 2021
John P. Stoecker
The Residences at Escaya
97.1% occupied as of October 25, 2021.
Desirable location in the Escaya Village of Otay Ranch in Chula Vista.
Ranks at the upper end of the submarket in terms of location, amenities, and quality
of construction.
In proximity to three freeways (125, 805, 905) and extensive supporting retail.
Risk Factors
None
Based on the analysis contained in the following report, the opinions of value for the subject are:
Extraordinary Assumptions
An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of
the effective date regarding uncertain information used in an analysis which, if found to be false,
could alter the appraiser’s opinions or conclusions. The value conclusions are subject to the
following extraordinary assumptions that may affect the assignment results.
Hypothetical Conditions
A hypothetical condition is defined in USPAP as a condition, directly related to a specific
assignment, which is contrary to what is known by the appraiser to exist on the effective date of
the assignment results but is used for the purpose of analysis. The value conclusions are based
on the following hypothetical conditions that may affect the assignment results.
The appraisal was developed based on, and this report has been prepared in conformance with
the Client’s appraisal requirements, the guidelines and recommendations set forth in the Uniform
Value Conclusions
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value "As Is"Leased Fee 12/3/2021 $140,600,000
Hypothetical Value at income Restricted Rents Fee Simple 12/3/2021 $168,800,000
Compiled by NKF
1. None
1.
2.
Our analysis was completed under the hypothetical assumption that there is an affordable housing covenant
agreement in place restricting the rents. Based upon terms of these agreements, the concluded income restricted
value of the subject property is not reflective of market value of the asset. We have relied upon information
provided by the buyer in concluding to a prospective hypotherical value in this analysis and assume the information
provided is reflective of the actual terms that will be in place upon commencement of the agreements.
The use of these hypothetical conditions might have affected assignment results.
The income restriction and ownership entity result in no ad valorem real estate taxes which significantly increases
the value of the asset.
December 8, 2021
John P. Stoecker
The Residences at Escaya
Standards of Professional Appraisal Practice (USPAP), and the requirements of the Code of
Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute.
Certification 5
The Residences at Escaya
Certification
We certify that, to the best of our knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting
conditions and are our personal, impartial and unbiased professional analyses, opinions, and conclusions.
3. We have no present or prospective interest in the property that is the subject of this report and no personal
interest with respect to the parties involved.
4. We have no bias with respect to the property that is the subject of this report or to the parties involved with
this assignment.
5. Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
6. Our compensation for completing this assignment is not contingent upon the development or reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of the value opinion,
the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended
use of this appraisal.
7. This appraisal assignment was not based upon a requested minimum valuation, a specific valuation, or the
approval of a loan.
8. Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with
the Uniform Standards of Professional Appraisal Practice, as well as the requirements of the State of
California.
9. The reported analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Code of Professional Ethics and Standards of Professional Appraisal Practice of the
Appraisal Institute.
10. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly
authorized representatives.
11. As of the date of this report, Brian Hegarty, MAI has completed the continuing education program for
Designated Members of the Appraisal Institute.
12. As of the date of this report, Robert Holman Jr. has completed the Standards and Ethics Education
Requirements for Practicing Affiliates of the Appraisal Institute.
13. Cody Van Der Linden made a personal inspection of the property that is the subject of this report. Robert
Holman Jr. and Brian Hegarty, MAI have not personally inspected the subject.
14. Significant real property appraisal assistance was provided by Kelly Lam who has not signed this certification.
The assistance of Kelly Lam consisted of conducting research on the market, subject property, and
transactions involving comparable properties, performing certain appraisal analyses, and assisting in report
writing, all under the supervision of the person(s) signing this report.
15. The Firm operates as an independent economic entity. Although employees of other service lines or affiliates
of the Firm may be contacted as a part of our routine market research investigations, absolute client
confidentiality and privacy were maintained at all times with regard to this assignment without conflict of
interest.
16. Within this report, "Newmark Knight Frank", "NKF Valuation & Advisory", "NKF, Inc.", and similar forms of
reference refer only to the appraiser(s) who have signed this certification and any persons noted above as
having provided significant real property appraisal assistance to the persons signing this report.
Certification 6
The Residences at Escaya
Robert Holman Jr.
Senior Vice President
Certified General Real Estate Appraiser
California # AG003298
Telephone: (949) 608-2045
Email: Bob.Holman@nmrk.com
Brian Hegarty, MAI
Senior Vice President
Certified General Real Estate Appraiser
California # AG030406
Telephone: (415) 445-5181
Email:
Cody Van Der Linden
Analyst
Certified General Real Estate Appraiser
California # AG3005443
Telephone: (760) 470-4038
Email:
17. Robert Holman Jr. has not performed any services, as an appraiser or in any other capacity, regarding the
property that is the subject of this report within the three-year period immediately preceding the agreement to
perform this assignment. Brian Hegarty, MAI has not performed any services, as an appraiser or in any other
capacity, regarding the property that is the subject of this report within the three-year period immediately
preceding the agreement to perform this assignment. Cody Van Der Linden has not performed any services, as
an appraiser or in any other capacity, regarding the property that is the subject of this report within the three-
year period immediately preceding the agreement to perform this assignment.
Table of Contents
The Residences at Escaya
Table of Contents
Appraisal Transmittal and Certification
Certification
Table of Contents
Subject Maps
Subject Photographs
Executive Summary 15
Introduction 17
Economic Analysis 20
Neighborhood Analysis 27
Multifamily Market Analysis 38
Retail Component 44
Land and Site Analysis 61
Zoning and Legal Restrictions 67
Improvements Analysis 69
Real Estate Taxes 84
Highest and Best Use 86
Appraisal Methodology 88
Sales Comparison Approach 89
Income Capitalization Approach 96
Hypothetical Income Restricted Analysis 119
Reconciliation of Value 122
Assumptions and Limiting Conditions 125
Addenda
Subject Maps 8
The Residences at Escaya
Aerial Photo
Subject Maps 9
The Residences at Escaya
Location Map
Subject Photographs 10
The Residences at Escaya
Avenida Escaya facing north Avenida Escaya street scene
Community Building (NAP) Typical building
Leasing office Community clubhouse
Subject Photographs 11
The Residences at Escaya
Clubhouse Clubhouse kitchen
Park Pool area
Fitness Center Model Kitchen
Subject Photographs 12
The Residences at Escaya
Model Bath Model bedroom
Model bath Stacked washer/dryer
Typical kitchen Typical bedroom
Subject Photographs 13
The Residences at Escaya
Typical bathroom Balcony
Interior scene Typical building
Interior scene Garages
Subject Photographs 14
The Residences at Escaya
Apartments over retail First floor retail
Retail storefront Retail frontage
Retail Space – 175 Broadway Vacant retail interior
Executive Summary 15
The Residences at Escaya
Executive Summary
Property Type:Multifamily-Mid/High Rise
Street Address:1925 Avenida Escaya
City, State & Zip:Chula Vista, San Diego County, CA 91913
Gross Building Area (SF):402,195
Net Rentable Area (SF):261,125
Number of Units:272
Year Built:2019
Current Occupancy:97.1%
Land Area:9.058 acres; 394,583 SF
Zoning:PC
Highest and Best Use - As Vacant:Multifamily Use
Highest and Best Use - As Improved:Multifamily Use
The Residences at Escaya
Analysis Details
Valuation Dates:
Market Value "As Is" December 3, 2021
Hypothetical Value at income Restricted Rents December 3, 2021
Inspection Date and Date of Photos:
Report Date:
Report Type:
Client:
Intended Use:
Intended User:
Appraisal Premise:
Intended Use and User:
Interest Appraised:
Exposure Time (Marketing Period) Estimate:
April 20, 2021
As Is, Hypothetical Value at income Restricted Rents
December 8, 2021
The intended use and user of our report are specifically identified in our
report as agreed upon in our contract for services and/or reliance
language found in the report. No other use or user of the report is
permitted by any other party for any other purpose. Dissemination of this
report by any party to non-client, non-intended users does not extend
reliance to any other party and Newmark Knight Frank will not be
responsible for unauthorized use of the report, its conclusions or
contents used partially or in its entirety.
Appraisal Report
Solely for bond financing and no other use.
California Municipal Finance Authority
Leased Fee
6 Months (6 Months)
California Municipal Finance Authority
Rental Unit Subtotals 1 BR 2 BR 3 BR Overall
Average Unit Size 779 SF 1,079 SF 1,581 SF 960 SF
Average Unit Asking Rent $2,232 $2,653 $3,704 $2,512
Average Unit Contract Rent $2,077 $2,505 $3,413 $2,348
Unit Occupancy 97.2%97.3% 95.0%97.1%
Unit Market Rent $2,292 $2,790 $3,726 $2,601
Leasing Summary
Executive Summary 16
The Residences at Escaya
Valuation Summary
Sales Comparison Approach $/Unit $ Total
Number of Sales 5
Range of Sale Dates Mar-21 to Oct-21
Adjusted Range of Comparables ($/Unit)$508,605 to $521,703
Indicated Sales Comparison Approach Value As Is $515,074 $140,100,000
Income Capitalization Approach - Direct Capitalization Method $/Unit $ Total
Stabilized Income Estimate
Potential Gross Income $28,315 $7,701,803
Stabilized % Vacancy & Collection Loss -4.25% ($327,327)
Net Other Income $1,400 $380,800
Effective Gross Income $28,512 $7,755,277
Operating Expenses $12,637 $3,437,184
Operating Expense Ratio 44.3%
Net Operating Income $15,875 $4,318,092
Capitalization Rate 3.25%
Indicated Direct Capitalization Value As Is $516,912 $140,600,000
Market Value Conclusion As Is $516,912 $140,600,000
Exposure / Marketing Time Min Max Average
Concluded Exposure Time 6 Months or Less
Concluded Marketing Time 6 Months or Less
Compiled by NKF
1.
1.
2.
Compiled by NKF
Our analysis was completed under the hypothetical assumption that there is an affordable housing covenant
agreement in place restricting the rents. Based upon terms of these agreements, the concluded income restricted
value of the subject property is not reflective of market value of the asset. We have relied upon information
provided by the buyer in concluding to a prospective hypotherical value in this analysis and assume the information
provided is reflective of the actual terms that will be in place upon commencement of the agreements.
Extraordinary Assumptions and Hypothetical Conditions
An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of the effective date regarding
uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The
value conclusions are subject to the following extraordinary assumptions that may affect the assignment results.
A hypothetical condition is defined in USPAP as a condition, directly related to a specific assignment, which is contrary to
what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of
analysis. The value conclusions are based on the following hypothetical conditions that may affect the assignment results.
None
The use of these hypothetical conditions might have affected assignment results.
The income restriction and ownership entity result in no ad valorem real estate taxes which significantly increases
the value of the asset.
Introduction 17
The Residences at Escaya
Introduction
Ownership History
The current owner is Village of Escaya Apartments LLC. The following summarizes a three-year
history of ownership, the current listing status, and pending transactions for the subject property
(as applicable).
Village of Escaya Apartments LLC obtained the property in March 8, 2018 from Homefed Village
lll Master LLC for an undisclosed sales price. This was a non-arms-length transaction between
related ownership entities.
The subject property is not listed for sale but the California Municipal Finance Authority has
approached the ownership to negotiate a potential purchase price.
To the best of our knowledge, no other sale or transfer of ownership has taken place within a
three-year period prior to the effective date of the appraisal.
Intended Use and User
The intended use and user of our report are specifically identified in our report as agreed upon in
our contract for services and/or reliance language found in the report. No other use or user of the
report is permitted by any other party for any other purpose. Dissemination of this report by any
party to non-client, non-intended users does not extend reliance to any other party and Newmark
Knight Frank will not be responsible for unauthorized use of the report, its conclusions or contents
used partially or in its entirety.
The intended use of the appraisal is for solely for securities purposes and no other use
is permitted. Such securities shall be offered to “Qualified Institutional Buyers” as
defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities
Act”) or “Accredited Investors” as described in Rule 501 of Regulation D under the
Securities Act and no other use.
The client is California Municipal Finance Authority
The intended user is California Municipal Finance Authority and no other user is
permitted by any other party for any other purpose.
Definition of Value
Market value is defined as:
“The most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and
Introduction 18
The Residences at Escaya
knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title from seller
to buyer under conditions whereby:
Buyer and seller are typically motivated;
Both parties are well informed or well advised, and acting in what they consider their
own best interests;
A reasonable time is allowed for exposure in the open market;
Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements
comparable thereto; and
The price represents the normal consideration for the property sold unaffected by
special or creative financing or sales concessions granted by anyone associated with
the sale.”
(Source: Code of Federal Regulations, Title 12, Chapter I, Part 34.42[g]; also, Interagency Appraisal and
Evaluation Guidelines, Federal Register, 75 FR 77449, December 10, 2010, page 77472)
Interest Appraised
The appraisal is of the Leased Fee interest.1
Leased Fee Interest: The ownership interest held by the lessor, which includes the right to receive
the contract rent specified in the lease plus the reversionary right when the lease expires.
Appraisal Report
This appraisal is presented in the form of an appraisal report, which is intended to comply with
the reporting requirements set forth under Standards Rule 2-2(a) of USPAP. This report
incorporates sufficient information regarding the data, reasoning and analysis that were used to
develop the opinion of value in accordance with the intended use and user.
Purpose of the Appraisal
The purpose of the appraisal is to develop an opinion of the As Is and Hypothetical Market Value
with Restricted Rents of the Leased Fee interest in the subject property.
1 The Dictionary of Real Estate, 6th Edition, Appraisal Institute
Introduction 19
The Residences at Escaya
Scope of Work
Extent to Which the Property is Identified
Physical characteristics
Legal characteristics
Economic characteristics
Extent to Which the Property is Inspected
NKF inspected the subject property on April 20, 2021 as per the defined scope of work. Cody Van
Der Linden made a personal inspection of the property that is the subject of this report. Robert
Holman Jr. and Brian Hegarty, MAI have not personally inspected the subject.
Type and Extent of the Data Researched
Exposure and marking time;
Neighborhood and land use trends;
Demographic trends;
Market trends relative to the
subject property type;
Physical characteristics of the site
and applicable improvements;
Flood zone status;
Zoning requirements and
compliance;
Real estate tax data;
Relevant applicable comparable
data; and
Investment rates
Type and Extent of Analysis Applied
We analyzed the property and market data gathered through the use of appropriate, relevant, and
accepted market-derived methods and procedures. Further, we employed the appropriate and
relevant approaches to value, and correlated and reconciled the results into an estimate of market
value, as demonstrated within the appraisal report.
Purpose of the Appraisal
Appraisal Premise Interest Appraised Date of Value
Market Value "As Is"Leased Fee 12/3/2021
Hypothetical Value at income Restricted Rents Fee Simple 12/3/2021
Compiled by NKF
Economic Analysis 20
The Residences at Escaya
Economic Analysis
Area Analysis
Area Map
The subject is located within Chula Vista and San Diego County, California. It is part of the San
Diego-Carlsbad metro area (San Diego-Carlsbad).
Moody’s Analytics’ Economy.com provides the following economic summary for San Diego-
Carlsbad as of August, 2021.
2015 2016 2017 2018 2019 2020 INDICATORS 2021 2022 2023 2024 2025 2026
216.1 222.6 231.6 239.7 247.5 241.7 Gross metro product (C12$ bil) 261.8 275.7 284.2 293.8 302.7 310.6
4.1 3.0 4.1 3.5 3.3 -2.3 % change 8.3 5.3 3.1 3.4 3.0 2.6
1,384.8 1,422.4 1,452.0 1,482.3 1,503.7 1,384.9 Total employment (ths)1,412.7 1,476.4 1,504.9 1,522.7 1,534.6 1,544.2
3.0 2.7 2.1 2.1 1.4 -7.9 % change 2.0 4.5 1.9 1.2 0.8 0.6
5.2 4.7 4.0 3.4 3.3 9.3 Unemployment rate (%)6.0 3.5 2.9 3.1 3.4 3.5
6.0 3.9 3.8 5.1 4.4 7.6 Personal income growth (%)6.5 0.8 5.1 5.2 4.8 4.5
68.9 72.0 75.7 80.9 84.0 85.3 Median household income ($ ths) 87.4 87.1 89.8 92.9 96.0 99.2
3,280.8 3,306.1 3,321.2 3,333.9 3,338.3 3,343.1 Population (ths)3,355.5 3,368.0 3,382.0 3,392.3 3,399.8 3,407.2
1.0 0.8 0.5 0.4 0.1 0.1 % change 0.4 0.4 0.4 0.3 0.2 0.2
8.5 3.1 -5.5 -5.2 -13.0 -10.4 Net migration (ths)-0.6 -3.9 -2.2 -5.6 -7.9 -7.7
3,222 2,351 4,056 3,489 3,019 2,900 Single-family permits (#)3,941 6,000 6,599 6,493 6,273 5,842
6,661 8,440 6,385 6,345 5,197 6,572 Multifamily permits (#)5,959 6,354 6,901 6,797 6,372 5,631
280 298 319 338 347 364 FHFA house price (1995Q1=100) 400 429 436 441 444 448
Source: Moody's Analytics Précis® US Metro
Moody's Analytics Précis® Metro Indicators: San Diego-Carlsbad
Economic Analysis 21
The Residences at Escaya
Moody’s summarizes the area’s economic performance in August 2021 as follows:
Recent Performance
San Diego-Carlsbad's economy is recovering at a below-average pace. Payrolls are rising, but less
than three-fifths of the jobs lost during the pandemic have returned, which is far behind the
national figure. Most private sector industries are adding positions, but gains are being partially
offset by losses in business services, finance and transportation/warehousing. The
unemployment rate is higher than the U.S. average and the decline in the labor force during the
pandemic has been more severe than that of the state and nation.
Market Comparison
The following table illustrates key economic indicators and a comparison of the San Diego-
Carlsbad to the regional grouping as a whole. As indicated, San Diego is projected to outperform
the South Region Metros (Los Angeles, Orange, San Diego, Riverside and San Bernardino
counties) in four of eight performance categories shown over the next five years.
Indicator 2015 2020 2025 2015 - 2020 2020 - 2025 2015 2020 2025 2015 - 2020 2020 - 2025
Gross metro product (C12$ bil)216.1 241.7 302.7 2.3% 4.6% 5,420 5,744 6,953 1.2% 3.9%
Total employment (ths)1,384.8 1,384.9 1,534.6 0.0% 2.1% 47,822 49,052 54,113 0.5% 2.0%
Unemployment rate (%)5.2% 9.3% 3.4%5.3% 7.1% 4.2%
Personal income growth (%)6.0% 7.6% 4.8%4.2% 5.4% 4.9%
Population (ths)3,280.8 3,343.1 3,399.8 0.4% 0.3% 113,395 118,897 123,636 1.0% 0.8%
Single-family permits (#)3,222 2,900 6,273 -2.1% 16.7% 362,601 542,304 671,104 8.4% 4.4%
Multifamily permits (#)6,661 6,572 6,372 -0.3% -0.6% 182,944 186,669 179,649 0.4% -0.8%
FHFA house price (1995Q1=100)280 364 444 5.4% 4.0% 304 399 437 5.6% 1.8%
San Diego-Carlsbad outperforming South Region Metros
San Diego-Carlsbad underperforming South Region Metros
Source: Moody's Analytics Précis® US Metro; Compiled by NKF
San Diego-Carlsbad Annual Growth South Region Metros
Comparison of Key Economic Indicators - San Diego-Carlsbad Metro to South Region
Annual Growth
Economic Analysis 22
The Residences at Escaya
Employment Sectors and Trends
Employment data by occupation and business/industry sectors provides an indication of the
amount of diversification and stability in the local economy. Job sector composition also gives
an indication of the predominant drivers of current and future demand for supporting commercial
real estate sectors. The following tables display employment data by occupation sector and by
business/industry sector for the area and region.
Occupation Sector
White Collar 21,275 54.5% 80,787 64.2% 1,075,167 67.7% 1,075,167 67.7% 11,580,421 64.0%
Administrative Support 5,935 15.2% 16,749 13.3% 164,129 10.3% 164,129 10.3% 1,955,983 10.8%
Management/Business/Financial 4,910 12.6% 22,073 17.5% 314,049 19.8% 314,049 19.8% 3,318,432 18.3%
Professional 6,593 16.9% 30,501 24.2% 444,301 28.0% 444,301 28.0% 4,611,876 25.5%
Sales and Sales Related 3,837 9.8% 11,464 9.1% 152,688 9.6% 152,688 9.6% 1,694,130 9.4%
Services 7,139 18.3% 22,014 17.5% 252,178 15.9% 252,178 15.9% 2,768,509 15.3%
Blue Collar 10,651 27.3% 23,039 18.3% 261,087 16.4% 261,087 16.4% 3,746,712 20.7%
Construction/Extraction 3,152 8.1% 6,135 4.9% 73,940 4.7% 73,940 4.7% 901,454 5.0%
Farming/Fishing/Forestry 137 0.4% 203 0.2% 7,759 0.5% 7,759 0.5% 266,802 1.5%
Installation/Maintenance/Repair 1,423 3.6% 3,539 2.8% 37,261 2.3% 37,261 2.3% 437,054 2.4%
Production 1,982 5.1% 4,702 3.7% 54,116 3.4% 54,116 3.4% 768,621 4.2%
Transportation/Material Moving 3,957 10.1% 8,460 6.7% 88,011 5.5% 88,011 5.5% 1,372,781 7.6%
Total Employees (16+ Occupation Base) 39,065 100.0% 125,840 100.0% 1,588,432 100.0% 1,588,432 100.0% 18,095,642 100.0%
Source: ESRI; Compiled by NKF
San Diego-Chula Vista-
Carlsbad, CA MSAChula Vista City San Diego County
Current Employment by Occupation Sector
California91911
Industry Sector
Agriculture/Mining 130 0.3% 219 0.2% 13,243 0.8% 13,243 0.8% 402,905 2.2%
Construction 3,764 9.6% 7,873 6.3% 102,090 6.4% 102,090 6.4% 1,236,406 6.8%
Manufacturing 2,949 7.5% 9,202 7.3% 133,263 8.4% 133,263 8.4% 1,567,303 8.7%
Wholesale Trade 1,187 3.0% 3,330 2.6% 36,222 2.3% 36,222 2.3% 487,645 2.7%
Retail Trade 4,715 12.1% 13,011 10.3% 156,795 9.9% 156,795 9.9% 1,818,261 10.0%
Transportation/Utilities 3,042 7.8% 7,925 6.3% 74,552 4.7% 74,552 4.7% 1,093,654 6.0%
Information 493 1.3% 2,417 1.9% 34,420 2.2% 34,420 2.2% 495,228 2.7%
Finance/Insurance/Real Estate 2,215 5.7% 7,595 6.0% 102,741 6.5% 102,741 6.5% 1,155,716 6.4%
Services 17,829 45.6% 61,609 49.0% 840,034 52.9% 840,034 52.9% 8,900,763 49.2%
Public Administration 2,741 7.0% 12,663 10.1% 95,072 6.0% 95,072 6.0% 937,761 5.2%
Total Employees (16+ Occupation Base) 39,065 100.0% 125,840 100.0% 1,588,432 100.0% 1,588,432 100.0% 18,095,642 100.0%
Source: ESRI; Compiled by NKF
Current Employment by Industry Sector
91911 Chula Vista City San Diego County
San Diego-Chula Vista-
Carlsbad, CA MSA California
Economic Analysis 23
The Residences at Escaya
Comparing the industry sectors for the local market area (Chula Vista City) to San Diego-
Carlsbad, CA MSA indicates the local market area is somewhat more heavily weighted toward the
Public Administration, Transportation/Utilities, Retail Trade, and Wholesale Trade sectors. By
contrast, the industry employment totals for San Diego-Carlsbad, CA MSA indicate somewhat
higher proportions within the Services, Manufacturing, Agriculture/Mining,
Finance/Insurance/Real Estate, Information, and Construction sectors. The following graphic
further illustrates this comparison.
Source: ESRI; Compiled by NKF
Employment Comparison
52.9%
9.9%
6.0%
8.4%
4.7%
6.4%
6.5%
2.3%
2.2%
0.8%
49.0%
10.3%
10.1%
7.3%
6.3%
6.3%
6.0%
2.6%
1.9%
0.2%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Services
Retail Trade
Public Administration
Manufacturing
Transportation/Utilities
Construction
Finance/Insurance/Real Estate
Wholesale Trade
Information
Agriculture/Mining
Chula Vista City San Diego‐Chula Vista‐Carlsbad, CA MSA
Economic Analysis 24
The Residences at Escaya
Unemployment
The following table displays the historical unemployment data for the area derived from the US
Department of Commerce, Bureau of Labor Statistics. The most recent reported unemployment
rate for the San Diego-Carlsbad, CA Metropolitan Statistical Area is 5.3% (October 2021).
Bars represent beginning to end range of unemployment rates in each year
Red bars denote increasing unemployment from beginning to end of year
Green bars are declining unemployment from beginning to end of year
Compiled by NKF
Unemployment Rate: San Diego-Carlsbad, CA Metropolitan Statistical Area
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Economic Analysis 25
The Residences at Escaya
Major Employers
The following table lists a number of major employers with the San Diego-Carlsbad as reported
by Moody’s. While not all-encompassing, this list provides further indication of the types of
economic sectors that are drivers for the area.
Analysis
Further economic analysis from Moody’s for August 2021 is detailed as follows:
High Tech
The metro area's well-trained labor force and already-large tech industry will attract employers
engaged in research and development related to information, biotech and cybersecurity. The
share of the population aged 25 or older with a bachelor's degree or higher ranks in the top decile
of metro areas nationally, and the share of jobs in high tech is twice the U.S. average. High-tech
employment suffered only minor losses at the start of the pandemic and has already expanded
beyond its previous peak. Gains here will continue thanks to an abundant supply of venture capital
and an entrepreneurial culture. Although high costs are a deterrent to some firms, plenty of others
such as Google, Apple and Amazon are willing to pay a premium for the advantages of doing
Rank Employer Employees
1 University of California >10,000
2 32nd St Naval Station >10,000
3 Mccs Mcrd >10,000
4 Kaiser Permanente >10,000
5 UC San Diego Health 5,000-9,999
6 San Diego Community College 5,000-9,999
7 Merchants Building Maintenance 1,000-4,999
8 Page One Seo 1,000-4,999
9 Scripps Research Institute 1,000-4,999
10 Sharp Grossmont Rehab Center 1,000-4,999
11 Sharp Mary Birch Hospital 1,000-4,999
12 Sharp Memorial Hospital 1,000-4,999
13 Sony Electronics 1,000-4,999
14 US Navy Med Ctr-Orthopedics 1,000-4,999
15 Scripps Mercy Hospital 1,000-4,999
16 Rady Children's Hospital 1,000-4,999
17 Palomar Pomerado Health Rehab 1,000-4,999
18 Sea World San Diego 1,000-4,999
19 Illumina Inc.1,000-4,999
20 Employees' Association of SDG&E 1,000-4,999
Source: Moody's Analytics Précis® US Metro
Selected Major Employers: San Diego-Carlsbad
Economic Analysis 26
The Residences at Escaya
business in San Diego. In addition, Synergies with defense contractors will elevate the broader
tech industry. For example, the Defense Department recently tapped Qualcomm to produce
microchip.
Defense
The importance of defense to San Diego's outlook cannot be overstated. The presence of three
Navy bases and Marine Corps Base Camp Pendleton means that the federal government employs
more than 10% of San Diego's workers in a civilian or military capacity compared with just 3%
nationally. The military bases in San Diego are among the most strategically important bases in
the Pacific and will add staff at a modest pace in coming months thanks to rising defense
spending. In addition, the metro area's deep bench of defense contractors such as Lockheed
Martin, Northrop Grumman and General Dynamics will perform well. San Diego is among the top
recipients of Department of Defense contracts and the pipeline is filling. The Air Force recently
awarded a $3.6 billion contract to Northrop Grumman for radio systems and the Navy awarded a
contract to BAE Systems to maintain and modernize the USS San Diego. With Congress
expanding the Pentagon's budget, additional federal dollars will ensure steady work for military
contractors.
Consumers
Leisure/hospitality will be a major component of the recovery, but a full rebound in the industry
will take time. San Diego has an outsize exposure to visitor spending, but is getting some relief
as leisure/hospitality payrolls rise thanks to rebounding visitations at attractions such as Sea
World, San Diego Zoo, and Legoland. Still, leisure/hospitality employment is more than 20% lower
than before the pandemic, which is worse than nationally. Fortunately, gains will accelerate
through next year as residents renew spending and cruise ships start sailing in October. On the
other hand, the recovery will take longer than elsewhere because business travel will be slow to
recover as low-cost remote meetings become more common, limiting the number of business
travelers who will come to San Diego.
Conclusion
San Diego-Carlsbad's recovery will continue, but the metro area is digging out of a larger hole than
that of the state and the nation. Tech, defense and consumer industries will drive the recovery in
the months ahead. Longer term, high costs will deter migrants, but gains in dynamic, high-skill
service industries will allow San Diego to keep pace with California and the U.S.
Neighborhood Analysis 27
The Residences at Escaya
Neighborhood Analysis
Area Map
Area Boundaries
The boundaries of the area are:
North Olympic Parkway
South Main Street
East 125 Freeway
West 805 Freeway
Neighborhood Analysis 28
The Residences at Escaya
Land Use and Neighborhood Cycle
The development cycle for the area is generally stable and the existing infrastructure is consistent
with the surrounding area. The following map illustrates the land uses around the subject: PC is
Planned Community, IL is Limited Industrial, A is Agricultural, and R-2 is One and Two Family
Residence.
Zoning Map
Subject
Neighborhood Analysis 29
The Residences at Escaya
Neighborhood Oversight/Government
The location and governmental oversight, including boundary maps, which influence the subject
are:
Zoning Map
Subject
Neighborhood Analysis 30
The Residences at Escaya
Access and Linkages
Primary Access
Regional freeways are shown in the following map.
Regional Freeways
Subject
Neighborhood Analysis 31
The Residences at Escaya
Land Use
The following was developed from Costar data for the major property types in the surrounding
2.8-mile radius around the subject.
Otay Ranch
The subject is located within Escaya, Village 3 of the Otay Ranch Community. Consisting of
22,899 acres, Otay Ranch is east of I-805 and south of Telegraph Canyon Road. The plan consists
of 11 urban villages, containing approximately 27,000 dwelling units and support commercial and
community facilities. The entire ranch will ultimately add a total population to Chula Vista of
approximately 62,373. The plan also protects the important natural resources that are evident in
the area. An 11,000-acre open space preserve has been created to protect most of the Otay Ranch
area.
Development in these villages are clustered around a "core" area within the village reflecting
varying design character and densities. The plan creates tree-lined streets, and pedestrian plazas
and buildings to complement human, rather than automotive activity. The plan provides a range
Souce: Costar; Compiled by NKF
Surrounding Area Commercial Property Characteristics
Industrial
Retail
Office
Multi-
Family
Specialty
Health
Care
By # of Properties
Industrial
Retail
Office
Multi-
Family
Specialty
Health
Care
By Size (SF)
Neighborhood Analysis 32
The Residences at Escaya
of transportation alternatives to the automobile, most notably transit and pedestrian-oriented
activities. Many of these villages will be connected by the future extension of the San Diego
Trolley LRT. The village cores also provide amenities such as commercial, parks, and schools
within a short walking distance from the residences. In addition, the Eastern Urban Center, now
known as the Millenia development, contains a variety of office, commercial, and high-density
residential uses. This urban area provides a unique functional and symbolic center for Otay
Ranch.
Within Village 3 – Escaya, There are +/-950 Single Family units plus 272 apartments in the subject.
The master developer, HomeFed Corp. is pursuing approvals for an additional 270 residential
units south of Main Street (most likely Single Family) and is pursuing a rezone of an office site to
add an additional 249 residential units (most likely apartments). The 270 units proposed south of
Main Street are currently estimated for occupancy starting in late 2023. The proposed rezone is
in process and approval is expected in early 2021. A Chevron station is now open and adjacent is
a proposed self-storage facility. Adjacent to the self-storage, HomeFed has entered escrow with
a developer to construct a +/-176,000 SF industrial project.
Neighborhood Analysis 33
The Residences at Escaya
Immediate Vicinity
Within the immediate area of the subject, property uses include the following:
North
o Vacant Land
East
o Multi-Family Residential
South
o Vacant Land/Single-Family Residential
West
o Multi-Family Residential
Demographics
A demographic summary for the defined area is illustrated as follows:
1-Mile Radius 3-Miles Radius 5-Miles Radius 91911 Chula Vista City
San Diego
County
San Diego-Chula
Vista-Carlsbad,
CA MSA California
Population
2010 Total Population 865 97,810 288,945 82,459 243,916 3,095,313 3,095,313 37,253,956
2021 Total Population 10,032 124,489 323,277 86,716 274,747 3,287,244 3,287,244 39,476,705
2026 Total Population 10,535 128,917 332,272 88,411 282,516 3,379,404 3,379,404 40,507,842
Projected Annual Growth % 1.0% 0.7% 0.6% 0.4% 0.6% 0.6% 0.6% 0.5%
Households
2010 Total Households 245 27,679 81,862 24,436 75,515 1,086,865 1,086,865 12,577,498
2021 Total Households 2,828 34,873 90,854 25,354 83,532 1,152,906 1,152,906 13,283,432
2026 Total Households 2,966 35,988 93,086 25,740 85,539 1,185,740 1,185,740 13,615,954
Projected Annual Growth % 1.0% 0.6% 0.5% 0.3% 0.5% 0.6% 0.6% 0.5%
Income
2021 Median Household Income $115,271 $102,637 $85,772 $62,811 $84,565 $84,989 $84,989 $80,044
2021 Average Household Income $129,330 $115,499 $102,301 $78,518 $101,684 $113,225 $113,225 $113,468
2021 Per Capita Income $36,440 $32,287 $28,886 $22,967 $31,010 $40,045 $40,045 $38,272
Housing
2021 Owner Occupied Housing Units 73.1% 66.4% 60.4% 50.0% 56.0% 50.9% 50.9% 51.3%
2021 Renter Occupied Housing Units 17.5% 28.7% 35.3% 46.8% 39.3% 42.6% 42.6% 40.8%
2021 Median Home Value $589,165 $581,463 $566,330 $476,789 $580,538 $663,231 $663,231 $625,650
Median Year Structure Built 2008 2000 1986 1971 1984 1979 1979 1975
Miscellaneous Data Items
2021 Bachelor's Degree 29.2% 25.7% 20.3% 13.7% 21.5% 25.0% 25.0% 22.3%
2021 Grad/Professional Degree 11.9% 10.4% 8.5% 5.1% 9.5% 15.9% 15.9% 13.4%
2021 College Graduate % 41.1% 36.1% 28.8% 18.9% 31.0% 40.9% 40.9% 35.6%
2021 Average Household Size 3.55 3.55 3.47 3.40 3.27 2.76 2.76 2.91
2021 Median Age 32.8 34.0 34.9 34.7 35.2 36.2 36.2 36.6
Source: ESRI; Compiled by NKF
Demographic Analysis
Neighborhood Analysis 34
The Residences at Escaya
Amenities
Retail tenants are shown in the following Land Vision aerial map.
Land Vision Retail Amenities Map
National and regional retail tenants are distributed throughout the area and the infrastructure
supports resident and day-time demand from businesses.
Subject
Neighborhood Analysis 35
The Residences at Escaya
Residential Housing
Home sales for November 2021 from Land Vision are presented in the following tables and the
heat maps show the location of these transactions.
Neighborhood Analysis 36
The Residences at Escaya
Land Vision Home Sales: 1,000-2,999 sq. feet
Subject
Neighborhood Analysis 37
The Residences at Escaya
Schools
Scores for public elementary, middle, and high schools from Great Schools.org are presented in
the following exhibit. Schools are rated on a scale of 1 to 10, with 10 being the best.
Great Schools
The subject property is assigned to above average schools in the city of Chula Vista.
Outlook and Conclusions
The subject is in an established community with highly rated schools and extensive retail
support.
Subject
Multifamily Market Analysis 38
The Residences at Escaya
Multifamily Market Analysis
The following discussion outlines overall market performance in the surrounding Multifamily
market using REIS market metric data. Presented first are market statistics of the San Diego
County area and the subject National City/Chula Vista submarket overall. The analysis is then
further refined to focus on demand for the subject and the properties considered to be primary
competition.
Period San Diego
National
City/Chula
Q2 2018 $1,779 $1,648
Q3 2018 $1,818 $1,667
Q4 2018 $1,832 $1,680
Q1 2019 $1,847 $1,700
Q2 2019 $1,872 $1,729
Q3 2019 $1,899 $1,740
Q4 2019 $1,907 $1,756
Q1 2020 $1,908 $1,765
Q2 2020 $1,904 $1,783
Q3 2020 $1,894 $1,785
Q4 2020 $1,888 $1,795
Q1 2021 $1,883 $1,799
Q2 2021 $1,899 $1,812
Q3 2021 $2,034 $1,871
Source: Reis; Compiled by NKF Valuation & Advisory
Asking Rent Per Unit
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
$2,000.00
$2,100.00
Q2 2018 Q1 2019 Q4 2019 Q3 2020 Q2 2021
San Diego National City/Chula Vista
Period San Diego
National
City/Chula
Q2 2018 95.8% 94.9%
Q3 2018 95.7% 95.4%
Q4 2018 95.6% 95.7%
Q1 2019 95.7% 95.9%
Q2 2019 95.9% 95.8%
Q3 2019 95.8% 95.7%
Q4 2019 95.7% 95.7%
Q1 2020 95.9% 95.8%
Q2 2020 95.9% 95.3%
Q3 2020 95.5% 95.6%
Q4 2020 95.6% 95.5%
Q1 2021 95.6% 95.5%
Q2 2021 95.5% 95.9%
Q3 2021 95.5% 96.0%
Source: Reis; Compiled by NKF Valuation & Advisory
Occupancy Rate
90.0%
91.0%
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
Q2 2018 Q1 2019 Q4 2019 Q3 2020 Q2 2021
San Diego National City/Chula Vista
Multifamily Market Analysis 39
The Residences at Escaya
The average occupancy rate for the subject National City/Chula Vista submarket is
slightly higher than the overall San Diego County market area.
The average rental rate for the National City/Chula Vista submarket is lower than the
overall San Diego County market.
Based on the statistics there has been limited impact from Covid-19 on the overall
market as occupancy has remained high and rental rates have risen since 2020.
Market and Submarket Trends and Forecast
The overall San Diego County market area and National City/Chula Vista submarket
are projected to improve with increasing occupancy and rental rates.
Inventory
(Unit)
Completions
(Unit) Vacancy (%)
Net
Absorption
(Unit)
Asking
Rent/Unit
Inventory
(Unit)
Completions
(Unit) Vacancy (%)
Net
Absorption
(Unit)
Asking
Rent/Unit
Q3 2019 201,767 1,374 4.2% 1,035 $1,899 23,548 77 4.3% 62 $1,740
Q4 2019 202,824 1,057 4.3% 858 $1,907 23,548 0 4.3% -7 $1,756
Q1 2020 202,824 0 4.1% 466 $1,908 23,548 0 4.2% 21 $1,765
Q2 2020 203,129 305 4.1% 200 $1,904 23,656 108 4.7% -5 $1,783
Q3 2020 204,371 1,242 4.5% 504 $1,894 23,656 0 4.4% 52 $1,785
Q4 2020 204,762 391 4.4% 505 $1,888 23,718 62 4.5% 45 $1,795
Q1 2021 204,762 0 4.4% 19 $1,883 23,718 0 4.5% -16 $1,799
Q2 2021 205,379 617 4.5% 352 $1,899 23,718 0 4.1% 102 $1,812
Q3 2021 205,921 542 4.5% 607 $2,034 23,718 0 4.0% 35 $1,871
2021 * 207,287 2,866 4.5% 2,209 $2,041 23,888 170 4.1% 249 $1,884
2022 * 209,996 2,709 4.6% 2,452 $2,110 24,080 192 4.0% 208 $1,927
2023 * 211,509 1,513 4.5% 1,629 $2,175 24,126 46 4.2% -7 $1,946
2024 * 213,030 1,521 4.2% 2,051 $2,239 24,236 110 4.2% 107 $1,986
2025 * 214,653 1,623 4.1% 1,755 $2,310 24,423 187 4.3% 152 $2,033
2026 * 216,078 1,425 3.9% 1,792 $2,381 24,582 159 4.1% 204 $2,085
2027 * 217,351 1,273 3.8% 1,445 $2,452 24,631 49 4.0% 68 $2,145
2028 * 218,792 1,441 3.7% 1,580 $2,532 24,720 89 4.0% 107 $2,219
2029 * 220,374 1,582 3.6% 1,676 $2,614 24,825 105 3.8% 134 $2,310
2030 * 221,795 1,421 3.6% 1,345 $2,703 24,879 54 3.7% 82 $2,414
* Reis Base Case Forecast
Source: Reis; Compiled by NKF Valuation & Advisory
Multifamily Market Trends
San Diego National City/Chula Vista
Multifamily Market Analysis 40
The Residences at Escaya
Supply & Demand
Construction Versus Absorption
Information about supply and demand changes outside of the metric data was presented
previously. The following illustrates construction and absorption as reported by REIS separately.
Absorption in the National City/Chula Vista submarket has kept pace with
construction over the past five years as evidenced by the approximate one to one ratio
of construction to absorption.
Reis forecasts that construction and absorption will remain in approximate
equilibrium over the upcoming five years.
Trends and Projections
Subject and Market Historical and Forecast Trends
Market / Submarket
Unit Built Unit
Absorbed
Const. /
Abs. Ratio Unit Built Unit
Absorbed
Const. /
Abs. Ratio Unit Built Unit
Absorbed
Const. /
Abs. Ratio Unit Built Unit
Absorbed
Const. /
Abs. Ratio
San Diego 1,938 1,675 1.2 10,660 9,181 1.2 15,920 13,403 1.2 10,232 10,096 1.0
National City/Chula Vista 170 113 1.5 760 652 1.2 1,220 1,174 1.0 705 709 1.0
Source: Reis; Compiled by NKF Valuation & Advisory
Prior Full Year History Prior Three Year History Prior Five Year History Five Year Forecast
Construction/Absorption Change
Full Calendar Years History Forecast
Current Most Recent
Full Year
Trailing 3-
Year
Trailing 5-
Year
Trailing 10-
Year
Forward 1-
Year
Forward 3-
Year
Forward 5-
Year
Reis
San Diego 4.50% 4.40% 4.40% 3.40% 3.30% 4.60% 4.20% 3.90%
National City/Chula Vista 4.00% 4.50% 4.30% 3.80% 4.00% 4.00% 4.20% 4.10%
Source: REIS, NKF Valuation & Advisory
Market Vacancy Rate Indicators
Multifamily Market Analysis 41
The Residences at Escaya
CoStar Competitive Market
The following map and tables provide a summary of the local market based on CoStar.
This data differs from the data in the previous section since this part of the analysis
focuses more on the immediate submarket. It should be noted blue diamonds depict
properties either in escrow or for-sale.
Geography
o Area boundaries below
Property Type
o Multi-family apartments
o Units ranging in size from 50 -500 units
CoStar Properties Map
Subject
Multifamily Market Analysis 42
The Residences at Escaya
CoStar Trends
CoStar Analytics
CoStar is forecasting the market will continue to improve in 2022 with the vacancy
rate declining and market rents increasing.
Multifamily Market Analysis 43
The Residences at Escaya
CoStar Buyer Profile
The following table provides a summary based upon the following sales search parameters in
CoStar.
Geography – San Diego County
Property – Apartment buildings ranging in size from 50-500 units
Time – Sales from December 1, 2020
Sale by Buyer Type
Outlook and Conclusions
The typical buyer is private parties, which is consistent with the buyer profiles noted
by brokers in the competitive market and the individual sales
San Diego and the subject market should be characterized by strong occupancy and
stable rental rates as demand in this market continues to remain strong.
Retail Component 44
The Residences at Escaya
Retail Component
The retail component is considered secondary use and therefore this component has been valued
in this stand-alone section which includes the following:
Subject Analysis
Overall Retail Market Overview
CoStar Competitive Market Analysis
Retail Component Net Operating Income Projection
Retail Component Value
Subject Analysis
The retail space at the subject is on the ground floor of a larger mixed-use development and totals
20,272 square feet. The space is divided into 15 units and is 37.6% percent leased (the vacant
suites are actively on the market). It is part of a larger residential community which is being
revitalized through the development of similar mixed-use projects.
The retail component is a relatively minor component of the overall project as the income from
this segment is 10% of the effective gross income from the residential component.
The following site plan and rent roll provide additional information on the retail component.
Retail Component 45
The Residences at Escaya
Overall Retail Market Analysis
The following discussion outlines overall market performance in the surrounding Retail market.
Presented first are market statistics of the San Diego area and the subject South Bay submarket
overall along with more closely focused statistics related specifically to the subject property and
its market segment. The analysis is then further refined to focus on demand for the subject and
the properties considered to be primary competition.
Suite Rentable Rem.
Number Tenant Area (SF) Start End Mos. MLA Category $ Total $ PSF $ Total $ PSF
1/114/116 Brandywine Market 2,536 Jul-21 May-30 102 Retail $76,080 $30.00 $83,688 $33.00
1-118 The Gents Corner Barbershop 1,221 Jun-21 Oct-25 46 Retail $36,630 $30.00 $40,293 $33.00
3-101 TBD 1,338 0 Restaurant $48,168 $36.00
3-103 TBD 1,211 0 Retail $36,330 $30.00
3-105 TBD 1,235 0 Retail $37,050 $30.00
3-107 TBD 1,207 0 Retail $36,210 $30.00
3-109 TBD 1,221 0 Restaurant $43,956 $36.00
4-105 Taco Lounge 1,337 Jan-22 Nov-25 47 Restaurant $48,132 $36.00 $44,121 $33.00
4-107 Broadys House of Flavors 1,244 Dec-21 Jul-25 43 Retail $37,320 $30.00 $41,052 $33.00
4-109 TBD 1,216 0 Retail $36,480 $30.00
4-111 TBD 1,216 0 Retail $36,480 $30.00
4-113 TBD 1,352 0 Restaurant $48,672 $36.00
5-102 TBD 1,331 0 Retail $39,930 $30.00
5-104 TBD 1,314 0 Retail $39,420 $30.00
5-106 Pride N Joy Pet Grooming 1,293 Jun-21 Jun-26 54 Retail $38,790 $30.00 $42,669 $33.00
Total Occupied 7,631 66 $236,952 $31.05 $251,823 $33.00
Total Vacant 12,641 $402,696 $31.86
Total Total (Average)20,272 66 $639,648 $31.55 $251,823 $33.00
Compiled by NKF
Rent Roll
Lease Term Year 1 Market Rent Year 1 Contract Rent
Period San Diego South Bay Chula Vista
Q2 2018 $24.33 $23.51 $23.34
Q3 2018 $24.74 $23.77 $23.90
Q4 2018 $23.31 $23.55 $24.45
Q1 2019 $22.96 $22.62 $21.89
Q2 2019 $22.63 $22.75 $21.98
Q3 2019 $23.15 $22.45 $21.29
Q4 2019 $24.30 $22.18 $20.94
Q1 2020 $24.56 $22.36 $21.60
Q2 2020 $26.37 $22.41 $21.72
Q3 2020 $27.30 $22.57 $21.64
Q4 2020 $27.70 $22.73 $21.20
Q1 2021 $28.35 $23.95 $22.80
Q2 2021 $28.16 $23.70 $22.96
Q3 2021 $28.49 $23.40 $23.41
Source: Costar; Compiled by Newmark Valuation & Advisory
Asking Rent Per SF
$18.00
$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
Q2 2018 Q1 2019 Q4 2019 Q3 2020 Q2 2021
San Diego South Bay Chula Vista
Retail Component 46
The Residences at Escaya
The average occupancy rate for the subject submarket is lower than that of the overall
market area.
The average rental rate for the submarket is lower than the overall San Diego market.
The subject submarket is considered a stable submarket as compared to the other
submarkets in the overall San Diego area due to its location.
Period San Diego South Bay Chula Vista
Q2 2018 95.8% 95.8% 97.1%
Q3 2018 95.7% 96.5% 97.7%
Q4 2018 95.7% 96.6% 98.0%
Q1 2019 95.5% 96.0% 97.4%
Q2 2019 95.7% 96.4% 97.6%
Q3 2019 95.7% 96.3% 97.4%
Q4 2019 95.7% 96.4% 97.2%
Q1 2020 95.5% 96.5% 97.2%
Q2 2020 95.9% 96.3% 97.0%
Q3 2020 95.4% 96.0% 96.6%
Q4 2020 95.3% 95.9% 96.6%
Q1 2021 94.5% 95.1% 94.4%
Q2 2021 94.6% 95.1% 94.7%
Q3 2021 94.9% 95.8% 95.2%
Source: Costar; Compiled by Newmark Valuation & Advisory
Occupancy Rate
90.0%
91.0%
92.0%
93.0%
94.0%
95.0%
96.0%
97.0%
98.0%
99.0%
100.0%
Q2 2018 Q1 2019 Q4 2019 Q3 2020 Q2 2021
San Diego South Bay Chula Vista
Trailing Four Quarters Ended Q3 2021
Market / Submarket Inventory (SF)
Completions
(SF) Vacancy (%)
Net Absorption
(SF)
NNN Rent
Overall / SF
San Diego 139,647,661 553,836 5.10% -216,256 $28.49
South Bay 19,586,172 54,051 4.20% 15,729 $23.40
Chula Vista 9,060,140 40,459 4.80% -91,285 $23.41
Source: Costar; Compiled by Newmark Valuation & Advisory
Retail Market Statistics
Retail Component 47
The Residences at Escaya
Market and Submarket Trends
The overall market area and submarket have been increasing with respect to
occupancy over the past year. Over the past several years, effective rental rates have
been following an increasing trend. It appears leasing has improved over the last two
quarters in the subject’s submarket.
Inventory (SF)
Completions
(SF) Vacancy %
NNN Rent
Overall / SF Inventory (SF)
Completions
(SF) Vacancy %
NNN Rent
Overall / SF
Q3 2019 140,046,525 66,027 4.3% $23.15 9,023,116 7,553 2.6% $21.29
Q4 2019 139,989,120 34,931 4.3% $24.30 9,013,645 0 2.8% $20.94
Q1 2020 139,884,278 27,817 4.5% $24.56 8,996,261 0 2.8% $21.60
Q2 2020 139,067,204 94,695 4.1% $26.37 9,019,681 23,420 3.0% $21.72
Q3 2020 139,189,312 143,370 4.6% $27.30 9,019,681 0 3.4% $21.64
Q4 2020 139,237,689 71,106 4.7% $27.70 9,019,681 0 3.4% $21.20
Q1 2021 139,494,810 313,736 5.5% $28.35 9,019,681 0 5.6% $22.80
Q2 2021 139,579,947 96,082 5.4% $28.16 9,060,140 40,459 5.3% $22.96
Q3 2021 139,647,661 72,912 5.1% $28.49 9,060,140 0 4.8% $23.41
Source: Costar; Compiled by Newmark Valuation & Advisory
San Diego Chula Vista
Retail Market Trends
Retail Component 48
The Residences at Escaya
Supply & Demand
Construction Versus Absorption
Trends and Projections
Subject and Market Historical and Forecast Trends
Market / Submarket
SF Built SF Absorbed
Const. /
Abs. Ratio SF Built SF Absorbed
Const. /
Abs. Ratio SF Built SF Absorbed
Const. /
Abs. Ratio
San Diego 336,988 -1,352,328 -0.2 1,282,034 -1,498,760 -0.9 2,444,849 384,975 6.4
South Bay 98,428 -30,189 -3.3 272,202 206,134 1.3 398,673 492,732 0.8
Chula Vista 23,420 -47,651 -0.5 33,058 -52,502 -0.6 63,619 143,913 0.4
Source: Costar; Compiled by Newmark Valuation & Advisory
Prior Calendar Years History
Construction/Absorption Change
Prior Calendar Year History Prior Three Year History Prior Five Year History
Current Most Recent
Full Year
Trailing 3-
Year
Trailing 5-
Year
Trailing 10-
Year
Costar
San Diego 5.10% 4.70% 4.30% 4.00% 5.50%
South Bay 4.20% 4.10% 3.40% 3.30% 5.40%
Chula Vista 4.80% 3.40% 2.00% 2.80% 4.10%
Source: Costar, Newmark Valuation & Advisory
Market Vacancy Rate Indicators
Retail Component 49
The Residences at Escaya
CoStar Competitive Market
The following map and tables provide a summary of the local market based on CoStar.
Geography
o The polygon borders in the map
Property Type
o Retail Properties
o Multi-Tenant between 5,000 SF and 50,000 SF
CoStar Properties Map
Subject
Retail Component 50
The Residences at Escaya
CoStar Trends
CoStar Analytics
Retail Component 51
The Residences at Escaya
CoStar Buyer Profile
The following table provides a summary based upon the following sales search parameters in
CoStar.
Geography – San Diego County
Property – Multi-Tenant Retail Buildings between 10,000 to 50,000
Time – Sales from January 1, 2021
Sale by Buyer Type
Outlook and Conclusions
The typical buyer is private parties, which is consistent with the buyer profiles noted
by brokers in the competitive market and the individual sales
San Diego County and the subject market should be characterized by strong
occupancy and increasing rental rates as demand in this market continues to remain
strong.
Retail Component 52
The Residences at Escaya
Net Operating Income Projection
The following analysis is used to determine the projected net operating income for this
component of the subject. The resulting figure is added to the direct capitalization in the primary
use analysis.
Market Rent
Contract rents typically establish income for leased space, while market rent is the basis for
estimating income for current vacant space and future speculative re-leasing of space due to
expired leases. Also, it is important to compare current contract rent levels with market rent levels
(i.e. above/below market rent profile). To estimate market rent for the subject, we considered
data and opinions from the following:
asking rents from competitive properties;
actual recent leases from comparable buildings;
recently negotiated or signed leases within the subject property; and
opinions of market rent derived from our interviews of leasing brokers active in the
local market
Comparable Map
Retail Component 53 The Residences at Escaya Retail SpaceSubjectComparable 1Comparable 2Comparable 3Comparable 4Comparable 5Comparable 6Comparable 7Property NameRetail Component Freestanding Strip Retail Heritage Town Center Eastlake Village Center Millenia Town Center Marketplace at Windingwalk Chula Vista Bay Center The Shops at Bonita Address1925 Avenida Escaya. 788 Broadway 1392 East Palomar Street 2220 Otay Lakes Road 2020 Birch Road 1745-2160 Eastlake Parkway 645 H Street3001 Bonita RoadCity, StateChula Vista, CAChula Vista, CAChula Vista, CAChula Vista, CAChula Vista, CAChula Vista, CAChula Vista, CAChula Vista, CASubmarketValuation RetailChula VistaChula VistaEastlakeEastlakeChula VistaChula VistaChula VistaRentable Area (SF)20,272 SF5,600 SF35,864 SF8,207 SF3,500 SF103,711 SF14,512 SF9,194 SFYear Built (Renovated)20201980200219962020200819751994Number of Stories1 1 311111ExteriorStuccoStuccoStuccoStuccoStuccoStuccoStuccoStuccoConditionGood AverageAverageAverageAverageAverageAverageAverageInvestment GradeClass CClass BClass BClass CClass CClass AClass CClass CRental Survey InformationSurvey DateDec-21Dec-21Apr-21Apr-21Apr-21Apr-21Apr-21Lease DetailsLease StatusSigned LeaseSigned LeaseSigned LeaseSigned LeaseSigned LeaseSigned LeaseSigned LeaseLease DateSep-21Jul-21Dec-20Aug-20Dec-19Jan-20Dec-19Term (Mos.)36 36 60 120 60 60 60 Lease Size (SF)1,200 1,188 1,732 1,886 10,387 1,384 1,271 Rates and MeasuresBase Rental Rate$36.00 $30.00 $45.00 $48.00 $40.20 $30.00 $32.40 Lease Reimbursement MethodTriple NetTriple NetTriple NetTriple NetTriple NetTriple NetTriple NetCompiled by NKFComparable Rentals Summary
Retail Component 54
The Residences at Escaya
Analysis of Comparable Leases
The comparables included represent retail space in strip centers, mixed-use(residential/retail),
and retail space in anchored shopping center developments. The leases range from $30.00 to
$48.00 PSF/Year. The rents at the high end of the range are part of anchored/mixed-use
properties which would be more desirable than a freestanding strip retail building. The subject
would achieve a rent towards the middle of the range as it not anchored.
In addition to the comparables, consideration was given to the recent leases in the subject. There
are currently five signed leases for six suites and all leases include a base rent of $33.00
PSF/Year. The asking rent for the vacant spaces ranges from $3.00 PSF/Mo to $3.25 PSF/Mo
(Higher rent is for end cap spaces that include patio area as these will be leased to restaurants
which require a more intensive build-out).
The leasing activity at the subject has been limited as only 1 suite was leased over the last 6
months. Based on data presented in the market analysis, it appears retail leasing has been
increasing in the subject’s submarket. Thus, we have concluded to a figure below the subject’s
asking rate to achieve stabilization as this would likely increase demand and allow for
stabilization in 12 months as opposed to a longer stabilization period to achieve a higher rent.
The most recent leases support the concluded market rent figures.
Overall, market rent would range from a low of $30.00 to a high of $36.00 based upon the location
and tenancy.
Conclusion
The contract rent and market rent are show in the following table
Retail Component 55
The Residences at Escaya
Common Area Reimbursements
Leases in the subject market are generally structured on a triple net basis, with the tenants
responsible for all on-site operating expenses. Due to the mixed-use nature of most of this retail
market, space is typically marketed on a fixed CAM basis and the subject is projected at a rate of
$11.44 per square foot which is on par with comparable properties which typically range from
$6.00 to $12.00 per square foot annually.
Vacancy & Collection Loss Allowance
The following was considered in estimating the total stabilized vacancy and collection loss
allowance 10.00%.
The subject is a multi-tenant asset and will be subject to vacancy
Larger mixed-use developments similar to the subject in the market are and have
historically been impacted by vacancy when leased at market rates
Supply will continue to be added to the market through the continued development of
additional mixed-use projects (the ground floor is required to be commercial space).
Suite Rentable Rem.
Number Tenant Area (SF) Start End Mos. MLA Category $ Total $ PSF $ Total $ PSF
1/114/116 Brandywine Market 2,536 Jul-21 May-30 102 Retail $76,080 $30.00 $83,688 $33.00
1-118 The Gents Corner Barbershop 1,221 Jun-21 Oct-25 46 Retail $36,630 $30.00 $40,293 $33.00
3-101 TBD 1,338 0 Restaurant $48,168 $36.00
3-103 TBD 1,211 0 Retail $36,330 $30.00
3-105 TBD 1,235 0 Retail $37,050 $30.00
3-107 TBD 1,207 0 Retail $36,210 $30.00
3-109 TBD 1,221 0 Restaurant $43,956 $36.00
4-105 Taco Lounge 1,337 Jan-22 Nov-25 47 Restaurant $48,132 $36.00 $44,121 $33.00
4-107 Broadys House of Flavors 1,244 Dec-21 Jul-25 43 Retail $37,320 $30.00 $41,052 $33.00
4-109 TBD 1,216 0 Retail $36,480 $30.00
4-111 TBD 1,216 0 Retail $36,480 $30.00
4-113 TBD 1,352 0 Restaurant $48,672 $36.00
5-102 TBD 1,331 0 Retail $39,930 $30.00
5-104 TBD 1,314 0 Retail $39,420 $30.00
5-106 Pride N Joy Pet Grooming 1,293 Jun-21 Jun-26 54 Retail $38,790 $30.00 $42,669 $33.00
Total Occupied 7,631 66 $236,952 $31.05 $251,823 $33.00
Total Vacant 12,641 $402,696 $31.86
Total Total (Average)20,272 66 $639,648 $31.55 $251,823 $33.00
Compiled by NKF
Rent Roll
Lease Term Year 1 Market Rent Year 1 Contract Rent
Retail Component 56
The Residences at Escaya
Operating Expenses
Direct Capitalization
The following sales were utilized to support the direct capitalization.
The sales create a range from 5.58% to 6.62% with an average of 5.94%. Based on the
tenants at the subject and the external impact of Covid-19, the subject would generate
a rate toward the upper end of the range.
Further, the subject is part of a larger mixed-use development which would typically
increase the rate relative to a stand-alone asset.
Based on this information, a capitalization rate of 6.25 percent is considered
reasonable
Comp 1 Comp 2 Comp 3 Comp 4
Year Built 2007 2009 1951 1955
SF 20,082 40,000 9,000 17,494
Operating Data Type Actual Actual Actual Actual
Year 2019 2018 2018 2018
Operating Expenses per Square Foot
Real Estate Taxes $2.16 $2.48 $5.71 $4.09
Insurance $0.12 $0.44 $0.52 $0.24
Repairs and Maintenance $4.42 $3.25 $1.44 $1.85
General and Administrative $0.30 $0.50 $0.00 $0.30
Management $1.10 $1.92 $0.60
Total Operating Expenses per Square Foot $7.00 $7.77 $9.59 $7.08
Net Operating Income (% of EGI)
Compiled by NKF
Expense Analysis per Square Foot
No.Address Size Sale Date Price Price/SF($) Occupancy Cap Rate
1.) 5404-5420 El Cajon Boulevard, San Diego 9,672 Oct-21 $4,100,000 $423.90 86.70% 5.50%
2.) 1208 Broadway, Chula Vista 6,600 Sep-21 $5,400,000 $654.27 50% N/A
3.) 3773 W illow Glen, El Cajon 8,497 Jul-20 $3,800,000 $447.22 100.00% 6.62%
4.) 9254 Scranton Road, San Diego 11,901 Dec-19 $9,000,000 $756.24 100.00% 6.05%
5.) 8274 Parkway Drive, La Mesa 10,809 Nov-19 $3,600,000 $333.06 100.00% 5.97%
6.) 11385 Poway Road, San Diego 15,038 Sep-19 $6,800,000 $452.19 100.00% 5.58%
Compiled by NKF
Comparable Sales
Retail Component 57
The Residences at Escaya
Stabilization Discount
The space is divided into 15 retail spaces and is 37.6% percent leased (the vacant suites are
actively on the market and the broker indicated there are ongoing negotiations with several
prospective tenants). It is part of a larger residential community which is still in lease-up. We have
estimated a 12-month stabilization period as the lower market rent will likely attract tenants. The
lease-up costs for the subject are shown below and have been deducted in our direct
capitalization analysis.
For the purposes of this analysis, a stabilization discount of $1,230,000 has been applied.
Space Size Stabilization Date Months Vacant Gross Income/SF Lost Income TI/SF TI Cost Term(Years CommissionLC Cost Total
Retail Space (Vacant) 8730 12/1/2022 12 $40.71 $355,369 $25 $218,250 5 6.00% $106,611 $700,000
Restaurant Space (Vacant) 3911 12/1/2022 12 $46.71 $182,670 $50 $195,550 5 6.00% $54,801 $430,000
Leased Space (Free Rent Per Lease Documents)$100,000
Total $1,230,000
Rounded $1,230,000
Compiled by NKF
Lease Up Costs
Retail Component 58
The Residences at Escaya
Commercial Component Value
The resulting value of the commercial component is:
Summary of Stabilized Net Operating Income
Item Description % of Income $ / SF Total $
Retail Revenue 20,272 SF
Potential Base Rent $32.29 $654,519
Scheduled Base Rent $32.29 $654,519
Expense Recoveries $10.21 $206,908
Percentage Rent Income $0.00 $0
Total Tenant Revenue $42.49 $861,427
Vacancy Allowance -10.00% ($4.25) ($86,143)
Effective Gross Income $38.24 $775,285
Operating Expenses 20,272 SF
Real Estate Taxes $5.06 $102,562
Insurance $0.50 $10,136
General and Administrative $0.50 $10,136
Management 3.00% $1.15 $23,259
Common Area Maintenance $3.50 $70,952
Total Operating Expenses 28.00% $10.71 $217,044
Net Operating Income $27.54 $558,240
Direct Capitalization Method
$ / SF Total $
As Stabilized
Stabilized Net Operating Income $27.54 $558,240
Overall Capitalization Rate 6.25%
Prospective As Stabilized Value Effective Date: $8,931,844
Rounded $439.03 $8,900,000
Value
$9,708,527
$9,304,005
$8,931,844
$8,588,312
$8,270,226
De-Escalated Prospective Stabilized Value Indications Value Indication
De-Escalation Factor (per year)0.00%
Hypothetical As Stabilized Value as of Current Date Effective Date: $8,931,844
As Is
Hypothetical As Stabilized Value as of Current Date Effective Date: $8,931,844
Stabilization Discount ($1,230,000)
As Is Value Effective Date: $7,701,844
Rounded $379.83 $7,700,000
Compiled by NKF
Income Capitalization Approach
12/3/2021
OAR
5.75%
Valuation Matrix
Value Indication
5/1/2022
12/3/2021
12/3/2021
6.00%
6.25%
6.50%
6.75%
Retail Component 59
The Residences at Escaya
Income Capitalization Approach Conclusion
The concluded value by the Income Capitalization Approach considers the direct capitalization
approach. The typical buyer in the competitive market for the subject only uses the direct
capitalization approach. Market rent was well established, and the expense estimates were
considered reasonable. Capitalization rates were developed from a number of sources including
the sales used in the sales comparison approach.
Market Value Premise As Is
Prospective Upon
Stabilization
As of Date:December 3, 2021 May 1, 2022
Direct Capitalization $7,700,000 $8,900,000
Reconciled Value $7,700,000 $8,900,000
Value per SF $379.83 $439.03
Compiled by NKF
Income Capitalization Approach - Indicated Value
Retail Component 60
The Residences at Escaya
As additional support to this value conclusion the following sales of commercial retail centers in
the San Diego market was considered. The concluded value for the subject on a price per square
foot basis is towards the center of the range of these sales as represent varied locations and
property conditions (age, appeal, etc).
Conclusion
The following points summarizes the overall conclusion for the retail component.
The neighborhood is being revitalized and there will be demand for new retail tenants
once the impact of the pandemic recedes.
No.Address Size Sale Date Price Price/SF($) Occupancy Cap Rate
1.) 5404-5420 El Cajon Boulevard, San Diego 9,672 Oct-21 $4,100,000 $423.90 86.70% 5.50%
2.) 1208 Broadway, Chula Vista 6,600 Sep-21 $5,400,000 $654.27 50% N/A
3.) 3773 Willow Glen, El Cajon 8,497 Jul-20 $3,800,000 $447.22 100.00% 6.62%
4.) 9254 Scranton Road, San Diego 11,901 Dec-19 $9,000,000 $756.24 100.00% 6.05%
5.) 8274 Parkway Drive, La Mesa 10,809 Nov-19 $3,600,000 $333.06 100.00% 5.97%
6.) 11385 Poway Road, San Diego 15,038 Sep-19 $6,800,000 $452.19 100.00% 5.58%
Compiled by NKF
Comparable Sales
Land and Site Analysis 61
The Residences at Escaya
Land and Site Analysis
Plat Map 1
Land and Site Analysis 62
The Residences at Escaya
Site Map
Land and Site Analysis 63
The Residences at Escaya
Flood Map
Land and Site Analysis 64
The Residences at Escaya
Alquist-Priolo Map
Alquist-Priolo Legend – Applies to All Subject Parcels
Land and Site Analysis 65
The Residences at Escaya
The subject property excludes parcel 644-061-48 totaling 0.94-acres, which is improved with a
10,366 square foot two-story community (CPF) building. There is a reciprocal access and parking
easement for the community building and apartments.
Land Parcels
Parcel Summary Associated APN(s) Classification Land Area (SF) Land Area (Acres)
Site 1 644-061-08-00 Primary Site 1 78,843 1.8100
Site 2 644-061-49-00 Primary Site 1 9,078 0.2084
Site 3 644-061-47-00 Primary Site 1 306,662 7.0400
394,583 9.0584
Compiled by NKF
Total Gross Land Area
Total Land Area 9.0584 Acres; 394,583 SF
Usable Land Area 9.0584 Acres; 394,583 SF
Excess Land Area None
Surplus Land Area None
Source of Land Area Public Records
Site Characteristics
Primary Street Frontage Avenida Escaya
Accessibility Rating Above Average
Visibility Rating Above Average
Shape Irregular
Corner Yes
Topography Level
Easements / Encroachments None noted
Environmental Hazards None noted
Flood Zone Analysis
Flood Area Panel Number 06073C2157G
Date 5/16/2012
Zone Zone X
Description Area of minimal flood hazard, usually depicted on Flood Insurance
Rate Maps as above the 500-year flood level.
Insurance Required?No
Utilities
Utility Services Electricity, Gas, Sewer, Water
Utility Service Providers
Water City of Chula Vista
Sewer City of Chula Vista
Electricity Southern California Edison
Natural Gas Southern California Gas Company
Compiled by NKF
Land Description
Land and Site Analysis 66
The Residences at Escaya
Easements, Encroachments and Restrictions
We were not provided a current title report to review. Further, there do not appear to be any
easements, encroachments, or restrictions that would adversely affect value. Our valuation
assumes no adverse impacts from easements, encroachments, or restrictions, and further
assumes that the subject has clear and marketable title.
Alquist-Priolo Earthquake Fault Zoning Act
Based on the California Department of Conservation website “The Alquist-Priolo Earthquake Fault
Zoning (AP) Act was passed into law following the destructive February 9, 1971 Mw 6.6 San
Fernando earthquake, which was associated with extensive surface fault ruptures that damaged
numerous homes, commercial buildings, and other structures. The AP Act provides a mechanism
for reducing losses from surface fault rupture on a statewide basis. The intent of the AP Act is to
ensure public safety by prohibiting the siting of most structures for human occupancy across
traces of active faults that constitute a potential hazard to structures from surface faulting or
fault creep.” Further, “Earthquake Fault Zones are regulatory zones around active faults. On the
Earthquake Fault Zone Maps, the zones are shown as shaded yellow polygons that encompass
mapped fault traces. The zones vary in width, but average about one-quarter mile wide.” The
subject property is not included within an AP Earthquake Fault Zone.
Environmental Issues
No environmental issues were observed or reported. NKF is not qualified to detect the existence
of potentially hazardous issues such as soil contaminants, the presence of abandoned
underground tanks, or other below-ground sources of potential site contamination. The existence
of such substances may affect the value of the property. For this assignment, we have
specifically assumed that any hazardous materials that would cause a loss in value do not affect
the subject.
Conclusion
The subject site is irregular in shape, with non-contiguous parcels, has level
topography and is functional for any legally probable use.
The physical characteristics of the site result in functional utility suitable for a variety
of uses including those permitted by zoning and there are reportedly no other
restrictions on development.
Zoning and Legal Restrictions 67
The Residences at Escaya
Zoning and Legal Restrictions
The subject site is located within the city of Chula Vista.
Zoning Map
Subject
Zoning and Legal Restrictions 68
The Residences at Escaya
Conclusion
The subject was built in 2019-2020 and appears to be a legal conforming use under the PC zone.
Overall, the physical characteristics of the site and the availability of utilities result in functional
utility suitable for a variety of uses including those permitted by zoning. Uses permitted by zoning
include a mixed-use multifamily complex. We are not aware of any other restrictions on
development.
Category Description
Zoning Jurisdiction City of Chula Vista
Zoning Designation PC
Description Planned Community
Legally Conforming?Yes
Zoning Change Likely?Unlikely
Permitted Uses Residential, Commercial, Institutional
Parking Requirement Studio: 1 space per unit, 1BR: 1.5 spaces per unit, 2BR: 2 spaces per unit
and 3BR: 2 spaces per unit. Total of 627 spaces (479 spaces for
Residential and 148 spaces for Commercial).
Parking Provided 637 spaces (483 spaces for Residential and 154 spaces for Commercial)
Open Space Required 54,600 SF
Open Space Provided 66,420 SF
Compiled by NKF
Zoning Summary
Improvements Analysis 69
The Residences at Escaya
Improvements Analysis
Building Floor Plans Example – Building 1
Ground Level
Improvements Analysis 70
The Residences at Escaya
First Floor
Improvements Analysis 71
The Residences at Escaya
Second Floor
Improvements Analysis 72
The Residences at Escaya
Third Floor
Improvements Analysis 73
The Residences at Escaya
Roof Plan
Improvements Analysis 74
The Residences at Escaya
Elevations
Improvements Analysis 75
The Residences at Escaya
Unit Plans
One-bedroom Example
Improvements Analysis 76
The Residences at Escaya
Two-bedroom Example
Improvements Analysis 77
The Residences at Escaya
Three-bedroom Example
Improvements Analysis 78
The Residences at Escaya
Improvements Analysis 79
The Residences at Escaya
Improvements Analysis 80
The Residences at Escaya
Component Structures
Improvements (Structures) Primary Use
General Improvement Type Multifamily
Use Description Mid/High Rise
No. Buildings 14
No. Units 272
GBA (SF)402,195
Rentable SF 261,125
Average Unit Size (SF) 960
% Occupied 97.06%
Construction Status Existing, Stabilized Operations
Construction Class D
Quality Good
Current Condition Good
Age/Life Depreciation Analysis
Year Built 2019
Year Renovated None
Economic Life (Yrs.) 55
Effective Age (Yrs.)2
Remaining Economic Life (Yrs.) 53
Percent Depreciation 3.64%
Floor Area Analysis
Number of Stories 3
Est. Ground Floor Area (GBA) 134,065
Attributed Site Area (SF) 394,583
Site Coverage 34.0%
Floor Area Ratio (FAR) 1.019
Unit Density (Units/Acre) 30.0
Land to Building Ratio 0.981
Parking Type Carport and Garage
Parking Spaces (including garages when applicable) 637
Parking Ratio Per Unit 2.34
Construction Details Mid/High Rise
Foundation Reinforced Concrete
Structural Frame Wood Frame
Exterior Walls Stucco
Windows Dual Pane
Roof Flat
Improvements Description
Improvements Analysis 81
The Residences at Escaya
Interior Finish Mid/High Rise
Floors Vinyl, Carpet
Walls Painted drywall
Ceilings 9'
Lighting Recessed and pendant
Engineering & Mechanical Mid/High Rise
HVAC Central HVAC
Electrical Assumed adequate
Plumbing Assumed adequate
Utility Meters Individually metered
Improvement Features and Amenities Mid/High Rise
Property Amenities On-site retail, dog parks, picnic areas,
playground, hiking trails, clubhouse,
fitness center, mail parcel center, lounge
area, resort-style swimming pool, spa,
cabanas, lawn areas, and bike storage
Unit Amenities
9' ceilings, vinyl plank flooring, base
moldings, in-unit washer/dryers, coat
closets, recessed and pendant lighting,
dual panel doors, linen closets, dual
bathroom sinks, stainless steel
appliances, quartz countertops, kitchen
islands, ceiling fans, carpet, walk-in
closets and private patios/balconies
Compiled by NKF
Improvements Analysis 82
The Residences at Escaya
Unit Mix
Property Condition
Down Units
As of the date of inspection, the subject was in good condition and had no down units.
Recent Renovations
The subject was built in 2019 and has not been renovated.
Deferred Maintenance
Our observation of the property indicated no significant items of deferred maintenance.
Other Property Considerations
Functional Utility
Based on our inspection and consideration of its current and future use as well as review of
individual floor plans and the overall complex, there do not appear to be any significant items of
functional obsolescence.
The quality of the subject and market appeal is consistent with that of competing Class A
properties.
ADA Compliance
Based on our observation as well as any information provided, no ADA compliance issues were
noted. Further, given the age of construction the subject would have met these requirements.
No. Units Unit Description
Unit Size
(SF)
Rentable
Area (SF)
Occupied
Units
Unit
Occupancy
15 1 BR/1 BA AFF - 758 SF 758 11,372 15 100.0%
126 1 BR/1 BA - 781 SF 781 98,406 122 96.8%
141 1 BR Total 779 109,778 137 97.2%
14 2 BR/2 BA AFF - 1,038 SF 1,038 14,536 14 100.0%
97 2 BR/2 BA - 1,084 SF 1,084 105,187 94 96.9%
111 2 BR Total 1,079 119,723 108 97.3%
1 3 BR/2 BA AFF - 1,560 SF 1,560 1,560 1 100.0%
19 3 BR/2 BA - 1,582 SF 1,582 30,064 18 94.7%
20 3 BR Total 1,581 31,624 19 95.0%
272 Totals 261,125 264
Averages 960 97.1%
Compiled by NKF
Unit Mix
Improvements Analysis 83
The Residences at Escaya
Environmental Assessment
We were not provided a Phase I Environmental Assessment. We did not observe any potentially
hazardous materials such as lead paint, asbestos, urea formaldehyde foam insulation, or other
potentially hazardous construction materials on or in the improvements. However, it is noted that
we did not search for such materials and are not qualified to detect such materials. The existence
of said hazardous materials (if any) may have an effect on the value of the property. Therefore,
for the purpose of this appraisal, we have specifically assumed that the property is not affected
by any hazardous materials that may be present on or in the improvements. We strongly
recommend that a qualified environmental engineering firm be retained by the Client prior to
making a business decision.
Personal Property
Certain items in apartment projects are sometimes considered personal property, such as
furniture, fixtures or equipment. These items include kitchen appliances (stove, refrigerator and
dishwasher) in each unit and various items in the common areas including miscellaneous
maintenance tools, pool furniture, leasing office furniture, recreational room and clubhouse
furniture, and various exercise machines. The apartment units are rented on an unfurnished
basis. However, typically personal property is included in the sale of multifamily apartment
complexes. The personal property items contained in the subject are not considered to contribute
significantly to the overall value of the real estate.
Conclusion
The improvements are of good quality construction and are in very good condition.
The improvements were constructed in 2019.
The improvements are functional for the existing use.
Overall, the improvements are well suited for the existing use.
Real Estate Taxes 84
The Residences at Escaya
Real Estate Taxes
Based on the Legislative Analyst’s Office (LAO) of the State of California real estate taxes are
based on property value in two basic components:
The 1 Percent Rate. The largest component of most property owners’ annual property
tax bill is the 1 percent rate—often called the 1 percent general tax levy or countywide
rate. The Constitution limits this rate to 1 percent of assessed value…The 1 percent
rate is a general tax, meaning that local governments may use its revenue for any
public purpose.
Voter–Approved Debt Rates. Most tax bills also include additional ad valorem
property tax rates to pay for voter–approved debt. Revenue from these taxes is used
primarily to repay general obligation bonds issued for local infrastructure projects,
including the construction and rehabilitation of school facilities. Most local
governments must obtain the approval of two–thirds of their local voters in order to
issue general obligation bonds repaid with debt rates. General obligation bonds for
school and community college facilities, however, may be approved by 55 percent of
the school or community college district’s voters. Local voters do not approve a fixed
tax rate for general obligation bond indebtedness. Instead, the rate adjusts annually
so that it raises the amount of money needed to pay the bond costs.
Based on the LAO, “The process that county assessors use to determine the value of real property
was established by Proposition 13. Under this system, when real property is purchased, the
county assessor assigns it an assessed value that is equal to its purchase price, or “acquisition
value.” Each year thereafter, the property’s assessed value increases by 2 percent or the rate of
inflation, whichever is lower. This process continues until the property is sold, at which point the
county assessor again assigns it an assessed value equal to its most recent purchase price. In
other words, a property’s assessed value resets to market value (what a willing buyer would pay
for it) when it is sold.”
The following table is a summary of the most recent assessed information and associated taxes
for the subject.
Tax Year 2021
Tax ID Land Improvements Total
Land &
Improvements
Ad Valorem
Taxes
Direct
Assessments Total
644-061-08-00 $857,331 $14,559,287 $15,416,618 1.1630% $179,301 $5,632 $184,934
644-061-49-00 $176,562 $1,925,746 $2,102,308 1.1630% $24,451 $727 $25,178
644-061-47-00 $3,325,595 $86,705,053 $90,030,648 1.1630% $1,047,092 $38,431 $1,085,524
$4,359,488 $103,190,086 $107,549,574 1.1630% $1,250,845 $44,791 $1,295,636
Compiled by NKF
Assessed Value Tax Rates Taxes and Assessments
Taxes and Assessments
Real Estate Taxes 85
The Residences at Escaya
Real estate taxes in the valuation are based on the appropriate methodology required by
California tax law and typical underwriting methods. Specifically, based upon a review of real
estate tax assessments after a property purchase, the assessor uses the actual sale price more
than 90 percent of the time as the new basis. Most investors also model pro-forma taxes based
upon their acquisition price. The definition of market value used in this appraisal is based on the
premise the subject is sold at the concluded value. Therefore, the value conclusion by each
approach, where appropriate, is used as the real estate tax basis in the pro-forma estimate.
The ad valorem taxes and the pro forma conclusion are presented in the following table.
Conclusion
2021
Total Assessed Value $107,549,574 $132,864,379
Total Assessed Value/Unit $395,403 $488,472
Direct Assessments $44,791 $44,791
Tax Rate 1.163040% 1.163040%
Actual / Pro Forma Taxes $1,295,636 $1,590,057
Reported Tax Delinquencies None None
Tax Exemptions or Abatements None None
Compiled by NKF
Ad Valorem Tax Analysis
Subject History
Highest and Best Use 86
The Residences at Escaya
Highest and Best Use
As Vacant
Legally Permissible
The site is zoned PC with permitted uses such as residential, commercial and institutional. Based
on available data and analysis, no other legal restrictions such as easements or deed covenants
are present which would impair the utility of the site. Given that surrounding properties have
similar zoning and the future land use plan is focused on similar uses as well, it is unlikely that
there would be a change of zoning classification. Further information and analysis about the legal
restrictions to the subject property is included in the Site Analysis and Zoning and Legal
Restrictions sections of this report.
Physically Possible
The subject site contains approximately 9.06 acres, has favorable topography, adequate access,
and all necessary utilities to support the range of legally permissible uses. No significant physical
limitations were noted. The size of the site is typical for the categories of uses allowed under
zoning. In total, the site is physically capable of supporting the legally permissible uses.
Financially Feasible
Of the legally permissible and physically possible uses, multifamily mixed-use appears most
probable based on observation of surrounding properties as well as the location. Given the
underlying market conditions and activity, it appears that a multifamily mixed-use development
would have a sufficient degree of feasibility.
The following are relevant points related to the subject’s market segment:
The subject submarket’s occupancy levels are improving, and rents are stable to
slightly increasing.
There have been recent sales of similar properties in this market indicating good
investor demand.
Development of new apartment buildings continues in the wider Southern California
market as there is a general consensus from the investment community that the
region is under-served relative to good quality rental housing.
New construction will likely pause until it is clear the impacts of COVID-19 begin to
dissipate as the excessive supply and pandemic are negatively impacting market
performance
Highest and Best Use 87
The Residences at Escaya
Maximally Productive
The test of maximum productivity is to determine the actual use of the property that results in the
highest land value and/or the highest return to the land. It is important to consider the risk of
potential uses as a use that may generate the highest returns in cash could also be the riskiest
and thus not as likely for a developer to consider. In this case, the maximally productive use is a
multifamily mixed-use development. The associated risk is typical and market conditions appear
to be supportive.
Highest and Best Use Conclusion – As Vacant
The highest and best use of the subject as though vacant is the development of a mixed-use
multifamily and retail project.
This conclusion is supported by several new apartment buildings in the competitive market.
As Improved
Legally Permissible
The existing multifamily mixed-use improvements appear to be legally conforming to zoning.
Physically Possible
The current improvements conform to the physical characteristics of the site. Therefore,
continued multifamily mixed-use use of the property is reasonably probable and appropriate.
Financially Feasible
Financial feasibility focuses on positive and excess returns from the improved property. In this
case, the subject is an income producing property and is capable of generating sufficient income
to support the continuation of the use. This is demonstrated in the income capitalization
approach by the fact that a positive income stream can be generated.
Maximally Productive
The existing multifamily mixed-use improvements are legally permissible, physically possible, and
financially feasible. The concluded value as though improved exceeds the value of the underlying
land and removal of the improvements for redevelopment or substantial conversion to an
alternative use is not indicated based on current neighborhood trends. Given no alternatives, the
maximally productive use of the property is consistent with the existing development.
Highest and Best Use – As Improved
Therefore, the highest and best use of the subject as improved is the existing multifamily mixed-
use project. Market and economic conditions are supportive of this continued use.
Appraisal Methodology 88
The Residences at Escaya
Appraisal Methodology
Cost Approach
The cost approach is based on the proposition that the informed purchaser would pay no more
for the subject than the cost to produce a substitute property with equivalent utility. This
approach is particularly applicable when the property being appraised involves relatively new
improvements that represent the highest and best use of the land, or when it is improved with
relatively unique or specialized improvements for which there exist few sales or leases of
comparable properties.
Sales Comparison Approach
The sales comparison approach utilizes sales of comparable properties, adjusted for differences,
to indicate a value for the subject. Valuation is typically accomplished using physical units of
comparison such as price per square foot, price per unit, price per floor, etc., or economic units
of comparison such as gross rent multiplier. Adjustments are applied to the property units of
comparison derived from the comparable sale. The unit of comparison chosen for the subject is
then used to yield a total value.
Income Capitalization Approach
The income capitalization approach reflects the subject’s income-producing capabilities. This
approach is based on the assumption that value is created by the expectation of benefits to be
derived in the future. Specifically estimated is the amount an investor would be willing to pay to
receive an income stream plus reversion value from a property over a period of time. The two
common valuation techniques associated with the income capitalization approach are direct
capitalization and the discounted cash flow (DCF) analysis.
Application of Approaches to Value
Approach Comments
Cost Approach
Sales Comparison Approach
Income Capitalization Approach
Compiled by NKF
The Income Capitalization Approach is applicable and is utilized in this appraisal.
The Sales Comparison Approach is applicable and is utilized in this appraisal.
The Cost Approach is not applicable and is not utilized in this appraisal.
Sales Comparison Approach 89
The Residences at Escaya
Sales Comparison Approach
The sales comparison approach value is derived by analyzing closed sales, listings, or pending
sales of properties that are similar to the subject. The sales comparison approach includes the
following steps.
Research and verify information on properties in the competitive market that are
similar to the subject and that have recently sold, are listed for sale, or are under
contract.
Select the most relevant units of comparison in the market and develop a comparative
analysis.
Examine and quantify via adjustments differences between the comparable sales and
the subject property using all appropriate elements of comparison.
Reconcile the various value indications to a value bracket and then a single value
indication.
The unit of comparison applied in this sales comparison analysis is price per unit as it mirrors the
primary comparison method used by market participants.
Comparable Map
Sales Comparison Approach 90
The Residences at Escaya
Sales Comparison Approach 91
The Residences at Escaya
Comparable One Comparable Two
Comparable Three Comparable Four
Comparable Five
Sales Comparison Approach 92
The Residences at Escaya
Analysis of Improved Comparable Data
Despite COVID-19, the demand for apartment investments have remained strong and there is
downward pressure on capitalization rates as property owners took projects off market due to
the initial panic over the potential impact. Occupancy rates and rents have been steady to
improving for suburban apartments and values have been minimally impacted.
Comparable One
This is the October 2021 sale of 1818 Platinum Triangle, a 2009-built, 265-unit apartment project
situated on a single parcel totaling 3.08-acres in the city of Anaheim. The property is comprised
of one building that is five stories with garage parking. The unit mix includes one-bedroom (160),
and two-bedroom (105) units. Project amenities include breakfast/coffee concierge, business
center, clubhouse, controlled access, elevator, fitness center, gated, grill, guest apartment,
package service, property manager on site. Unit amenities include high-speed internet access,
washer/dryer-in-unit, air conditioning, heating, ceiling fans, smoke-free, cable ready, storage units,
and wheelchair accessible (rooms). The property was sold in October of 2021 for $127,260,000
or $480,226 per unit. It was 95% occupied at the time of the sale. The capitalization rate was
reported as 3.50% on income in place. The property was purchased with bond financing for
inclusion in the States workforce housing program which requires rent to be limited to 80%, 100%
and 120% of AMI.
A transaction adjustments was required for market conditions (time).
Property adjustments were required for location, age/condition, and economic characteristics-
retail. After consideration of the individual elements of comparison, a net upward property
adjustment was required. Applying transaction and property adjustments results in a price per
unit indication of $514,130.
Comparable Two
Cameo is a 2020-built, 262-unit apartment in city of Orange. The property includes (60) studios,
(90) one-bedroom, (93) two-bedroom, and (19) three-bedroom units - all market rate. Property
amenities include gated access, coffee bar, juice bar, business center, package lockers, storage
space, bike repair service, resident lounge, fitness center, rooftop patio, swimming pool, spa,
cabanas, grilling areas, fire pits, outdoor game area, sky lounge, dog run, and pet spa facility. Unit
amenities include vinyl plank flooring, stainless steel appliances, kitchen island, in-unit
washer/dryer, and private balconies/patios. Parking is provided by 463 garage spaces.. The
property sold in September 2021 for $149,000,000, or $568,702 per unit, and was 100% occupied
at the time of sale. The overall capitalization rate equates to 3.25% based on income in place.
A transaction adjustments was required for market conditions (time).
Sales Comparison Approach 93
The Residences at Escaya
Property adjustments were required for location, age/condition, and economic characteristics-
retail. After consideration of the individual elements of comparison, a net downward property
adjustment was required. Applying transaction and property adjustments results in a price per
unit indication of $516,950.
Comparable Three
Joule La Floresta Apartments is a 2018-built, 204-unit apartment in Brea. The property includes
one-bedroom, two-bedroom, and three-bedroom units - all market rate. Project amenities include
a swimming pool, cabanas, spa, courtyard with grilling station, resident lounge, business center,
conference room/dining room, sky loung, fitness center, and a fitness studio. Unit amenities
include hardwood style flooring, quartz countertops, stainless steel appliances, in-unit
washer/dryer, walk-in closets, solar shades, Nest thermostats, and a private patio or balcony.
Parking is provided by surface and covered spaces. The property sold in June 2021 for
$108,125,000, or $530,025 per unit, and was 94.6% occupied at the time of sale. The overall
capitalization rate equates to 3.25% based on income in place.
A transaction adjustments was required for market conditions (time).
Property adjustments were required for location and economic characteristics-retail. After
consideration of the individual elements of comparison, a net downward property adjustment was
required. Applying transaction and property adjustments results in a price per unit indication of
$513,594.
Comparable Four
Griffis Mission Valley is a 2006-built, 350-unit apartment building in San Diego. The property
includes one-bedroom, two-bedroom and three-bedroom units. Property amenities include a
swimming pool, spa, fitness center, business center, community BBQ area, courtyard, and
clubhouse. Unit amenities include stainless steel appliances, granite countertops, walk-in closet,
in-unit washer/dryer, and private patios/balconies. The property sold in April of 2021 for
$155,700,000 or $444,857 per unit. The property was 96% occupied at the time of sale and the
overall capitalization rate equates to 3.50% based on income in place.
A transaction adjustments was required for market conditions (time).
Property adjustments were required for location, age/condition, and economic characteristics-
retail. After consideration of the individual elements of comparison, a net upward property
adjustment was required. Applying transaction and property adjustments results in a price per
unit indication of $508,605.
Comparable Five
The Resort at Encinitas is a 1984-built, 196-unit apartment building in Encinitas. The property
includes one-bedroom and two-bedroom units. Property amenities include a swimming pool, spa,
Sales Comparison Approach 94
The Residences at Escaya
fitness center, and clubhouse. Unit amenities include kitchen appliances, washer/dryer, ceiling
fans, window coverings, and a private patio/balcony. Parking is provided by 400 surface and
covered parking spaces. Utilities are individually metered. The property sold in March 2021 for
$94,100,000 or $480,102 per unit. The property was 84% occupied at the time of sale and the
overall capitalization rate equates to 3.50% based on income in place.
A transaction adjustments was required for market conditions (time).
Property adjustments were required for location, age/condition, quality, and economic
characteristics-retail. After consideration of the individual elements of comparison, a net upward
property adjustment was required. Applying transaction and property adjustments results in a
price per unit indication of $521,703.
Based on our comparative analysis, the following table summarizes the adjustments warranted
to each comparable.
SubjectSale 1Sale 2Sale 3Sale 4Sale 5
Property Name The Residences at Escaya 1818 Platinum Triangle Cameo Apartments Joule La Floresta Griffis Mission Valley The Resort at Encinitas
Address 1925 Avenida Escaya 1818 South State College 1055 West Town and 420 La Crescenta Drive 1440 Hotel Circle North 1320 Via Terrassa
City Chula Vista, CA Anaheim, CA Orange, CA Brea, CA San Diego, CA Encinitas, CA
Land Size 9.06 Acres 3.08 Acres 3.18 Acres 2.92 Acres 6.96 Acres 16.34 Acres
Size (Rentable Area)261,125 SF 272,420 SF 227,962 SF 170,000 SF 324,800 SF 205,604 SF
Number of Apt. Units 272 265 262 204 350 196
Average Unit Size (SF)960 SF 1,028 SF 870 SF 833 SF 928 SF 1,049 SF
Year Built (Renovated) 2019 20092020201820061984
NOI/Unit $15,875 $16,695 $18,483 $17,226 $15,570 $16,804
Transaction Type --Closed Closed Closed Closed Closed
Transaction Date --Oct-21 Sep-21 Jun-21 Apr-21 Mar-21
Actual Sale Price --$127,260,000 $149,000,000 $108,125,000 $155,700,000 $94,100,000
Price per Unit --$480,226 $568,702 $530,025 $444,857 $480,102
Occupancy 96%95%100%N/A 96%84%
Cap Rate --3.48%3.25%3.25%N/A 3.50%
Transaction Adjustments
Property Rights 0%0%0%0%0%
Financing 0%0%0%0%0%
Conditions of Sale 0%0%0%0%0%
Market Conditions (Time)12/3/2021 1%1%2%3%3%
Subtotal (adjustments are multiplied)1.0%1.0%2.0%3.0%3.0%
Transaction Adjusted Price per Unit $485,029 $574,389 $540,625 $458,203 $494,505
Property Adjustments
Location -10.0%-10.0%-10.0%-5.0%-20.0%
Size 0.0%0.0%0.0%0.0%0.0%
Age/Condition 10.0%-5.0%0.0%10.0%15.0%
Parking 0.0%0.0%0.0%0.0%0.0%
Features/Amenities 0.0%0.0%0.0%0.0%0.0%
Quality 0.0%0.0%0.0%0.0%5.0%
Economic Characteristics-Retail 6.0%5.0%5.0%6.0%5.5%
Average Unit Size (SF)/Mix 0.0%0.0%0.0%0.0%0.0%
Subtotal (adjustments are summed)6.0%-10.0%-5.0%11.0%5.5%
Gross Adjustment 27.0%21.0%17.0%24.0%48.5%
Overall Adjustment 7.06%-9.1%-3.1%14.33%8.66%
Indicated Price per Unit $514,130 $516,950 $513,594 $508,605 $521,703
Compiled by NKF
Comparable Sales Adjustment Grid
Sales Comparison Approach 95
The Residences at Escaya
Price per Unit Conclusion
To arrive at an indication of value by price per unit, primary emphasis was placed on Comparable
4 as it is located in the subject’s market area and is most similar overall. Comparables 1 and 2
are the most recent transactions and given strong secondary weight. The remaining comparables
are given less weight. We have concluded to a figure near the adjusted average. Based on the
preceding analysis, the value indication by price per unit is as follows:
Sales Comparison Approach Conclusion
Price per Unit Low High Average
Unadjusted Range $444,857 $568,702 $500,782
Adjusted Range $508,605 $521,703 $514,997
Concluded Price per Unit Indication $515,000
Compiled by NKF
Multifamily Sales Adjustment Summary
Reconciliation of Price per Unit Indication Value Indication
Adjusted Value Range - Low $508,605
Adjusted Value Range - High $521,703
Reconciled As Stabilized Value - Price per Unit Effective Date: 12/3/2021 $515,000
Subject Apt. Units 272
Reconciled As Stabilized Value - Price per Unit Analysis $140,080,000
Reconciled As Stabilized Value - Sales Comparison Approach Effective Date: 12/3/2021 $140,080,000
Value Indications
As Is Value Indication
Reconciled As Stabilized Value Effective Date: 12/3/2021 $140,080,000
As Is Value Effective Date: 12/3/2021 $140,080,000
Rounded $140,100,000
Compiled by NKF
Sales Comparison Approach Conclusion
Income Capitalization Approach 96
The Residences at Escaya
Income Capitalization Approach
The income capitalization approach reflects the subject’s income-producing capabilities. This
approach is based on the assumption that value is created by the expectation of benefits to be
derived in the future. Specifically estimated is the amount an investor would be willing to pay to
receive an income stream plus reversion value from a property over a period of time. The two
common valuation techniques associated with the income capitalization approach are direct
capitalization and the discounted cash flow (DCF) analysis.
The direct capitalization method is normally more appropriate for properties with relatively stable
operating histories and expectations. The DCF analysis is more appropriate for investment
properties with multiple or long-term leases, particularly leases with cancellation clauses or
renewal options, and especially in volatile markets.
In this analysis, we utilized only direct capitalization because investors and market participants
typically rely more on this method.
Rent Roll / Tenant Overview
A summary rent roll for the property is shown below, based on our review of the owner's rent roll.
Market rent will be developed below.
As of the date of the rent roll (October 25, 2021), there are 8 vacant units.
The project includes 30 units designated for low and moderate-income households.
The subject includes 15 affordable 1BR units leased at an average of $1,679 per month.
This reflects a 28.6% discount to market rent.
The subject includes 14 affordable 2BR units are leased at an average of $1,899 per
month. This reflects a 34.5% discount to market rent.
No. Units Unit Description
Unit Size
(SF)
Rentable
Area (SF)
Occupied
Units
Unit
Occupancy
Avg.
Contract
Rent Asking Rent
Typical
Recent
Leases Market Rent
Market Rent
PSF
15 1 BR/1 BA AFF - 758 SF 758 11,372 15 100.0% $1,679 $1,810 $1,735 $1,803 $2.38
126 1 BR/1 BA - 781 SF 781 98,406 122 96.8% $2,126 $2,283 $2,262 $2,350 $3.01
141 1 BR Total 779 109,778 137 97.2% $2,077 $2,232 $2,292 $2.94
14 2 BR/2 BA AFF - 1,038 SF 1,038 14,536 14 100.0% $1,899 $2,046 $2,007 $2,028 $1.95
97 2 BR/2 BA - 1,084 SF 1,084 105,187 94 96.9% $2,595 $2,741 $2,709 $2,900 $2.67
111 2 BR Total 1,079 119,723 108 97.3% $2,505 $2,653 $2,790 $2.59
1 3 BR/2 BA AFF - 1,560 SF 1,560 1,560 1 100.0% $2,016 $2,329 N/A $2,329 $1.49
19 3 BR/2 BA - 1,582 SF 1,582 30,064 18 94.7% $3,490 $3,777 $3,865 $3,800 $2.40
20 3 BR Total 1,581 31,624 19 95.0% $3,413 $3,704 $3,726 $2.36
272 Totals 261,125 264
Averages 960 97.1% $2,348 $2,512 $2,601 $2.71
Compiled by NKF
Unit Mix
Income Capitalization Approach 97
The Residences at Escaya
The subject includes one affordable 3BR unit is leased at $2,016 per month, a 46.9%
discount to market
The subject includes two model units (1BR and 2BR).
The subject includes two employee units (1BR and 2BR).
Market Rent Analysis
In estimating market rent for the subject property, we considered data and opinions from the
following:
Leasing activity with competing properties; and
Market area leasing trends
Comparable Map
No.Name Address
Subject The Residences at Escaya 1925 Avenida Escaya, Chula Vista, CA 91913
1 Boardwalk at Millenia Apartments 1660 Metro Avenue, Chula Vista, CA
2 Alexan Rivue Apartments 1902 Millenia Avenue, Chula Vista, CA
3 Enclave at Otay Ranch 1625 Santa Venetia Street, Chula Vista, CA
4 Pulse Millenia Apartments 2043 Artisan Way, Chula Vista, CA
5 The Club at Enclave 1629 Santa Venetia Street, Chula Vista, CA
Compiled by NKF
Income Capitalization Approach 98
The Residences at Escaya
Comparable One Comparable Two
Comparable Three Comparable Four
Comparable Five
Income Capitalization Approach 99
The Residences at Escaya
Analysis of Comparable Properties
Comparable One
This comparable is identified as Boardwalk at Millenia Apartments, a 2018-built, 309-unit, three-
story apartment project located at 1660 Metro Ave in the City of Chula Vista. The project includes
one-bedroom, two-bedroom and three-bedroom units. Property amenities include bicycle storage,
pet care, play ground, pool area and fitness center. Units feature air conditioning, hardwood floors
and refrigerator. It is currently 97% occupied and lease terms are typically 12 months. Gas and
electricity are individually metered. Management is currently not offering any concessions.
Comparable Two
This comparable is identified as Alexan Rivue Apartments, a 2019-built, 253-unit, 3-story
apartment project located at 1902 Millenia Ave in the city of Chula Vista. The project includes
one-bedroom, two-bedroom, and three-bedroom units. Property amenities include a business
center, clubhouse, fitness center, swimming pool, spa, and picnic area. Units feature central AC,
recreation room, stainless steel appliances, washer/dryer, and a private balcony. It is currently
97% occupied and lease terms range from 6 to 12 months. Management is not offering any
concessions.
Comparable Three
This comparable is identified as Enclave Apartments, a 2017-built, 301-unit, 3-story apartment
project located at 1625 Santa Venetia in the city of Chula Vista. The project includes one-
bedroom, two-bedroom, and three-bedroom units. Property amenities include controlled access,
a business center, picnic area, playground, saltwater pool, spa, clubhouse, outdoor fireplace,
recreation room, media room, fitness center, night patrol, guest room, and a recreation room.
No. Units Year Built Group for
No. Property Name Avg. Unit SF Occupancy Unit Type Size (SF) Rent $/SF Comparison Comments
1 309 2018 1 BR/1 BA 841 $2,345 $2.79 1 BR
971 97% 2 BR/1 BA 1,302 $2,915 $2.24 2 BR
3 BR/2 BA 1,380 $3,615 $2.62 3 BR
2 253 2019 1 BR/1 BA 761 $2,325 $3.06 1 BR
988 97% 2 BR/1 BA 1,075 $2,870 $2.67 2 BR
3 BR/2 BA 1,693 $3,895 $2.30 3 BR
3 301 2017 1 BR/1 BA 730 $2,455 $3.36 1 BR
971 99% 2 BR/1 BA 1,097 $3,050 $2.78 2 BR
3 BR/2 BA 1,327 $3,325 $2.51 3 BR
4 273 2015 1 BR/1 BA 827 $2,650 $3.20 1 BR
970 99% 2 BR/1 BA 1,102 $3,435 $3.12 2 BR
3 BR/2 BA 1,371 $3,855 $2.81 3 BR
5 297 2020 1 BR/1 BA 811 $2,500 $3.08 1 BR
1,051 91% 2 BR/2 BA 1,088 $2,990 $2.75 2 BR
3 BR/2 BA 1,466 $3,715 $2.53 3 BR
Competitive Set Totals By Unit Type Unit Size Range Average Average Rent /SF Range Average
1 BR 730 - 841 SF 794 SF $2,455 $2.79 - $3.36/SF $3.10
2 BR 1,075 - 1,302 SF 1,133 SF $3,052 $2.24 - $3.12/SF $2.71
3 BR 1,327 - 1,693 SF 1,447 SF $3,681 $2.30 - $2.81/SF $2.55
Compiled by NKF
Alexan Rivue Apartments
Comparable Mid/High Rise Rentals Summary
Boardwalk at Millenia
Apartments
Enclave at Otay Ranch
Pulse Millenia Apartments
The Club at Enclave
$2,325 - $2,650
$2,870 - $3,435
$3,325 - $3,895
Unit Rent Range
Income Capitalization Approach 100
The Residences at Escaya
Parking is provided by garage, covered, and surface parking. Rates include $60 one-time fee for
a parking permit (per vehicle), surface parking is $20 per month, and $100 per month for a second
vehicle. Garage rates include $125 to $150 per month. Units feature stainless steel appliances,
quartz countertops, hardwood-style flooring, washer/dryer, ceiling fans, walk-in closet, window
coverings, central AC, and a private patio/balcony. It is currently 99% occupied and lease terms
range from 12 to 18 months. Management is not offering any concessions.
Comparable Four
This comparable is identified as Pulse Millenia Apartments, a 2015-built, 273-unit, 3-story
apartment project located at 2043 Artisan Way in the City of Chula Vista. The project includes
one-bedroom, two-bedroom, and three-bedroom units. Property amenities include a fitness
center, sundeck with a swimming pool and cabanas, spa, social lounge, media area, conference
room, bocce ball court, outdoor fireplace lounge, and ground-floor retail. Units feature stainless
steel appliances, granite countertops, washer/dryer, plank flooring, ceiling fans, walk-in closets,
central AC, and private patios. Parking is provided by 200 covered spaces. It is currently 99%
occupied and lease terms range from 4 to 14 months. Gas and electricity are individually metered.
Management is not offering any concessions.
Comparable Five
This comparable is identified as The Club at Enclave Apartments, a 2020-built, 297-unit, 3-story
apartment project consisting of one-bedroom two-bedroom, and three-bedroom units. Project
amenities include controlled access, a recreation room, swimming pool, spa, night patrol,
business center, media room, fitness center, clubhouse, picnic area, and a playground. Unit
amenities include window coverings, washer/dryers, ceiling fans, central AC, stainless steel
appliances, and a private patio/balcony. It is currently 91% occupied and lease terms are typically
14 to 18 months. Utilities are individually metered for gas and electricity. Management is currently
not offering any concessions.
Individual Unit Type Analysis
The following is a general analysis of the comparable and subject rents
The comparables are located northeast of the subject and have superior freeway
access. This is the primary factor in achieving higher rents.
Comparables 1 and 2 are most similar overall and given greater consideration is
estimating market rent.
Lease rates at the subject are at the lower end of the range of the newer buildings in
the competitive market due primarily to the subject’s inferior freeway access.
Income Capitalization Approach 101
The Residences at Escaya
1 BR Units
The subject includes (126) 1BR units with an average unit size of 781 SF.
The subject includes (15) 1BR Affordable units with an average unit size of 758 SF.
There have been (18) 1BR recent leases, from July 2021 to October 2021, averaging
$2,262 per month.
Market rent is concluded at $2,350 and $1,803 for the affordable units. This is
supported by recent leasing at the subject and the comparable properties in the
subject’s local market.
Subject Subject Average Typical
Unit Type Asking Rates Contract Recent Leases Min Max Average $/SF $/Unit
1 BR/1 BA AFF - 758 SF $1,810 $1,679 $1,735 $2,325 $2,650 $2,455
$2.38 $1,803
1 BR/1 BA - 781 SF $2,283 $2,126 $2,262 $2,325 $2,650 $2,455
$3.01 $2,350
2 BR/2 BA AFF - 1,038 SF $2,046 $1,899 $2,007 $2,870 $3,435 $3,052
$1.95 $2,028
2 BR/2 BA - 1,084 SF $2,741 $2,595 $2,709 $2,870 $3,435 $3,052
$2.67 $2,900
3 BR/2 BA AFF - 1,560 SF $2,329 $2,016 N/A $3,325 $3,895 $3,681
$1.49 $2,329
3 BR/2 BA - 1,582 SF $3,777 $3,490 $3,865 $3,325 $3,895 $3,681
$2.40 $3,800
Compiled by NKF
Unit Rent Adjustment Summary and Conclusions
NKF Market Rent EstimateComparables Indicators
1 BR Units
Property Unit Type - Size Asking Rent $/SF
2 - Alexan Rivue Apartments 1 BR/1 BA - 761 SF $2,325 $3.06
1 - Boardwalk at Millenia Apartments 1 BR/1 BA - 841 SF $2,345 $2.79
3 - Enclave at Otay Ranch 1 BR/1 BA - 730 SF $2,455 $3.36
5 - The Club at Enclave 1 BR/1 BA - 811 SF $2,500 $3.08
4 - Pulse Millenia Apartments 1 BR/1 BA - 827 SF $2,650 $3.20
NKF Market Rent Projection Unit Type - Size Market Rent $/SF
1 BR/1 BA AFF - 758 SF $1,803 $2.38
1 BR/1 BA - 781 SF $2,350 $3.01
Compiled by NKF
Summary of Asking Rental Rates and Market Rent Conclusions
Income Capitalization Approach 102
The Residences at Escaya
2 BR Units
The subject includes (97) 2BR units with an average unit size of 1,084 SF.
The subject includes (14) 2BR affordable units with an average unit size of 1,038 SF.
There have been (19) 2BR recent leases, from July 2021 to October 2021, averaging
$2,709 per month.
Market rent is concluded to average $2,900 and $2,028 for the affordable units. This
is supported by recent leasing at the subject and the comparable properties in the
subject’s local market.
3 BR Units
There are (19) 3BR units with an average size of 1,582 SF.
The subject includes one 3BR affordable unit with a unit size of 1,560 SF.
2 BR Units
Property Unit Type - Size Asking Rent $/SF
2 - Alexan Rivue Apartments 2 BR/1 BA - 1,075 SF $2,870 $2.67
1 - Boardwalk at Millenia Apartments 2 BR/1 BA - 1,302 SF $2,915 $2.24
5 - The Club at Enclave 2 BR/2 BA - 1,088 SF $2,990 $2.75
3 - Enclave at Otay Ranch 2 BR/1 BA - 1,097 SF $3,050 $2.78
4 - Pulse Millenia Apartments 2 BR/1 BA - 1,102 SF $3,435 $3.12
NKF Market Rent Projection Unit Type - Size Market Rent $/SF
2 BR/2 BA AFF - 1,038 SF $2,028 $1.95
2 BR/2 BA - 1,084 SF $2,900 $2.67
Compiled by NKF
Summary of Asking Rental Rates and Market Rent Conclusions
3 BR Units
Property Unit Type - Size Asking Rent $/SF
3 - Enclave at Otay Ranch 3 BR/2 BA - 1,327 SF $3,325 $2.51
1 - Boardwalk at Millenia Apartments 3 BR/2 BA - 1,380 SF $3,615 $2.62
5 - The Club at Enclave 3 BR/2 BA - 1,466 SF $3,715 $2.53
4 - Pulse Millenia Apartments 3 BR/2 BA - 1,371 SF $3,855 $2.81
2 - Alexan Rivue Apartments 3 BR/2 BA - 1,693 SF $3,895 $2.30
NKF Market Rent Projection Unit Type - Size Market Rent $/SF
3 BR/2 BA AFF - 1,560 SF $2,329 $1.49
3 BR/2 BA - 1,582 SF $3,800 $2.40
Compiled by NKF
Summary of Asking Rental Rates and Market Rent Conclusions
Income Capitalization Approach 103
The Residences at Escaya
There have been (2) 3BR recent leases, from July 2021 to October 2021, averaging $3,865
per month.
Market rent is concluded to average $3,800 and $2,329 for the affordable unit. This is
supported by recent leasing at the subject and the comparable properties in the subject’s
local market.
Market Rent Conclusions
The following is a summary of the subject’s unit mix and our market rent conclusions based on
our analysis of the subject rent roll and comparable market data detailed in the preceding.
No. Units Unit Description
Unit Size
(SF)
Rentable
Area (SF)
Occupied
Units
Unit
Occupancy
Avg.
Contract
Rent Asking Rent
Typical
Recent
Leases Market Rent
Market Rent
PSF
15 1 BR/1 BA AFF - 758 SF 758 11,372 15 100.0% $1,679 $1,810 $1,735 $1,803 $2.38
126 1 BR/1 BA - 781 SF 781 98,406 122 96.8% $2,126 $2,283 $2,262 $2,350 $3.01
141 1 BR Total 779 109,778 137 97.2% $2,077 $2,232 $2,292 $2.94
14 2 BR/2 BA AFF - 1,038 SF 1,038 14,536 14 100.0% $1,899 $2,046 $2,007 $2,028 $1.95
97 2 BR/2 BA - 1,084 SF 1,084 105,187 94 96.9% $2,595 $2,741 $2,709 $2,900 $2.67
111 2 BR Total 1,079 119,723 108 97.3% $2,505 $2,653 $2,790 $2.59
1 3 BR/2 BA AFF - 1,560 SF 1,560 1,560 1 100.0% $2,016 $2,329 N/A $2,329 $1.49
19 3 BR/2 BA - 1,582 SF 1,582 30,064 18 94.7% $3,490 $3,777 $3,865 $3,800 $2.40
20 3 BR Total 1,581 31,624 19 95.0% $3,413 $3,704 $3,726 $2.36
272 Totals 261,125 264
Averages 960 97.1% $2,348 $2,512 $2,601 $2.71
Compiled by NKF
Unit Mix
Income Capitalization Approach 104
The Residences at Escaya
Gross Income Estimate
Potential Gross Rent
For the direct capitalization analysis, potential gross rent is based on contract rent plus vacant
units at market rent (if applicable). The projections are for the next 12 months from the date of
value.
A portion of the rent loss is due to the inclusion of 30 affordable units.
Rental Income
Unit Description No. Units
Avg. Contract
Rent / Unit
Potential
Gross Rent-
Contract
Market Rent /
Unit
Potential
Gross Rent-
Market Loss to Lease
Leased Units
1 BR/1 BA AFF - 758 SF 15 $1,679 $302,204 $1,803 $324,540 -6.9%
1 BR/1 BA - 781 SF 122 $2,126 $3,112,449 $2,350 $3,440,400 -9.5%
2 BR/2 BA AFF - 1,038 SF 14 $1,899 $319,087 $2,028 $340,704 -6.3%
2 BR/2 BA - 1,084 SF 94 $2,595 $2,927,194 $2,900 $3,271,200 -10.5%
3 BR/2 BA AFF - 1,560 SF 1 $2,016 $24,192 $2,329 $27,948 -13.4%
3 BR/2 BA - 1,582 SF 18 $3,490 $753,877 $3,800 $820,800 -8.2%
Total Leased 264 $2,348 $7,439,003 $2,596 $8,225,592 -9.6%
Vacant Units (at market rents)
1 BR/1 BA - 781 SF 4 $2,350 $112,800 $2,350 $112,800
2 BR/2 BA - 1,084 SF 3 $2,900 $104,400 $2,900 $104,400
3 BR/2 BA - 1,582 SF 1 $3,800 $45,600 $3,800 $45,600
Total Vacant 8 $2,738 $262,800 $2,738 $262,800
Grand Total 272 $2,360 $7,701,803 $2,601 $8,488,392 -9.6%
Compiled by NKF
Potential Gross Rent
Rental Income
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$26,847 $7,302,395
Nov-2021 Budget $28,668 $7,797,612
NKF Projection $28,315 $7,701,803
Compiled by NKF
Income Capitalization Approach 105
The Residences at Escaya
Loss to Lease
No loss to lease has been modeled as potential gross rent is based on contract rent
plus vacant units at market rent. This has been considered in our overall cap rate
conclusion.
Concessions
None of the rent comparables are reporting specials at this time.
We have not modeled concessions on a stabilized basis, as the submarket has a
consistently high occupancy and concessions are not common. We have projected
that rental concessions will not be needed going forward as the property has reached
stabilized occupancy.
Potential Rental Income
Operating History
A T-12 (September 2021) and a proforma budget for 2021 was provided. As appropriate, the
owner’s operating expenses are reclassified into standard categories and exclude items that do
not reflect normal operating expenses for this type of property.
Number of Units
Average
Monthly Rent
Total Monthly
Rent
Total Annual
Rent
Occupied Units 264 $2,348 $619,917 $7,439,003
Less Employee/Model Units $0
Occupied Units at Contract Rents 264 $2,348 $619,917 $7,439,003
Occupied Units at Market Rents 264 $2,596 $685,466 $8,225,592
Differential ($786,589)
Indicated Gain/Loss Differential -9.6%
Compiled by NKF
Rental Revenue Segment
Loss to Lease Analysis
Concessions
Subject Historical and Projections % of RI $/Unit Total
Sep-2021 T-12 Mos.1.42%$380 $103,332
Nov-2021 Budget 0.47%$135 $36,805
NKF Projection 0.00%$0 $0
Compiled by NKF
Potential Rental Income
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$26,467 $7,199,063
Nov-2021 Budget $28,510 $7,754,659
NKF Projection $28,315 $7,701,803
Compiled by NKF
Income Capitalization Approach 106
The Residences at Escaya
The reclassification is done for proper analysis against comparable data and industry
benchmarks as appropriate. Because the historical operating data statements use different
names for some categories and it is not always immediately apparent which expenses belong to
which standard expense category, the following provides a mapping of these expenses. The
categories on the historical operating statements are in the far left column while the “NKF
Revenue or Operating Expense Category” are the categories used in this analysis for that line item.
Income Capitalization Approach 107
The Residences at Escaya
Actual or Proforma Actuals Proforma
Period Length T-12 Mos. Budget
Period Ending 9/30/2021 11/30/2021
Owner's Revenue Category NKF Revenue Category
Gross Potential Mkt Rent Rental Income $0 $7,797,612
Loss to Lease Loss to Lease $0 ($6,148)
Vacancy Loss Vacancy $0 ($311,526)
Rental Concessions Concessions $0 ($36,805)
Bad Debt Expense Collection Loss $0 ($17,870)
Application Fees Net Other Income $0 $8,925
Carport Income Net Parking Income $0 $72,650
Damage Fees Net Other Income $0 $36,925
Termination Fees Net Other Income $0 $7,350
Pet Rent Net Other Income $0 $26,550
NSF Net Other Income $0 $840
Late Fees Net Other Income $0 $5,850
Collection Income Net Other Income $0 $2,750
Reimbursed Water Net Expense Reimbursements $0 $103,666
Reimbursed Pest Control Net Expense Reimbursements $0 $5,505
Reimbursed Gas Net Expense Reimbursements $0 $9,048
Reimbursed Trash Removal Net Expense Reimbursements $0 $93,060
Rent Rental Income $7,297,070
Rental Concessions Concessions ($103,332)
Bad Debt Expense Collection Loss ($17,737)
Application Fees Net Other Income $14,514
Carport Income Net Parking Income $54,193
Damage Fees Net Other Income $36,278
Termination Fees Net Other Income $12,816
Pet Rent Net Other Income $36,333
NSF Net Other Income $1,225
Late Fees Net Other Income ($900)
Renter's Insurance Omit Row $113
Miscellaneous Income Net Other Income $28
Collection Income Net Other Income $9,673
Accelerated Rent Rental Income $5,325
Reimbursed Electricity Net Expense Reimbursements $100
Reimbursed Utilities Net Expense Reimbursements $12,590
Reimbursed Water Net Expense Reimbursements $52,480
Reimbursed Sewer Net Expense Reimbursements $38,277
Reimbursed Trash Removal Net Expense Reimbursements $81,303
Effective Gross Income Effective Gross Income $7,530,236 $7,798,383
Application of NKFAccount Standards to Owner's Revenue and Expenses
Income Capitalization Approach 108
The Residences at Escaya
Actual or Proforma Actuals Proforma
Period Length T-12 Mos. Budget
Period Ending 9/30/2021 11/30/2021
Owner's Operating Expense Category NKF Operating Expense Category
Total Payroll Payroll and Benefits $0 $573,001
Total Landscape Repairs and Maintenance $0 $66,148
Electricity Utilities $0 $102,000
Electricity - Model Utilities $0 $2,875
Electricity - Vacant Utilities $0 $6,550
Gas Utilities $0 $41,500
Water Utilities $0 $119,000
Trash Removal Utilities $0 $97,400
Cable Expense Utilities $0 $1,944
Total Marketing General and Administrative $0 $86,077
Total Administrative General and Administrative $0 $78,079
Total Maintenance Repairs and Maintenance $0 $156,229
Total Redecorating Repairs and Maintenance $0 $51,906
Total Management Fees Management $0 $189,167
Property Insurance Insurance $0 $122,400
Real Estate Taxes Real Estate Taxes $0 $880,008
Taxes Other Real Estate Taxes $0 $155,400
Models Non-Revenue Units $51,300 $51,300
Employee Units Payroll and Benefits $73,566 $106,200
Manager Payroll and Benefits $75,394
Assistant Manager Payroll and Benefits $51,958
Leasing Manager Payroll and Benefits $25,144
Leasing Consultant Payroll and Benefits $41,949
Director of Facilities Payroll and Benefits $6,417
Maintenance Manager Payroll and Benefits $51,231
Maintenance Person Payroll and Benefits $74,267
Overtime - Administrative Payroll and Benefits $3,280
Overtime - Leasing Payroll and Benefits $623
Overtime - Maintenance Payroll and Benefits $5,463
Bonus - Administrative - Monthly Payroll and Benefits $60
Bonus - Administrative - Quarterly Payroll and Benefits $0
Bonus - Leasing - Monthly Payroll and Benefits $2,862
Bonuses & Other Bonuses Payroll and Benefits $92,479
Ck Processing - Administrative General and Administrative $120
Other Payroll Taxes Payroll and Benefits $37,979
Other Insurance Benefits Payroll and Benefits $34,476
401K Administration Costs Payroll and Benefits $5,723
Workers Comp - Administrative Payroll and Benefits $35,046
New Hire Expense - Admin Payroll and Benefits $958
New Hire Expense - Maint Payroll and Benefits $48
Other Payroll - Admin Payroll and Benefits $0
Employee Gifts Payroll and Benefits $40
Landscape Contract Repairs and Maintenance $56,775
Flowers Repairs and Maintenance $1,961
Mulch Repairs and Maintenance $2,195
Landscape Supplies Repairs and Maintenance $287
Irrigation/Sprinkler Repairs Repairs and Maintenance $4,622
Electricity Utilities $63,431
Electricity - Model Utilities ($419)
Electricity - Vacant Utilities $3,808
Gas Utilities $12,531
Water Utilities $116,300
Sewer Utilities $20,142
Trash Removal Utilities $109,104
Cable Expense Utilities $1,346
Contract Utility Admin General and Administrative $7,396
Marketing - Internet General and Administrative $30,215
Advertising Other General and Administrative $637
Dues, Memberships & Sub. General and Administrative $2,409
Resident Functions General and Administrative $168
Temporary Signage General and Administrative $535
Alliance Resident Works General and Administrative $1,700
PPC General and Administrative $24,885
Resident Referrals General and Administrative $1,000
Resident Retention General and Administrative $569
Model Maintenance General and Administrative $2,611
Other Mktg. - Non Adv. General and Administrative $2,189
SEO Program General and Administrative $8,100
Reputation Management General and Administrative $1,275
Income Capitalization Approach 109
The Residences at Escaya
Fitness program - Property General and Administrative $2,268
Telephone General and Administrative $2,225
Cell Phone General and Administrative $297
Internet Service General and Administrative $5,759
Common Area TV General and Administrative $218
Office Supplies General and Administrative $4,669
Misc Office Expense General and Administrative $176
Postage General and Administrative $222
Licenses General and Administrative $2,652
Kingsley Survey General and Administrative $152
Training & Education General and Administrative $3,100
Eviction/Legal Fees General and Administrative $2,513
Credit Check General and Administrative $5,299
Bank Charges/Credit Card Fees General and Administrative $3,634
Employee Recognition General and Administrative $894
Employee Meetings General and Administrative $36
Administrative Other General and Administrative $2,150
Computer Software General and Administrative $7,460
Yardi PAYscan General and Administrative $310
Gov Licenses Fees/Permits General and Administrative $6,682
Compliance General and Administrative $59
Uniforms - Administrative General and Administrative $0
Uniforms - Leasing General and Administrative $289
Building & Structure Repairs and Maintenance $29
Building & Maintenance Repairs and Maintenance $91
Building & Maintenance Supplies Repairs and Maintenance $1,165
Lighting Repairs and Maintenance $40
Amenities R&M Repairs and Maintenance $1,110
Electrical Repairs and Maintenance $2,187
Electrical Supplies Repairs and Maintenance ($248)
Plumbing Repairs and Maintenance $1,007
HVAC Repairs and Maintenance $2,338
HVAC Supplies Repairs and Maintenance ($191)
Misc. Supplies Repairs and Maintenance $109
Housekeeping Repairs and Maintenance $48,746
Cleaning Supplies Repairs and Maintenance $624
Pest Control Repairs and Maintenance $4,700
Swimming Pool Repairs and Maintenance $12,811
Swimming Pool Supplies Repairs and Maintenance $0
Courtesy Patrol Repairs and Maintenance $21,750
Keys Repairs and Maintenance $1,136
Locks Repairs and Maintenance ($74)
Fire Extinguisher, 1st Aid Repairs and Maintenance $15,507
Alarm Expense Repairs and Maintenance $4,211
Appliances Repairs and Maintenance $2,337
Safety Tool Equip/Rep/Sup Repairs and Maintenance $903
Appliance Repair Repairs and Maintenance $3,912
Carpet Replacement Repairs and Maintenance ($1,403)
Uniforms - Maintenance Repairs and Maintenance $1,836
Redec-General Cleaning Repairs and Maintenance $15,268
Redec-Cleaning Supplies Repairs and Maintenance ($74)
Redec-Painting Supplies Repairs and Maintenance $1,480
Redec-Painting Contract Repairs and Maintenance $34,760
Redec-Drapes/Blinds Repairs and Maintenance $1,040
Redec-Window Cleaning Repairs and Maintenance $0
Redec-Carpet Cleaning Repairs and Maintenance $4,995
Redec-Carpet Replacement Repairs and Maintenance $29,840
Redec-Vinyl Repair Repairs and Maintenance $460
Redec-Bathroom Repairs and Maintenance $497
Redec-Appliance Repair Repairs and Maintenance $468
Redec-Plumbing Repairs and Maintenance $674
Redec-Doors/Cabinets Repairs and Maintenance $374
Management Fees - #1 Management $183,603
Property Insurance Insurance $161,456
General Liability Insurance Insurance $18,074
Umbrella Insurance Insurance $20,712
Earthquake Insurance Insurance $11,093
Real Estate Taxes Real Estate Taxes $155,824
Taxes Other Real Estate Taxes $163,289
Eviction Legal Fees General and Administrative $3
Total Operating Expenses Total Operating Expenses $2,125,683 $2,887,184
Net Operating Income $5,404,553 $4,911,199
Compiled by NKF
Income Capitalization Approach 110
The Residences at Escaya
Multifamily Vacancy & Collection Loss Allowance
Vacancy Allowance
The vacancy estimate for the subject was previously developed in the market analysis section of
this report and was concluded to be 4.00%. The subject is currently 97.1% occupied and the
4.00% vacancy reflects the long-term stabilized rate.
Period Length T-12 Mos. Budget NKF
Period Ending 9/30/2021 11/30/2021 Projection
Occupancy 100.0%96.0%96.0%
Multifamily Revenue Total $ $/Unit Total $ $/Unit Total $ $/Unit
Rental Income $7,302,395 $26,847 $7,797,612 $28,668 $7,701,803 $28,315
Loss to Lease $0 $0 ($6,148) ($23)$0 $0
Concessions ($103,332) ($380) ($36,805) ($135)$0 $0
Potential Rental Income $7,199,063 $26,467 $7,754,659 $28,510 $7,701,803 $28,315
Vacancy $0 $0 ($311,526) ($1,145) ($308,072) ($1,133)
Collection Loss ($17,737) ($65) ($17,870) ($66) ($19,255) ($71)
Effective Rental Income $7,181,326 $26,402 $7,425,264 $27,299 $7,374,477 $27,112
Net Expense Reimbursements $184,750 $679 $211,279 $777 $204,000 $750
Net Parking Income $54,193 $199 $72,650 $267 $68,000 $250
Net Other Income $109,967 $404 $89,190 $328 $108,800 $400
Effective Gross Income $7,530,236 $27,685 $7,798,383 $28,671 $7,755,277 $28,512
Operating Expenses Total $ $/Unit Total $ $/Unit Total $ $/Unit
Real Estate Taxes $319,113 $1,173 $1,035,408 $3,807 $1,590,057 $5,846
Insurance $211,335 $777 $122,400 $450 $163,200 $600
Utilities $326,243 $1,199 $371,269 $1,365 $326,400 $1,200
Repairs and Maintenance $280,252 $1,030 $274,283 $1,008 $272,000 $1,000
Payroll and Benefits $618,961 $2,276 $679,201 $2,497 $625,600 $2,300
Non-Revenue Units $51,300 $189 $51,300 $189 $63,001 $232
General and Administrative $134,876 $496 $164,156 $604 $163,200 $600
Management $183,603 $675 $189,167 $695 $186,127 $684
Replacement Reserves $0 $0 $0 $0 $47,600 $175
Total Operating Expenses $2,125,683 $7,815 $2,887,184 $10,615 $3,437,184 $12,637
Operating Expense Ratio 28.2%37.0%44.3%
Net Operating Income $5,404,553 $19,870 $4,911,199 $18,056 $4,318,092 $15,875
Compiled by NKF
Operating History and Projections
Vacancy
Subject Historical and Projections % of PGI $/Unit Total
Sep-2021 T-12 Mos.0.00%$0 $0
Nov-2021 Budget 4.02% $1,145 $311,526
NKF Projection 4.00% $1,133 $308,072
Compiled by NKF
Income Capitalization Approach 111
The Residences at Escaya
Collection Loss
Based on available data and analysis, the concluded collection loss allowance is
0.25%.
Combined Vacancy and Collection Loss Conclusion
Based on this analysis, the total stabilized vacancy and collection loss allowance for the subject
is 4.25%.
The subject’s market is typically characterized by stabilized occupancy as there is
strong demand for apartments in this market.
The regional and competitive market, as discussed in the market analysis section, are
well occupied and most investors would use this information to reflect a lower
vacancy and collection loss.
Market rent was well supported and these comparables were also generally well
occupied (if a property is offered at above market rates vacancy would increase).
Effective Multifamily Rental Income
Net Expense Recoveries (RUBS)
Collection Loss
Subject Historical and Projections % of PGI $/Unit Total
Sep-2021 T-12 Mos.0.25%$65 $17,737
Nov-2021 Budget 0.23%$66 $17,870
NKF Projection 0.25%$71 $19,255
Compiled by NKF
Effective Rental Income
Subject Historical and Projections % of PGI $/Unit Total
Sep-2021 T-12 Mos.99.75% $26,402 $7,181,326
Nov-2021 Budget 95.75% $27,299 $7,425,264
NKF Projection 95.75% $27,112 $7,374,477
Compiled by NKF
Net Expense Reimbursements
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$679 $184,750
Nov-2021 Budget $777 $211,279
NKF Projection $750 $204,000
Compiled by NKF
Income Capitalization Approach 112
The Residences at Escaya
The subject includes a RUBS program (Ratio Utility Billing System) for water, sewer,
trash removal and common area electricity and gas expenses. The tenants pay directly
for in-unit electric charges.
Our estimate is consistent with the 2021 T-12 and the 2021 budget.
Net Parking Income
The subject includes 637 garage and open parking spaces.
Based on provided data, one space is included with each lease.
Additional reserved parking spaces are available at $50 per month.
The NKF estimate emphasizes the current actual and budgeted figures.
Net Other Income
Other income includes pet fees, pet rent, write-offs, deposits, credit
checks/application fees, late fees, legal fees, month-to-month fees, NSF fees, storage,
vending machines, renter’s insurance, and miscellaneous income.
Pet deposit is $500 and monthly pet rent is $75 for Dogs and $50 for Cats.
Effective Gross Income
Net Parking Income
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$199 $54,193
Nov-2021 Budget $267 $72,650
NKF Projection $250 $68,000
Compiled by NKF
Net Other Income
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$404 $109,967
Nov-2021 Budget $328 $89,190
NKF Projection $400 $108,800
Compiled by NKF
Effective Gross Income
Subject Historical and Projections $/Unit Total
Sep-2021 T-12 Mos.$27,685 $7,530,236
Nov-2021 Budget $28,671 $7,798,383
NKF Projection $28,512 $7,755,277
Compiled by NKF
Income Capitalization Approach 113
The Residences at Escaya
Operating Expense Analysis
Expense data for the subject and comparable properties are summarized in the following table.
The operating expenses have been classified into 9 categories as there is inconsistent
expense reporting for multi-family assets similar to the subject (i.e. investors use a
wide array of classifications for assets of this size and value). The exceptions are real
estate taxes, insurance (typically a bill), utilities (typically based on multiple bills), and
management (when included, it is typically a percentage of income).
Real estate taxes in the valuation are based on the appropriate methodology required
by California tax law and typical underwriting methods. Specifically, based upon a
review of real estate tax assessments after a property purchase, the assessor uses
the actual sale price more than 90 percent of the time as the new basis. Most investors
also model pro-forma taxes based upon their acquisition price. The definition of
market value used in this appraisal is based on the premise the subject is sold at the
concluded value. Therefore, the value conclusion by each approach, where
appropriate, is used as the real estate tax basis in the pro-forma estimate. The tax
calculation is based upon the final un-rounded concluded value, multiplied by the tax
rate, plus direct assessments.
Comp 1 Comp 2 Comp 3 Comp 4
Year Built 2006 2014 2017 2020
Apt. Units 276 262 386 126
Operating Data Type 12 Mos. 12 Mos. 12 Mos. Budget T-12 Mos. Budget NKF
Year 2020 2018 2020 2021 2021 2021 Projection
Effective Gross Multifamily Income per Unit $27,052 $34,456 $25,361 $28,259 $27,685 $28,671 $28,512
Operating Expenses per Unit
Real Estate Taxes $3,764 $3,502 $4,949 $6,174 $1,173 $3,807 $5,846
Insurance $562 $273 $199 $777 $450 $600
Utilities $1,401 $916 $715 $772 $1,199 $1,365 $1,200
Repairs and Maintenance $2,138 $1,914 $1,275 $1,069 $1,030 $1,008 $1,000
Payroll and Benefits $1,932 $1,959 $944 $2,308 $2,276 $2,497 $2,300
Non-Revenue Units $189 $189 $232
General and Administrative $1,161 $619 $445 $351 $496 $604 $600
Management $944 $1,034 $507 $755 $675 $695 $684
Replacement Reserves $175
Total Operating Expenses per Unit $11,902 $10,217 $9,034 $11,429 $7,815 $10,615 $12,637
Net Operating Income per Unit $15,150 $24,239 $16,327 $16,830 $19,870 $18,056 $15,875
Operating Expense KPIs (% of EGI)
Management 3.49% 3.00% 2.00% 2.67% 2.44% 2.43%2.40%
Operating Expense Ratio (% of EGI)44.00% 29.65% 35.62% 40.44% 28.23% 37.02%44.32%
Net Operating Income (% of EGI)56.00% 70.35% 64.38% 59.56% 71.77% 62.98%55.68%
Compiled by NKF
Expense Analysis per Unit
Subject Historical and Projections
2019
272
Income Capitalization Approach 114
The Residences at Escaya
Primary support for the insurance and utilities expenses, where possible, are based on
the subject as these items are typically consistent. Emphasis was placed on the
subject’s actual performance with support provided by the expense comparables.
The repairs and maintenance expense include any item which was classified as having
a direct impact on the operation of the physical asset (e.g. repairs and maintenance,
janitorial, landscaping, common areas….). The range of expenses in this category can
be extensive as landlords occasionally include capital repairs. The subject’s actual and
budgeted expense have been given greatest emphasis, with secondary weight placed
on the comparable data.
Payroll and benefits include all employees such as the manager, leasing agents,
maintenance personnel, and grounds crew. It also includes all employee benefits such
as health insurance, payroll taxes, and workers’ compensation. Payroll can also
include salary for contract workers who perform maintenance, landscaping, or
administrative work. This is one category that can vary significantly from one property
to another depending upon the amount of maintenance work that is contracted out
versus what is done by staff personnel. Emphasis was placed on the subject’s actual
expense and budget data, which is consistent with the comparables.
Non-revenue units include the two model units. We have included these units at
market rent and deducted out as an expense.
The general and administrative expense includes any item which was classified as off-
site and not having direct impact on the operation of the physical asset (e.g. annual
financial reporting, legal expense to remove a tenant ….). Advertising and marketing is
also included. Emphasis was placed on the subject’s budget which is within the
comparable range.
Management fees are considered an expense of operation, whether the services are
contracted or provided by the property owner. Typical management fees for properties
of this type range from 2.0% to 3.0%. The historic management expense is within the
comparable range and is consistent with the rates for Class A properties in this
market. We have projected an overall management fee of 2.4%.
For the subject property type and local market, it is customary to include replacement
reserves as an expense line item in developing an estimate of net operating income.
Replacement reserves are estimated to account for replacement costs of certain
capital items, such as the roof and HVAC system. The typical apartment investor
estimates reserves at $200 to $300 per unit, depending upon the age, construction
quality, and their own internal requirements. We estimate replacement reserves at
$175 per unit as the property is new with no near-term replacements.
Income Capitalization Approach 115
The Residences at Escaya
Total Operating Expenses
The total operating expenses are higher than the subject’s budget due to the inclusion
of higher real estate taxes.
Net Operating Income
The NOI is below the subject’s budget due to higher real estate taxes.
Direct Capitalization
The following subsections represent different techniques for deriving an overall capitalization
rate.
Comparable Sales
Total Operating Expenses
Source % of EGI $/Unit Total
Comparables Low 29.7% $9,034
Comparables High 44.0% $11,902
Comparables Average 37.4% $10,646
Subject Historical and Projections
2021 (T-12 Mos. Operations)28.2% $7,815 $2,125,683
2021 (Budget Operations)37.0% $10,615 $2,887,184
NKF Projection 44.3% $12,637 $3,437,184
Compiled by NKF
Net Operating Income
Source % of EGI $/Unit Total
Subject Historical and Projections
2021 (T-12 Mos. Operations)71.8% $19,870 $5,404,553
2021 (Budget Operations)63.0% $18,056 $4,911,199
NKF Projection 55.7% $15,875 $4,318,092
Compiled by NKF
No. Property Location Yr. Built Sale Date
Number of
Apt. Units Occ. %
Price per
Unit OAR
1 1818 South State College Boulevard, Anaheim, CA 2009 Oct-2021 265 95% $480,226 3.48%
2 1055 West Town and Country Road, Orange, CA 2020 Sep-2021 262 100% $568,702 3.25%
3 420 La Crescenta Drive, Brea, CA 2018 Jun-2021 204 100% $530,025 3.25%
4 1440 Hotel Circle North, San Diego, CA 2006 Apr-2021 350 96% $444,857 3.50%
5 1320 Via Terrassa, Encinitas, CA 1984 Mar-2021 196 84% $480,102 3.50%
Average (Mean) Cap Rate:3.40%
Compiled by NKF
Comparable Multifamily Sales Summary
Income Capitalization Approach 116
The Residences at Escaya
Comparables One through Three are the most recent transactions and indicate overall
rates of 3.25% to 3.50% and average approximately 3.40%. The sales with cap rates
at the lower end of the range have increased upside potential.
The subject’s loss to lease is approximately -9.6%, indicating there is moderate upside
potential.
For this analysis, we have used a cap rate of 3.25%.
Market Participants
The quoted figures from the brokers are for stabilized assets leased at
contract/market rents.
For assets with significant loss-to-lease or other upside income potential, the rate
would be lower.
Investor Surveys
Respondant Cap Rate Comments
CBRE 3.25% to 4.00% Market is hot; Strong demand amd limited supply
Kidder Matthews 3.50% to 4.00% Demand is driving cap rates lower
ACI 3.25% - 3.50% Buyers modeling large year-1 rent increases
So Cal Multihousing Group Sub 3.50% Buyers need to unerwrite to 3.50% or less to be competitive
JLL 3.00% -3.75% Demand exceeds supply
Subject Indication 3.25% - 3.50%
Compiled by NKF
Capitalization Rate Survey
Investor Surveys - Capitalization Rates
Source Period Low High Average
PwC - National Multifamily - Overall Q3 2021 3.00% 7.00% 4.59%
Situs RERC - National Multifamily - Overall Q3 2021 3.50% 6.00% 4.50%
Newmark V&A Mkt Survey - National Multifamily - Suburban A Q1 2021 N/A N/A 4.84%
Real Capital Analytics - National Multifamily - Overall Q3 2021 N/A N/A 4.90%
Compiled by Newmark
Income Capitalization Approach 117
The Residences at Escaya
The most current national survey data indicates that going-in capitalization rates
range from 3.00% to 7.0% and average 4.59%.
Limited emphasis is placed on this data other than it demonstrates wider trends in
investment yields for apartments.
Capitalization Rate Conclusion
Direct Capitalization Summary
Net operating income is divided by the capitalization rate to derive the stabilized value of the
subject. Valuation of the subject by direct capitalization is shown in the table immediately
following.
4.00%
4.20%
4.40%
4.60%
4.80%
5.00%
5.20%
5.40%
5.60%
5.80%
6.00%
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Investor Surveys - Capitalization Rates
PwC - National Multifamily - Overall
Situs RERC - National Multifamily - Overall
Newmark V&A Mkt Survey - National Multifamily - Suburban A
Real Capital Analytics - National Multifamily - Overall
Source Indication
Comparable Sales 3.25% - 3.50%
Investor Surveys 3.00% - 7.00%
Market Participants 3.25% - 4.50%
Concluded Going-In Capitalization Rate 3.25%
Compiled by NKF
Capitalization Rate Conclusion
Income Capitalization Approach 118
The Residences at Escaya
Summary of Stabilized Net Operating Income
Item Description % of Income $ / Unit Total $
Multifamily Revenue 272 Units
Rental Income $28,315 $7,701,803
Loss to Lease 0.00%$0 $0
Concessions 0.00%$0 $0
Potential Rental Income $28,315 $7,701,803
Vacancy -4.00% ($1,133) ($308,072)
Collection Loss -0.25% ($71) ($19,255)
Effective Rental Income $27,112 $7,374,477
Net Expense Reimbursements $750 $204,000
Net Parking Income $250 $68,000
Net Other Income $400 $108,800
Effective Gross Income $28,512 $7,755,277
Operating Expenses 272 Units
Real Estate Taxes $5,846 $1,590,057
Insurance $600 $163,200
Utilities $1,200 $326,400
Repairs and Maintenance $1,000 $272,000
Payroll and Benefits $2,300 $625,600
Non-Revenue Units $232 $63,001
General and Administrative $600 $163,200
Management 2.40% $684 $186,127
Replacement Reserves $175 $47,600
Total Operating Expenses 44.32% $12,637 $3,437,184
Net Operating Income $15,875 $4,318,092
Direct Capitalization Method
$ / Unit Total $
Stabilized Net Operating Income $15,875 $4,318,092
Overall Capitalization Rate 3.25%
As Stabilized Value Effective Date: $132,864,379
Rounded $488,603 $132,900,000
Value
$157,021,539
$143,936,411
$132,864,379
$123,374,066
$115,149,128
As Is
Hypothetical As Stabilized Value as of Current Date Effective Date:$132,864,379
Retail Component $7,700,000
As Is Value Effective Date:$140,564,379
Rounded $516,912 $140,600,000
Compiled by NKF
Value Indication
12/3/2021
12/3/2021
3.00%
3.25%
3.50%
3.75%
Income Capitalization Approach
12/3/2021
OAR
2.75%
Valuation Matrix
Hypothetical Income Restricted Analysis 119
The Residences at Escaya
Hypothetical Income Restricted Analysis
The income capitalization approach reflects the subject’s income-producing capabilities. This
approach is assuming that value is created by the expectation of benefits to be derived in the
future. Specifically estimated is the amount an investor would be willing to pay to receive an
income stream plus reversion value from a property over a period of time. The two common
valuation techniques associated with the income capitalization approach are direct capitalization
and the discounted cash flow (DCF) analysis.
The direct capitalization method is normally more appropriate for properties with relatively stable
operating histories and expectations. The DCF analysis is more appropriate for investment
properties with multiple or long-term leases, particularly leases with cancellation clauses or
renewal options, and especially in volatile markets.
In this analysis, we utilized direct capitalization only because investors and market participants
typically rely more on this method.
Income and Rent Limits
Within the subject property approximately 91 units are expected to have 80% AMI income/rent
restrictions, 91 are expected to have 100% AMI restrictions, and 90 are expected to have 120%
AMI restrictions.
The restricted value program rents are set to the lesser of market rents, or the appropriate area
median income for the percentage class. In the case of the subject property, the market rents are
above the 80%AMI, 100% AMI and 120% AMI class for all units, so the restricted rents are applied
in this analysis. The pro forma restricted rates are presented on the following pages:
Hypothetical Income Restricted Analysis 120
The Residences at Escaya
The table above includes an additional 3BR unit as there are only 20 3BR units in the project.
Based upon the indicated restricted pro forma rental rates for each unit type and our concluded
market rents, the total potential rental income is estimated at $7,029,576 annually, which is
approximately 8.7% below the actual rent in place plus market rent. The property will be exempt
from ad valorem property taxes and the real estate tax expense is reduced to include only special
assessments.
This potential rental income conclusion is utilized in the Direct Capitalization analysis that
follows:
Maximum Gross 1BR Units Total 2BR Units Total 3BR Units Total Grand Total
80% AMI $1,804 47 $84,788 $2,185 37 $80,845 $2,651 7 $18,557
100% AMI $1,905 47 $89,535 $2,309 37 $85,433 $3,211 7 $22,477
120% AMI $1,999 47 $93,953 $2,426 37 $89,762 $3,408 6 $20,448
Totals 141 $268,276 111 $256,040 20 $61,482 $7,029,576
Average Rent $1,903 $2,307 $3,074 $2,122
Compiled by NKF
Average Actual Restricted Rent by Plan Type
Hypothetical Income Restricted Analysis 121
The Residences at Escaya
Summary of Stabilized Net Operating Income
Item Description % of Income $ / Unit Total $
Multifamily Revenue 272 Units
Rental Income $25,844 $7,029,576
Loss to Lease 0.00%$0 $0
Concessions 0.00%$0 $0
Potential Rental Income $25,844 $7,029,576
Vacancy -4.00% ($1,034) ($281,183)
Collection Loss -0.25% ($65) ($17,574)
Effective Rental Income $24,746 $6,730,819
Net Expense Reimbursements $750 $204,000
Net Parking Income $250 $68,000
Net Other Income $400 $108,800
Effective Gross Income $26,146 $7,111,619
Operating Expenses 272 Units
Real Estate Taxes Direct Assessments $165 $44,791
Insurance $600 $163,200
Utilities $1,200 $326,400
Repairs and Maintenance $1,000 $272,000
Payroll and Benefits $2,300 $625,600
Non-Revenue Units $232 $63,001
General and Administrative $600 $163,200
Management 2.40% $627 $170,679
Replacement Reserves $175 $47,600
Total Operating Expenses 26.39% $6,899 $1,876,471
Net Operating Income $19,247 $5,235,148
Direct Capitalization Method
$ / Unit Total $
Stabilized Net Operating Income $19,247 $5,235,148
Overall Capitalization Rate 3.25%
As Stabilized Value Effective Date: $161,081,491
Rounded $592,279 $161,100,000
Value
$190,369,035
$174,504,949
$161,081,491
$149,575,670
$139,603,959
Hypothetical Stabilized Value
Hypothetical As Stabilized Value as of Current Date Effective Date:$161,081,491
Retail Component $7,700,000
Hypothetical Stabilized Value Effective Date:$168,781,491
Rounded $620,588 $168,800,000
Compiled by NKF
Income Capitalization Approach - Income Restricted
12/3/2021
OAR
2.75%
Valuation Matrix
Value Indication
12/3/2021
12/3/2021
3.00%
3.25%
3.50%
3.75%
Reconciliation of Value 122
The Residences at Escaya
Reconciliation of Value
The values indicated by our analyses are as follows:
Cost Approach
The Cost Approach has best applicability for properties with new or nearly new improvements. It
is a summation approach in that the underlying land value is added to the depreciated
replacement cost for the indicated value. In this case, the cost approach was not utilized as
market participants do not rely in this method in determining value.
Sales Comparison Approach
The Sales Comparison Approach is focused on comparing the subject to sale and other market
transactions with the aim to develop an indication of value that is founded on the theory of
substitution. Basically, the intention is to determine value through considering the prices of
properties which would be a substitute property to the subject. In this case, a selection of
reasonably similar sales was obtained, and the adjustment process was well founded by
reasoning and direct evidence. Although this analysis is considered to be well founded and
reliable, the subject property is an income producing property and the sales comparison
approach, like the cost approach, is limited it its ability to directly consider the income levels of
the subject and the sales. Accordingly, secondary weight is given to the sales comparison
approach.
Income Capitalization Approach
The subject property is an apartment property. It is distinctly an income producing property and
this approach is specifically designed to address the value of such a property. Market rent was
well established by reasonably similar lease data. Capitalization rates were developed from a
number of sources including the sales used in the sales comparison approach. In total, the
income capitalization approach is considered to be most applicable to the subject and most
reliable. This approach is given greatest weight for that reason.
Market Value Premise As Is
Hypothetical Market Value
with Restricted Rents
As of Date:December 3, 2021 December 3, 2021
Cost Approach:Not Used Not Used
Sales Comparison Approach:$140,100,000 Not Used
Income Capitalization Approach:$140,600,000 $168,800,000
Market Value Conclusion $140,600,000 $168,800,000
Compiled by NKF
Market Value Indications
Reconciliation of Value 123
The Residences at Escaya
Exposure Time
Exposure time is the estimated length of time the subject property would have been offered on
the market prior to the hypothetical consummation of a sale at market value on the effective date
of the appraisal. It is a retrospective estimate based on an analysis of past events assuming a
competitive and open market.
The following is national investor survey data which is one source for the underlying data to this
conclusion.
Value Conclusions
Appraisal Premise Interest Appraised Date of Value Value Conclusion
Market Value "As Is"Leased Fee 12/3/2021 $140,600,000
Hypothetical Value at income Restricted Rents Fee Simple 12/3/2021 $168,800,000
Compiled by NKF
1.
1.
2.
Compiled by NKF
The use of these hypothetical conditions might have affected assignment results.
The income restriction and ownership entity result in no ad valorem real estate taxes which significantly increases
the value of the asset.
Our analysis was completed under the hypothetical assumption that there is an affordable housing covenant
agreement in place restricting the rents. Based upon terms of these agreements, the concluded income restricted
value of the subject property is not reflective of market value of the asset. We have relied upon information
provided by the buyer in concluding to a prospective hypotherical value in this analysis and assume the information
provided is reflective of the actual terms that will be in place upon commencement of the agreements.
Extraordinary Assumptions and Hypothetical Conditions
An extraordinary assumption is defined in USPAP as an assignment-specific assumption as of the effective date regarding
uncertain information used in an analysis which, if found to be false, could alter the appraiser’s opinions or conclusions. The
value conclusions are subject to the following extraordinary assumptions that may affect the assignment results.
A hypothetical condition is defined in USPAP as a condition, directly related to a specific assignment, which is contrary to
what is known by the appraiser to exist on the effective date of the assignment results, but is used for the purpose of
analysis. The value conclusions are based on the following hypothetical conditions that may affect the assignment results.
None
Investor Surveys - Marketing Times
Source Period Low High Average
PwC - National Multifamily - Overall Q3 2021 1.0 12.0 4.6
Situs RERC - National Multifamily - Overall Q3 2021 N/A N/A 4.5
Newmark V&A Mkt Survey - National Multifamily - CBD A Q3 2019 N/A N/A 5.0
Newmark V&A Mkt Survey - National Multifamily - Suburban A Q3 2019 N/A N/A 5.0
Compiled by Newmark
Reconciliation of Value 124
The Residences at Escaya
Recent sales transaction data for similar properties, supply and demand characteristics for the
local multifamily market, and the opinions of local market participants were reviewed and
analyzed. Based on this data and analysis, it is our opinion that the probable exposure time for
the subject at the concluded market values stated previously is 6 months.
Marketing Time
Marketing time is an opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value level during the period immediately after the effective date
of an appraisal. Marketing time differs from exposure time, which is always presumed to precede
the effective date of an appraisal. As no significant changes in market conditions are foreseen
in the near term, it is our opinion that a reasonable marketing period for the subject is likely to be
the same as the exposure time. Accordingly, we estimate the subject’s marketing period at 6
months.
3.6
4.1
4.6
5.1
5.6
Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021
Investor Surveys -Marketing Time
PwC - National Multifamily - Overall
Situs RERC - National Multifamily - Overall
Newmark V&A Mkt Survey - National Multifamily - CBD A
Newmark V&A Mkt Survey - National Multifamily - Suburban A
Assumptions and Limiting Conditions 125
The Residences at Escaya
Assumptions and Limiting Conditions
The Appraisal contained in this Report (herein “Report”) is subject to the following assumptions
and limiting conditions:
1. Unless otherwise stated in this report, title to the property which is the subject of this report (herein
“Property”) is assumed to be good and marketable and free and clear of all liens and encumbrances
and that there are no recorded or unrecorded matters or exceptions to title that would adversely
affect marketability or value. No responsibility is assumed for the legal description, zoning,
condition of title or any matters which are legal in nature or otherwise require expertise other than
that of a professional real estate appraiser. This report shall not constitute a survey of the Property.
2. Unless otherwise stated in this report, it is assumed: that the improvements on the Property are
structurally sound, seismically safe and code conforming; that all building systems
(mechanical/electrical, HVAC, elevator, plumbing, etc.) are in good working order with no major
deferred maintenance or repair required; that the roof and exterior are in good condition and free
from intrusion by the elements; that the Property and improvements conform to all applicable local,
state, and federal laws, codes, ordinances and regulations including environmental laws and
regulations. No responsibility is assumed for soil or subsoil conditions or engineering or structural
matters. The Property is appraised assuming that all required licenses, certificates of occupancy,
consents, or other legislative or administrative authority from any local, state, or national
government or private entity or organization have been or can be obtained or renewed for any use
on which the value estimates contained in this report is based, unless otherwise stated. The
physical condition of the Property reflected in this report is solely based on a visual inspection as
typically conducted by a professional appraiser not someone with engineering expertise.
Responsible ownership and competent property management are assumed.
3. Unless otherwise stated in this report, this report did not take into consideration the existence of
asbestos, PCB transformers or other toxic, hazardous, or contaminated substances or
underground storage tanks, or the cost of encapsulation, removal or remediation thereof. Real
estate appraisers are not qualified to detect such substances. The presence of substances such
as asbestos, urea formaldehyde foam insulation, contaminated groundwater or other potentially
hazardous materials and substances may adversely affect the value of the Property. Unless
otherwise stated in this report, the opinion of value is predicated on the assumption that there is
no such material or substances at, on or in the Property.
4. All statements of fact contained in this report as a basis of the analyses, opinions, and conclusions
herein are true and correct to the best of the appraiser's actual knowledge and belief. The appraiser
is entitled to and relies upon the accuracy of information and material furnished by the owner of
the Property or owner’s representatives and on information and data provided by sources upon
which members of the appraisal profession typically rely and that are deemed to be reliable by such
members. Such information and data obtained from third party sources are assumed to be reliable
and have not been independently verified. No warranty is made as to the accuracy of any of such
information and data. Any material error in any of the said information or data could have a
Assumptions and Limiting Conditions 126
The Residences at Escaya
substantial impact on the conclusions of this Report. The appraiser reserves the right to amend
conclusions reported if made aware of any such error.
5. The opinion of value stated in this report is only as of the date of value stated in this report. An
appraisal is inherently subjective and the conclusions stated apply only as of said date of value,
and no representation is made as to the effect of subsequent events. This report speaks only as
of the date hereof.
6. Any projected cash flows included in the analysis are forecasts of estimated future operating
characteristics and are predicated on the information and assumptions contained within this
report. Any projections of income, expenses and economic conditions utilized in this report are not
predictions of the future. Rather, they are estimates of market expectations of future income and
expenses. The achievement of any financial projections will be affected by fluctuating economic
conditions and is dependent upon other future occurrences that cannot be assured. Actual results
may vary from the projections considered herein. There is no warranty or assurances that these
forecasts will occur. Projections may be affected by circumstances beyond anyone’s knowledge
or control. Any income and expense estimates contained in this report are used only for the
purpose of estimating value and do not constitute predictions of future operating results.
7. The analyses contained in this report may necessarily incorporate numerous estimates and
assumptions regarding Property performance, general and local business and economic
conditions, the absence of material changes in the competitive environment and other matters.
Some estimates or assumptions, however, inevitably will not materialize, and unanticipated events
and circumstances may occur; therefore, actual results achieved during the period covered by the
analysis will vary from estimates, and the variations may be material.
8. All prospective value opinions presented in this report are estimates and forecasts which are
prospective in nature and are subject to considerable risk and uncertainty. In addition to the
contingencies noted in the preceding paragraphs, several events may occur that could
substantially alter the outcome of the estimates such as, but not limited to changes in the economy,
interest rates, capitalization rates, behavior of consumers, investors and lenders, fire and other
physical destruction, changes in title or conveyances of easements and deed restrictions, etc. In
making prospective estimates and forecasts, it is assumed that conditions reasonably foreseeable
at the present time are consistent or similar with the future.
9. The allocations of value for land and improvements must not be used in conjunction with any other
appraisal and are invalid if so used. This report shall be considered only in its entirety. No part of
this report shall be utilized separately or out of context.
10. Neither all nor any part of the contents of this report (especially any conclusions as to value, the
identity of the appraiser, or any reference to the Appraisal Institute) shall be disseminated through
advertising media, public relations media, news media or any other means of communication
(including without limitation prospectuses, private offering memoranda and other offering material
provided to prospective investors) without the prior written consent of the Firm. Possession of this
report, or a copy hereof, does not carry with it the right of publication.
11. Client and any other Intended User identified herein should consider this report and the opinion of
value contained herein as only one factor together with its own independent considerations and
Assumptions and Limiting Conditions 127
The Residences at Escaya
underwriting guidelines in making any decision or investment or taking any action regarding the
Property. Client agrees that Firm shall not be responsible in any way for any decision of Client or
any Intended User related to the Property or for the advice or services provided by any other
advisors or contractors. The use of this report and the appraisal contained herein by anyone other
than an Intended User identified herein, or for a use other than the Intended Use identified herein,
is strictly prohibited. No party other than an Intended User identified herein may rely on this report
and the appraisal contained herein.
12. Unless otherwise stated in the agreement to prepare this report, the appraiser shall not be required
to participate in or prepare for or attend any judicial, arbitration, or administrative proceedings.
13. The Americans with Disabilities Act (ADA) became effective January 26, 1992. No survey or
analysis of the Property has been made in connection with this report to determine whether the
physical aspects of the improvements meet the ADA accessibility guidelines. No expertise in ADA
issues is claimed, and the report renders no opinion regarding the Property’s compliance with ADA
regulations. Inasmuch as compliance matches each owner’s financial ability with the cost to cure
the non-conforming physical characteristics of a property, a specific study of both the owner’s
financial ability and the cost to cure any deficiencies would be needed for the Department of
Justice to determine compliance.
14. Acceptance and/or use of this report constitutes full acceptance of these Assumptions and
Limiting Conditions and any others contained in this report, including any Extraordinary
Assumptions and Hypothetical Conditions, and is subject to the terms and conditions contained in
the agreement to prepare this report and full acceptance of any limitation of liability or claims
contained therein.
Addenda
The Residences at Escaya
Addendum A
Glossary of Terms
Addenda
The Residences at Escaya
The following definitions are derived from The Dictionary of Real Estate Appraisal, 6th ed.
(Chicago: Appraisal Institute, 2015).
Absorption Period: The actual or expected period required from the time a property, group of
properties, or commodity is initially offered for lease, purchase, or use by its eventual users until all
portions have been sold or stabilized occupancy has been achieved.
Absorption Rate: 1) Broadly, the rate at which vacant space in a property or group of properties for
sale or lease has been or is expected to be successfully sold or leased over a specified period of
time. 2) In subdivision analysis, the rate of sales of lots or units in a subdivision.
Ad Valorem Tax: A tax levied in proportion to the value of the thing(s) being taxed. Exclusive of
exemptions, use-value assessment provisions, and the like, the property tax is an ad valorem tax.
(International Association of Assessing Officers [IAAO])
Assessed Value: The value of a property according to the tax rolls in ad valorem taxation; may be
higher or lower than market value, or based on an assessment ratio that is a percentage of market
value.
Cash Equivalency: An analytical process in which the sale price of a transaction with nonmarket
financing or financing with unusual conditions or incentives is converted into a price expressed in
terms of cash or its equivalent.
Contract Rent: The actual rental income specified in a lease.
Disposition Value: The most probable price that a specified interest in property should bring under
the following conditions: 1) Consummation of a sale within a specified time, which is shorter than
the typical exposure time for such a property in that market. 2) The property is subjected to market
conditions prevailing as of the date of valuation. 3) Both the buyer and seller are acting prudently
and knowledgeably. 4) The seller is under compulsion to sell. 5) The buyer is typically motivated.
6) Both parties are acting in what they consider to be their best interests. 7) An adequate marketing
effort will be made during the exposure time. 8) Payment will be made in cash in US dollars (or the
local currency) or in terms of financial arrangements comparable thereto. 9) The price represents
the normal consideration for the property sold, unaffected by special or creative financing or sales
concessions granted by anyone associated with the sale. This definition can also be modified to
provide for valuation with specified financing terms.
Effective Rent: Total base rent, or minimum rent stipulated in a lease, over the specified lease term
minus rent concessions; the rent that is effectively paid by a tenant net of financial concessions
provided by a landlord.
Excess Land: Land that is not needed to serve or support the existing use. The highest and best
use of the excess land may or may not be the same as the highest and best use of the improved
parcel. Excess land has the potential to be sold separately and is valued separately. See also
surplus land.
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The Residences at Escaya
Excess Rent: The amount by which contract rent exceeds market rent at the time of the appraisal;
created by a lease favorable to the landlord (lessor) and may reflect unusual management,
unknowledgeable or unusually motivated parties, a lease execution in an earlier, stronger rental
market, or an agreement of the parties.
Exposure Time: 1) The time a property remains on the market. 2) [The] estimated length of time
that the property interest being appraised would have been offered on the market prior to the
hypothetical consummation of a sale at market value on the effective date of the appraisal.
Extraordinary Assumption: An assumption, directly related to a specific assignment, as of the
effective date of the assignment results, which, if found to be false, could alter the appraiser’s
opinions or conclusions. See also hypothetical condition.
Fee Simple Estate: Absolute ownership unencumbered by any other interest or estate, subject only
to the limitations imposed by the governmental powers of taxation, eminent domain, police power,
and escheat.
Floor Area Ratio (FAR): The relationship between the above-ground floor area of a building, as
described by the zoning or building code, and the area of the plot on which it stands; in planning
and zoning, often expressed as a decimal, e.g., a ratio of 2.0 indicates that the permissible floor
area of a building is twice the total land area.
Frictional Vacancy: The amount of vacant space needed in a market for its orderly operation.
Frictional vacancy allows for move-ins and move-outs.
Full Service Lease: See gross lease.
General Vacancy: A method of calculating any remaining vacancy and collection loss
considerations when using discounted cash flow (DCF) analysis, where turnover vacancy has been
used as part of the income estimate. The combined effects of turnover vacancy and general
vacancy relate to total vacancy and collection loss.
Going-Concern Premise: One of the premises under which the total assets of a business can be
valued; the assumption that a company is expected to continue operating well into the future
(usually indefinitely).
Going Concern Value: An outdated label for the market value of all the tangible and intangible
assets of an established and operating business with an indefinite life, as if sold in aggregate; more
accurately termed the market value of the going concern or market value of the total assets of the
business.
Gross Building Area (GBA): 1) Total floor area of a building, excluding unenclosed areas, measured
from the exterior of the walls of the above grade area. This includes mezzanines and basements if
and when typically included in the market area of the type of property involved. 2) Gross leasable
area plus all common areas. 3) For residential space, the total area of all floor levels measured
from the exterior of the walls and including the superstructure and substructure basement;
typically, does not include garage space.
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The Residences at Escaya
Gross Lease: A lease in which the landlord receives stipulated rent and is obligated to pay all of
the property’s operating and fixed expenses; also called full-service lease.
Hypothetical Condition: 1) A condition that is presumed to be true when it is known to be false.
(Appraisal Institute: The Standards of Valuation Practice [SVP]) 2) A condition, directly related to
a specific assignment, which is contrary to what is known by the appraiser to exist on the effective
date of the assignment results but is used for the purpose of analysis. See also extraordinary
assumption.
Intended Users: 1) The party or parties the valuer intends will use the report. (SVP) 2) The client
and any other party as identified, by name or type, as users of the appraisal or appraisal review
report by the appraiser on the basis of communication with the client at the time of the assignment.
(USPAP, 2016-2017 ed.)
Investment Value: 1) The value of a property to a particular investor or class of investors based on
the investor’s specific requirements. Investment value may be different from market value because
it depends on a set of investment criteria that are not necessarily typical of the market.
2) The value of an asset to the owner or a prospective owner for individual investment or
operational objectives. (International Valuation Standards [IVS])
Land-to-Building Ratio: The proportion of land area to gross building area; one of the factors
determining comparability of properties.
Lease: A contract in which the rights to use and occupy land, space, or structures are transferred
by the owner to another for a specified period of time in return for a specified rent.
Leased Fee Interest: The ownership interest held by the lessor, which includes the right to receive
the contract rent specified in the lease plus the reversionary right when the lease expires.
Leasehold Interest: The right held by the lessee to use and occupy real estate for a stated term
and under the conditions specified in the lease.
Lessee: One who has the right to occupancy and use of the property of another for a period of time
according to a lease agreement.
Lessor: One who conveys the rights of occupancy and use to others under a lease agreement.
Liquidation Value: The most probable price that a specified interest in property should bring under
the following conditions: 1) Consummation of a sale within a short time period. 2) The property is
subjected to market conditions prevailing as of the date of valuation. 3) Both the buyer and seller
are acting prudently and knowledgeably. 4) The seller is under extreme compulsion to sell. 5) The
buyer is typically motivated. 6) Both parties are acting in what they consider to be their best
interests. 7) A normal marketing effort is not possible due to the brief exposure time.
8) Payment will be made in cash in US dollars (or the local currency) or in terms of financial
arrangements comparable thereto. 9) The price represents the normal consideration for the
property sold, unaffected by special or creative financing or sales concessions granted by anyone
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The Residences at Escaya
associated with the sale. This definition can also be modified to provide for valuation with
specified financing terms.
Market Rent: The most probable rent that a property should bring in a competitive and open market
reflecting the conditions and restrictions of a specified lease agreement, including the rental
adjustment and revaluation, permitted uses, use restrictions, expense obligations, term,
concessions, renewal and purchase options, and tenant improvements (TIs).
Market Value: A type of value that is the major focus of most real property appraisal assignments.
Both economic and legal definitions of market value have been developed and refined, such as the
following. 1) The most widely accepted components of market value are incorporated in the
following definition: The most probable price, as of a specified date, in cash, or in terms equivalent
to cash, or in other precisely revealed terms, for which the specified property rights should sell after
reasonable exposure in a competitive market under all conditions requisite to a fair sale, with the
buyer and seller each acting prudently, knowledgeably, and for self-interest, and assuming that
neither is under undue duress. 2) Market value is described, not defined, in the Uniform Standards
of Professional Appraisal Practice (USPAP) as follows: A type of value, stated as an opinion, that
presumes the transfer of a property (i.e., a right of ownership or a bundle of such rights), as of a
certain date, under specific conditions set forth in the definition of the term identified by the
appraiser as applicable in an appraisal. 2
Market Value of the Going Concern: The market value of an established and operating business
including the real property, personal property, financial assets, and the intangible assets of the
business.
Marketing Time: An opinion of the amount of time it might take to sell a real or personal property
interest at the concluded market value level during the period immediately after the effective date
of an appraisal. Marketing time differs from exposure time, which is always presumed to precede
the effective date of an appraisal.
Modified Gross Lease: A lease in which the landlord receives stipulated rent and is obligated to
pay some, but not all, of the property’s operating and fixed expenses. Since assignment of
expenses varies among modified gross leases, expense responsibility must always be specified.
In some markets, a modified gross lease may be called a double net lease, net net lease, partial net
lease, or semi-gross lease.
Net Lease: A lease in which the landlord passes on all expenses to the tenant. See also gross lease;
modified gross lease.
Net Net Net Lease: An alternative term for a type of net lease. In some markets, a net net net lease
is defined as a lease in which the tenant assumes all expenses (fixed and variable) of operating a
property except that the landlord is responsible for structural maintenance, building reserves, and
management; also called NNN lease, triple net lease, or fully net lease.
2 The actual definition of value used for this appraisal is contained within the body of the report. The
definition of market value given above is general in viewpoint and is only provided for amplification.
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The Residences at Escaya
Occupancy Rate: 1) The relationship or ratio between the potential income from the currently
rented units in a property and the income that would be received if all the units were occupied.
2) The ratio of occupied space to total rentable space in a building.
Overage Rent: The percentage rent paid over and above the guaranteed minimum rent or base
rent; calculated as a percentage of sales in excess of a specified breakpoint sales volume.
Percentage Rent: Rental income received in accordance with the terms of a percentage lease;
typically derived from retail store and restaurant tenants and based on a certain percentage of their
gross sales.
Prospective Opinion of Value: A value opinion effective as of a specified future date. The term
does not define a type of value. Instead, it identifies a value opinion as being effective at some
specific future date. An opinion of value as of a prospective date is frequently sought in connection
with projects that are proposed, under construction, or under conversion to a new use, or those that
have not yet achieved sellout or a stabilized level of long-term occupancy.
Rentable Area: For office or retail buildings, the tenant’s pro rata portion of the entire office floor,
excluding elements of the building that penetrate through the floor to the areas below. The rentable
area of a floor is computed by measuring to the inside finished surface of the dominant portion of
the permanent building walls, excluding any major vertical penetrations of the floor. Alternatively,
the amount of space on which the rent is based; calculated according to local practice.
Retrospective Value Opinion: A value opinion effective as of a specified historical date. The term
retrospective does not define a type of value. Instead, it identifies a value opinion as being effective
at some specific prior date. Value as of a historical date is frequently sought in connection with
property tax appeals, damage models, lease renegotiation, deficiency judgments, estate tax, and
condemnation. Inclusion of the type of value with this term is appropriate, e.g., “retrospective
market value opinion.”
Shell Rent: The typical rent paid for retail, office, or industrial tenant space based on minimal “shell”
interior finishes (called vanilla finish or white wall finish in some areas). Usually the landlord
delivers the main building shell space or some minimum level of interior build-out, and the tenant
completes the interior finish, which can include wall, ceiling, and floor finishes, mechanical
systems, interior electricity, and plumbing. Typically these are long-term leases with tenants paying
all or most property expenses.
Surplus Land: Land that is not currently needed to support the existing use but cannot be separated
from the property and sold off for another use. Surplus land does not have an independent highest
and best use and may or may not contribute value to the improved parcel. See also excess land.
Turnover Vacancy: A method of calculating vacancy allowance that is estimated or considered as
part of the potential income estimate when using discounted cash flow (DCF) analysis. As units or
suites turn over and are available for re-leasing, the periodic vacancy time frame (vacancy window)
to release the space is considered.
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The Residences at Escaya
Usable Area: 1) For office buildings, the actual occupiable area of a floor or an office space;
computed by measuring from the finished surface of the office side of corridor and other
permanent walls, to the center of partitions that separate the office from adjoining usable areas,
and to the inside finished surface of the dominant portion of the permanent outer building walls.
Sometimes called net building area or net floor area. See also floor area. 2) The area that is actually
used by the tenants measured from the inside of the exterior walls to the inside of walls separating
the space from hallways and common areas.
Use Value: The value of a property assuming a specific use, which may or may not be the property’s
highest and best use on the effective date of the appraisal. Use value may or may not be equal to
market value but is different conceptually. See also value in use.
Value In Use: The value of a property assuming a specific use, which may or may not be the
property’s highest and best use on the effective date of the appraisal. Value in use may or may not
be equal to market value but is different conceptually. See also use value.
Value Indication: A valuer’s conclusion of value resulting from the application of an approach to
value, e.g., the value indication by the sales comparison approach.
Addenda
The Residences at Escaya
Addendum B
Engagement Letter
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
December 3, 2021
John P. Stoecker
Financial Advisor
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
2111 Palomar Airport Road
Carlsbad, CA 92011
Phone: 760.889.2121
Email: jstoecker@cmfa-ca.com
Re: Appraisal of the property described as:
The Residences at Escaya
1925 Avenida Escaya, Chula Vista, CA 91913 (“Property”)
Dear Mr. Stoecker:
Newmark Knight Frank Valuation & Advisory, LLC (“Firm”) agrees to provide California Municipal
Finance Authority (“Client”) an appraisal of the above-referenced Property in accordance with,
and subject to, the terms and conditions set forth below and in the attached Schedules
(collectively, “Agreement”).
APPRAISAL FEE: $7,000.00 (inclusive of expenses).
ADDITIONAL HOURLY
FEES:
None
RETAINER: None
REPORT
DELIVERABLES:
The appraisal, draft and/or final, shall be delivered in electronic
format (typically, pdf). One original hard copy of the final
appraisal will be provided to Client upon request.
COMMENCEMENT AND
DELIVERY DATE:
Delivery is as follows:
Draft appraisal report: December 8, 2021
Final appraisal report: three (3) days following approval and
request for final report
The appraisal process will commence upon receipt by the Firm
of (i) this Agreement, signed by Client, (ii) the retainer, and (iii)
information and materials identified in Schedule “B.” The
appraisal process will conclude upon delivery of the final
appraisal report, unless terminated sooner by the Firm or Client
or as provided herein.
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 2 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
REPORT TYPE: Appraisal Report
VALUATION PREMISE: Market Value
Hypothetical Value at Income Restricted Rents
INTEREST IN THE
PROPERTY APPRAISED:
Leased Fee and Fee Simple Interests
DATE(S) OF VALUE: Current as of December 3, 2021
INTENDED USER(S): Intended users of the appraisal include only Client and the
following parties: California Municipal Finance Authority, and no
other party is permitted to use or rely on the appraisal.
(“Intended Users”), and no other party is permitted to use or rely
on the appraisal. The identification of Intended User(s) of the
appraisal is to determine the type and extent of research,
analysis and reporting appropriate for the assignment.
Designation of a party other than Client as an Intended User is
not intended to confer upon such party any rights under this
Agreement.
INTENDED USE: The intended use of the appraisal is solely for a securities
offering (“Intended Use”) and no other use.
RELIANCE LANGUAGE: None
GUIDELINES: The analyses, opinions and conclusions are to be developed
based on, and the appraisal will be prepared in conformance
with the Uniform Standards of Professional Appraisal Practice
(USPAP) as published by the Appraisal Foundation.
SCOPE OF WORK: The appraiser will use and properly apply all applicable and
appropriate approaches to value sufficient to produce credible
assignment results. The scope of the analysis will be appropriate
for the appraisal problem.
ASSUMPTIONS/
LIMITING CONDITIONS:
The appraisal will be subject to Firm’s standard Assumptions and
Limiting Conditions, which will be incorporated into the appraisal
report. In addition, the appraisal may be subject to, and the
appraisal report may contain, Extraordinary Assumptions and
Hypothetical Conditions.
ACCEPTANCE: This shall constitute a binding agreement only if countersigned
by the Client, or by an officer, director or other representative of
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 3 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
Client who, by signing and accepting this Agreement, represents
and warrants that he/she is authorized by Client to do so.
PAYMENT: Client will be invoiced the appraisal fee (and any expenses)
which will be earned in full upon initial delivery of the appraisal
report (draft or final), with such appraisal fee (and expenses)
payable within 30 days of invoicing.
Payment of the fee is not contingent upon any predetermined
value or on an action or event resulting from the analysis,
opinions, conclusions or use of the appraisal.
CHANGES TO THE
AGREEMENT:
Any significant changes to the assignment as outlined in this
Agreement, such as the identity of the Client, Intended User, or
Intended Use, will require the preparation and execution of a
new agreement.
CANCELLATION OF
ASSIGNMENT:
Client may cancel this Agreement at any time prior to the Firm’s
delivery of the appraisal upon written notification to the Firm.
Client shall pay Firm for all work completed on the assignment
prior to Firm’s receipt of such written cancellation notice, unless
otherwise agreed upon by Firm and Client in writing. The Firm
may withdraw without penalty or liability from the assignment(s)
contemplated by the Agreement before completion or reporting if
the Firm determines, in the Firm’s sole discretion, that
incomplete information was provided to the Firm prior to the
engagement, that Client or other parties have not or cannot
provide documentation or information necessary to the Firm’s
analysis or reporting, that conditions of the Property render the
original scope of work inappropriate, that a conflict of interest has
arisen, or that Client has not complied with its payment
obligations under this Agreement. The Firm shall notify Client of
such withdrawal in writing.
NO THIRD-PARTY
BENEFICIARIES:
Nothing in the Agreement shall create a contractual relationship
or any legal duty between Firm or Client and any third party, nor
any cause of action, right, or claim in favor of any third party and
against Firm or Client. In addition, this Agreement is not intended
to, and shall not be construed to, render any person or entity a
third-party beneficiary of this Agreement. Client acknowledges
and agrees that the appraisal report shall reflect the foregoing. In
addition, the appraisal report shall state that no party other than
an Intended User identified in the Agreement is entitled to rely
upon the appraisal.
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 5 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
Schedule “A”
TERMS AND CONDITIONS
ATTACHED TO AND A PART OF THE AGREEMENT DATED NOVEMBER 3, 2021 TO
PROVIDE APPRAISAL SERVICES FOR HOMEFED CORPORATION
1. These Terms and Conditions are attached to and incorporated into the above referenced Agreement
as though fully set forth in full therein. Capitalized terms if not defined herein shall have the same
meaning as defined in the Agreement.
2. With respect to any appraisal report, use of or reliance on the appraisal by any party, regardless of
whether the use or reliance is authorized or known by the Firm, constitutes acceptance of these Terms
and Conditions as well as acceptance of all other appraisal statements, limiting conditions and
assumptions stated in the Agreement and appraisal report.
3. It is assumed that there are no matters affecting the Property that would require the expertise of other
professionals, such as engineers or an environmental consultant, for Firm to provide the appraisal. If
such additional expertise is required, it shall be provided by other parties retained by Client at Client’s
sole cost and expense.
4. Client acknowledges that the Firm is being retained as an independent contractor to provide the
services described herein and nothing in this Agreement shall be deemed to create any other
relationship between Firm and Client, including but not limited to an agency relationship. The parties
neither intend nor have any expectation that any such relationship will arise as a matter of law or as a
result of this Agreement. This assignment shall be deemed concluded and the services hereunder
completed upon delivery of the appraisal described herein to Client.
5. All statements of fact contained in the appraisal report as a basis of the appraiser's analyses, opinions,
and conclusions will be true and correct to the best of the appraiser's actual knowledge and belief. The
appraiser is entitled to, and shall rely upon the accuracy of information and material furnished to the
Firm by Client. Appraiser is also entitled to, and shall, rely on information provided by sources upon
which members of the appraisal profession typically rely and that are deemed to be reliable by members
of that profession without independent verification.
6. The Firm and the appraiser shall have no responsibility for legal matters, or questions or issues
involving survey or title, soil or subsoil conditions, engineering, zoning, buildability, environmental
contamination, structural matters, construction defects, material or methodology, or other similar
technical matters with regarding the Property. Furthermore, the appraisal will not constitute a survey of
the Property.
7. The appraisal and the data and information gathered in its preparation (other than the confidential data
and information provided by Client) is and will remain, the property of the Firm. The Firm shall not
violate the confidential nature of the appraiser-client relationship by improperly disclosing any
confidential information furnished by Client to the Firm. Notwithstanding the foregoing, the Firm and the
appraiser are authorized by Client to disclose all or any portion of the appraisal and appraisal report
and the related data and information, including confidential data and information provided by Client, to
appropriate representatives of the Appraisal Institute if such disclosure is required to comply with the
Standards, Bylaws and Regulations of the Appraisal Institute, as well as, such disclosure as required
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 6 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
by law and regulations, including compliance with a subpoena and licensing authority regulatory
inquiries. The Firm is also authorized to include both confidential and non-confidential data assembled
in the course of preparing the appraisal and which may be incorporated into the appraisal report in a
database controlled by the Firm for the aggregation of such data and information to produce analytics
and other metrics or products.
8. Unless specifically noted in the appraisal report, the appraisal will not take into consideration the
possibility or probability of the existence of asbestos, PCB transformers, other toxic, hazardous, or
contaminated substances and/or underground storage tanks (hazardous material) at on or in the
Property, or the cost of encapsulation, removal or remediation thereof.
9. Client shall indemnify, defend (by counsel to be selected by Firm), protect, and hold Firm and Firm’s
appraisers, agents, employees, affiliates, representatives, successors and assigns (each, a “Firm
Party”), free and harmless from any and all claims, liabilities, losses, penalties, fines, forfeitures,
amounts paid in settlement, judgments, and all reasonable attorneys' fees and related litigation costs,
fees and expenses incurred by the any of such indemnitees, which result from (i) any failure by Client
or Client’s agents or representatives to provide Firm with complete and accurate information regarding
the Property; (ii) any material breach by Client of the provisions of the Agreement; (iii) if delivery of the
appraisal to a third party is permitted by the Firm, Client providing an incomplete copy of the appraisal
to such third party; or (iv) arising from Client or Client’s agents or representatives providing a copy of
the appraisal to a party not authorized by the Firm to receive such copy.
10. In preparing the appraisal, it is possible that the appraiser will discover conflicting information. In that
event, appraiser will utilize information and data considered to be the most authoritative and for critical
information will document the source. Information and data referred to may include, but is not limited
to, legal descriptions; physical street addresses; assessor parcel numbers; property history; dimensions
and areas of the site/land; dimensions and areas of the building improvements; physical unit counts;
rent rolls; leases; lease abstracts; income and expense data; and any other related data. Any material
discrepancy and/or error in any of the above data could have a substantial impact on the conclusions
reported, and the Firm therefore reserves the right to amend conclusions reported if the Firm is made
aware of any such discrepancy and/or error.
11. The appraisal may not be used, included or referenced, in whole or in part, in any offering or other
materials without the prior written consent of the Firm, which consent may be conditioned upon the
receipt by the Firm of an indemnity agreement, in form and content, satisfactory to Firm and provided
by an indemnitor satisfactory to Firm. Client agrees to pay the fees of the Firm’s legal counsel for review
of any materials which is the subject of the requested consent. Except as agreed by the Firm expressly
in writing, the Firm disclaims liability to any party other than Client.
12. The Firm shall not provide a copy of the appraisal to, or disclose the results of the appraisal to, any
party other than Client, unless Client authorizes same, except as provided in the Confidentiality Section
of the ETHICS RULE of the Uniform Standards of Professional Appraisal Practice (USPAP) or as
otherwise required by law or regulations.
13. Client and any other identified Intended User should consider the appraisal as only one factor together
with its own independent considerations and underwriting guidelines in making any decision or
investment or taking any action regarding the Property. Client agrees that Firm shall not be responsible
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 7 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
in any way for any decision of Client or any Intended User related to the Property or for the advice or
services provided by any other advisors or contractors.
14. Unless otherwise stated in this Agreement, Client agrees that the services pursuant to this Agreement
shall not include participation in or preparation for, or attendance at, any legal, judicial, administrative,
or arbitration proceeding relating to this assignment. In the event the Firm or any Firm Party is required,
whether through the service of a subpoena or otherwise, to produce documents or participate in or
prepare for any discovery, testimony or attendance, relating to the appraisal or this assignment, where
the Firm or Firm Party is not a party to the action or proceedings involved, Client agrees to reimburse
expenses incurred by the Firm or Firm Party, including attorney’s fees, in responding to such subpoena
or other legal process and compensate the Firm therefor based upon the appraiser’s prevailing hourly
or daily rate for providing services as an expert consultant or witness.
15. Except as expressly provided herein, Firm makes no representations or warranties to Client or to any
other person or entity with respect to the appraisal and the services to be provided by Firm under this
Agreement. To the maximum extent permitted under applicable law, in no event will the Firm or any
Firm Party be liable to Client or any third party (regardless of whether such party’s claimed use or
reliance on the appraisal was authorized by the Firm or a Firm Party) for any indirect, special,
exemplary, incidental, or consequential damages (including loss of profits) arising from or relating to
this Agreement or the appraisal, even if such party knew or should have known of the possibility of, or
could reasonably have prevented, such damages. In no event shall the total liability of the Firm or any
Firm Party to Client or any third party (regardless of whether such party’s claimed use or reliance on
the appraisal was authorized by the Firm or a Firm Party) arising from or relating to this Agreement or
the appraisal, whether based on tort, contract, or any other legal theory, exceed the amount of fees
paid to the Firm for the appraisal and the services described herein. Legal claims or causes of action
relating to the appraisal are not assignable, except: (i) as the result of a merger, consolidation, sale or
purchase of a legal entity, (ii) with regard to the collection of a bona fide existing debt for services but
then only to the extent of the total compensation for the appraisal plus reasonable interest, or (iii) in the
case of an appraisal performed in connection with the origination of a mortgage loan, as part of the
transfer or sale of the mortgage before an event of default on the mortgage or note or its legal
equivalent.
16. Federal banking regulations require banks and other lending institutions to engage appraisers where
FIRREA compliant appraisals must be used in connection with mortgage loans or other transactions
involving federally regulated lending institutions. In view of that requirement, the appraisal may not be
accepted by a federally regulated financial institution.
17. In the event Client fails to make payments of any fees or sums when due and payable under this
Agreement; then from the date due and payable until paid, the amount due and payable shall bear
interest at the maximum rate permitted under the laws of the state in which the Property is located. If
the Firm is required to undertake collection efforts including institution of legal action against Client
relating to the Agreement, the Firm shall be entitled to recover attorney's fees, litigation expenses, and
costs from Client.
18. To the extent permitted under applicable law, any legal action or lawsuit or other proceeding by Client
or any Intended User of the appraisal against Firm or a Firm Party whether based in contract, tort,
warranty, indemnity or otherwise, relating to the appraisal shall be commenced within two (2) years
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 8 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
from the date of delivery of the appraisal to the claimant in such action or proceeding, unless the
applicable law provides for a shorter period, and any such claimant waives the right to a jury in any
such legal action or lawsuit or other proceeding. Notwithstanding the state of domicile or residency of
either party to this Agreement, this Agreement shall be governed and construed under the laws of the
state in which the Property is located, and venue for any action or proceeding arising out of this
Agreement shall be deemed proper only in the court of competent jurisdiction located in the state in
which the Property is located.
19. Throughout the performance of services under this Agreement, the Firm shall maintain at its sole cost
and expense the following insurance:
(a) Workers’ Compensation, so as to provide statutory benefits as required by the laws of each state
within the United States in which the Firm’s services are being provided, and Employer’s Liability
insurance with limits of liability of $1,000,000 each accident, $1,000,000 disease each employee
and $1,000,000 disease policy limit covering all employees of the Firm engaged in the performance
of such services.
(b) Fidelity insurance or bond with a limit of $1,000,000 to insure the Firm against loss of its or Client’s
assets caused from the dishonest acts of the Firm’s employees.
(c) Professional Liability insurance with a limit of liability of $1,000,000 each claim and $1,000,000
aggregate, which limits may be provided by a combination of primary and excess policies.
(d) Commercial General Liability insurance providing coverage against damages due to bodily injury
(including death), property damage and personal and advertising injury arising in connection with
the Firm’s services provided under this Agreement, which insurance coverage shall: (i) be
occurrence-based; (ii) provide limits of liability in an amount of $1,000,000 each occurrence and
$1,000,000 aggregate (including excess and/or umbrella limits), (iii) include at least those
coverages generally included in the most current ISO Commercial General Liability insurance policy
form (or its equivalent); and (iv) include Client, and such other persons or entities as Client has
identified in writing, as additional insureds solely with regard to claims arising out of this Agreement.
(e) Commercial automobile liability for owned, hired and non-owned motor vehicles, with a $1,000,000
combined single limit.
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 9 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
Schedule “B”
PROPERTY INFORMATION LIST
ATTACHED TO AND A PART OF THE AGREEMENT DATED NOVEMBER 3, 2021 TO
PROVIDE APPRAISAL SERVICES FOR HOMEFED CORPORATION
The following information is requested to be delivered to the Firm so we can provide the proposed
services and prepare the Appraisal within the agreed upon time frame. Please forward the
physical data such as the site plan, previous engineering reports and/or property reports
describing the physical attributes of the Property and all financial information such as rent roll and
income and expense statements first as these items are the most time sensitive and should be
received immediately to meet the time requirements of this assignment. If, at this time, you are
certain you will not be providing any specific items noted below, please cross out the item and
mark “NA” next to the item so that we will be notified that the information is not available and will
not be forthcoming.
1. Please indicate whether Newmark is sales broker, leasing broker, mortgage broker or property
manager for the subject property.
2. Site plan, if available. (Preferably, an AS BUILT PLAN showing an outline of building/s drawn to scale.
Please do not send reductions so original scale may be used for measurement purposes.
3. Building plans, if available.
4. Prior engineering report or physical descriptions from prior appraisals or asset management report, if
available.
5. Leasing brochures and/or other marketing materials, if available.
6. If the Property has been offered for sale within the last two years, a copy of the offering memorandum
or investment book.
7. Past feasibility or market studies and economic impact studies as well as any relevant information
collected from third party sources.
8. Agreements of Sale/Options to Buy (current or during last three years), if any.
9. Income and expense statements for the past three years plus year-to-date income and expense
statements.
10. Operating budget for current and next year, if available.
11. Management contracts.
12. Copy of most recent real estate tax bill. Please advise if there has been a notice or inquiry by either the
County Assessment Board or the School Board regarding the property assessment. Is there any
pending litigation or negotiations with these parties that could result in an assessment increase or
decrease?
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 10 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
13. Title report, Legal Description, or copy of deed. Provide a written statement of five-year history of legal
property owner. Please advise, if there any deed restrictions or encumbrances, easements or cross
easements.
14. Personal property inventory, if available.
15. Occupancy rates for the last three years, if not revealed in the financial statements.
16. Ground leases, if any.
17. Approximate actual construction costs, if built during the past three years.
18. Environmental audits and studies disclosing any wetlands, hazardous wastes or other environmental
conditions such as asbestos or radon.
19. List of any known major repairs and improvements needed.
20. Three-year history of capital improvements.
21. Name of contact person for the on-site physical inspection.
For Apartment Property
22. Unit mix showing rentable area and asking rent by unit type
23. Scaled apartment unit plans showing layouts and measurements so that rentable area can be
confirmed, if available.
24. Rent roll showing tenant name, apartment number, dates of leases and the type of apartment,
asking/market rents for each apartment, and contractual rent for each apartment unit. (It would be
greatly appreciated if you can provide the rent roll in Excel.)
25. Terms of leases and/rent roll for leased commercial space or roof top rentals. Copies of commercial
leases are desirable. If any commercial leases provide for pass through of operating expenses over a
base year stop, please provide the dollar amount of the base year stop.
For Industrial, Office, Retail Property
26. Rent Roll (please sign and date) and copies of leases, including addenda and all amendments. Please
indicate which leases may have early termination provisions, expansion and/or purchase options.
Please identify any tenants who have initiated discussions to renew, terminate or renegotiate/modify
their lease(s), or who have given notice to terminate. Proposed terms for such re-negotiations should
be revealed.
27. Provide letters of intent to lease or other any outstanding lease proposals that have a reasonable
likelihood of being finalized into executed leases.
28. Prior Argus files, if any.
29. List of outstanding leasing commissions brokers and terms of future payments.
30. Financial information such as Annual Statements or credit report/ratings on any major tenant in the
building.
John P. Stoecker
CALIFORNIA MUNICIPAL FINANCE AUTHORITY
December 3, 2021
Page 11 of 11
18401 Von Karman Avenue, Suite 150 | Irvine, CA 92612
PHONE: 949.608.2045 | WEB: www.nmrk.com
31. CAM and real estate tax reimbursement worksheets or listing of base year operating expenses, if
applicable.
32. Three-year history of tenant retail sales, if available.
For Lodging Property
33. Terms of leases if any and/rent roll for leased commercial space or roof top rentals.
34. ADR and Occupancy rates for the last three years, if not revealed in the financial statements.
35. Business Plan and Marketing Strategy, if any for the upcoming fiscal year.
36. Terms of franchise agreement and management agreement, if any.
For Residential Subdivision Property
37. Building plans for the proposed single family, townhouse, age-restricted, and condominium residences.
Please do not send reductions so original scale may be used for measurement purposes.
38. Market Surveys and Feasibility Analyses, if any, for the proposed development program.
39. Marketing materials for the proposed single family, townhouse, age-restricted, and condominium
residences.
Addenda
The Residences at Escaya
Addendum C
Financials and Property Information
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpiration01-202 e_A1.1789.00 t42147522,445.00 carport50.00 500.000.00 03/18/2020 04/17/2022-3,583.07rent2,060.00Total2,110.0001-204 e_A1.1789.00 t42335772,395.00 rent2,255.00 500.000.00 04/04/2020 02/03/20230.00Total2,255.0001-206 e_B1.11,049.00 t43956812,872.00 rent2,788.00 500.000.00 07/01/2021 06/30/20220.00Total2,788.0001-208 e_B1.11,049.00 t43792852,872.00 rent2,762.13 500.000.00 04/29/2021 04/28/20220.00Total2,762.1301-210 e_B1.11,049.00 t43790452,747.00 rent2,637.13 500.000.00 05/22/2021 05/21/20220.00Total2,637.1301-212 e_B1.11,049.00 t42724352,922.00 rent2,630.00 3,130.000.00 05/09/2020 11/08/2021 11/05/20210.00Total2,630.0001-219 e_A2769.00 t43128222,160.00 rent1,985.00 500.000.00 09/15/2020 03/14/20220.00Total1,985.0001-301 e_B1.21,038.00 t42721872,624.00 rent2,400.00 500.000.00 05/26/2020 11/25/20210.00Total2,400.0001-302 e_A1.1784.00 t42403432,320.00 carport50.00 500.000.00 04/30/2020 07/29/20220.00rent2,112.00Total2,162.0001-303 e_B1.21,038.00 t43093602,734.00 rent2,540.00 3,040.000.00 09/01/2020 02/28/20220.00carport50.00carport50.00Total2,640.00Rent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Current/Notice/Vacant Residents Page 1 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202101-304 e_A1.1784.00 t42412102,145.00 rent1,875.00 500.000.00 07/29/2020 11/28/202218.09Total1,875.00 Page 2 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202101-305 e_B1.2a1,038.00 t43009202,028.00 rent2,028.00 2,528.000.00 08/30/2020 08/29/20210.00Total2,028.0001-306 e_B1.11,049.00 t42945262,747.00 rent2,550.00 500.000.00 07/06/2020 01/05/20220.00carport50.00Total2,600.0001-307 e_B1.21,038.00 t42936982,659.00 rent2,465.00 500.000.00 07/25/2020 11/24/20210.00Total2,465.0001-308 e_B1.11,049.00 t43770872,622.00 rent2,512.13 500.000.00 05/26/2021 05/25/20222,548.80Total2,512.1301-310 e_B1.11,049.00 t42710472,747.00 rent2,480.00 500.000.00 06/01/2020 11/30/2021 11/30/20210.00carport50.00Total2,530.0001-312 e_B1.11,049.00 t42550532,622.00 rent2,368.00 1,649.500.00 05/01/2020 05/31/20220.00Total2,368.0001-314 e_B31,152.00 t42976352,819.00 pet100.00 3,150.000.00 08/07/2020 09/06/20220.00rent2,769.00Total2,869.0001-315 e_B1.21,038.00 t42727092,574.00 rent2,299.00 500.000.00 06/03/2020 06/02/20210.00Total2,299.0001-316 e_A31,080.00 t43806952,658.00 rent2,560.00 500.000.00 07/25/2021 07/24/20220.00Total2,560.0001-317 e_A1.2a741.00 t43110751,803.00 rent1,567.00 500.000.00 09/19/2020 09/18/2021-1,071.98Total1,567.0001-318 e_A31,080.00 t43033332,533.00 rent2,400.00 500.000.00 07/31/2020 01/30/20220.00 Page 3 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,400.0001-319 e_A2769.00 t43521872,160.00 rent1,985.00 1,992.500.00 02/18/2021 08/17/20220.00pet50.00carport50.00Total2,085.0001-320 e_A31,080.00 t44051932,533.00 rent2,508.00 500.000.00 09/09/2021 09/08/20220.00Total2,508.0001-321 e_A2769.00 t43112332,210.00 rent2,035.00 1,000.000.00 10/20/2020 04/19/20220.00pet50.00Total2,085.0001-322 e_A31,080.00 t42822302,533.00 rent2,400.00 1,000.000.00 06/29/2020 11/28/202212.86pet100.00Total2,500.0001-323 e_A2769.00 t42516112,260.00 rent2,020.00 500.000.00 04/10/2020 10/09/20210.00Total2,020.0001-324 e_B31,152.00 t43947572,869.00 rent2,763.00 500.000.00 07/14/2021 07/13/20220.00Total2,763.0001-401 e_B1.21,038.00 t44109112,674.00 rent2,674.00 500.000.00 09/30/2021 09/29/20222,763.13Total2,674.0001-402 e_A1.1784.00 t44061852,195.00 rent2,173.00 1,000.000.00 09/22/2021 09/21/2022550.00Total2,173.0001-403 e_B1.21,038.00 t43798372,624.00 rent2,516.45 500.000.00 05/04/2021 05/03/20220.00Total2,516.4501-404 e_A1.1784.00 VACANT2,195.000.000.000.000.00Total0.00 Page 4 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202101-405 e_B1.21,038.00 t42957272,749.00 rent2,350.00 500.000.00 07/30/2020 11/29/20220.00Total2,350.0001-406 e_B1.11,049.00 t43768772,797.00 rent2,687.13 1,000.00 500.00 05/01/2021 04/30/20220.00pet50.00Total2,737.1301-407 e_B1.21,038.00 t43624402,674.00 rent2,566.00 500.000.00 03/02/2021 04/01/20222,686.23Total2,566.0001-408 e_B1.11,049.00 t44050092,797.00 rent2,767.00 1,000.000.00 09/09/2021 09/08/20222,817.01pet50.00Total2,817.0001-410 e_B1.11,049.00 t43942932,797.00 rent2,713.00 500.000.00 07/23/2021 07/22/20220.00Total2,713.0001-412 e_B1.11,049.00 t43931092,672.00 rent2,588.00 1,000.000.00 07/13/2021 07/12/20220.00pet50.00Total2,638.0001-415 e_B1.21,038.00 t42963422,624.00 rent2,517.00 500.000.00 07/22/2020 07/21/202170.32Total2,517.0001-417 e_A1.2741.00 t43879662,209.00 rent2,080.00 2,080.000.00 07/07/2021 07/06/20220.00Total2,080.0001-419 e_A2769.00 VACANT2,260.000.000.000.000.00Total0.0002-101 e_A2769.00 t43333322,295.00 rent2,120.00 500.000.00 11/28/2020 03/31/2022-59.52Total2,120.0002-103 e_B21,096.00 MODEL2,640.000.000.000.000.00 Page 5 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total0.0002-105 e_A1.1789.00 MODEL2,220.000.000.000.000.00Total0.0002-107 e_B1.11,049.00 t42950232,887.00 rent2,670.00 1,835.000.00 07/15/2020 10/14/20210.00Total2,670.0002-201 e_A2769.00 t42488682,345.00 rent2,158.00 500.000.00 03/17/2020 02/16/20220.00Total2,158.0002-203 e_B21,096.00 VACANT2,940.000.000.000.000.00Total0.0002-205 e_A1.1789.00 t44123482,395.00 rent2,395.00 500.000.00 10/04/2021 10/03/20220.00Total2,395.0002-207 e_B1.11,049.00 t43997312,937.00 rent2,853.00 500.000.00 07/10/2021 07/09/202210.75Total2,853.0002-301 e_A2769.00 t43780832,145.00 rent1,998.80 500.000.00 05/17/2021 05/16/20220.00Total1,998.8002-302 e_B1.21,038.00 t44156892,699.00 rent2,699.00 500.000.00 10/12/2021 10/11/20221,741.29Total2,699.0002-303 e_B21,096.00 t43737692,740.00 rent2,656.000.000.00 07/03/2021 07/02/20220.00Total2,656.0002-304 e_B1.21,038.00 t42960162,699.00 rent2,505.00 500.000.00 07/20/2020 01/19/20220.00Total2,505.0002-305 e_A1.1784.00 t43337832,385.00 rent2,245.00 500.000.00 11/14/2020 12/13/2021 12/12/20210.00Total2,245.00 Page 6 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202102-306 e_B1.2a1,038.00 t42717422,028.00 rent1,916.00 500.000.00 06/06/2020 06/05/20220.00Total1,916.0002-307 e_B1.11,049.00 t42246682,737.00 carport50.00 500.000.00 03/07/2020 09/06/20220.00carport50.00rent2,623.00Total2,723.0002-308 e_B1.21,038.00 t43021352,734.00 rent2,540.00 500.000.00 08/09/2020 02/08/20220.00Total2,540.0002-309 e_B1.11,049.00 t42941942,862.00 rent2,665.00 1,000.000.00 07/22/2020 11/21/20210.00pet50.00carport50.00Total2,765.0002-310 e_A1.2741.00 t42370662,284.00 rent2,000.00 500.000.00 03/03/2020 09/02/20210.00Total2,000.0002-402 e_B1.21,038.00 t43085292,624.00 rent2,430.00 500.000.00 09/11/2020 03/10/20220.00Total2,430.0002-404 e_B1.21,038.00 t43101582,749.00 rent2,555.00 500.000.00 09/10/2020 03/09/20220.00Total2,555.0002-406 e_B1.2a1,038.00 t43064482,028.00 rent1,791.00 500.000.00 08/17/2020 08/16/20221,026.00Total1,791.0002-408 e_B1.2a1,038.00 t44090602,028.00 rent2,028.00 500.000.00 08/21/2021 08/20/2022-2,028.00Total2,028.0002-410 e_A1.2a741.00 t43112831,803.00 carport50.00 500.000.00 09/20/2020 09/19/20210.00rent1,566.00Total1,616.00 Page 7 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202103-112 e_B1.11,049.00 t42161842,997.00 rent2,585.00 500.000.00 12/13/2019 03/12/20220.00Total2,585.0003-210 e_B1.21,038.00 t42267242,609.00 rent2,343.00 500.000.00 12/17/2019 03/16/20220.00Total2,343.0003-212 e_B1.11,049.00 t43916702,832.00 rent2,748.00 1,000.00 500.00 06/14/2021 06/13/20220.00pet50.00Total2,798.0003-301 e_B31,152.00 t43372832,944.00 rent2,775.00 1,887.500.00 12/05/2020 01/04/20220.00Total2,775.0003-303 e_A31,080.00 t42370062,483.00 carport50.00 500.000.00 02/21/2020 12/31/20220.00rent2,385.00Total2,435.0003-305 e_A31,080.00 t43890292,483.00 rent2,385.00 500.000.00 06/18/2021 10/17/2022209.00oconces-500.00Total1,885.0003-307 e_A31,080.00 t42350492,483.00 carport50.00 500.000.00 02/10/2020 06/09/20225,457.03rent2,368.00Total2,418.0003-309 e_B31,152.00 t43463492,869.00 rent2,700.00 500.000.00 01/31/2021 03/30/20220.00Total2,700.0003-310 e_B1.21,038.00 t43983622,774.00 rent2,692.00 500.000.00 07/17/2021 07/16/20220.00Total2,692.0003-312 e_B1.11,049.00 VACANT2,872.000.000.000.000.00Total0.0004-101 e_A1.1789.00 t42117232,520.00 rent2,086.00 500.000.00 12/10/2019 07/09/20220.00 Page 8 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,086.0004-103 e_B1.11,049.00 t42192362,997.00 carport50.00 500.000.00 12/28/2019 03/27/20220.00carport50.00rent2,590.00Total2,690.0004-110 e_A1.1789.00 t44122682,470.00 rent2,470.00 2,470.000.00 10/09/2021 10/08/2022500.00Total2,470.0004-112 e_B1.11,049.00 t43029112,747.00 pet50.00 1,000.000.00 08/23/2020 09/22/20210.00rent2,805.00Total2,855.0004-201 e_A1.1784.00 t42386712,355.00 rent2,255.00 2,550.000.00 02/28/2020 07/28/2022-35.00Total2,255.0004-202 e_B1.21,038.00 t43867482,734.00 rent2,626.45 500.000.00 07/05/2021 07/04/20220.00Total2,626.4504-203 e_B1.11,049.00 t43071692,707.00 rent2,515.00 500.000.00 08/21/2020 02/20/20220.00Total2,515.0004-204 e_A1.1747.00 t42100752,180.00 carport50.00 500.000.00 12/10/2019 12/09/20210.00rent1,803.00Total1,853.0004-208 e_B1.21,038.00 t43870182,609.00 rent2,501.45 500.000.00 06/15/2021 06/14/20220.00Total2,501.4504-210 e_A1.1784.00 t42095012,305.00 rent1,957.00 1,450.000.00 12/03/2019 04/02/20220.00Total1,957.0004-212 e_B1.11,049.00 t43510362,707.00 rent2,560.00 1,000.000.00 02/03/2021 08/02/20220.00Total2,560.00 Page 9 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202104-301 e_A1.1784.00 t43701062,320.00 rent2,210.08 500.000.00 04/01/2021 03/31/20220.00Total2,210.0804-302 e_B1.21,038.00 t42756302,699.00 rent2,265.00 2,699.000.00 05/31/2020 06/29/20220.00Total2,265.0004-303 e_B1.11,049.00 t42248022,797.00 rent2,508.00 500.000.00 12/31/2019 03/31/20220.00Total2,508.0004-304 e_A1.2747.00 t43767692,334.00 rent2,205.00 1,000.00 500.00 06/08/2021 06/07/20222,500.07pet50.00Total2,255.0004-305 e_B31,152.00 t42388772,819.00 rent2,650.00 500.000.00 02/04/2020 08/02/20210.00carport50.00Total2,700.0004-307 e_A31,080.00 t42382842,483.00 carport50.00 500.000.00 02/08/2020 08/07/2021 11/03/20210.00rent2,432.00Total2,482.0004-308 e_B1.21,038.00 t43755052,624.00 rent2,516.45 500.000.00 05/21/2021 11/20/202211.82Total2,516.4504-309 e_A31,080.00 t43733742,483.00 rent2,384.50 500.000.00 05/27/2021 05/26/20220.00Total2,384.5004-310 e_A1.1784.00 t44000192,270.00 rent2,248.00 1,000.000.00 08/09/2021 08/08/20220.00Total2,248.0004-311 e_A31,080.00 t42491602,483.00 carport50.00 1,000.000.00 03/20/2020 04/30/20220.00carport50.00pet50.00rent2,368.00 Page 10 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,518.0004-312 e_B1.11,049.00 t42218422,797.00 rent2,706.00 1,000.000.00 02/14/2020 07/13/2022192.83Total2,706.0004-313 e_B31,152.00 t42089162,869.00 rent2,650.000.000.00 12/17/2019 01/16/2020-146.51empdisc-2,650.00Total0.0005-302 e_B31,152.00 t42352762,819.00 pet50.00 1,000.000.00 01/25/2020 07/24/20210.00carport50.00rent2,650.00Total2,750.0005-304 e_B31,152.00 t43104993,319.00 rent3,150.00 3,150.000.00 09/15/2020 01/14/202275.00Total3,150.0007-101 e_A2769.00 t43680242,470.00 rent2,323.80 2,823.800.00 05/01/2021 04/30/20220.00pet50.00Total2,373.8007-103 e_A2769.00 t43632022,420.00 rent2,274.00 500.000.00 03/23/2021 04/22/20220.00Total2,274.0007-105 e_B21,096.00 t42756632,765.00 rent2,530.00 1,765.000.00 06/05/2020 12/04/2021 11/30/20210.00Total2,530.0007-107 e_A2769.00 t44012972,470.00 rent2,448.00 1,000.000.00 08/20/2021 08/19/20220.00pet50.00Total2,498.0007-201 e_A2769.00 t42421632,180.00 rent2,090.00 1,450.000.00 02/21/2020 12/20/20220.00Total2,090.0007-202 e_A1.2747.00 VACANT2,294.000.000.000.000.00 Page 11 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total0.0007-203 e_A2769.00 t43613512,130.00 rent1,984.00 500.000.00 04/10/2021 05/09/2022-1,200.00carport50.00Total2,034.0007-204 e_A1.2747.00 t42369832,244.00 rent1,850.00 500.000.00 01/31/2020 08/30/20220.00Total1,850.0007-205 e_B21,096.00 t43569222,600.00 rent2,492.00 1,000.000.00 03/11/2021 04/10/20220.00pet50.00Total2,542.0007-206 e_A1.2747.00 t43508752,244.00 rent2,085.00 2,585.000.00 02/16/2021 03/15/20220.00carport50.00carport50.00Total2,185.0007-207 e_A2769.00 t43947042,180.00 rent2,093.00 2,093.000.00 07/17/2021 07/16/20220.00Total2,093.0007-208 e_A1.2747.00 t42179362,159.00 rent2,071.00 500.000.00 03/01/2020 08/31/20210.00Total2,071.0007-301 e_A2769.00 t43950562,385.00 rent2,298.00 500.000.00 06/26/2021 06/25/20220.00Total2,298.0007-302 e_A1.2747.00 t43961522,309.00 rent2,221.00 500.000.00 08/06/2021 08/05/20220.00carport50.00carport50.00Total2,321.0007-303 e_A2769.00 t42370042,210.00 rent2,009.00 500.000.00 01/31/2020 05/31/20220.00Total2,009.00 Page 12 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202107-304 e_A1.2747.00 t44108542,384.00 rent2,384.00 500.000.00 09/20/2021 09/19/2022-2,384.00Total2,384.0007-305 e_B21,096.00 t42287372,805.00 rent2,721.00 500.000.00 02/29/2020 09/28/20220.00Total2,721.0007-306 e_A1.2747.00 t42146262,259.00 carport50.00 1,000.000.00 02/13/2020 09/12/20220.00carport50.00rent2,035.00pet50.00Total2,185.0007-307 e_A2769.00 t44017512,335.00 rent2,313.00 500.000.00 09/01/2021 08/31/20222,367.51Total2,313.0007-308 e_A1.2747.00 t44000942,434.00 rent2,412.00 1,000.000.00 08/19/2021 12/18/20220.00pet50.00Total2,462.0008-101 e_B21,096.00 t42493832,940.00 rent2,655.00 1,000.000.00 05/01/2020 10/31/20210.00pet100.00Total2,755.0008-103 e_A2769.00 t43827272,170.00 rent2,023.80 500.000.00 05/23/2021 05/22/20220.00Total2,023.8008-105 e_A2769.00 t42995612,170.00 rent1,945.00 1,472.500.00 08/15/2020 02/14/20220.00Total1,945.0008-107 e_A2769.00 t43015402,220.00 rent1,955.00 500.000.00 08/14/2020 02/13/20220.00carport50.00carport50.00Total2,055.0008-109 e_A2769.00 t43807772,170.00 rent2,023.80 500.000.00 06/03/2021 06/02/20220.00 Page 13 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021carport50.00Total2,073.8008-111 e_A2769.00 t42731552,295.00 rent2,050.00 500.000.00 05/23/2020 11/22/20210.00Total2,050.0008-113 e_A2769.00 t44120642,420.00 rent2,420.00 2,920.000.00 09/21/2021 09/20/2022-483.33pet50.00Total2,470.0008-115 e_A2769.00 t42768192,420.00 rent2,160.00 500.000.00 06/13/2020 12/12/20210.00Total2,160.0008-117 e_A2769.00 t42247962,420.00 rent1,955.00 500.000.00 05/15/2020 11/14/2021 11/14/20210.00carport50.00pet50.00Total2,055.0008-119 e_A2769.00 t42916112,470.00 rent2,448.00 500.000.00 08/01/2020 07/31/2022-2,505.37Total2,448.0008-201 e_B21,096.00 t43875232,650.00 rent2,566.00 500.000.00 07/06/2021 07/05/20220.00Total2,566.0008-202 e_A1.2741.00 t43555712,244.00 rent2,085.00 500.000.00 02/28/2021 03/27/20220.00Total2,085.0008-203 e_A2769.00 t43145622,130.00 rent1,955.00 500.000.00 10/09/2020 02/08/20220.00Total1,955.0008-204 e_A1.2741.00 t42445942,244.00 rent1,925.00 500.000.00 05/01/2020 11/30/20221,453.20Total1,925.0008-205 e_A2769.00 t43919262,230.00 rent2,143.00 500.000.00 07/05/2021 07/04/20220.00Total2,143.00 Page 14 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202108-207 e_A2769.00 t43330492,230.00 rent2,055.00 500.000.00 11/25/2020 11/24/2021 11/24/2021 70.00Total2,055.0008-209 e_A2769.00 t42711952,130.00 rent1,885.00 500.000.00 06/05/2020 12/04/20210.00Total1,885.0008-211 e_A2769.00 t43895202,180.00 rent2,093.00 500.000.00 06/12/2021 04/11/20222,191.25Total2,093.0008-212 e_B1.2a1,038.00 t42726472,028.00 rent1,791.60 500.000.00 06/13/2020 06/12/20220.00Total1,791.6008-213 e_A2a769.00 t43045021,803.00 carport50.00 500.000.00 08/15/2020 08/14/20220.00rent1,566.00Total1,616.0008-214 e_A1.2747.00 t42796142,194.00 rent1,965.00 500.000.00 08/15/2020 02/14/20220.00carport50.00Total2,015.0008-215 e_A2769.00 t42974592,180.00 rent2,093.00 500.000.00 07/28/2020 08/27/2021 11/15/20210.00Total2,093.0008-216 e_A1.2747.00 t43953842,194.00 rent2,106.00 500.000.00 08/07/2021 08/06/20220.00Total2,106.0008-217 e_A2769.00 t42625922,130.00 rent1,885.00 500.000.00 05/06/2020 11/05/2021 11/05/20210.00Total1,885.0008-218 e_A1.2747.00 t43319022,244.00 rent2,085.00 500.000.00 11/25/2020 11/24/20210.00Total2,085.0008-219 e_A2769.00 t43019532,180.00 carport50.00 500.000.00 08/22/2020 09/21/2022-2,241.36rent2,150.00 Page 15 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,200.0008-301 e_B21,096.00 t42837162,815.00 rent2,731.000.000.00 06/12/2020 08/11/20210.00Total2,731.0008-302 e_A1.2741.00 t43858082,284.00 rent2,155.00 1,000.000.00 07/08/2021 07/07/2022-2,266.93pet50.00Total2,205.0008-303 e_A2769.00 t43871932,270.00 rent2,123.00 2,123.000.00 06/02/2021 04/01/20220.00carport50.00Total2,173.0008-304 e_A1.2741.00 t42485692,259.00 rent2,130.00 500.000.00 04/20/2020 04/19/20210.00Total2,130.0008-305 e_A2769.00 t43797802,195.00 rent2,048.80 500.000.00 08/24/2021 08/23/20220.00Total2,048.8008-307 e_A2769.00 t42993332,245.00 rent2,020.00 1,000.000.00 08/13/2020 02/12/20220.00pet50.00carport50.00Total2,120.0008-309 e_A2769.00 t42990852,195.00 rent1,970.00 500.000.00 08/03/2020 02/02/20220.00Total1,970.0008-311 e_A2a769.00 t43371081,803.00 rent1,803.00 500.000.00 12/17/2020 12/16/202135.00Total1,803.0008-312 e_B1.21,038.00 t43984112,824.00 rent2,630.00 500.000.00 08/05/2021 06/04/20220.00Total2,630.0008-313 e_A2769.00 t42924092,195.00 rent1,970.00 500.000.00 07/02/2020 01/01/20220.00Total1,970.00 Page 16 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202108-314 e_A1.2747.00 t42522942,359.00 rent2,137.00 500.000.00 05/01/2020 05/31/2022-1,070.00Total2,137.0008-315 e_A2a769.00 t43070091,803.00 rent1,803.00 1,000.000.00 10/17/2020 10/16/20220.00pet50.00Total1,853.0008-316 e_A1.2747.00 t42491022,234.00 rent1,950.00 1,000.000.00 05/04/2020 06/03/20220.00Total1,950.0008-317 e_A2a769.00 t44138181,803.00 rent1,735.00 500.000.00 10/25/2021 10/24/20220.00Total1,735.0008-318 e_A1.2747.00 t43914532,409.00 rent2,321.00 500.000.00 06/29/2021 06/28/20220.00Total2,321.0008-319 e_A2769.00 VACANT2,320.000.000.000.000.00Total0.0009-101 e_C1.11,560.00 t44145413,890.00 rent3,890.00 3,890.000.00 10/18/2021 10/17/20220.00Total3,890.0009-103 e_C1.11,560.00 t43311513,840.00 rent3,299.00 1,000.000.00 10/24/2020 11/23/20210.00pet50.00Total3,349.0009-105 e_C1.11,560.00 t43658683,840.00 rent3,592.00 500.000.00 03/24/2021 09/23/20220.00Total3,592.0009-107 e_C1.11,560.00 t43527113,890.00 rent3,595.00 500.000.00 02/22/2021 08/21/20220.00Total3,595.0010-101 e_C1.11,560.00 t43324713,890.00 rent3,595.00 1,000.000.00 11/05/2020 11/04/20210.00pet50.00 Page 17 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total3,645.0010-103 e_C1.11,560.00 t43242613,840.00 rent3,545.00 3,545.000.00 12/15/2020 06/14/202213,174.56Total3,545.0010-105 e_C1.11,560.00 t43649823,840.00 rent3,592.00 500.000.00 04/04/2021 05/03/20220.00carport50.00carport50.00Total3,692.0010-107 e_C1.11,560.00 t43322573,840.00 rent3,545.00 1,000.000.00 10/30/2020 11/30/20210.00pet50.00carport50.00carport50.00Total3,695.0010-109 e_C1.11,560.00 t43090253,890.00 rent3,595.00 2,297.500.00 09/01/2020 01/31/2022-3,135.30Total3,595.0011-101 e_C1.11,560.00 t44081063,840.00 rent3,840.00 1,000.000.00 10/12/2021 10/11/20223,509.68pet50.00Total3,890.0011-103 e_C1.11,560.00 VACANT3,790.000.000.000.000.00Total0.0011-105 e_C1a1,560.00 t42710992,329.00 rent2,016.00 1,508.000.00 06/01/2020 05/31/2021 11/08/2021 2,291.09Total2,016.0011-107 e_C1.11,560.00 t43202993,790.00 pet100.00 1,000.000.00 10/09/2020 10/08/20210.00carport50.00rent3,626.00Total3,776.0011-109 e_C1.21,654.00 t43417634,025.00 rent3,825.00 1,000.000.00 01/06/2021 03/05/20220.00 Page 18 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021pet50.00Total3,875.0012-101 e_C1.21,654.00 t43312104,025.00 rent3,825.00 2,412.500.00 10/30/2020 11/29/20210.00Total3,825.0012-103 e_C1.11,560.00 t43215183,790.00 rent3,495.000.000.00 10/15/2020 11/14/20200.00empdisc-3,495.00Total0.0012-105 e_C1.11,560.00 t42550363,790.00 rent3,299.00 500.000.00 08/29/2020 02/28/2022 11/05/20210.00carport50.00carport50.00Total3,399.0012-107 e_C1.11,560.00 t43541973,790.00 rent3,495.00 3,995.000.00 02/27/2021 03/26/20220.00Total3,495.0012-109 e_C1.11,560.00 t42726463,790.00 rent3,350.00 1,000.000.00 06/28/2020 12/27/20210.00pet50.00Total3,400.0012-111 e_C1.11,560.00 t43414633,840.00 rent3,299.00 1,000.000.00 12/05/2020 12/04/20210.00pet50.00Total3,349.0013-102 e_A2769.00 t43068482,470.00 rent2,245.00 500.000.00 09/23/2020 01/22/20220.00carport50.00Total2,295.0013-104 e_A2769.00 t42989632,295.00 carport50.00 500.000.00 08/25/2020 10/24/202250.60rent2,273.00Total2,323.0013-106 e_A2769.00 t42956652,170.00 rent2,148.00 1,000.000.00 08/13/2020 09/12/20210.00 Page 19 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,148.0013-108 e_B21,096.00 t42826202,840.00 carport50.00 500.000.00 06/08/2020 04/07/20220.00rent2,704.00Total2,754.0013-110 e_A2769.00 t42829362,195.00 rent1,950.00 500.000.00 06/05/2020 11/04/20210.00Total1,950.0013-112 e_B21,096.00 t42626002,915.00 rent2,630.00 500.000.00 05/29/2020 11/28/20210.00Total2,630.0013-114 e_B21,096.00 t44093752,915.00 rent2,885.00 500.000.00 09/22/2021 09/21/2022-14.55Total2,885.0013-116 e_A2769.00 t43669612,445.00 rent2,299.00 500.000.00 03/30/2021 07/29/20220.00carport50.00Total2,349.0013-118 e_B21,096.00 t42710042,915.00 rent2,630.00 500.000.00 05/29/2020 11/28/2021-2,730.00carport50.00carport50.00Total2,730.0013-120 e_B21,096.00 t43930742,965.00 rent2,881.00 2,881.000.00 07/21/2021 07/20/202250.00Total2,881.0013-202 e_A2769.00 t43955072,180.00 rent2,093.00 500.000.00 07/21/2021 07/20/20220.00carport50.00carport50.00Total2,193.0013-203 e_B1.2a1,038.00 t42755682,028.00 rent1,791.00 500.000.00 06/04/2020 06/03/20210.00carport50.00Total1,841.00 Page 20 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202113-204 e_A2769.00 t42433312,130.00 rent1,850.00 500.000.00 06/16/2020 12/15/20210.00Total1,850.0013-206 e_A2a769.00 t42992321,803.00 rent1,566.00 500.000.00 08/15/2020 08/14/20220.00carport50.00Total1,616.0013-208 e_B21,096.00 t43894862,800.00 rent2,716.00 500.000.00 07/30/2021 07/29/20220.00Total2,716.0013-210 e_A2769.00 t43033322,155.00 rent1,930.00 500.000.00 08/29/2020 11/28/2021 11/29/20210.00Total1,930.0013-211 e_B1.2a1,038.00 t42964932,153.00 rent2,153.00 500.000.00 08/23/2020 08/22/2021-1,433.37Total2,153.0013-212 e_B21,096.00 VACANT2,625.000.000.000.000.00Total0.0013-213 e_A1.2747.00 t43909132,194.00 rent2,106.00 500.000.00 06/14/2021 06/13/20220.00Total2,106.0013-214 e_B21,096.00 t42943662,625.00 carport50.00 500.000.00 07/06/2020 08/05/2022192.90carport50.00rent2,529.00Total2,629.0013-215 e_A1.2747.00 t42775952,194.00 carport50.00 500.000.00 06/28/2020 09/30/2022-2,264.75rent2,161.00Total2,211.0013-216 e_A2769.00 t43065372,155.00 rent1,930.00 500.000.00 08/21/2020 02/20/202255.18Total1,930.00 Page 21 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202113-217 e_B1.2a1,038.00 t44030802,028.00 rent1,985.00 500.000.00 08/20/2021 08/19/20220.00Total1,985.0013-218 e_B21,096.00 t43765802,625.00 rent2,516.30 500.000.00 04/23/2021 04/22/20220.00Total2,516.3013-219 e_B1.2a1,038.00 t42612142,028.00 carport50.00 500.000.00 07/01/2020 06/30/20210.00rent1,791.00Total1,841.0013-220 e_B21,096.00 t43472462,800.00 rent2,655.00 500.000.00 01/09/2021 01/08/2022-2,722.82Total2,655.0013-302 e_A2a769.00 t43577781,903.00 rent1,803.00 500.000.00 02/28/2021 02/27/20221,945.76carport50.00Total1,853.0013-303 e_B1.21,038.00 t44047942,799.00 rent2,769.00 500.000.00 08/07/2021 08/06/20220.00Total2,769.0013-304 e_A2769.00 t43035122,270.00 pet50.00 2,022.500.00 08/04/2020 10/03/20210.00rent2,270.00Total2,320.0013-306 e_A2a769.00 t43806971,803.00 rent1,735.68 500.000.00 05/11/2021 05/10/20221,796.35Total1,735.6813-308 e_B21,096.00 t42457252,815.00 carport50.00 500.000.00 05/29/2020 08/28/20220.00carport50.00rent2,731.00Total2,831.0013-310 e_A2769.00 t43102772,170.00 rent2,139.00 500.00 500.00 10/10/2020 10/09/2022137.68pet100.00Total2,239.00 Page 22 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202113-311 e_B1.21,038.00 t43117522,624.00 rent2,480.00 2,980.000.00 08/29/2020 12/28/202125.00Total2,480.0013-312 e_B21,096.00 t42961682,765.00 carport50.00 500.000.00 07/14/2020 11/13/20220.00rent2,765.00Total2,815.0013-313 e_A1.2747.00 t42473392,209.00 rent1,925.00 2,425.000.00 07/20/2020 12/17/20210.00carport50.00Total1,975.0013-314 e_B21,096.00 t42712012,640.00 pet100.00 1,000.000.00 06/28/2020 07/27/20210.00carport50.00carport50.00carport50.00carport50.00rent2,400.00Total2,700.0013-315 e_A1.2747.00 t42714732,209.00 rent1,925.00 500.000.00 06/03/2020 12/02/20210.00carport50.00carport50.00Total2,025.0013-316 e_A2a769.00 t43034681,803.00 carport50.00 500.000.00 08/01/2020 07/31/20220.00rent1,566.00Total1,616.0013-317 e_B1.21,038.00 t43098132,749.00 carport50.00 3,055.000.00 08/20/2020 09/19/20210.00rent2,719.00Total2,769.0013-318 e_B21,096.00 t43036112,765.00 rent2,570.00 500.000.00 09/09/2020 01/08/20220.00Total2,570.00 Page 23 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202113-319 e_B1.21,038.00 t43133022,674.00 rent2,530.00 3,030.000.00 09/20/2020 01/19/202223,365.76Total2,530.0013-320 e_B21,096.00 t42475512,690.00 rent2,450.00 500.000.00 06/27/2020 12/26/20210.00carport50.00carport50.00Total2,550.0014-101 e_A1.1784.00 t42950152,395.00 carport50.00 500.000.00 08/01/2020 07/31/20220.00rent2,306.00Total2,356.0014-103 e_A1.1784.00 t42937772,220.00 carport50.00 500.000.00 07/24/2020 09/23/20220.00rent2,131.00Total2,181.0014-105 e_A1.1789.00 t42537002,520.00 rent2,205.00 1,000.000.00 06/19/2020 12/18/20210.00pet50.00Total2,255.0014-201 e_A1.1784.00 t44115092,355.00 rent2,355.00 1,000.000.00 09/05/2021 09/04/20220.00Total2,355.0014-202 e_A1.2a747.00 t43021331,803.00 carport50.00 1,000.000.00 08/01/2020 07/31/2021-1,739.80carport50.00rent1,803.00Total1,903.0014-203 e_A1.1784.00 t42732672,305.00 rent2,076.00 500.000.00 06/19/2020 07/18/20220.00Total2,076.0014-204 e_A1.2a747.00 t42944261,803.00 rent1,803.00 500.000.00 07/31/2020 07/30/2021 11/01/20210.00Total1,803.00 Page 24 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202114-205 e_A1.1784.00 t44002112,230.00 rent2,208.00 500.000.00 08/14/2021 08/13/20220.00carport50.00carport50.00Total2,308.0014-206 e_A1.2a747.00 t43125401,803.00 carport50.00 500.000.00 09/16/2020 09/15/20210.00rent1,566.00Total1,616.0014-301 e_A1.1784.00 t42923412,245.00 rent2,055.00 500.000.00 07/29/2020 10/28/20210.00Total2,055.0014-302 e_A1.2747.00 t43497372,384.00 rent2,225.00 500.000.00 02/21/2021 03/20/20220.00Total2,225.0014-303 e_A1.1784.00 t42708012,320.00 rent2,231.00 500.000.00 07/12/2020 08/11/2021 11/15/20210.00Total2,231.0014-304 e_A1.2a747.00 t44126341,803.00 rent1,735.00 500.000.00 09/13/2021 09/12/20220.00Total1,735.0014-305 e_A1.1784.00 t42935402,245.00 rent2,055.00 500.000.00 07/11/2020 01/10/20220.00Total2,055.0014-306 e_A1.2747.00 t43101892,384.00 rent2,362.00 500.000.00 08/19/2020 09/18/2021 11/19/2021 74.80Total2,362.0015-102 e_B21,096.00 t43945782,940.00 carport50.00 500.000.00 08/14/2021 02/13/20230.00rent2,856.00Total2,906.0015-104 e_B21,096.00 t42622482,890.00 rent2,605.00 500.000.00 08/07/2020 02/06/20220.00carport50.00Total2,655.00 Page 25 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202115-106 e_B21,096.00 t43136442,890.00 rent2,745.00 500.000.00 09/04/2020 01/03/20220.00Total2,745.0015-107 e_A2769.00 t43105802,170.00 rent2,139.00 500.000.00 08/28/2020 10/27/2022213.40Total2,139.0015-108 e_B21,096.00 t42856152,690.00 rent2,660.00 500.000.00 07/25/2020 09/24/20210.00Total2,660.0015-109 e_A1.1789.00 t43417412,470.00 rent2,330.00 500.000.00 12/20/2020 06/19/2022-2,382.40Total2,330.0015-111 e_A1.1789.00 t42739762,470.00 rent2,127.00 1,532.500.00 06/29/2020 07/28/20220.00Total2,127.0015-113 e_A1.1789.00 t43086322,520.00 rent2,330.00 500.000.00 10/15/2020 04/14/2022-1,100.00Total2,330.0015-201 e_B1.2a1,038.00 t42880122,153.00 rent1,916.00 500.000.00 06/28/2020 06/27/2022-1,975.52Total1,916.0015-202 e_B21,096.00 t42449132,650.00 carport50.00 500.000.00 06/30/2020 07/29/20210.00rent2,375.00Total2,425.0015-203 e_B1.2a1,038.00 t42968652,028.00 rent1,790.00 1,395.000.00 07/26/2020 07/25/20210.00Total1,790.0015-204 e_B21,096.00 t43321392,725.00 rent2,580.00 500.000.00 10/31/2020 11/30/20210.00pet50.00Total2,630.0015-205 e_B1.2a1,038.00 t42975102,028.00 pet50.00 1,000.000.00 07/25/2020 07/24/2021507.00carport50.00rent2,028.00 Page 26 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,128.0015-206 e_B21,096.00 t42439352,600.00 rent2,325.00 500.000.00 07/22/2020 01/21/20220.00carport50.00carport50.00Total2,425.0015-207 e_A2769.00 t44131222,305.00 rent2,305.00 500.000.00 09/20/2021 09/19/2022-2,331.09Total2,305.0015-208 e_B21,096.00 t42823072,700.00 rent2,440.00 500.000.00 06/28/2020 10/27/20210.00Total2,440.0015-209 e_A1.1784.00 t42972682,230.00 rent2,165.00 500.000.00 09/06/2020 03/05/20220.00Total2,165.0015-210 e_A1.2a747.00 t43234051,803.00 rent1,566.00 1,000.000.00 11/11/2020 11/10/20210.00Total1,566.0015-211 e_A1.1784.00 t42953592,355.00 rent2,355.00 500.000.00 07/22/2020 11/21/20220.00Total2,355.0015-212 e_B1.2a1,038.00 t42766132,028.00 carport50.00 2,291.000.00 06/28/2020 06/27/20224,023.77rent1,791.00carport50.00Total1,891.0015-213 e_A1.1784.00 t44101982,280.00 rent2,280.00 500.000.00 10/03/2021 10/02/2022-344.82Total2,280.0015-301 e_B1.21,038.00 t43005682,674.00 rent2,592.00 500.000.00 07/25/2020 08/24/2021112.00Total2,592.0015-302 e_B21,096.00 t43604102,790.00 rent2,681.00 500.00 500.00 04/10/2021 08/09/20220.00pet50.00 Page 27 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total2,731.0015-303 e_B1.2a1,038.00 t42998162,028.00 rent1,791.00 500.000.00 08/16/2020 09/15/20210.00Total1,791.0015-304 e_B21,096.00 t44109242,615.00 rent2,615.00 500.000.00 10/15/2021 10/14/20221,434.03Total2,615.0015-305 e_B1.21,038.00 t43091212,749.00 carport50.00 500.000.00 09/12/2020 09/11/2022125.15rent2,749.00Total2,799.0015-306 e_B21,096.00 t42868272,740.00 pet50.00 1,000.000.00 06/30/2020 07/29/20211,735.00rent2,631.00Total2,681.0015-307 e_A2769.00 t43717532,320.00 rent2,173.80 500.00 500.00 05/10/2021 05/09/20220.00pet50.00Total2,223.8015-308 e_B21,096.00 t43486322,840.00 rent2,695.00 500.000.00 01/17/2021 03/16/20220.00Total2,695.0015-309 e_A1.1784.00 t42779642,370.00 rent2,160.00 500.000.00 08/01/2020 01/31/20220.00Total2,160.0015-310 e_A1.2747.00 t42517582,334.00 rent2,050.00 500.000.00 07/01/2020 12/31/20210.00Total2,050.0015-311 e_A1.1784.00 t42836332,245.00 rent2,035.00 500.000.00 07/11/2020 01/10/20220.00Total2,035.0015-312 e_B1.21,038.00 t43093842,674.00 rent2,644.00 500.000.00 09/01/2020 09/30/20210.00Total2,644.00 Page 28 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202115-313 e_A1.1784.00 t42848692,420.00 rent2,230.00 500.000.00 07/02/2020 01/01/20220.00Total2,230.0001-212 e_B1.11,049.00 t44172532,922.000.000.000.00 11/12/2021 01/11/20230.00Total0.0001-404 e_A1.1784.00 t44137102,195.000.000.000.00 11/06/2021 11/05/20220.00Total0.0001-419 e_A2769.00 t44149722,260.000.000.000.00 12/01/2021 11/30/20220.00Total0.0002-203 e_B21,096.00 t44150292,940.000.00 500.000.00 10/29/2021 10/28/20220.00Total0.0003-312 e_B1.11,049.00 t44140712,872.000.000.000.00 11/07/2021 11/06/20220.00Total0.0007-202 e_A1.2747.00 t44147402,294.000.00 500.000.00 11/03/2021 11/02/20220.00Total0.0008-215 e_A2769.00 t44165832,180.000.000.000.0011/21/20220.00Total0.0008-319 e_A2769.00 t44128452,320.000.00 500.000.00 10/26/2021 10/25/20220.00Total0.0011-103 e_C1.11,560.00 t44152693,790.000.00 500.000.00 11/14/2021 11/13/20220.00Total0.0011-105 e_C1a1,560.00 t44170742,329.000.000.000.00 11/13/2021 11/12/20220.00Total0.0012-105 e_C1.11,560.00 t44165563,790.000.000.000.00 11/12/2021 11/11/20220.00Future Residents/Applicants Page 29 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/2021Total0.0013-212 e_B21,096.00 t44126272,625.000.000.000.00 10/29/2021 12/31/2021551.00Total0.0014-303 e_A1.1784.00 t44164192,320.000.000.000.00 12/15/2021 12/14/20220.00Total0.0014-306 e_A1.2747.00 t44170152,384.000.000.000.00 11/26/2021 11/25/20220.00Total0.00Total689,487.00621,575.28 222,603.80 3,000.0043,428.4101-114 e_retail1,312.00 t42586853,608.00 commrent6,974.000.00 11,255.08 07/16/2021 05/29/2030-5,972.10rtlconc-6,974.00rtlcam2,105.00Total2,105.0001-116 e_retail1,224.00 VACANT3,366.000.000.000.000.00Total0.0001-118 e_retail1,221.00 t42543743,357.75 commrent3,357.750.00 4,817.02 06/10/2021 10/14/2025369.71rtlconc-3,357.75rtlcam1,013.00Total1,013.0003-101 e_retail1,338.00 VACANT3,679.500.000.000.000.00Total0.0003-103 e_retail1,211.00 VACANT3,330.250.000.000.000.00Total0.0003-105 e_retail1,235.00 VACANT3,396.250.000.000.000.00Total0.00Current/Notice/Vacant Residents Page 30 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202103-107 e_retail1,207.00 VACANT3,319.250.000.000.000.00Total0.0003-109 e_retail1,221.00 VACANT3,357.750.000.000.000.00Total0.0004-105 e_retail1,337.00 VACANT3,676.750.000.000.000.00Total0.0004-107 e_retail1,244.00 VACANT3,421.000.000.000.000.00Total0.0004-109 e_retail1,216.00 VACANT3,344.000.000.000.000.00Total0.0004-111 e_retail1,216.00 VACANT3,344.000.000.000.000.00Total0.0004-113 e_retail1,352.00 VACANT3,718.000.000.000.000.00Total0.0005-102 e_retail1,331.00 VACANT3,660.250.000.000.000.00Total0.0005-104 e_retail1,314.00 VACANT3,613.500.000.000.000.00Total0.0005-106 e_retail1,293.00 t43216193,555.75 commrent3,555.750.00 5,101.08 06/16/2021 06/15/2026-4,654.80rtlconc-3,555.75rtlcam1,073.00Total1,073.0006-102 e_retail10,264.00 VACANT18,988.400.000.000.000.00Total0.00 Page 31 of 32
12/8/2021 2:30 PMUnitUnit TypeUnit ResidentMarket ChargeAmount ResidentOther Move In LeaseMove Out BalanceSq FtRent CodeDeposit DepositExpirationRent Roll with Lease ChargesFor Selected PropertiesAs Of = 10/25/2021Month Year = 10/202104-105 e_retail1,337.00 t43552483,676.750.000.000.00 01/01/2022 11/17/2025-10,343.71Total0.0004-107 e_retail1,244.00 t44094033,421.000.000.000.00 12/01/2021 07/17/20254,757.54Total0.00Total74,736.404,191.000.00 21,173.18-15,843.36289Total764,223.40625,766.28 222,603.80 24,173.1827,585.05Square MarketLease SecurityOther# Of % Unit % Sqft BalanceFootageRent Charges Deposit DepositsUnits Occupancy Occupied291,661.00764,223.40 625,766.28 220,603.80 24,173.18 289.0091.69 87.49 32,620.2216,920.00 44,318.750.00 2,000.000.0016.00-5,035.17255,196.00 673,852.5026591.69 87.491,885.00 4,860.0020.69 0.7334,580.00 85,510.90227.61 11.93291,661.00 764,223.40 625,766.28 222,603.80 24,173.18289 100.00 100.00 27,585.05Amount4,450.00621,420.282,350.00-500.00-6,145.0013,887.50-13,887.504,191.00625,766.28Future Residents/ApplicantsSummary GroupsCurrent/Notice/Vacant ResidentsFuture Residents/ApplicantsOccupied UnitsTotal Non Rev UnitsTotal Vacant UnitsTotals:Summary of Charges by Charge Code (Current/Notice Residents Only)Charge CodecarportrtlconcrtlcamTotalrentpetoconcesempdisccommrent Page 32 of 32
12/8/2021 2:31 PMOct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021Total4000-0000 INCOME4100-0000 Gross Potential Mkt Rent4100-0020 Rent573,694.42 591,153.91 606,804.17 614,287.21 595,595.84 612,376.58 605,251.55 615,365.74 611,042.41 621,014.75 624,364.74 626,118.78 7,297,070.104100-0055 Actual Potential Rent573,694.42 591,153.91 606,804.17 614,287.21 595,595.84 612,376.58 605,251.55 615,365.74 611,042.41 621,014.75 624,364.74 626,118.78 7,297,070.104100-0090 Models-4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -4,275.00 -51,300.004100-0100 Employee Units-4,566.61 -6,676.00 -6,676.00 -6,676.00 -5,956.58 -6,145.00 -6,145.00 -6,145.00 -6,145.00 -6,145.00 -6,145.00 -6,145.00 -73,566.194100-0150 Rental Concessions-60,636.81 -24,891.13 -11,426.02 -6,066.855,801.15-500.000.000.00-129.35-142.860.00 -5,340.00 -103,331.874100-0320 Bad Debt Expense0.000.000.000.000.000.000.000.000.000.000.00 -17,736.93 -17,736.934100-0350 Base Rent - Commercial4,654.80 -4,654.804,654.802,151.29 -2,410.490.000.000.000.00 -5,954.83 10,331.75 10,331.75 19,104.274199-9999 Total Gross Potential Mkt Rent508,870.80 550,656.98 589,081.95 599,420.65 588,754.92 601,456.58 594,831.55 604,945.74 600,493.06 604,497.06 624,276.49 602,953.60 7,070,239.384200-0000 Other Income4200-0001 Other Income4200-0060 Application Fees1,080.00900.00315.001,035.00495.00720.002,120.001,696.002,491.001,272.001,058.001,332.00 14,514.004200-0100 Carport Income4,388.914,438.394,396.774,429.034,458.924,470.234,379.544,238.014,540.105,179.174,475.814,798.34 54,193.224200-0180 Damage Fees1,436.242,788.382,891.662,199.577,070.591,054.227,355.653,345.965,112.745,981.146,689.09 -9,646.83 36,278.414200-0230 Termination Fees3,850.002,607.95451.580.00492.856,598.00 -5,853.070.003,879.174,284.00473.23 -3,967.97 12,815.744200-0340 Pet Rent4,972.413,119.401,869.413,101.623,025.002,980.302,901.672,988.702,956.982,772.592,932.252,712.21 36,332.544200-0360 NSF35.00175.00105.00245.00105.0035.0035.00245.0035.0070.0070.0070.001,225.004200-0370 Late Fees150.00 -1,050.000.000.000.000.000.000.000.000.000.000.00-900.004200-0610 Renter's Insurance0.000.000.0039.7525.2559.921.3310.75-269.751.04351.27-106.71112.854299-9999 Total Other Income15,912.56 12,979.12 10,029.42 11,049.97 15,672.61 15,917.67 10,940.12 12,524.42 18,745.24 19,559.94 16,049.65 -4,808.96 154,571.764300-0000 Miscellaneous Income4300-0010 Miscellaneous Income0.000.000.000.0015.000.000.000.001.001.0011.000.0028.004300-0130 Collection Income0.000.000.000.000.000.005,506.25222.411,116.03336.411,072.961,418.959,673.014300-0630 Accelerated Rent0.000.000.000.000.000.00 22,568.69 -18,001.930.00757.740.000.005,324.504399-9999 Total Miscellaneous Income0.000.000.000.0015.000.00 28,074.94 -17,779.52 1,117.03 1,095.15 1,083.96 1,418.95 15,025.514400-0000 Retail Income4400-0040 Rent Concession - Retail0.000.000.000.000.000.000.000.000.00 -5,219.94 -10,331.75 -10,331.75 -25,883.444400-0080 Retail Income CAM0.000.000.000.000.000.000.000.00-518.512,676.322,393.152,393.156,944.114499-9999 Total Retail Income0.000.000.000.000.000.000.000.00-518.51 -2,543.62 -7,938.60 -7,938.60 -18,939.334700-0000 Utility Reimbursement Income4700-0010 Reimbursed Electricity0.000.000.000.000.000.000.000.000.000.000.00100.00100.004799-9999 Total Utility Reimbursement Income0.000.000.000.000.000.000.000.000.000.000.00100.00100.004999-9998 Total Other Income15,912.56 12,979.12 10,029.42 11,049.97 15,687.61 15,917.67 39,015.06 -5,255.10 19,343.76 18,111.47 9,195.01 -11,228.61 150,757.944999-9999 TOTAL INCOME524,783.36 563,636.10 599,111.37 610,470.62 604,442.53 617,374.25 633,846.61 599,690.64 619,836.82 622,608.53 633,471.50 591,724.99 7,220,997.325000-0000 OPERATING EXPENSES5100-0000 Payroll5100-1000 Administrative Payroll5100-1030 Manager6,092.465,815.466,645.695,234.656,289.506,870.006,593.006,796.006,412.005,458.896,342.506,843.50 75,393.655100-1040 Assistant Manager3,995.433,877.004,230.584,262.853,749.424,537.966,500.133,044.264,110.654,782.424,080.984,786.36 51,958.045100-1999 Total Administrative Payroll10,087.89 9,692.46 10,876.27 9,497.50 10,038.92 11,407.96 13,093.13 9,840.26 10,522.65 10,241.31 10,423.48 11,629.86 127,351.695100-2000 Leasing Payroll5100-2010 Leasing Manager3,311.923,773.384,767.644,509.802,531.484,251.885,382.70 -3,385.000.000.000.000.00 25,143.805100-2020 Leasing Consultant5,721.781,263.283,645.383,359.67372.700.005,304.694,547.583,035.806,107.533,509.005,082.02 41,949.435100-2999 Total Leasing Payroll9,033.70 5,036.66 8,413.02 7,869.47 2,904.18 4,251.88 10,687.39 1,162.58 3,035.80 6,107.53 3,509.00 5,082.02 67,093.235100-3000 Maintenance Payroll5100-3010 Director of Facilities635.08635.08635.080.000.000.001,128.001,128.00564.00564.00564.00564.006,417.245100-3030 Maintenance Manager5,209.922,955.254,798.255,197.254,675.004,588.504,063.004,602.753,637.502,558.994,198.754,745.50 51,230.665100-3050 Maintenance Person4,120.005,178.006,354.886,316.849,305.847,278.215,788.756,592.667,222.677,528.082,412.506,168.25 74,266.685100-3999 Total Maintenance Payroll9,965.00 8,768.33 11,788.21 11,514.09 13,980.84 11,866.71 10,979.75 12,323.41 11,424.17 10,651.07 7,175.25 11,477.75 131,914.585200-0000 Overtime5200-0010 Overtime - Administrative284.88266.70306.0230.02513.83315.3238.81168.69211.49513.9460.28569.633,279.615200-0020 Overtime - Leasing59.0535.5724.875.7920.857.5520.35111.0071.78112.6223.60129.96622.995200-0030 Overtime - Maintenance882.67265.77485.2567.20352.26137.82230.32906.171,027.16531.69185.68390.775,462.765249-9999 Total Overtime1,226.60568.04816.14103.01886.94460.69289.48 1,185.86 1,310.43 1,158.25269.56 1,090.36 9,365.365250-0000 BonusThe Residences at Escaya + Retail (escaya)Statement (12 months)Period = Oct 2020-Sep 2021Book = Accrual Page 1 of 4
12/8/2021 2:31 PMOct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021TotalThe Residences at Escaya + Retail (escaya)Statement (12 months)Period = Oct 2020-Sep 2021Book = Accrual5250-0010 Bonus - Administrative - Monthly0.000.000.000.000.000.0060.000.000.000.000.000.0060.005250-0030 Bonus - Administrative - Quarterly0.000.000.00500.00-500.000.000.000.000.000.000.000.000.005250-0050 Bonus - Leasing - Monthly0.000.000.000.000.000.002,000.001,475.00 -3,475.000.003,570.00-708.002,862.005250-0330 Bonuses & Other Bonuses14,762.32 12,624.44 15,519.61 -2,014.337,525.32 13,404.462,900.005,370.435,859.328,117.230.008,410.33 92,479.135299-9999 Total Bonus14,762.32 12,624.44 15,519.61 -1,514.33 7,025.32 13,404.46 4,960.00 6,845.43 2,384.32 8,117.23 3,570.00 7,702.33 95,401.135400-0000 Check Processing Fees5400-0010 Ck Processing - Administrative0.000.000.000.0060.000.000.000.000.0060.000.000.00120.005449-9999 Total Check Processing Fees0.000.000.000.0060.000.000.000.000.0060.000.000.00120.005450-0000 Payroll Taxes5450-0250 Other Payroll Taxes4,673.15708.083,243.934,086.903,966.233,958.153,898.202,764.342,804.052,837.911,636.713,401.74 37,979.395499-9999 Total Payroll Taxes4,673.15708.08 3,243.93 4,086.90 3,966.23 3,958.15 3,898.20 2,764.34 2,804.05 2,837.91 1,636.71 3,401.74 37,979.395500-0000 Insurance Benefits5500-0090 Other Insurance Benefits2,475.883,040.003,040.003,810.003,175.003,810.002,603.602,540.002,412.272,540.002,540.002,488.81 34,475.565549-9999 Total Insurance Benefits2,475.88 3,040.00 3,040.00 3,810.00 3,175.00 3,810.00 2,603.60 2,540.00 2,412.27 2,540.00 2,540.00 2,488.81 34,475.565550-0000 401k Contribution5550-0100 401K Administration Costs1,033.40119.03720.61499.05495.53861.59405.62395.31295.55350.36210.30336.505,722.855599-9999 Total 401K Contribution1,033.40119.03720.61499.05495.53861.59405.62395.31295.55350.36210.30336.50 5,722.855600-0000 Workers Compensation5600-0010 Workers Comp - Administrative4,502.85460.662,950.682,595.442,856.124,309.253,445.742,526.632,738.173,199.511,678.313,782.31 35,045.675649-9999 Total Workers Compensation4,502.85460.66 2,950.68 2,595.44 2,856.12 4,309.25 3,445.74 2,526.63 2,738.17 3,199.51 1,678.31 3,782.31 35,045.675650-0000 Payroll Other5650-0040 New Hire Expense - Admin0.000.000.00250.000.000.000.00655.1152.420.000.000.00957.535650-0050 New Hire Expense - Maint20.640.000.0027.550.000.000.000.000.000.000.000.0048.195650-0070 Other Payroll - Admin0.000.000.000.000.000.000.000.000.002,966.070.00 -2,966.070.005650-0090 Employee Gifts0.000.000.000.000.000.0040.000.000.000.000.000.0040.005699-9999 Total Payroll Other20.640.000.00277.550.000.0040.00655.1152.42 2,966.070.00 -2,966.07 1,045.725999-9999 Total Payroll57,781.43 41,017.70 57,368.47 38,738.68 45,389.08 54,330.69 50,402.91 40,238.93 36,979.83 48,229.24 31,012.61 44,025.61 545,515.186000-0000 Landscaping6000-0010 Landscape Contract8,593.001,728.60 -4,936.007,827.349,988.664,223.003,450.004,729.00 10,031.20 -4,064.20 10,429.004,775.00 56,774.606000-0020 Flowers0.000.000.000.000.00212.820.000.000.000.00594.721,153.141,960.686000-0030 Mulch0.000.000.000.000.000.000.000.000.002,195.200.000.002,195.206000-0040 Landscape Supplies0.000.0025.360.000.000.000.000.000.000.00261.290.00286.656000-0130 Irrigation/Sprinkler Repairs0.00584.650.000.00683.62884.250.000.001,022.960.00270.211,176.484,622.176099-9999 Total Landscaping8,593.00 2,313.25 -4,910.64 7,827.34 10,672.28 5,320.07 3,450.00 4,729.00 11,054.16 -1,869.00 11,555.22 7,104.62 65,839.306100-0000 Utility Expense6100-0010 Electricity5,490.765,452.156,845.413,064.586,157.622,102.275,014.587,501.255,834.467,008.803,568.385,390.87 63,431.136100-0030 Electricity - Model115.96105.57109.08109.0898.53109.08105.56109.08105.56 -1,388.240.880.66-419.206100-0040 Electricity - Vacant-1,531.31 -1,924.77811.80453.5272.51526.33152.36241.79884.16667.241,736.151,718.413,808.196100-0080 Gas-1,307.00-326.522,218.83756.055,092.05-754.783,480.551,643.591,691.22276.59236.24-475.68 12,531.146100-0150 Water1,121.898,301.99 15,534.94 12,008.35 10,000.00 11,095.48 10,970.569,324.117,076.12 16,153.01 17,880.18 -3,166.34 116,300.296100-0220 Sewer0.00 20,141.980.000.000.000.000.000.000.000.000.000.00 20,141.986100-0280 Trash Removal5,340.006,075.339,530.604,954.83 11,014.763,998.825,826.34 10,588.82 15,050.15 16,898.109,966.459,860.06 109,104.266100-0310 Cable Expense0.000.000.000.00239.01312.440.00118.320.00-162.00681.96155.771,345.506100-0370 Reimbursed Utilities-416.42619.86-507.38-518.50-538.02-522.96-535.22 -7,822.72-528.48-528.75-524.14-767.20 -12,589.936100-0375 Reimbursed Water-3,520.33 -4,304.89 -4,539.79 -4,337.65 -4,852.25 -4,707.02 -4,087.88 -4,571.93 -4,405.30 -4,604.00 -4,363.41 -4,185.58 -52,480.036100-0380 Reimbursed Sewer-2,619.83 -3,190.14 -3,358.75 -3,228.56 -3,509.77 -3,415.17 -2,957.18 -3,296.59 -3,152.62 -3,331.18 -3,162.82 -3,053.99 -38,276.606100-0390 Reimbursed Trash Removal-5,471.99 -6,915.51 -6,917.10 -7,038.93 -7,305.86 -7,872.28 -8,068.97 -6,369.57 -6,504.71 -6,362.71 -6,722.92 -5,752.72 -81,303.276100-0430 Contract Utility Admin-915.24 -1,092.08 -1,102.59 -1,157.20 -1,149.42 -1,129.006,171.150.003,590.3670.842,794.841,314.077,395.736199-9999 Total Utility Expense-3,713.51 22,942.97 18,625.05 5,065.57 15,319.16-256.79 16,071.85 7,466.15 19,640.92 24,697.70 22,091.79 1,038.33 148,989.196300-0000 Marketing6300-0050 Marketing - Internet5,944.002,491.425,706.42-165.222,377.211,292.794,091.002,650.4073.391,452.001,515.182,786.00 30,214.596300-0210 Advertising Other1,167.52-354.440.00-500.000.000.000.000.00355.000.000.00-30.71637.376300-0220 Dues, Memberships & Sub.0.000.000.000.000.001,454.00955.000.000.000.000.000.002,409.006300-0230 Resident Functions0.001,068.900.0055.00-747.70-208.560.000.000.000.000.000.00167.646300-0300 Temporary Signage0.000.000.000.000.000.00136.680.00397.990.000.000.00534.676300-0342 Alliance Resident Works566.50566.50566.500.00550.00-550.000.000.000.000.000.000.001,699.506300-0346 PPC5,413.532,530.137,500.00 -2,529.121,433.231,513.551,470.631,616.011,494.231,488.761,468.841,485.06 24,884.856300-0400 Resident Referrals500.00500.000.00500.000.00-500.000.000.000.000.000.000.001,000.006300-0420 Resident Retention0.000.0044.490.000.00660.7213.880.00-161.080.000.0010.95568.966300-0460 Model Maintenance210.00251.04210.00210.00210.00210.00210.000.00420.00210.00260.03210.002,611.076300-0540 Other Mktg. - Non Adv.260.50412.5096.00154.50148.0097.00140.50181.00162.00109.50155.50271.502,188.506300-0542 SEO Program1,500.00600.00600.00600.00600.00600.00600.00600.00600.00600.00600.00600.008,100.00 Page 2 of 4
12/8/2021 2:31 PMOct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021TotalThe Residences at Escaya + Retail (escaya)Statement (12 months)Period = Oct 2020-Sep 2021Book = Accrual6300-0544 Reputation Management45.005.00-100.000.000.000.001,304.750.0020.000.000.000.001,274.756300-0580 Fitness program - Property0.000.000.000.000.000.000.000.000.001,494.00525.00249.002,268.006399-9999 Total Marketing15,607.05 8,071.05 14,623.41 -1,674.84 4,570.74 4,569.50 8,922.44 5,047.41 3,361.53 5,354.26 4,524.55 5,581.80 78,558.906400-0000 Administrative6400-0010 Telephone150.0073.21104.40310.48327.6522.9220.98880.00286.3420.9820.986.712,224.656400-0020 Cell Phone27.3527.3528.8628.8628.86-115.44143.550.0031.8631.8731.8631.81296.796400-0050 Internet Service295.40639.64158.66468.04805.65496.64468.04798.68670.15188.66467.00302.675,759.236400-0060 Common Area TV0.00218.460.000.000.000.000.000.000.000.000.000.00218.466400-0070 Office Supplies840.35968.77-215.32200.82158.06-55.500.00914.7079.33738.26929.21110.664,669.346400-0075 Misc Office Expense0.000.007.3370.000.000.000.000.000.0099.000.000.00176.336400-0120 Postage0.00312.5513.35-283.2955.000.000.000.00110.0014.730.000.00222.346400-0200 Licenses175.00235.00235.00175.00607.00175.00175.00175.00175.00175.00175.00175.002,652.006400-0202 Kingsley Survey152.320.000.000.000.000.000.000.000.000.000.000.00152.326400-0230 Training & Education225.00225.00225.00225.00225.00225.00225.00225.00491.68225.00291.67291.673,100.026400-0250 Eviction/Legal Fees0.00438.500.000.000.000.0033.729.30649.000.003.081,379.882,513.486400-0270 Credit Check1,789.39197.41286.6613.34-57.69750.00-750.00480.60954.00354.60788.40492.005,298.716400-0310 Bank Charges/Credit Card Fees226.37240.00300.00509.76316.40301.53250.00259.11320.00260.30260.24390.183,633.896400-0320 Employee Recognition12.650.00506.500.000.000.000.000.00374.560.000.000.00893.716400-0330 Employee Meetings0.000.000.000.0036.160.000.000.000.000.000.000.0036.166400-0440 Administrative Other119.00119.00119.00119.00214.20214.20214.2095.20273.20274.61194.20194.202,150.016400-0480 Computer Software432.282,202.28206.00415.00465.00555.00585.22465.00649.58415.00655.00415.007,460.366400-0484 Yardi PAYscan0.000.00-30.000.000.000.00220.290.000.00119.410.000.00309.706400-0560 Gov Licenses Fees/Permits3,278.320.003,177.880.000.000.000.000.000.000.000.00226.096,682.296400-0760 Compliance59.000.000.000.000.000.000.000.000.000.000.000.0059.006400-0800 Uniforms - Administrative700.00-700.000.000.000.000.000.000.000.000.000.000.000.006400-0805 Uniforms - Leasing700.00-700.000.000.000.000.000.000.000.00202.0086.940.00288.946499-9999 Total Administrative9,182.43 4,497.17 5,123.32 2,252.01 3,181.29 2,569.35 1,586.00 4,302.59 5,064.70 3,119.42 3,903.58 4,015.87 48,797.736500-0000 Maintenance6500-0010 Building & Structure0.000.000.000.000.000.000.000.0028.74-28.7428.740.0028.746500-0020 Building & Maintenance0.000.000.000.0067.980.000.000.000.00196.4922.83-196.4990.816500-0030 Building & Maintenance Supplies46.70-41.650.00100.57174.28327.94197.1318.56678.3661.35146.77-544.731,165.286500-0060 Lighting39.130.000.000.730.000.000.000.000.000.000.000.0039.866500-0110 Amenities R&M0.000.000.000.00175.000.000.00257.630.00350.00174.99152.131,109.756500-0360 Electrical53.73-12.040.00110.6350.55276.200.00293.86154.77745.67481.5132.102,186.986500-0380 Electrical Supplies0.00181.7459.81-112.060.000.0026.190.00164.55-567.950.000.00-247.726500-0400 Plumbing13.6883.610.000.334.930.000.000.0036.05358.46706.80-196.761,007.106500-0430 HVAC0.0027.120.000.0049.9254.420.00224.330.00468.401,357.44156.012,337.646500-0440 HVAC Supplies0.0032.920.000.580.000.000.000.00259.56-483.890.000.00-190.836500-0600 Misc. Supplies0.00106.930.00239.58-134.87-83.710.000.0090.98-110.110.000.00108.806500-0610 Housekeeping5,008.694,346.553,637.724,289.936,732.903,169.982,895.004,503.083,168.213,814.223,981.633,198.00 48,745.916500-0620 Cleaning Supplies0.000.00356.11268.220.000.000.000.000.000.000.000.00624.336500-0690 Pest Control365.00365.00365.00365.00365.00365.00365.000.00735.00365.00675.00370.004,700.006500-0710 Swimming Pool550.001,299.52550.00550.001,797.16954.17550.001,276.051,071.991,798.62915.551,498.00 12,811.066500-0720 Swimming Pool Supplies0.000.000.000.000.000.0067.600.000.00-67.600.000.000.006500-0840 Courtesy Patrol3,000.001,499.941,500.001,575.001,575.001,500.001,575.001,575.003,150.001,650.001,575.001,575.00 21,749.946500-1040 Keys-214.83425.62-75.00-72.54158.78-13.180.0076.29635.1976.29139.500.001,136.126500-1050 Locks0.000.000.000.000.000.000.000.002.48-76.290.000.00-73.816500-1060 Fire Extinguisher, 1st Aid0.0022.500.000.000.001,478.360.000.000.00-3.040.00 14,009.00 15,506.826500-1110 Alarm Expense1,286.00281.500.001,252.500.000.000.000.000.001,252.500.00138.754,211.256500-1360 Appliances0.000.00216.3910.900.00285.00-47.220.00336.56-336.56336.561,535.792,337.426500-1460 Safety Tool Equip/Rep/Sup0.000.000.0092.55197.25-60.32403.120.00169.630.000.00100.39902.626500-1480 Appliance Repair0.000.000.0022.47769.28377.970.000.00737.391,669.67113.50221.543,911.826500-1500 Carpet Replacement0.000.000.000.000.00 -1,295.720.000.00-106.960.000.000.00 -1,402.686500-1550 Uniforms - Maintenance350.0060.560.00448.46478.6239.467.130.000.00451.570.000.001,835.806599-9999 Total Maintenance10,498.10 8,679.82 6,610.03 9,142.85 12,461.78 7,375.57 6,038.95 8,224.80 11,312.50 11,584.06 10,655.82 22,048.73 124,633.016600-0000 Redecorating6600-0010 Redec-General Cleaning0.002,370.002,010.990.001,338.901,795.001,827.731,240.001,600.001,120.001,485.00480.00 15,267.626600-0020 Redec-Cleaning Supplies0.0078.5079.88-51.0935.0026.94125.730.00-1.40-367.580.000.00-74.026600-0040 Redec-Painting Supplies302.6047.3385.45-171.85139.8731.860.00117.29-0.86495.5069.33363.101,479.626600-0050 Redec-Painting Contract0.005,670.003,660.001,130.002,630.003,230.003,585.003,285.003,990.002,975.003,405.001,200.00 34,760.006600-0080 Redec-Drapes/Blinds0.000.000.000.000.00225.000.000.00500.00287.240.0027.261,039.506600-0100 Redec-Window Cleaning0.000.000.000.000.000.000.000.00245.00-245.000.000.000.006600-0130 Redec-Carpet Cleaning0.00915.00420.00150.00405.00575.00520.00320.00375.005.00840.00470.004,995.006600-0140 Redec-Carpet Replacement665.481,504.791,339.76880.801,402.683,408.093,109.533,354.567,509.513,195.181,943.581,525.65 29,839.616600-0150 Redec-Vinyl Repair0.000.000.000.000.00361.000.000.000.0099.000.000.00460.006600-0170 Redec-Bathroom0.00298.000.000.000.000.000.000.000.000.000.00199.00497.006600-0180 Redec-Appliance Repair0.000.000.000.000.0053.4378.85683.94984.53 -1,333.110.000.00467.646600-0200 Redec-Plumbing0.000.000.00674.000.000.00142.230.00216.23-358.460.000.00674.006600-0230 Redec-Doors/Cabinets0.000.00273.5889.720.000.000.000.000.000.000.0010.86374.16 Page 3 of 4
12/8/2021 2:31 PMOct 2020 Nov 2020 Dec 2020 Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021 Jul 2021 Aug 2021 Sep 2021TotalThe Residences at Escaya + Retail (escaya)Statement (12 months)Period = Oct 2020-Sep 2021Book = Accrual6699-9999 Total Redecorating968.08 10,883.62 7,869.66 2,701.58 5,951.45 9,706.32 9,389.07 9,000.79 15,418.01 5,872.77 7,742.91 4,275.87 89,780.137000-0000 Management Fees7000-0010 Management Fees - #113,210.36 14,551.89 15,299.22 15,376.56 15,348.16 15,419.24 15,542.09 15,070.07 15,742.06 15,513.60 15,994.34 16,534.91 183,602.507099-9999 Total Management Fees13,210.36 14,551.89 15,299.22 15,376.56 15,348.16 15,419.24 15,542.09 15,070.07 15,742.06 15,513.60 15,994.34 16,534.91 183,602.507100-0000 Insurance7100-0010 Property Insurance6,746.916,746.91 14,156.09 14,156.09 14,156.09 14,156.09 14,156.09 16,899.35 15,070.51 15,070.51 14,156.09 15,984.93 161,455.667100-0020 General Liability Insurance1,546.651,546.651,498.081,498.081,498.081,498.081,498.081,498.081,498.081,498.081,498.081,498.08 18,074.107100-0035 Umbrella Insurance672.33672.33856.42856.42856.42856.42856.425,036.032,249.623,000.17856.423,943.04 20,712.047100-0060 Earthquake Insurance4,745.576,347.750.000.000.000.000.000.000.000.000.000.00 11,093.327199-9999 Total Insurance13,711.46 15,313.64 16,510.59 16,510.59 16,510.59 16,510.59 16,510.59 23,433.46 18,818.21 19,568.76 16,510.59 21,426.05 211,335.127200-0000 Taxes7200-0010 Real Estate Taxes36,667.00 -233,051.51 26,723.70 26,723.69 26,723.69 26,723.69 26,723.69 26,723.69 26,723.74 26,723.70 55,847.44 82,571.14 155,823.667200-0100 Taxes Other0.000.000.00 75,348.00 12,558.00 12,558.00 12,558.00 12,558.000.00 12,558.00 12,558.00 12,593.00 163,289.007299-9999 Total Taxes36,667.00 -233,051.51 26,723.70 102,071.69 39,281.69 39,281.69 39,281.69 39,281.69 26,723.74 39,281.70 68,405.44 95,164.14 319,112.667300-0000 Professional Services7300-0050 Eviction Legal Fees0.000.000.000.000.000.000.000.000.000.000.003.253.257399-9999 Total Professional Services0.000.000.000.000.000.000.000.000.000.000.003.253.257999-9998 TOTAL OPERATING EXPENSES162,505.40 -104,780.40 163,842.81 198,012.03 168,686.22 154,826.23 167,195.59 156,794.89 164,115.66 171,352.51 192,396.85 221,219.18 1,816,166.977999-9999 NET OPERATING INCOME362,277.96 668,416.50 435,268.56 412,458.59 435,756.31 462,548.02 466,651.02 442,895.75 455,721.16 451,256.02 441,074.65 370,505.81 5,404,830.358000-0000 NON-OPERATING EXPENSES8200-0000 Partnership Expense8200-0040 Legal0.000.000.0017.890.000.000.000.000.000.000.000.0017.898299-9999 Total Partnership Expense0.000.000.0017.890.000.000.000.000.000.000.000.0017.898400-0000 Non-Routine Improvements8400-0670 Miscellaneous1,082.04 65,206.391,392.16 26,858.181,855.98 -2,932.510.008,091.384,149.29-285.324,794.292,041.00 112,252.888499-9999 Total Non-Routine Improvements1,082.04 65,206.39 1,392.16 26,858.18 1,855.98 -2,932.510.00 8,091.38 4,149.29-285.32 4,794.29 2,041.00 112,252.888800-0000 Extraordinary Items8800-0200 Leasing Commissions0.000.000.000.000.000.000.000.000.000.00 12,822.24 22,560.82 35,383.068800-0440 Disaster Relief - COVID-190.000.000.0031.03-28.257.380.000.000.000.0058.790.0068.958800-0480 Insurance Reimbursement0.000.000.000.000.000.000.00 -3,353.050.000.000.000.00 -3,353.058899-9999 Total Extraordinary Items0.000.000.0031.03-28.257.380.00 -3,353.050.000.00 12,881.03 22,560.82 32,098.968900-0000 Property Sale8999-9999 TOTAL NON-OPERATING EXPENSES1,082.04 65,206.39 1,392.16 26,907.10 1,827.73 -2,925.130.00 4,738.33 4,149.29-285.32 17,675.32 24,601.82 144,369.739999-9900 NET CASH FLOW361,195.92 603,210.11 433,876.40 385,551.49 433,928.58 465,473.15 466,651.02 438,157.42 451,571.87 451,541.34 423,399.33 345,903.99 5,260,460.62 Page 4 of 4
METRICSCOAAlliancePropertyTheResidencesatEscayaScenarioBudgetTime21ͲJan,21ͲFeb,21ͲMar,21ͲApr,21ͲMay,21ͲJun,20ͲDec,21ͲJul,21ͲAug,21ͲSep,21ͲOct,21ͲNovVariationsPeriodic20ͲDec 21ͲJan 21ͲFeb 21ͲMar 21ͲApr 21ͲMay 21ͲJun 21ͲJul 21ͲAug 21ͲSep 21ͲOct 21ͲNovTotal4100Ͳ0010GrossPotentialMktRent649,801 649,801 649,801 649,801 649,801 649,801 649,801 649,801 649,801 649,801 649,801 649,801 7,797,6124100Ͳ0030LosstoLease(48) (48) (108) (191) (239) (323) (490) (782) (1,062) (1,271) (1,586) (6,148)4100Ͳ0055ActualPotentialRent649,801 649,753 649,753 649,693 649,610649,562 649,478649,311 649,019 648,739 648,530648,215 7,791,4644100Ͳ0060VacancyLoss(32,490) (30,612) (27,374) (27,374) (27,374) (24,659) (21,914) (21,766) (21,575) (22,965) (25,901) (27,521) (311,526)4100Ͳ0090Models(4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (4,275) (51,300)4100Ͳ0100EmployeeUnits(8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (8,850) (106,200)4100Ͳ0150RentalConcessions(10,000) (1,930) (625) (1,125) (1,875) (2,005) (1,750) (3,875) (4,625) (3,647) (2,723) (2,625) (36,805)4100Ͳ0320BadDebtExpense0 (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (1,625) (17,870)4199Ͳ9999TotalGrossPotentialMktRent 594,186602,462 607,004606,445 605,611 608,149611,065 608,920608,069607,377 605,157 603,3197,267,7644200Ͳ0060ApplicationFees203 656 304 439 641 676 608 1,181 1,3841,120 870 844 8,9254200Ͳ0100CarportIncome5,000 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 72,6504200Ͳ0180DamageFees350 1,750 875 1,575 2,625 1,925 2,450 5,425 6,475 5,600 4,200 3,675 36,9254200Ͳ0230TerminationFees0 2,45000002,4500 0 0 2,45007,3504200Ͳ0340PetRent2,350 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 2,200 26,5504200Ͳ0360NSF7070707070707070707070708404200Ͳ0370LateFees75 525 525 525 525 525 525 525 525 525 525 525 5,8504299Ͳ9999TotalOtherIncome8,048 13,801 10,12410,959 12,211 11,54614,453 15,551 16,80415,665 16,465 13,464159,0904300Ͳ0130CollectionIncome0 250 250 250 250 250 250 250 250 250 250 250 2,7504399Ͳ9999TotalMiscellaneousIncome0 250 250 250 250 250 250 250 250 250 250 250 2,7504400Ͳ0010RetailRentalIncome3,358 3,358 10,332 17,0484400Ͳ0030Retail2ndSpace15,00015,00015,00015,00060,0004400Ͳ0080RetailIncomeCAM00002,8182,8182,81810,31810,31810,31810,31810,31860,0444499Ͳ9999TotalRetailIncome00002,818 2,818 2,818 10,31825,31828,67628,67635,650137,0914700Ͳ0030ReimbursedUtilities()00000000000()4799Ͳ9999TotalUtilityReimbursementIncome()00000000000()4999Ͳ9999TOTALINCOME602,233 616,513 617,378617,654620,890622,763 628,586635,039650,441 651,967 650,548652,682 7,566,6955100Ͳ1030Manager6,098 6,115 5,523 6,115 5,918 6,115 5,918 6,115 6,115 5,918 6,115 5,918 71,9835100Ͳ1040AssistantManager4,068 4,063 3,6704,063 3,932 4,063 3,932 4,063 4,063 3,932 4,063 3,932 47,8445100Ͳ1999TotalAdministrativePayroll10,16610,1789,193 10,1789,850 10,1789,850 10,17810,1789,850 10,1789,850 119,8285100Ͳ2010LeasingManager3,183 3,533 3,191 3,533 3,419 3,533 3,419 3,533 3,533 3,419 3,533 3,419 41,2505100Ͳ2020LeasingConsultant3,183 3,1802,872 3,1803,077 3,1803,077 3,1803,1803,077 3,1803,077 37,4445100Ͳ2999TotalLeasingPayroll6,367 6,713 6,063 6,713 6,496 6,713 6,496 6,713 6,713 6,496 6,713 6,496 78,6945100Ͳ3010RegionalMaintenanceManager564 564 564 564 564 564 564 564 564 564 564 564 6,7685100Ͳ3030MaintenanceManager4,421 4,416 3,989 4,416 4,2744,416 4,2744,416 4,416 4,2744,416 4,27452,0055100Ͳ3050MaintenancePerson7,251 7,243 6,542 7,243 7,009 7,243 7,009 7,243 7,243 7,009 7,243 7,009 85,2885100Ͳ3999TotalMaintenancePayroll12,23612,223 11,095 12,223 11,847 12,223 11,847 12,223 12,223 11,847 12,223 11,847 144,0615200Ͳ0010OvertimeͲAdministrative152 152 138 152 147 152 147 152 152 147 152 147 1,7945200Ͳ0020OvertimeͲLeasing339 353 319 353 342 353 342 353 353 342 353 342 4,1445200Ͳ0030OvertimeͲMaintenance1,706 898 811 898 869 898 869 898 898 869 898 869 11,3775249Ͳ9999TotalOvertime2,197 1,403 1,267 1,403 1,358 1,403 1,358 1,403 1,403 1,358 1,403 1,358 17,3155250Ͳ0010BonusͲAdministrativeͲMonthly0 107 35 63 105 113 99 210 209 204 152 147 1,4425250Ͳ0030BonusͲAdministrativeͲQuarterly5,975 0 0 5,853 0 0 5,918 0 0 5,983 0 0 23,7295250Ͳ0050BonusͲLeasingͲMonthly0 2,037 664 1,195 1,989 2,138 1,872 3,983 3,971 3,868 2,891 2,79427,4025250Ͳ0070BonusͲLeasingͲQuarterly1,666 0 0 1,719 0 0 1,738 0 0 1,757 0 0 6,8795250Ͳ0110BonusͲMaintenanceͲQuarterly2,681 0 0 2,623 0 0 2,652 0 0 2,681 0 0 10,6375299Ͳ9999TotalBonus10,322 2,144699 11,452 2,0942,251 12,2784,193 4,180 14,493 3,043 2,941 70,0905400Ͳ0010CkProcessingͲAdministrative536 469 469 469 704 469 469 469 469 469 704 469 6,1645449Ͳ9999TotalCheckProcessingFees536 469 469 469 704 469 469 469 469 469 704 469 6,1645450Ͳ0010AdministrativeͲFICA1,400952 871 1,396 927 952 1,379 960 960 1,392 956 930 13,0755450Ͳ0020AdministrativeͲFUTA06222000000000845450Ͳ0030AdministrativeͲSUTA06202200000000008405450Ͳ0040LeasingͲFICA 615 669 515 736 649 677 773 818 817 927 735 711 8,6435450Ͳ0050LeasingͲFUTA 04238400000000845450Ͳ0060LeasingͲSUTA 04183774500000000840
5450Ͳ0070MaintenanceͲFICA1,365 1,106 1,0201,306 1,077 1,106 1,2801,106 1,106 1,282 1,106 1,077 13,9375450Ͳ0080MaintenanceͲFUTA075492000000001265450Ͳ0090MaintenanceͲSUTA075349017000000001,2605499Ͳ9999TotalPayrollTaxes3,380 4,698 3,602 3,507 2,653 2,735 3,432 2,8842,883 3,601 2,796 2,718 38,8895500Ͳ0010InsuranceBenefitsͲAdministrative1,315 1,315 1,311 1,315 1,3141,315 1,3141,315 1,315 1,3141,315 1,31415,7695500Ͳ0020InsuranceBenefitsͲLeasing1,295 1,296 1,2941,296 1,296 1,296 1,296 1,296 1,296 1,296 1,296 1,296 15,5505500Ͳ0030InsuranceBenefitsͲMaintenance1,9641,958 1,9541,958 1,957 1,958 1,957 1,958 1,958 1,957 1,958 1,957 23,4955549Ͳ9999TotalInsuranceBenefits4,5744,570 4,559 4,570 4,566 4,570 4,566 4,570 4,570 4,566 4,570 4,566 54,8145550Ͳ0010401kͲAdministrative206 130 117 204 126 130 201 130 130 202 130 126 1,8305550Ͳ0020401kͲLeasing102 86 77 108 83 86 105 86 86 105 86 83 1,0915550Ͳ0030401kͲMaintenance192 149 134 182 144 149 178 149 149 178 149 144 1,8955599Ͳ9999Total401KContribution500 364 329 494352 364 484 364 364 485 364 352 4,8165600Ͳ0010WorkersCompͲAdministrative3,698 2,8942,497 3,771 2,802 2,9043,762 3,087 3,086 3,971 2,978 2,882 38,3305649Ͳ9999TotalWorkersCompensation3,698 2,8942,497 3,771 2,802 2,9043,762 3,087 3,086 3,971 2,978 2,882 38,3305999Ͳ9999TotalPayroll53,97645,65639,773 54,78042,722 43,81054,542 46,08446,069 57,137 44,972 43,479 573,0016000Ͳ0010LandscapeContract4,929 4,929 4,929 4,929 4,929 4,929 4,929 4,929 4,929 4,929 4,929 4,929 59,1486000Ͳ0020Flowers150 150 150 150 150 150 150 150 150 150 150 150 1,8006000Ͳ0040LandscapeSupplies1,0001,0001,0001,000 4,0006000Ͳ0130Irrigation/SprinklerRepairs100 100 100 100 100 100 100 100 100 100 100 100 1,2006099Ͳ9999TotalLandscaping5,179 6,179 5,179 5,179 6,179 5,179 5,179 5,179 6,179 5,179 5,179 6,179 66,1486100Ͳ0010Electricity8,5008,5008,5008,5008,5008,5008,5008,5008,5008,5008,5008,500102,0006100Ͳ0030ElectricityͲModel 125 250 250 250 250 250 250 250 250 250 250 250 2,8756100Ͳ0040ElectricityͲVacant 500 550 550 550 550 550 550 550 550 550 550 550 6,5506100Ͳ0080Gas4,0004,0004,0004,0004,0002,5002,5002,5002,5003,5004,0004,00041,5006100Ͳ0150Water9,000 10,00010,00010,00010,00010,00010,00010,00010,00010,00010,00010,000119,0006100Ͳ0280TrashRemoval7,670 7,670 7,670 7,670 8,340 8,340 8,340 8,340 8,340 8,340 8,340 8,340 97,4006100Ͳ0310CableExpense162 162 162 162 162 162 162 162 162 162 162 162 1,9446100Ͳ0375ReimbursedWater(1,066) (8,550) (8,550) (9,500) (9,500) (9,500) (9,500) (9,500) (9,500) (9,500) (9,500) (9,500) (103,666)6100Ͳ0415ReimbursedPestControl(365) (365) (365) (365) (365) (740) (365) (365) (740) (365) (365) (740) (5,505)6100Ͳ0360ReimbursedGas327 (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (625) (625) (625) (625) (875) (9,048)6100Ͳ0390ReimbursedTrashRemoval(5,340) (7,000) (7,670) (7,670) (7,670) (7,670) (8,340) (8,340) (8,340) (8,340) (8,340) (8,340) (93,060)6199Ͳ9999TotalUtilityExpense23,513 14,217 13,547 12,597 13,267 11,392 11,097 11,472 11,097 12,472 12,972 12,347 159,9906300Ͳ0050MarketingͲInternet 1,316 1,705 1,316 1,316 1,705 1,316 1,316 1,705 1,316 1,316 1,705 1,316 17,3486300Ͳ0060MarketingͲRadio2,158 2,1586300Ͳ0210AdvertisingOther2525252525252525252525253006300Ͳ0220Dues,Memberships&Sub.1,2781,2786300Ͳ0230ResidentFunctions400 400 400 7,900 400 400 400 400 400 400 400 400 12,3006300Ͳ0300TemporarySignage100 100 100 100 100 100 100 100 100 100 100 100 1,2006300Ͳ0342AllianceResidentWorks550 550 550 550 550 550 550 550 550 550 550 550 6,6006300Ͳ0344GraphicDesign100 100 100 100 100 100 100 100 100 100 100 100 1,2006300Ͳ0346PPC1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,0006300Ͳ0370Locator/BrokerFees100 100 100 100 100 100 100 100 100 100 100 100 1,2006300Ͳ0400ResidentReferrals250 250 250 250 250 250 250 250 250 250 250 250 3,0006300Ͳ0420ResidentRetention350 350 350 350 350 350 350 350 350 350 350 350 4,2006300Ͳ0460ModelMaintenance310 310 310 310 310 310 310 310 310 310 310 310 3,7206300Ͳ0540OtherMktg.ͲNonAdv.400 400 400 400 400 400 400 400 400 400 400 400 4,8006300Ͳ0542SEOProgram300 300 300 300 300 300 300 300 300 300 300 300 3,6006300Ͳ0544ReputationManagement 4545454545454545454545455406300Ͳ0550ShopperReports2152152156456300Ͳ0580FitnessprogramͲProperty2,988 1,0003,9886399Ͳ9999TotalMarketing5,746 7,413 8,949 14,2466,135 5,961 5,746 6,135 5,746 5,961 6,135 7,90486,0776400Ͳ0010Telephone250 4,311 250 250 250 250 250 250 250 250 250 250 7,0616400Ͳ0020CellPhone60 60 60 60 60 60 60 60 60 60 60 60 7206400Ͳ0050InternetService690 690 690 690 690 690 690 690 690 690 690 690 8,2806400Ͳ0070OfficeSupplies325 1,125 325 325 1,125 325 325 1,125 325 325 1,125 325 7,1006400Ͳ0120Postage207 180 180 180 180 180 180 180 180 180 180 180 2,1876400Ͳ0170Printing0 0 45 250 0 45 0 0 45 250 0 6356400Ͳ0200Licenses175 175 175 175 175 175 175 175 175 175 175 175 2,1006400Ͳ0202Residentsurveys(currentlyKingsley)2501501521527046400Ͳ0210Dues&Subscriptions25 25 25 25 25 25 25 25 25 25 25 25 300
6400Ͳ0230Training&Education325 625 325 325 625 325 325 625 325 325 625 325 5,1006400Ͳ0250Eviction/LegalFees315 315 315 315 315 315 315 315 315 315 315 315 3,7806400Ͳ0270CreditCheck203 656 304 439 641 676 608 1,181 1,3841,120 870 844 8,9266400Ͳ0310BankCharges/CreditCardFees240 240 240 240 240 240 240 240 240 240 240 240 2,8806400Ͳ0312YardiCHECKscan8398396400Ͳ0320EmployeeRecognition25 325 25 25 325 25 25 325 25 25 325 25 1,5006400Ͳ0330EmployeeMeetings100 100 100 100 100 100 100 100 100 100 100 100 1,2006400Ͳ0360Travel&Entertainment2,4502,4506400Ͳ0440AdministrativeOther199 199 199 199 199 199 199 199 199 199 199 199 2,3886400Ͳ0480ComputerSoftware2,482 468 468 468 468 468 468 468 468 468 468 468 7,6306400Ͳ0482YardiMaintenanceAgreement4,7384,7386400Ͳ0484YardiPAYscan150 150 150 150 150 150 150 150 150 150 150 150 1,8006400Ͳ0488CloudBasedBudgetSolution8008006400Ͳ0560GovLicensesFees/Permits 7203490000001,540 0 0 1,9616400Ͳ0800UniformsͲAdministrative7507501,5006400Ͳ0805UniformsͲLeasing7507501,5006499Ͳ9999TotalAdministrative5,843 15,471 4,180 7,961 6,768 4,203 4,180 6,260 4,911 7,732 6,199 4,371 78,0796500Ͳ0020Building&Maintenance200 200 200 200 200 200 200 200 200 200 200 200 2,4006500Ͳ0030Building&MaintenanceSupplies300 300 300 300 300 300 300 300 300 300 300 300 3,6006500Ͳ0110AmenitiesR&M215 215 215 215 215 215 215 215 215 215 215 215 2,5806500Ͳ0360Electrical675 675 675 675 675 675 675 675 675 675 675 675 8,1006500Ͳ0400Plumbing400 400 400 400 400 400 400 400 400 400 2,104400 6,5046500Ͳ0430HVAC420 420 420 420 420 420 420 420 420 420 420 420 5,0406500Ͳ0610Housekeeping5,422 5,422 5,322 5,322 5,422 5,322 5,322 5,422 5,322 5,322 5,422 5,322 64,3646500Ͳ0690PestControl365 365 365 740 365 365 740 365 365 740 365 365 5,5056500Ͳ0710SwimmingPool850 550 550 850 550 550 850 550 550 850 550 550 7,8006500Ͳ0840CourtesyPatrol1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,0006500Ͳ1040Keys475 475 475 475 475 475 475 475 475 475 475 475 5,7006500Ͳ1060FireExtinguisher,1stAid3653653659,84510,9406500Ͳ1110AlarmExpense250 1,599250 1,599250 1,599250 1,5997,3966500Ͳ1270MaintenanceOther3,0003,0006500Ͳ1460SafetyToolEquip/Rep/Sup680 4201,1006500Ͳ1480ApplianceRepair175 175 175 175 175 175 175 175 175 175 175 175 2,1006500Ͳ1550UniformsͲMaintenance1,0501,0502,1006599Ͳ9999TotalMaintenance14,612 12,97611,017 12,937 12,29610,597 11,887 12,29610,597 22,417 14,00010,597 156,2296600Ͳ0010RedecͲGeneralCleaning125 625 313 563 938 688 875 1,938 2,313 2,000 1,500 1,313 13,1886600Ͳ0040RedecͲPaintingSupplies32 160 80 144240 176 224 496 592 512 384 336 3,3766600Ͳ0050RedecͲPaintingContract250 1,250 625 1,125 1,875 1,375 1,750 3,875 4,625 4,000 3,000 2,625 26,3756600Ͳ0080RedecͲDrapes/Blinds15 75 38 68 113 83 105 233 278 240 180 158 1,5836600Ͳ0130RedecͲCarpetCleaning70 350 175 315 525 385 490 1,085 1,295 1,120 840 735 7,3856699Ͳ9999TotalRedecorating492 2,460 1,230 2,2143,690 2,706 3,4447,626 9,102 7,872 5,9045,166 51,9067000Ͳ0010ManagementFeesͲ#115,05615,413 15,43415,441 15,522 15,569 15,715 15,87616,261 16,299 16,26416,317 189,1677099Ͳ9999TotalManagementFees15,05615,413 15,43415,441 15,522 15,569 15,715 15,87616,261 16,299 16,26416,317 189,1677100Ͳ0010PropertyInsurance10,20010,20010,20010,20010,20010,20010,20010,20010,20010,20010,20010,200122,4007199Ͳ9999TotalInsurance10,20010,20010,20010,20010,20010,20010,20010,20010,20010,20010,20010,200122,4007200Ͳ0010RealEstateTaxes73,33473,33473,33473,33473,33473,33473,33473,33473,33473,33473,33473,334880,0087200Ͳ0100TaxesOther12,95012,95012,95012,95012,95012,95012,95012,95012,95012,95012,95012,950155,4007299Ͳ9999TotalTaxes86,28486,28486,28486,28486,28486,28486,28486,28486,28486,28486,28486,2841,035,4087999Ͳ9998TOTALOPERATINGEXPENSES220,901 216,269195,794221,840203,063 195,901 208,274207,412 206,447 231,553 208,109202,8442,518,4057999Ͳ9999NETOPERATINGINCOME381,333 400,244421,584395,814417,827 426,862 420,312 427,628443,994420,414442,439449,8395,048,2909000Ͳ0000NETINCOME381,333 400,244421,584395,814417,827426,862 420,312 427,628443,994420,414442,439 449,839 5,048,2901500Ͳ0130PoolFurniture6,5006,5001500Ͳ0330BuildingsͲApartmentUnits650 650 650 650 650 650 650 650 650 650 650 650 7,8001500Ͳ0780OfficeEquipment2,0002,0001500Ͳ0840Furniture(indoor)2,0002,0001599Ͳ9999TotalCapitalAssets650 650 2,650 650 2,650 7,150 650 650 650 650 650 650 18,3009999Ͳ9900NETCASHFLOW380,683 399,594418,934395,164415,177 419,712 419,662 426,978443,344419,764441,789449,1895,029,990DetailBudget–VariableMonth09.FinalReportingExportedJan15,202100:43UTC
Addenda
The Residences at Escaya
Addendum D
Comparable Data
Addenda
The Residences at Escaya
Improved Sales
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Lease Comparables
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Enclave at Otay Ranch
Location Information
Location 1625 Santa Venetia Street
Chula Vista, CA
Market CA - San Diego
Submarket Outside Metro Area
County San Diego
APN 644-310-52
Physical Property Summary
Property Type Multifamily (Garden/Low-Rise)
Gross Building Area 300,000 SF
Rentable Area 292,147 SF
Number of Units 301
Average Unit Size 971 SF
No. of Stories 3
Max Ceiling Height (Feet)N/A
Year Built (Renovated)2017
Construction Wood frame
Condition Good Lease Availability Details
Parking Covered/Surface Survey Date Dec-2021
Investment Class Class A Overall Occupancy at Survey 99.00%
Residential Unit Mix
Units Unit Description Unit Size Base Rent $/SF
130 1BR/1BA - 1BR 730 $2,455 $3.36
129 2BR/1BA - 2BR 1,097 $3,050 $2.78
42 3BR/2BA - 3BR 1,327 $3,325 $2.51
301 971 $2,831 $2.92
Comments
Multifamily Rental Survey Comparable 3
This comparable is identified as Enclave Apartments, a 2017-built, 301-unit, 3-story apartment project located at 1625 Santa Venetia in the city of Chula Vista. The project
includes one-bedroom, two-bedroom, and three-bedroom units. Property amenities include controlled access, a business center, picnic area, playground, saltwater pool,
spa, clubhouse, outdoor fireplace, recreation room, media room, fitness center, night patrol, guest room, and a recreation room. Parking is provided by garage, covered,
and surface parking. Rates include $60 one-time fee for a parking permit (per vehicle), surface parking is $20 per month, and $100 per month for a second vehicle. Garage
rates include $125 to $150 per month. Units feature stainless steel appliances, quartz countertops, hardwood-style flooring, washer/dryer, ceiling fans, walk-in closet,
window coverings, central AC, and a private patio/balcony. It is currently 99% occupied and lease terms range from 12 to 18 months. Management is not offering any
concessions.
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addenda
The Residences at Escaya
Addendum E
Appraiser Qualifications and Licenses
ROBERT HOLMAN
Senior Vice President
CA Appraiser License #AG003298
Newmark Knight Frank
18401 Von Karman Avenue
Suite 150
Irvine, CA 92612
bob.holman@ngkf.com
T 949.608.2045
Years of Experience
35 Years
Areas of Specialization
Valuation & Advisory
Professional Background
Robert Holman is a senior vice president in the Newport Beach,
California, office of Newmark Knight Frank Valuation & Advisory
Services. A residential subdivision specialist with 34 years of real estate
appraisal and consulting experience in Southern California, Mr. Holman
provides valuation expertise for the development of master planned
communities, residential subdivisions, multifamily projects and raw
acreage. His primary geographical focus includes Los Angeles, Orange
and San Diego counties and the Inland Empire. In 2018, Mr. Holman
established the subdivision practice at NKF V&A.
Mr. Holman joined NKF after more than 25 years at CBRE, where he
served as a vice president in the Newport Beach office. While serving in
that capacity, he established subdivision valuation as a practice area and
provided valuation services for properties ranging from custom homes to
residential subdivisions, condominium buildings and master planned
communities.
Prior to CBRE, Mr. Holman was an appraiser at Security Pacific Bank
from 1985 until its merger with Bank of America in 1992. He began his
career there, serving as a single-family appraiser until 1989, when he
began commercial/industrial appraising with an emphasis on residential
subdivisions.
Professional Affiliations
Certified general real estate appraiser, state of California
Affiliate member, Appraisal Institute
Education
Mr. Holman earned his Bachelor of science degree in finance, insurance
and real estate from California Polytechnic University.
1
Brian P. Hegarty, MAI, joined Newmark Valuation & Advisory in 2017 as a senior vice
president in the San Francisco office. Brian specializes in valuation and advisory
throughout the San Francisco Bay Area. With 21 years of experience, Brian has
successfully completed appraisal and consulting assignments for all types of income-
producing properties including multi-family properties, office towers, retail centers,
industrial properties, automobile dealerships, condominium developments, land
developments and mixed-use projects. These assignments have been used in off-
balance sheet financing, disposition, acquisition, financial reporting, tax appeal
purposes, litigation and rent arbitration.
Prior to Newmark, Brian worked for 17 years as a senior director within Cushman &
Wakefield's Valuation and Advisory Group. In this role, Brian served as a member of the
Office, Multi-Family and Retail specialty groups.
Professional Achievements
– Valuation & Advisory Top Producer, Cushman & Wakefield, 2015
– Valuation & Advisory Excellence Award, Cushman & Wakefield, 2013
– Valuation & Advisory Rookie of the Year, Cushman & Wakefield, 2003
Licenses and Designations
– MAI designation, Appraisal Institute (MAI #435328)
– Certified general real estate appraiser, state of California (#AG030406)
Education
Brian earned a Bachelor of Science Degree in Business Administration from the
University of Colorado. He has also completed the requirements of the continuing
education program of the Appraisal Institute.
Brian P.
Hegarty
MAI
Senior Vice President
CA Appraiser License #AG030406
t 415-445-5181
m 415-531-0368
brian.hegarty@ngkf.com
YEARS OF
EXPERIENCE 20+
AREAS OF
SPECIA LTY
Valuation & Advisory
1 Client Name or Logo
CODY VAN DER LINDEN
Analyst
Newmark Knight Frank
150 S. Los Robles Ave.
Suite 850
Pasadena, CA 91101
Cody.Vanderlinden@ngkf.com
T 760.470.4038
Years of Experience
8 Years
Areas of Specialization
Industrial
NNN leased investment properties
Apartment
Professional Background
Cody Van Der Linden serves as an analyst in the Pasadena office of
Integra Realty Resources, which covers all of Los Angeles County. An
eight-year valuation and advisory veteran, Mr. Van Der Linden has
substantial expertise in commercial and residential real estate valuation.
He has performed institutional appraisals for various intended uses and
property types, including large shopping centers, apartment complexes
and industrial properties.
Mr. Van Der Linden joined Newmark Knight Frank in 2018, when the firm
acquired the Pasadena office of Integra Realty Resources. At the time of
the acquisition, he had been an analyst with IRR for five years. Prior to
IRR, Mr. Van Der Linden had served as a residential real estate appraiser
for three years with Surfside Appraisals.
Professional Affiliations
Licensed general real estate appraiser, state of California
Education
Mr. Van Der Linden holds a Master of Business Administration degree
from San Diego State University. He previously graduated cum laude
from Wofford College, where he earned a Bachelor of Arts degree in
finance and a minor in economics.
.