169 Glover Ave169 Glover Ave, Chula Vista CA 91910

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

169 Glover AveCONTENTS

Exclusively Marketed by:

Jordan Concepcion(858) 461-9910jconcepcion@cornerstoneig.com

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or otherconditions, prior sale, lease or financing, or withdrawal without notice.  We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct yourown investigation of the property and transaction.

01 Executive Summary Investment Summary 5 Unit Mix Summary 6 Location Summary 7

02 Property Description Property Features 9 Aerial Map 10 Parcel Map 11 Property Images 12

03 Rent Roll Rent Roll 15

04 Financial Analysis Income & Expense Analysis 17 Cash Flow Analysis 18

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from KW Commercial and it shouldnot be made available to any other person or entity without the written consent of KW Commercial. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees thatrecipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to KW Commercial.This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest inthe subject property. The information contained herein is not a substitute for a thorough due diligence investigation. KW Commercial has not made any investigation, and makes no warranty or representation withrespect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presenceor absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or financial condition orbusiness prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe reliable; however, KW Commercial has not verified, and will not verify, any of the informationcontained herein, nor has KW Commercial conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses ofinvestigating the subject property.

169 Glover Ave Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT KW COMMERCIAL FOR MORE DETAILS.Copyright © 2021 CREOP, LLC. All Rights Reserved.

169 Glover A

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Executive Summary

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Investment Summary

Unit Mix Summary

Location Summary

169 Glover Ave Investment Summary | 05

OFFERING SUMMARYADDRESS 169 Glover Ave

Chula Vista CA 91910COUNTY San DiegoMARKET San DiegoSUBMARKET Chula VistaLAND SF 7,661NUMBER OF UNITS 6YEAR BUILT 1970APN 566-190-24-00OWNERSHIP TYPE Fee Simple

FINANCIAL SUMMARYOFFERING PRICE $1,550,000PRICE PER UNIT $258,333OCCUPANCY 97.00 %NOI (CURRENT) $82,784NOI (Pro Forma) $86,276CAP RATE (CURRENT) 5.34 %CAP RATE (Pro Forma) 5.57 %GRM (CURRENT) 12.57GRM (Pro Forma) 12.21

PROPOSED FINANCINGLOAN TYPE AmortizedDOWN PAYMENT $387,500LOAN AMOUNT $1,162,500INTEREST RATE 3.50 %ANNUAL DEBT SERVICE $62,644LOAN TO VALUE 75 %AMORTIZATION PERIOD 30 Years

• The Cornerstone Investment Group is proud to present the GloverAvenue Apartments in Chula Vista. The property is a 6-unitbuilding that sits on a large 7,661 sf lot. All the units are 2br/1btunits and have been recently renovated with new tile/laminateflooring, cabinets, paint, and bathroom fixtures. In addition, theproperty is currently VACANT and being leased up.

The Glover Avenue Apartments will offer a steady cash flow with astrong unit mix and is in San Diego County's most sought afterneighborhoods. A new owner can also benefit from the upcomingBayfront Development that is just minutes away.

Property Highlights

• Currently Vacant

• Recently Renovated

• All 2br/1bt Units

• On-site Laundry

• Excellent Chula Vista Area

169 Glover Ave Unit Mix Summary | 06

Actual MarketUnit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent PSF Market Income

2 bd + 1 ba 6 821 $1,700 $2.07 $10,200 $1,750 $2.13 $10,500

Totals/Averages 6 821 $1,700 $2.07 $10,200 $1,750 $2.13 $10,500

169 Glover Ave Location Summary | 07

• Owning up to its Spanish name origins - beautiful view - ChulaVista is located in the South Bay region of San Diego County.Perfectly located between the foothills of the Jamul and San YsidroMountains to the east and San Diego Bay to the west. Chula Vistais the second largest city in the San Diego metropolitan area, theseventh largest city in Southern California, the fifteenth largest cityin the state of California, and the 75th-largest city in the UnitedStates. Chula Vista maintains a business atmosphere thatencourages growth and development. In the city, the smallbusiness sector amounts for the majority of Chula Vista's businesspopulous. This small business community is attributed to the city'sgrowth and serves as a stable base for its economic engine.

Tourism serves as an economic engine for Chula Vista. The cityhas numerous dining, shopping, and cinema experiences. As withmany California cities, Chula Vista features many golf courses.Some of the city's notable attractions included the Chula VistaNature Center, Otay Valley Regional Park, North Island CreditUnion Amphitheatre, On Stage Playhouse, the Chula Vista Marina,Aquatica San Diego, and the U.S. Olympic Training Center. TheNature Center is home to interactive exhibits describing geologicand historic aspects of the Sweetwater Marsh and San Diego Bay.Otay Valley Regional Park is also located partially within ChulaVista, where it covers the area of a natural river valley. The marinaat Chula Vista is located in South Bay including multiple marinasand being home to the Chula Vista Yacht Club. Sports fishing andwhale watching charters operate the regional bay area.

Regional Map

Locator Map

169 Glover A

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Property Description

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Property Features

Aerial Map

Parcel Map

Additional Maps

Pictures with Captions

169 Glover Ave Property Features | 09

PROPERTY FEATURESNUMBER OF UNITS 6LAND SF 7,661YEAR BUILT 1970# OF PARCELS 1NUMBER OF STORIES 2NUMBER OF BUILDINGS 1WASHER/DRYER On Site

169 Glover Ave Aerial Map | 10

169 Glover Ave Parcel Map | 11

169 Glover Ave Property Images | 12

169 Glover Ave Property Images | 13

169 Glover A

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Rent Roll

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Rent Roll Details

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Unit Square Feet Unit Mix Monthly Rent PSF Market Rent169-A 821 2 bd + 1 ba $1,700 $2.07 $1,750169-B 821 2 bd + 1 ba $1,700 $2.07 $1,750169-C 821 2 bd + 1 ba $1,700 $2.07 $1,750169-D 821 2 bd + 1 ba $1,700 $2.07 $1,750169-E 821 2 bd + 1 ba $1,700 $2.07 $1,750169-F 821 2 bd + 1 ba $1,700 $2.07 $1,750

Totals/Averages $10,200 $2.07 $10,500

169 Glover A

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Financial Analysis

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Income & Expense

Multiyear Cash Flow Projections

169 Glover Ave Income & Expense Analysis | 17

INCOME CURRENT PRO FORMAGross Potential Rent $122,400 $126,000

Laundry $900 $900

Gross Potential Income $123,300 $126,900

Less: General Vacancy $3,672 $3,780

Effective Gross Income $119,628 $123,120

Less: Expenses $36,844 $36,844

Net Operating Income $82,784 $86,276

Annual Debt Service $62,644 $62,644

Debt Coverage Ratio 1.32 1.38

Cash Flow After Debt Service $20,140 $23,632

Principal Reduction $21,958 $21,958

Total Return 10.9 % $42,097 11.8 % $45,589

EXPENSES CURRENT PRO FORMAReal Estate Taxes $2,938 $17,629 $2,938 $17,629

Insurance $375 $2,250 $375 $2,250

Management Fee $1,028 $6,165 $1,028 $6,165

Pest Control $50 $300 $50 $300

Repairs & Maintenance $500 $3,000 $500 $3,000

Water / Sewer $600 $3,600 $600 $3,600

Landscaping $200 $1,200 $200 $1,200

Trash $125 $750 $125 $750

Reserves $200 $1,200 $200 $1,200

Gas & Electric $125 $750 $125 $750

Total Operating Expense $6,141 $36,844 $6,141 $36,844

Annual Debt Service $10,441 $62,644 $10,441 $62,644

% of EGI 30.80 % 29.93 %

Per Unit Per Unit

REVENUE ALLOCATIONCURRENT

DISTRIBUTION OF EXPENSESCURRENT

169 Glover Ave Cash Flow Analysis | 18

CASH FLOWCalendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Gross Potential RevenueGross Rental Income $122,400 $126,000 $132,300 $138,915 $145,861 $153,154 $160,811 $168,852 $177,295 $186,159Laundry $900 $900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330Gross Potential Income $123,300 $126,900 $133,245 $139,907 $146,903 $154,248 $161,960 $170,058 $178,561 $187,489General Vacancy -$3,672 -$3,780 -$3,969 -$4,167 -$4,376 -$4,595 -$4,824 -$5,066 -$5,319 -$5,585Effective Gross Income $119,628 $123,120 $129,276 $135,740 $142,527 $149,653 $157,136 $164,993 $173,242 $181,904Operating ExpensesReal Estate Taxes $17,629 $17,629 $18,158 $18,703 $19,264 $19,842 $20,437 $21,050 $21,681 $22,332Insurance $2,250 $2,250 $2,318 $2,387 $2,459 $2,532 $2,608 $2,687 $2,767 $2,850Management Fee $6,165 $6,165 $6,165 $6,165 $6,165 $6,165 $6,165 $6,165 $6,165 $6,165Pest Control $300 $300 $309 $318 $328 $338 $348 $358 $369 $380Repairs & Maintenance $3,000 $3,000 $3,090 $3,183 $3,278 $3,377 $3,478 $3,582 $3,690 $3,800Water / Sewer $3,600 $3,600 $3,708 $3,819 $3,934 $4,052 $4,173 $4,299 $4,428 $4,560Landscaping $1,200 $1,200 $1,236 $1,273 $1,311 $1,351 $1,391 $1,433 $1,476 $1,520Trash $750 $750 $773 $796 $820 $844 $869 $896 $922 $950Reserves $1,200 $1,200 $1,236 $1,273 $1,311 $1,351 $1,391 $1,433 $1,476 $1,520Gas & Electric $750 $750 $773 $796 $820 $844 $869 $896 $922 $950Total Operating Expense $36,844 $36,844 $37,764 $38,712 $39,689 $40,694 $41,730 $42,797 $43,896 $45,028Net Operating Income $82,784 $86,276 $91,512 $97,027 $102,838 $108,959 $115,405 $122,195 $129,346 $136,876Annual Debt Service $62,644 $62,644 $62,644 $62,644 $62,644 $62,644 $62,644 $62,644 $62,644 $62,644Cash Flow $20,140 $23,632 $28,867 $34,383 $40,194 $46,314 $52,761 $59,551 $66,702 $74,232

Effective Gross Income vs Operating Expenses Cash Flow

169 Glover Ave Cash Flow Analysis | 19

Calendar Year CURRENT Pro Forma Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Financial MetricsCash on Cash Return b/t 5.20 % 6.10 % 7.45 % 8.87 % 10.37 % 11.95 % 13.62 % 15.37 % 17.21 % 19.16 %CAP Rate 5.34 % 5.57 % 5.90 % 6.26 % 6.63 % 7.03 % 7.45 % 7.88 % 8.34 % 8.83 %Debt Coverage Ratio 1.32 1.38 1.46 1.55 1.64 1.74 1.84 1.95 2.06 2.19Operating Expense Ratio 30.79 % 29.92 % 29.21 % 28.51 % 27.84 % 27.19 % 26.55 % 25.93 % 25.33 % 24.75 %Gross Multiplier (GRM) 12.57 12.21 11.63 11.08 10.55 10.05 9.57 9.11 8.68 8.27Loan to Value 74.99 % 73.61 % 72.01 % 70.51 % 68.86 % 67.25 % 65.57 % 63.72 % 61.87 % 60.00 %Breakeven Ratio 83.16 % 80.81 % 77.67 % 74.67 % 71.80 % 69.05 % 66.42 % 63.91 % 61.50 % 59.19 %Price / Unit $258,333 $258,333 $258,333 $258,333 $258,333 $258,333 $258,333 $258,333 $258,333 $258,333

169 Glover Ave

Exclusively Marketed by:

Jordan Concepcion(858) 461-9910jconcepcion@cornerstoneig.com

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