1. 1004 PIER AVENUE TROJAN PARTNERS SANTA MONICA, CALIFORNIA * 3 UNITS$1,625,000

2. LOCATION

3. PROPERTY PROFILE

4. AREA/PROPERTY ANALYSIS 10 minute walk to 3 rd Street Promenade Conveniently located off I -10 freeway Walking distance to the beach $230,000 in renovations and upgrades 4.5% going in cap rate $541,667 price per unit $254 per sq. ft.

5. FINANCING TERMS Debt Contribution: $650,000 Equity Contribution: $1,014,000 Total Investment: $1,657,500

6. CASH FLOW ASSUMPTIONS Lease: month-to-month / gross Vacancy: 5% Property Taxes: $19,500 Insurance: $3,000 Utilities: $4,868 Maintenance: $6,000 Property Mgt: $3,385 Going In Cap: 4.4% Going Out Cap: 5.2% Annual Gross Rent: $112,860 Acquisitions Cost: $32,500 Origination Fee: $6,500 Brokers Fee: 5% Levered Discount Rate: 11.58% Expense Growth Rate: 2%Rent Growth Rate: 3%

7. RISK BENCHMARK Property Risk Tenant Risk Market Risk Competition Unlevered IRR is estimated to be 11.5%

8. DISCOUNT RATE The discount rate is determined by his/her circumstances, return requirements and risk aversion. Levered IRR= Unlevered IRR + (Unlevered IRR - Cost of Debt)* (Debt/Equity) Debt/Equity = average Debt/Equity = (starting D/E + Ending D/E)/ 2 Starting D/E= Loan Amount/Equity Contribution Ending D/E= Outstanding Loan Balance/Net Cash Flows and Sale Levered IRR= 11.55% + (11.55% - 4.5%)*( (650,000/1,014,000)+(266,719/2,015,533) /2) Levered IRR= 11.577%

9. CASH FLOW ASSUMPTIONS

11. SENSITIVITY ANALYSIS

13. POSITIVES/NEGATIVES + Santa Monica location Trends show relatively stable Santa Monica RE market Low price/square foot Current tenants plan to stay - Low going in cap rate will not provide enough cash flow to meet levered discount rate of 11.5% Struggling economy creates uncertainty for future Strict lending standards

14. CONCLUSION DO NOT INVEST: Willingness to Pay: $1,255,000 Asking Price: $1,625,000 NPV: - $369,891 Levered IRR: 6.2% Would need a significant price reduction (23%) to invest Because this is unlikely, we plan on looking into other investments that meet our criteria

15. THANK YOU! Presenters: Elliot Hamilton Shira Yomtoubian Stephanie Castillo Kai Lu Elizabeth Vanhorne