ALTA VISTA VILLAGE APARTMENTS 4510-4647 NORTH 39 TH AVENUE, PHOENIX, AZ

ALTA VISTA VILLAGE APARTMENTS 4510-4647 NORTH 39 TH AVENUE, PHOENIX, AZ REPOSITIONING OPPORTUNITY CURRENTLY 22% PHYSICALLY OCCUPIED For More Information Please Contact: Orion Investment Real Estate l 7135 E. Camelback Road. Suite. 202, Scottsdale, AZ 85251 l www.orionprop.com Alon Shnitzer (480) 689-4176 ALTA alon.shnitzer@orionprop.com VISTA VILLAGE PHOENIX, ARIZONA John Kobierowski (602) 688-4898 john.kobierowski@orionprop.com Rue Bax (480) 656-1633 rue.bax@orionprop.com Doug Lazovick (480) 656-1643 doug.lazovick@orionprop.com Eddie Chang (480) 656-1631 eddie.chang@orionprop.com 1

Executive Summary Investment Overview Alta Vista Village Apartments is compromised of 182 total units and located at 4510, 4540, 4626, 4638, 4642, 4646 and 4647 North 39th Avenue in Phoenix, Arizona. The complete property is comprised of buildings built between approximately 1959 and 1973. 88 of the units are individually metered for electricity and 94 of the units are master metered for electricity. The approximate 6.73 acre community consists of five floor plans: 5 studio units at approximately 255 square feet, 44 one bedroom/one bath units at approximately 610 square feet, 88 two bedroom/one bath units at approximately 815 square feet, 31 two bedroom/one and one half bath townhome units at approximately 845 square feet, and 14 three bedroom/one and one half bath units at approximately 945 square feet. Featured amenities include two swimming pools, three on-site laundry facilities, covered and open parking, a playground and barbecue areas. Unit amenities include a private balcony or patio (select units), ceiling fans (select units), frost-free refrigerators and disposals. The property is located just south of Camelback Road on 39th Avenue. Alta Vista Village Apartments is minutes from retailers, sporting venues, schools, hospitals, parks and golf courses. Nearby attractions include Grand Canyon University, Cielito Park, Costco Plaza, Westworld Paintball Adventures and The Brewers Baseball Spring Training Facility. Alta Vista Village is also minutes from the Metro Light Rail, near a local Bus Line, and across the street from Alhambra High School and The 60 Grand Avenue Freeway. Offering Price: $4,900,000 Per Unit: $26,923 Per SF: $35.19 Total Units: 182 Units Year Approximately Built: 1959-1973 Unit Mix: 5 Studios 44 One Bedrooms 119 Two Bedrooms 14 Three Bedrooms Metering: Electricity (Individually / Master Metered) Open Parking: 143 Total Spaces Covered Parking: 100 Total Spaces Building Type: Wood Frame/Stucco/Concrete Block Number of Stories: One and Two Story Number of Buildings: 23 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Overview Property Information Capital Improvements/Utility Breakdown Property Photographs Property Photographs Property Photographs Property Photographs Parcel Map Site Plan Floor Plans QCT Location Aerial Financial Analysis Current Rental Rates Breakdown Property Historical Rental Trends Financial Analysis Post Repositioning EOY2 Tax Calculations Market Comparables Rent Comparables Map Rent Comparables Summary Rent Comparables Summary Sales Comparables Map Sales Comparables Summary Disclaimer 2

PROPERTY OVERVIEW 3

Property Information Alta Vista Village Approximately 1959-1973 Construction 182 Units Common Area Amenities Two Swimming Pools Three Laundry Facilities Playground Barbecue Areas Covered Parking 100 Total Spaces Ample Open Parking 143 Total Spaces Rental Office - Stand Alone Functional Characteristics One & Two Story Construction Type Wood Frame/Stucco/Concrete Block Roof Type Flat/Built-up Tub and Shower Enclosures - Ceramic Tile Combination Semi-Private and Private Entry Services Provided As Central and Individual Air Conditioning Heat Central and Individual Gas and Electric Master and Individual Domestic Hot Water Apartment Interior Amenities Private Patio or Balcony (Select Units) Ceiling Fans (Select Units) Outside Storage Mini-Blinds and Vertical Blinds Frost-free Refrigerator Disposal Utilities Metering Electricity (Individual & Central) Hot Water (Individual & Central) Gas (Individual & Central) Utilities Responsibility Property/Resident Pays Electricity Property/Resident Pays Gas Property Pays Sewer Property Pays Trash Removal Property Pays Master Water Property/Resident Pays Hot Water Site Characteristics Net Site Size 6.73 acres Net Development Density 27.06 units per acre Number of Buildings 23 County Maricopa Assessors Parcel Number: 107-08-001G, 10703003W 4

Capital Improvements/Utility Breakdown List of Capital Improvements Appliances Majority of the appliances were replaced between 2004 and 2006 Roofs New roof work was completed in approximately 2004, with the exception to four buildings that were in good condition Exterior Paint Community was painted in 2006 and partially in 2011 Hot Water Boiler Two boilers were replaced in approximately 2006 Pool West pool was re-plastered in approximately 2004-30 units at 4647 N. 39 th Avenue: One-bedroom units individually metered for electric, boiler for hot water, individual electric A/C and heat pumps (includes office). -46 units at 4646 N. 39 th Avenue: Two-bedroom units individually metered for electric, master chiller and boiler, and individual electric hot water heaters. This building also contains some studio units (123 & 223 studios). Studio units have window A/C / heat units. -32 units at 4642 N. 39 th Avenue: 1 One-bedroom unit and 31 Two-bedroom/One and one-half bath units master metered for electric, boiler for hot water and individual electric pumps. -14 units at 4638 N. 39 th Avenue: Three-bedroom units master metered with electric A/C and heat pumps. Individual gas hot water heaters. -46 units at 4626 N. 39 th Avenue: Two-bedroom units master metered for electric, master boiler for heat and hot water, and chiller. This building contains some individually metered units (423 &523 studios). Studio units have window A/C / heat units. -13 units at 4540 N. 39 th Avenue: One-bedroom units (#1-10) are individually metered for electric with A/C and heat pumps and share two gas water heaters. One-bedroom units (#11-12) are master metered for electric with A/C and heat pumps and share one gas water heater. One-bedroom unit #15 and one studio #14 are master metered for electric with A/C and heat pumps and share one gas water heater. 5

Property Photographs 6

Property Photographs 7

Property Photographs 8

Property Photographs 9

Parcel Map N 10

Site Plan 11

Floor Plans 12

QCT Location Alta Vista Village was Purchased on 3/1/2004 by the Current Owner 13

Aerial Goodwill of Central AZ Alhambra Little League Cordova Middle School Little Canyon Park N Westworld Paintball Self Storage Grand Canyon University SUBJECT Cielito Park Alhambra High School 14

FINANCIAL ANALYSIS 15

Rental Rates Breakdown Alta Vista Village Current 2012 Rental Rates 1st Floor 2nd Floor 1st Floor 2nd Floor 1st Floor 2nd Floor Studio 1/1 1/1 1/1 1/1 2/1 2/1 2/1.5 3/1.5 3/1.5 No utilities No utilities Utilities Utilities $350.00 $399.00 $399.00 $499.00 $499.00 $550.00 $550.00 $599.00 $750.00 $775.00 $7.00 $7.98 $7.98 $9.98 $9.98 $11.00 $11.00 $11.98 $15.00 $15.50 $357.00 $406.98 $406.98 $508.98 $508.98 $561.00 $561.00 $610.98 $765.00 $790.50 255 Sq Ft 610 Sq Ft 610 Sq Ft 610 Sq Ft 610 Sq Ft 815 Sq Ft 815 Sq Ft 845 Sq Ft 945 Sq Ft 945 Sq Ft $11.90 $13.57 $13.57 $16.97 $16.97 $18.70 $18.70 $20.37 $25.50 $26.35 Unit Mix Breakdown By Address and Electrical Metering Unit Type Units Approximate Square Feet Address Electrical Metering Studios 1 Bath 2 255 4647 Individual 2 255 4626 Individual 1 255 4510 Master One-Bedrooms 1 Bath 10 610 4540 Individual 3 610 4540 Master 30 610 4647 Individual 1 610 4642 Master Two-Bedrooms 1 Bath 44 815 4646 Individual 44 815 4646 Master Two-Bedroom Townhomes 1.5 Baths 31 845 4642 Master Three-Bedrooms 1.5 Baths 14 945 4638 Master 16

Historical Rent Trends Approximate Average Approximate Average 17

Pricing Analysis Post Repositioning End of Year Two Projection Alta Vista Village Apartments - End of Year Two Market Rents UNIT MIX Type of Floor Plan Unit Percentage of Square Total Projected End of Mix Community Feet Square Year Two Rents Rent/SF Studio/One Bath 5 3% 255 1,275 $400 $1.57 One Bedroom/One Bath 4 2% 610 2,440 $575 $0.94 One Bedroom/One Bath 40 22% 610 24,400 $475 $0.78 Two Bedroom/One Bath 88 48% 815 71,720 $625 $0.77 Two Bedroom/One + Half Bath Twnhs 31 17% 845 26,195 $675 $0.80 Three Bedroom/One + Half Bath 14 8% 945 13,230 $825 $0.87 Totals/Average 182 100% 765 139,260 $609 $0.80 INCOME Projected End of Year Two Per Unit Scheduled Gross Income $1,329,300 $7,304 Total Economic Vacancy -20.0% ($265,860) ($1,461) Net Rental Revenue $1,063,440 $5,843 Other Income $25,000 $137 RUBS $30,500 $168 EFFECTIVE GROSS INCOME $1,118,940 $6,148 EXPENSES Projected End of Year Two Payroll $163,800 $900 Leasing & Marketing $27,300 $150 Utilities $200,200 $1,100 General & Administrative $22,750 $125 Repairs & Maintenance $77,350 $425 Contract Services $68,250 $375 Controllable Expenses $559,650 $3,075 Management Fee 3.00% $33,568 $184 Real Estate Taxes** $45,082 $248 Insurance $31,850 $175 Non Controllable Expenses $110,500 $607 Total Operating Expense $670,150 $3,682 NOI Before R&R $448,790 $2,466 Replacement & Reserves $54,600 $300 $54,600 $300 NOI After R&R $394,190 $2,166 Price $4,900,000 Price per Unit $26,923 Price per SF $35.19 * Standard Lender CapEx/R&R of $300/Unit Included within Expenses ** 2013 Projected Taxes used End of Year Two Expenses Column 18

Real Estate Tax Calculations Maricopa County Parcel No.: 107-08-001G Estimated Real Estate Tax Calculations 2012 Actual 2013 Projected Full Cash Value (FCV) $453,946 $401,000 Limited Property Value (LPV) $453,946 100.00% $401,000 100.00% Assessment Ratio 10.0% 10.0% Primary Rate 9.1466 9.1466 Secondary Rate 7.5659 7.5659 Taxes $7,587 $6,702 Special Assessments $0 $290 TOTAL $7,587 $6,992 Maricopa County Parcel No.: 107-03-003W Estimated Real Estate Tax Calculations 2012 Actual 2013 Projected Full Cash Value (FCV) $2,561,054 $2,261,800 Limited Property Value (LPV) $2,561,054 100.00% $2,261,800 100.00% Assessment Ratio 10.0% 10.0% Primary Rate 9.1466 9.1466 Secondary Rate 7.5659 7.5659 Taxes $42,802 $37,800 Special Assessments $0 $290 TOTAL $42,802 $38,090 COMBINED TOTAL $50,388 $45,082 19

MARKET COMPARABLES 20

Rent Comparables Map N Fountain Villa Briarwood La Palmilla 8 1 2 3 Silver Tree ALTA VISTA VILLAGE APARTMENTS S Orange Arbor 4 5 6 7 Sterling Place Fountainhead Tamarak Gardens 21

Rent Comparables Summary RENT COMPARABLES SURVEY Occupancy Studio 1 Bedrooms 2 Bedrooms 3 Bedrooms Built Units SF Rent $/SF Units SF Rent $/SF Units SF Rent $/SF Units SF Rent $/SF 1 La Palmilla 94% 1972 92 750 $535 $0.71 151 900 $675 $0.75 24 1,100 $765 $0.70 3838 W. Camelback Road Total Units Phoenix, AZ 85019 267 Concessions: None; Application Fee: $30 Security Deposit: Waived OAC; Administration Fee: $0 RUBS: Included in rent; No washer/dryer in units Individually metered for electricity and hot water Rent Restricted 2 Fountain Villa 85% 1976 77 312 $399 $1.28 71 469 $499 $1.06 3708 W. Camelback Road Total Units Phoenix, AZ 85019 148 Concessions: $199 move-in; Application Fee: N/A Security Deposit: $125; Administration Fee: $105 RUBS: Included in rent; No washer/dryer in units Master metered for electricity and hot water 3 Orange Arbor 43% 1975 110 425 $399 $0.94 52 640 $499 $0.78 1 850 $810 $0.95 3535 W. Camelback Road Total Units Phoenix, AZ 85019 166 Concessions: $299 move-in; Application Fee: $35 Security Deposit: $0; Administration Fee: $200 RUBS: Included in rent; No washer/dryer in units Master metered for electricity and hot water 4 Silver Tree 77% 1986 16 415 $408 $0.98 42 504 $485 $0.96 16 726 $561 $0.77 4336 N. 35th Avenue Total Units 24 822 $650 $0.79 Phoenix, AZ 85017 98 Concessions: $399 move-in; Application Fee: $30 Security Deposit: $100; Administration Fee: $0 RUBS: Included in rent; No washer/dryer in units Individually metered for electricity Master metered for hot water 1074 203 381 $400 $1.05 257 610 $510 $0.84 192 875 $663 $0.76 24 1,100 $765 $0.70 22

Rent Comparables Summary RENT COMPARABLES SURVEY Occupancy Studio 1 Bedrooms 2 Bedrooms 3 Bedrooms Built Units SF Rent $/SF Units SF Rent $/SF Units SF Rent $/SF Units SF Rent $/SF 5 Fountainhead 80% 1984 56 320 $439 $1.37 160 480 $539 $1.12 56 720 $714 $0.99 4326 N. 35th Avenue Total Units Phoenix, AZ 85017 272 Concessions: $199-$299 move-in; Application Fee: N/A Security Deposit: $175; Administration Fee: $0 RUBS: Included in rent; No washer/dryer in units Individually metered for electricity and hot water 6 Sterling Place 80% 1971 24 600 $566 $0.94 92 805 $668 $0.83 24 950 $770 $0.81 4235 N. 35th Avenue Total Units Phoenix, AZ 85017 140 Concessions: None; Application Fee: $35 Security Deposit: $200; Administration Fee: $0 RUBS: Included in rent; No washer/dryer in units Master metered for electricity and hot water 7 Tamarak Gardens 88% 1984 72 469 $352 $0.75 60 551 $458 $0.83 12 709 $606 $0.85 4201 N. 35th Avenue Total Units Phoenix, AZ 85017 144 Concessions: $199 move-in and first month free Application Fee: $35; Security Deposit: $199 OAC Administration Fee: $0; RUBS: Included in rent No washer/dryer in units; Rent restricted Individually metered for electricity and hot water 8 Briarwood 85% 1983 8 380 $357 $0.94 60 580 $459 $0.79 32 815 $561 $0.69 3450 W. Missouri Avenue Total Units 26 900 $607 $0.67 Phoenix, AZ 85017 126 Concessions: $99 move-in; Application Fee: $30 Security Deposit: $150-$200; Administration Fee: $150-$200 RUBS: Included in rent; No washer/dryer in units Individually metered for electricity and hot water Averages 79% 170 339 390 $395 $1.01 561 563 $509 $0.91 410 830 $658 $0.79 48 1,025 $768 $0.75 Subject 22% 182 5 255 $350 $1.37 44 610 $408 $0.67 119 822 $563 $0.68 14 945 $763 $0.81 Subject Concessions Concessions: $173 move-in OAC; Application Fee, Security Deposit and Administration Fee included in move-in special RUBS: Included in rent; Utilities included in select units, other residents pay separately; No washer/dryer in units 23

Sales Comparables Map N Villas at Montebella 4 3 Smoketree Norwood Village 1 S 2 SUBJECT PROPERTY Ocotillo 24

Sales Comparables Summary SALES COMPARABLES 1 Norwood Village Sold: 03/26/12 Price: $2,530,000 $26.89 per SF Buyer Location: WI 6738 N. 45th Ave 115 Units $22,000 per Unit Building SF: 94,090 Glendale, AZ 85301 Built in 1971 Master Metered Avg Unit: 818 SF Conditions: REO Sale 2 Ocotillo Sold: 06/25/12 Price: $4,138,200 $42.77 per SF Buyer Location: AZ 1780 W. Missouri Ave 173 Units $23,920 per Unit Building SF: 96,748 Phoenix, AZ 85015 Built in 1973 Master Metered Avg Unit: 559 SF Conditions: REO Sale 3 Smoketree Sold: 07/26/12 Price: $7,250,000 $38.18 per SF Buyer Location: CA 3161 W. Cheryl Dr 280 Units $25,893 per Unit Building SF: 189,880 Phoenix, AZ 85051 Built in 1974 Individually Metered Avg Unit: 678 SF Conditions: Short Sale 4 The Villas at Montebella Sold: 07/12/12 Price: $2,950,000 $40.92 per SF Buyer Location: CANADA 10860 N. 85th Ave 100 Units $29,500 per Unit Building SF: 72,100 Peoria, AZ 85345 Built in 1974 Individually Metered Avg Unit: 721 SF Conditions: Arms Length Transaction Averages: Built in 1973 167 Units Price: $4,217,050 $25,252 per Unit $37.25 per SF 25

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