Cherry Valley Estates - LoopNet · Recreation venues surrounding the development in the San...

CHERRY VALLEY, CA

Cherry Valley Estates

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect 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 presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

CHERRY VALLEY, CA


Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT SALES

Section 4 ON MARKET COMPARABLES

Section 5 ON MARKET COMPARABLES CONTINUED

Section 6 MARKET OVERVIEW

Section 7 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS


Cherry Valley EstatesCHERRY VALLEY, CA

PRICING AND FINANCIAL ANALYSIS

1

PRICING AND FINANCIAL ANALYSIS


Summary

Property Cherry Valley Estates

Property Address APN#'s 407-300-001,6-25,30-58

Cherry Valley, CA 92223

Price 7,500,000

Down Payment 100% / $7,500,000

Lot Size (SF) 2,178,000

Price/SF $3.44

Lot Size (Acres) 50.0000

Price/Acre $150,000

Buildable SF 200,376

Price/Buildable SF $37.43

Number of Units 50

Price/Unit $150,000

Number of Lots 50

Price/Lot $150,000

Lot Dimensions Irregular

Type of Ownership Fee Simple

Site Description

Assessor's Parcel Number 407-300-001,6-25,30-58

Zoning Single Family Residential, Estate Home Sites

Taxes $0

Tax Year 2013

Frontage One Acre Lots

Services Electricity, Water, Gas, Septic (verify), Cable

Utilities Underground; and Water Meters

Adjacent Development Hillsides, Estate Homesites, Homes

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.© 2014 Marcus & Millichap V0080143

Financing

FIRST TRUST DEED

Loan Type Proposed New

Program All Cash

Loan to Value All Cash

FINANCIAL OVERVIEW


PROPERTY DESCRIPTION

Cherry Valley Estates is a rare collection of 50 estate home sites in picturesque Cherry Valley. Located only minutes from Interstate 10 in Riverside County and just a short distance to Redlands, these one acre lots offer the ideal investment opportunity. Home sites are enhanced by breathtaking views of Mount San Gorgonio and Mount San Jacinto, Southern California's most spectacular mountain peaks making the Cherry Valley Estates location a truly unique and beautiful setting.

Over 50 percent of the home sites have street frontage installed. The sites are rough graded only needing a new home buyer to design and build his or her dream home and complete the finished grading. The project has a final tract map with identified parcels encompassing their own addresses. The site will be sold "as is" as half of the project needs to be graded with drainage work, water and utilities brought in to match the existing finished estate lots.

Cherry Valley Estates is ideally suited for families and retirees seeking more space, a more elegant home or both. Each home site will include underground utilities (electricity, gas, telephone and cable), a water meter and side yard fencing. The homes built at Cherry Valley Estates will be governed by neighborhood-friendly covenants, conditions and restrictions (CC&R's). The CC and R's have a minimum house size of 2,000 square feet and no mobile homes will be permitted. Cherry Valley Estates has no Mello Roos, no Community Facility District and no Home Owner's Association. The Tax Rate is just a little over one percent.

School fees will be paid on the home sites we have released for sale so no other school fees will be due (these typically run $3 to $4 per square foot of new construction or more). Water meters are already in place and paid for and concrete curbs and gutters have been installed in the streets along with white three rail fencing for the lots released for sale.

Investment Highlights

■ No Mello Roos, Community Facility District or HomeOwner's Association

■ Rural Country Living and Beautiful Mountain Views

■ Excellent Schools

■ Minimum 2,000 Square Foot Homes

■ Sites Have Underground Electricity, Gas, Telephone, Cableand Water Meters

■ Tax Rate is Just Over one Percent

■ Beaumont is one of the Fastest Growing Cities in the UnitedStates

3




INVESTMENT OVERVIEW

With its breathtaking mountain views, clean air and four-seasons climate, Cherry Valley provides a slower-paced lifestyle surrounded by natural beauty for its nearly 6,000 residents. Cherry Valley is known for its distinctive rural community character and one acre minimum parcel size policy that has been in effect for many years.

Recreation venues surrounding the development in the San Bernardino National Forest are only moments from Cherry Valley, providing convenient hunting, fishing, hiking, mountain biking and horseback riding. Also within easy reach are Southern California's popular mountain resorts of Big Bear and Lake Arrowhead, desert retreats and the inviting Oak Glen Apple Country. The SCPGA Golf Club at Oak Valley is one of numerous outstanding golf courses located a short drive away. The Oak Valley course is Zagat-rated as the number one public golf course in Southern California and number three for the entire state. Close by, the entire family can enjoy 414-acre Bogart County Park, which offers reservable areas for individual and group camping, equestrian camping and group picnics. Also, not far is San Timiteo Canyon State Park and Wildwood Canyon Park.

The annual Cherry Festival located in Beaumont, is a three-day event held in early June each year. Celebrating the area's cherry harvest, the festival includes a parade, pancake breakfast, live entertainment and carnival rides. The area is also home to The Pumpkin Carve-in and Monster Mash Dance, an Oktoberfest celebration and "Movies Under the Stars," a weekly event held throughout the summer.

Cherry Valley is home to Edward-Dean Museum, which features an impressive collection of European and Asian fine arts from the late 16th to early 19th centuries. The museum hosts concerts and other cultural programs throughout the year. Nearby to the west is Palm Springs and other Desert resorts that offer a variety of shops, clubs and entertainment venues; and even closer is the Desert Hills Premium Outlets. Close by to the east is the Heritage rich city of Redlands.

Cherry Valley Estates will be served by the excellent schools of the Beaumont Unified School District, with academic test scores among the highest in Riverside County. Additionally, Beaumont High School students exceeded state averages in both mathematics and English/language arts in the California High School Exit Exam.

4




INVESTMENT OVERVIEW

5




CHERRY VALLEY LIFESTYLE

6




CHERRY VALLEY ESTATES PLAN

7

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age areapproximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc.© 2014 Marcus & Millichap V0080143

Cherry Valley EstatesCHERRY VALLEY, CA PROPERTY DESCRIPTION

NEW CUSTOM HOMES CONSTRUCTED

8




PROPERTY PHOTOS

9




PROPERTY PHOTOS

10




PROPERTY PHOTOS

11




PROPERTY PHOTOS

12




PROPERTY PHOTOS

13




PROPERTY PHOTOS

14




CLOSED LOT PRICING

*26 38959 Cherry Estates Court 407-300-026 1.04 $250,000

*27 38960 Alfed Circle 407-300-027 1.04 $260,000

28 38955 Alfred Circle 407-300-028 1.19 $267,500

2 38546 Jenni Lisa Court 407-300-002 1.00 $285,000

*3 38574 Jenni Lisa Court 407-300-003 1.00 $280,000

*4 38602 Jenni Lisa Court 407-300-004 1.00 $295,000

*5 38957 Jenni Lisa Court 407-300-005 1.00 $285,000

*The buyer built a custom home after purchasing the lot.

15




PLAT MAP

Local Map Regional Map

16




AREA MAPS

Oak Glen

17




AERIAL PHOTO OF PARCELIZED SITE

18




AERIAL PHOTO

Points of Interest

1) Beaumont High School

2) Brookside Elementary School

3) Mountain View Middle School

4) Mira Villa Medical Center

5) Bogart Park

Demographics 1 Mile 3 Miles 5 Miles

2000 Median Household Value $145,715 $150,212 $128,995

2013 Population 2,321 29,637 82,704


RECENT SALES

1)

2)

3)

4)

5)

6)

7)

8)

9)


Hawarden Vista

72275 Via Vail

Chickasaw Road at East Avenue

Judson Street

Warmington at Stellan Ridge

Manning Homes-Etiwanda Classics

Andalusia - Hovnanian Homes

Individual Home Sale-Non-Bulk


20

RECENT SALES



RECENT SALES MAP

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

HawardenVista

72275ViaVail

ChickasawRoad

atEast

Avenue

JudsonStreet

Warmingtonat

StellanRidge

ManningHomes-Etiwanda

Classics

Andalusia-

HovnanianHomes

IndividualHome

Sale-Non-Bulk

IndividualHome

Sale-Non-Bulk

Comments

The average price per square foot is between $4.26 and $5.75.

AVERAGE PRICE/ACRE

Comments

The average price per acre is $185,827 - for individual lots' sale comps. For estate community lots, the average price

is approximately $250,000 per acre.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

HawardenVista

72275ViaVail

ChickasawRoad

atEast

Avenue

JudsonStreet

Warmingtonat

StellanRidge

ManningHomes-Etiwanda

Classics

Andalusia-

HovnanianHomes

IndividualHome

Sale-Non-Bulk

IndividualHome

Sale-Non-Bulk

21

RECENT SALES


AVERAGE PRICE/SF


PRICE PER SF AND PRICE PER ACRE

2

3

Comments

This transaction was the sale of nine lots in Rancho Mirage, California that sold as an REO property in an all-cash deal

for $900,000. Escrow closed in 30 days and the buyer plans on building nine homes. All entitlements are in place. Site

was rough graded. Price was $4.13 per square foot or $180,000 per acre.

72275 Via Vail

Rancho Mirage, CA 92270

Chickasaw Road at East Avenue

Rancho Cucamonga, CA 91730

Comments

This is the sale of 3.95 acres of residential land. The previous zoning and planned use was for a church. However, the

buyers worked with the city and were approved to build seven single family homes on half acre lots. Escrow took

about four months to close because of the process of obtaining city approvals.

Hawarden Vista

Overlook Parkway and Via Vista

Riverside, CA 97034

1

Comments

This was a 15 lot residential development with full entitlements. Total acreage was 32 acres including common areas.

Lots were fully finished with grading and utilites to site. Rolling topography. Property is covenanted for a minimum

house size of 4,000 square feet.

Close of Escrow: 6/7/2012 Lot Size (SF): 217,800

Sale Price: $900,000 Price/SF: $4.13

Down Payment: $900,000 Lot Size (Acres): 5.0000

Down Payment %: 100% Price/Acre: $180,000

Zoning: RL2 Lot Dimensions: 333' on Via

Close of Escrow: 3/14/2011 Lot Size (SF): 1,415,700

Sale Price: $3,000,000 Price/SF: $2.12

Down Payment: $3,000,000 Lot Size (Acres): 32.5000


Zoning: Single





Zoning: Residential Lot Dimensions: 210' on 210

22

RECENT SALES



RECENT SALES

4

5

6

Warmington at Stellan Ridge

Kingdom Drive and Alpine Meadows Lane

Riverside, CA 92506

Manning Homes-Etiwanda Classics

6998 Etiwanda Avenue


Comments

A bulk sale of 48 lots, 28 graded and 20 unimproved lots. Sold for $283,000 per finished lot.

Comments

A 16 lot sale in Rancho Cucamonga, at the southwest corner of Victoria Street and Etiwanda Avenue. The site was

acquired in an unimproved condition with an approved tentative map. The price per acre is approximately $200,000.

Judson Street

Redlands, CA 92374

Comments

Land is located on the southeast corner of Judson Street and Pioneer Avenue. Site has four different parcels.

Close of Escrow: 6/21/13 Lot Size (SF): 2,090,880




Zoning: Residential Lot Dimensions: Irregular





Zoning: Residential Lot Dimensions: 620' x 858'

23

RECENT SALES








RECENT SALES

9

8

7


9710 Mountain View Avenue



9387 Avenida Miravilla


Comments

A four/bedroom, three/bathroom home with 4,437 square feet, built in 2005 on 1.34 acres of land with a pool. The price

per square foot for the home is $155.06.

Comments

This three/bedroom, three and a half/bathroom home is 1,868 square feet on 2.25 acres of land. Home was built in

1951. The price per square foot for the home is $214.13.

Andalusia - Hovnanian Homes

13545 Brittle Brush Court


Comments

This is a 63 lot sale with minimum lot sizes of 20,000 square feet. This project is located south of Banyan Street in

Rancho Cucamonga, approximately 33 miles west of the subject.






Close of Escrow: 2012-2013 Lot Size (SF): 1,260,000





24






RECENT SALES



RECENT SALES


ON MARKET COMPARABLES

1)

2)

3)

4)

5)

6)

7)

8)

9)


Redlands at Ironwood Estate

38705 Orchard Street


Non-Bulk 1.41 acre (Canyon Crest)

Non-Bulk 1.10 Acre (Canyon Estates)

Non-Bulk 1.34 Acre (Vinton Way)

Non-Bulk .90 Acre (Edgefair Lane)

Home For Sale - Non Bulk

Home for Sale - Non Bulk

26




ON MARKET COMPARABLES MAP

0.00

2.00

4.00

6.00

8.00

10.00

12.00

Subject Redlandsat

IronwoodEstate

38705OrchardStreet

39398OrchardStreet

Non-Bulk1.41acre

(CanyonCrest)

Non-Bulk1.10Acre

(CanyonEstates)

Non-Bulk1.34Acre

(VintonWay)

Non-Bulk.90

Acre(Edgefair

Lane)

HomeForSale

-NonBulk

Homefor

Sale-

NonBulk

Comments

The average asking price per square foot is $2.55; however these are for unimproved bulk lot sales. Non-bulk one

acre lot sales average $6.22 per square foot or $270,818 per acre.

AVERAGE PRICE/ACRE

Comments

The average asking price per acre is $110,930; however these are for unimproved bulk lot sales.

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Subject Redlandsat

IronwoodEstate

38705OrchardStreet

39398OrchardStreet

Non-Bulk1.41acre

(CanyonCrest)

Non-Bulk1.10Acre

(CanyonEstates)

Non-Bulk1.34Acre

(VintonWay)

Non-Bulk.90

Acre(Edgefair

Lane)

HomeForSale

-NonBulk

Homefor

Sale-

NonBulk

27



AVERAGE PRICE/SF



2

1 Redlands at Ironwood Estate

12181 Redlands Boulevard

Moreno Valley, CA 92555



Comments

Generally flat, large residential development parcels (four parcels total) equals approximately 35.44 acres. Located in

the easterly portion of Moreno Valley, along Highway 60. Site is not parcelized, nor improved with interior streets, curb,

gutter, sidewalk and utilities.

Comments

Proposed development of 24 one acre equestrian estate lots. Zoning is R-1 and all utilities are in street except sewer,

septic tanks are required.


APN#'s 407-300-001,6-25,30-58


Subject Property

Close of Escrow: On Market Lot Size (SF): 1,543,766

List Price: $3,280,001 Price/SF: $2.12



Zoning: R-1 Irregular

Close of Escrow: On Market Lot Size (SF): 1,032,372




Zoning: R-1 Lot Dimensions: 1,320' along

28



Sale Price: 7,500,000 Lot Size (SF): 2,178,000

Down Payment: $7,500,000 Price/SF: $3.44

Down Payment %: 100% Lot Size (Acres): 50.0000

Zoning: Single Price/Acre: $150,000

Lot Dimensions: Irregular



3

4

5

Comments

1.41 acre lot with beautiful iron gate at the top on long driveway leads to level lot. Home owners association fee is $39

per month.

Non-Bulk 1.41 acre (Canyon Crest)

6204 Claridge Drive

Riverside, CA 92506

Non-Bulk 1.10 Acre (Canyon Estates)

6122 Canyon Estates Court

Riverside, CA 92506

Comments

1.10 acres located in beautiful estates at Canyon Crest. Comes with plans to build a single story home.


Beaumont, CA 92223

Comments

Corner property in Cherry Valley/Beaumont. Level land, unimproved and is not parcelized. Site is on the Northeast

corner of Beaumont Avenue and Orchard Street.

Close of Escrow: On Market Lot Size (SF): 61,420

List Price: $350,000 Price/SF: $5.70








Zoning: R-1 Lot Dimensions: 809' along

29










8

7

6

Non-Bulk .90 Acre (Edgefair Lane)

Edgefair Lane, Redlands

Redlands, CA 92373

Home For Sale - Non Bulk

9435 Oak Creek Road


Comments

.90 acres with beautiful views of city lights, valleys and snow covered mountains. Lot has been graded and septic has

been approved.

Comments

A single story 2,935 square foot five/bedroom, two and a half/bathroom home with spectacular views. Home has a

pool, with a three-car garage and RV/boat parking. Home has a septic tank ans is on .93 acres of land. The price per

square foot for the home is $158.43.

Non-Bulk 1.34 Acre (Vinton Way)

Vinton Way and East Sunset Drive

Redlands, CA 92373

Comments

1.34 acre graded pad with mature landscaping in the hills of Redlands. Site leads from a gated entryway.











30

Close of Escrow: For Sale Lot Size (SF): 40,511









9 Home for Sale - Non Bulk

39500 Cherry Oak Canyon Road


Comments

A four/bedroom two/bathroom, 2,624 square foot home, on .94 acres with a pool, separate RV parking area and a

three-car garage. Home was built in 1984 and is on a septic tank. The price per square foot for the home is $170.73.

Close of Escrow: For Sale Lot Size (SF): 40,946





31






ON MARKET COMPARABLES CONTINUED

1)

2)




33




ON MARKET COMPARABLES MAP

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

20.00

Homefor

Sale-

NonBulk

Homefor

Sale-

NonBulk

AVERAGE PRICE/ACRE

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Subject Homefor

Sale-

NonBulk

Homefor

Sale-

NonBulk

34



AVERAGE PRICE/SF



1

2 Home for Sale - Non Bulk

923 Union Street


Comments

This four/bedroom, four/bathroom 3,977 square foot home is on .84 acres, with a 5-car garage and is located on a golf

course. The home was built in 2006 and is connected to a sewer system. Priced at $749,000.


39409 Cherry Oak Road


Comments

A four/bedroom, two/bathroom 2,371 square foot home, on .90 acres of land. Home has scenic views of the Foothills

and is zoned Riverside County RAO2, per public data. Priced at $449,000.











35






MARKET OVERVIEW

37

MARKET OVERVIEW


Market Highlights

Rapid employment growth

■ Employment is forecast to grow faster than the

nation's rate over the next five years.

Strong demographic trends

■ The Inland Empire is forecast to add nearly

290,000 new residents through 2017.

Low cost of living

■ Housing prices are considerably less than in

neighboring metros.

Geography

The Riverside-San Bernardino-Ontario

metro, also referred to as the Inland Empire,

is a 28,000-square-mile region in Southern

California comprised of San Bernardino and

Riverside counties. Valleys in the

southwestern portion of the region, adjacent

to Los Angeles, Orange County and San

Diego County, are the most populous in the

metro. These areas abut the San Bernardino

and San Jacinto mountains, behind which lies

the high desert area of Victorville/Barstow to

the north and, to the east, the low desert

Coachella Valley, home of Palm Springs.


RIVERSIDE-SAN BERNARDINO

Riverside-San Bernardino-Ontario Metro

Metro

The Riverside-San Bernardino metro contains a

population of nearly 4.4 million. The largest city is

Riverside with 314,400 residents, followed by San

Bernardino. Although population growth slowed

during the housing crisis, four of the six most populous

municipalities are still gaining residents at a pace faster

than the nation.

Largest Cities: Riverside-San Bernardino

38

Airports

■ Ontario International

■ Palm Springs International

■ 33 smaller airports

Major Roadways

■ Interstates 10, 15 and 215

■ Highways 60 , 71, 91 and 210

Rail

■ Freight - BNSF and Union Pacific

■ Passenger - Amtrak

■ Commuter - MetroLink

The Riverside-San Bernardino MSA is:

■ 60 miles from Los Angeles

■ 100 miles from San Diego

■ 113 miles from Tijuana

■ 400 miles from San Francisco

MARKET OVERVIEW

Infrastructure

Riverside-San Bernardino features three interstate

freeways — I-10, I-215 and I-15 — that form a

triangle around one of the region's core growth centers.

Also, completion of the 210 freeway extension makes

commuting to and from Rialto and San Bernardino

considerably easier.

The Riverside-San Bernardino metro has two major

airports: Ontario International and Palm Springs

International. The region also has a cargo dedicated

facility, the Southern California Logistics Airport,

located just north of Victorville in the High Desert.

Two rail lines serve Riverside-San Bernardino, and the

region boasts one of the largest and most modern

intermodal facilities in the nation. Amtrak provides

passenger rail service, and MetroLink connects the area

to Orange County and Los Angeles. Local transit

agencies run bus service throughout the area.


2012 EstimateSources: Marcus & Millichap Research Services, Experian


Riverside 314,400

San Bernardino 214,400

Fontana 201,200

Moreno Valley 200,700

Rancho Cucamonga 170,100

Ontario 167,500


39

MARKET OVERVIEW



Economy

The Riverside-San Bernardino metro has one of the

largest economies in the United States. While the

region's economic expansion has been fueled by a

number of factors, robust population growth has been

the primary demand driver. Despite recent pull backs

in housing costs, still-high home prices throughout

much of Southern California leave residents seeking

more affordable options in the Inland Empire. The

resulting increase in population will continue to

heighten the need for housing, retail goods, personal

services and government services.

There has also been exceptional growth in wholesale

trade and warehousing as the area becomes an

important distribution hub for the Southwest.

Riverside-San Bernardino is the premier location in the

Los Angeles Basin for new distribution facilities. This is

due to its large pool of experienced workers, relatively

inexpensive land, and highly efficient intermodal

transportation system that reduces the cost of both

aggregating and distributing shipments.

During the past year, the Riverside-San Bernardino

metro recorded higher industrial absorption than most

other industrial markets in the state. The distribution

system also benefits two major cargo airports: Ontario

International and the Southern California Logistics

Airport in Victorville.


40

MARKET OVERVIEW


Labor

The Riverside-San Bernardino metro employment base contains nearly 1.2 million workers and new jobs are

projected to be generated at an annual average pace of 2.3 percent through the next five years, even with the

national growth rate. Traditionally, area residents who relocated from neighboring Los Angeles County or Orange

County continued to commute to these markets for work. In recent years though, a rise in commercial

development in the Inland Empire has generated more local jobs. As such, the job pool is becoming increasingly

diverse, and many of the metro's population-serving industries are growing.

The metro's infrastructure and proximity to the Los Angeles and Long Beach ports attract companies seeking West

Coast distribution hubs. As a result, the trade, transportation and utilities sector accounts for 24 percent of all

metro jobs. Given the area’s considerable warehouse and distribution facilities, this trend is expected to persist,

expanding 1 percent each of the next five years.

While trade and transportation will continue to account for the largest share of metro jobs, growth of over 2

percent annually is expected in the construction, education and health services, and the leisure and hospitality

sectors over the next five years.

Additionally, freeway improvements that make accessing the eastern part of the metro and cities, including

Moreno Valley, Palm Springs and Palm Desert, easier should promote healthy employment growth as companies

move into these areas in the years ahead.



Employers

While Riverside-San Bernardino has a significant share

of large employers, the majority of companies are small.

More than 60 percent of firms in the metro have four

or fewer employees, and less than 1 percent have 250

employees or more. This emphasis on small firms

encourages innovation and flexibility and is positive for

the area's long-term outlook, as most of the growth

taking place in the economy is occurring in the small

business sector.

Government entities account for some of the largest

employers in the region, including Fort Irwin and

March Air Force Base. Major healthcare providers such

as Loma Linda University Medical Center and Kaiser

Permanente also maintain a big portion of the region's

jobs. Demand for medical services is projected to rise

rapidly in the coming years due to the area’s increasing

population and the baby-boomer generation's move

into its retirement years.

Another significant employer is Ontario International

Airport. The facility provides around 7,700 jobs at the

airport and another 55,400 indirect, off-site positions.

Strong growth will continue at the airport, given the

limits to expansion placed on neighboring airports in

Los Angeles and Orange counties.

41

MARKET OVERVIEW


Major Employers


San Bernardino County

Riverside County

Stater Bros.

Loma Linda University Medical Center

Kaiser Permanente

Walmart Stores, Inc.

University of California, Riverside

Fort Irwin

Ontario International Airport

March Air Force Base


42

MARKET OVERVIEW


Demographics

The Riverside-San Bernardino metro consists of more

than 1.3 million households and nearly 4.4 million

residents, making it one of the largest metropolitan

areas in the nation. While expansion will slow from

earlier in the decade, the Inland Empire is still on pace

to grow 1.5 percent per year during the next five years,

outpacing the national rate of 0.9 percent annually.

The majority of recent growth in the area was due to

in-migration rather than coming from natural

increases. Factors fueling in-migration include the

strong local economy; relatively affordable housing;

large parcels of vacant, developable land; and a sharp

drop in available land in Los Angeles County. The

median existing home price in Riverside-San

Bernardino, at $180,500, also remains much lower

than medians in adjacent counties, affording over 54

percent of households to own their home.

Residents are becoming more educated, as over 50

percent of adults in the metro have at least some college

education, and close to 20 percent of those ages 25 and

above have attained a bachelor’s degree or higher.

Increasing education levels have helped to raise

household earnings. The median household income

stands at $58,700 per year, higher than the national

median of $53,100. Over the next five years, the most

significant income gains will be among those earning

$150,000 or more annually.



43

MARKET OVERVIEW



Quality Of Life

Riverside-San Bernardino offers a wide diversity of

landscapes, including the palm tree-lined and pool-

studded Coachella Valley, the mountain communities

of Big Bear and Lake Arrowhead, the rolling hills and

wineries of Temecula Valley, and the suburban

communities of the West San Bernardino Valley and

Moreno Valley. A temperate climate offers moderate

winters, warm summers and generally low humidity.

One of the greatest draws of the metro is relatively

affordable housing. The median home price in

Riverside-San Bernardino is 42 percent lower than in

Los Angeles County and 65 percent lower than in

Orange County.

The Inland Empire provides a number of cultural

opportunities, including the Riverside Metropolitan

Museum, the Mission Inn Museum, and the Museum

of History and Art in Ontario. The California Theatre

of Performing Arts in San Bernardino stages a number

of performances throughout the year, as does the

refurbished Fox Center for the Performing Arts, which

reopened in 2010. The Riverside County Philharmonic

provides classical music concerts throughout the area.

Shopping opportunities are plentiful no matter where

you live in the metro, as are parks and golf courses.

The region features an impressive offering of more than

20 college campuses, including the University of

California, Riverside; two campuses of California State

University; and nine community colleges.


Investors Moving Inland, Seeking Value-Add Deals

The Inland Empire’s rental market is in a transition year, with job growth creating new demand and a recoveringhousing market siphoning away renters, which should leave vacancy at an equilibrium level by the end of the year.Home prices in the market have stabilized, with gains even recorded close to the coastal counties. Many formerhomeowners, meanwhile, are sufficiently removed from a short sale or foreclosure and can now qualify forfinancing. In addition, since many residents have not owned a home in three years, favorable first-time homebuyerlending standards are available. As a result, attrition to the housing market will likely hasten this year. Renters lostto the housing market will be replaced with new entrants into the renter pool as job growth accelerates.Construction and leisure and hospitality employers are expanding, and many of these newly employed workers willbe hesitant or unable to make the jump into the housing market. Also, investors are aggressively targeting homes atthe bottom of the price scale, limiting the potential for some low-paid workers to afford a home.

Investors are moving inland from the coast to capture higher yields, a trend that will persist this year as assets inthe High Desert gain in popularity as cap rates west of Interstate 15 compress to levels similar to Los Angeles andOrange counties. The volume of capital eager to acquire local multifamily properties is reminiscent of the earlystages of the last real estate boom, though the peak will likely fall short of the last cycle as investor enthusiasm issubdued by recollections of the downturn. The other hurdle for buyers may be exit strategies given the current lowcap rates. First-year returns across the two-county metro average in the low-6 percent range, and can dip lower forwell-located or top-tier listings. While low interest rates provide a suitable spread for most investors to becomfortable, the window to sell at a similar cap rate may not occur for several more years. This trend will keeplong-term hold strategies prevalent for investors targeting stabilized listings, while turnaround times in value-adddeals still hover in the 12- to 36-month window.

Employment: Employers will heighten the pace of hiring this year, adding 38,000 newjobs, a gain of 3.3 percent. Professional and business services and education and healthservices will contribute a collective 10,300 spots. Last year, 34,400 positions weregenerated in the metro.

Construction: After finishing 700 units last year, builders will expand inventory by 0.7percent with the addition of 1,600 apartments in 2013. The number of plannedapartments in the metro has grown to 3,800 units.

Vacancy: This year, vacancy will rise to 6 percent, an annual increase of 60 basispoints. As the housing market increasingly shows signs of stabilization, the number ofrenters jumping to ownership will roughly match new renters entering the market,leading to vacancy equilibrium by the end of the year.

Rents: Effective rents will advance 3.1 percent this year to $1,101 per month asoperators take advantage of relatively tight conditions. Last year, average effective rentswere lifted 0.4 percent.

2013 Annual Apartment Forecast

44

MARKET OVERVIEW




45

Economy

■ Over the last year, employers added an estimated 25,000 positions in the Inland Empire, expanding head

counts by 2.2 percent. The leisure and hospitality sector gained 7.6 percent as 9,800 jobs were created, whichshould bode well for apartment owners in the High Desert, where many of these positions are concentrated.

■ Construction companies expanded by 5 percent since the recessionary trough as nearly 3,000 jobs were created.

A resurgence in industrial and new home development have supported growth. At the end of last year, nearly 7million square feet of industrial space was under construction.

■ The formerly stalled Northgate Crossing in the Coachella Valley will proceed with plans for a hotel, surgical

center, gas station, car wash and apartment complex. During construction, nearly 3,500 jobs will be createdand approximately 800 permanent positions will be necessary upon completion.

■ Outlook: Employers will heighten the pace of hiring this year, adding 38,000 new jobs, a gain of 3.3 percent.

Professional and business services and education and health services will contribute a collective 10,300 spots.Last year, 34,400 positions were generated in the metro.

MARKET OVERVIEW


Housing and Demographics

■ In the first quarter, developers pulled an annualized 6,800 single-family home permits, an increase of morethan 80 percent from the previous period. Still, permitting activity reached more than 50,000 annualized

permits during the housing boom, leaving the market well below peak levels.

■ The median price for an existing single-family home rose 3 percent year over year to $182,100 during the firstquarter. During the same period, median household income inched up 0.2 percent to $54,200, which is more

than 26 percent above the minimum qualifying income for a median-priced home.

■ Using traditional financing standards, the monthly mortgage obligation on a median-priced home is $340 permonth lower than effective rents at apartment complexes constructed after 2000.

■ Outlook: Affordable home prices and low interest rates will result in some renter migration this year,

particularly from former homeowners that were foreclosed upon and moved into rentals several years ago.


* Forecast


46

Construction

■ During the 12-month period ending in the first quarter, builders finished 1,000 apartments in the two-county

metro, expanding stock by 0.6 percent. In the previous year, less than 600 apartments came on line.

■ Approximately 2,000 units are under way, with delivery dates stretching into 2014. Developers are finalizing

construction on the Artisan at Main Street Metro complex in Corona, which will add 404 market-rate units in

the second quarter.

■ Approximately 3,800 competitive units are planned for the metro, though none of the projects have an

anticipated groundbreaking date. The 455-unit Spyglass Ranch apartments in Lake Elsinore is the largest

planned project.

■ Outlook: After finishing 700 units last year, builders will expand inventory by 1.1 percent with the addition of

1,600 apartments in 2013.

MARKET OVERVIEW

Vacancy

■ Vacancy climbed to 5.7 percent during the first quarter, up 30 basis points from the previous three-month

period. In the opening period of last year, vacancy registered at 5.2 percent.

■ Properties constructed since 2000 are competing with the resurgent housing market. Year over year, vacancy in

these assets rose 50 basis points to 6.1 percent and the rate is currently 600 basis points below the recessionary

peak.

■ In the first quarter, 7.4 percent of the metro’s three-bedroom apartments were vacant, approximately 150 basis

points higher than the other apartment sizes. Competition from the housing market for these units has resulted

in below-average performance.

■ Outlook: This year, vacancy will rise to 6 percent, an annual increase of 60 basis points. As the housing market

increasingly shows signs of stabilization, the number of renters jumping to ownership will roughly match new

renters entering the market, leading to vacancy equilibrium by the end of the year.



* Forecast


47

Rents

■ Effective rent growth moderated during the past year as operators grew more conscious of competition. During

the 12-month period, effective rents ticked up 1.5 percent to $1,086 per month. In the previous year when thehousing market posed little threat, effective rents climbed 2.4 percent.

■ Effective rents at properties constructed in the past 12 years grew 0.7 percent to $1,308 per month.

Apartments of 1990s vintage recorded a 4.1 percent increase in effective rents to $1,103 per month.

■ Management companies continue to leverage concessions on a wide scale to attract renters. Approximately 15

percent of the professionally managed complexes in the Inland Empire offered free rent in the first quarter.

Average leasing inducements were 7 percent of asking rents.

■ Outlook: Effective rents will advance 3.1 percent this year to $1,101 per month as operators take advantage of

relatively tight conditions. Last year, average effective rents were lifted 0.4 percent.

MARKET OVERVIEW

Sales Trends**

■ Apartment investors moved into the Inland Empire in greater numbers last year as cap rates in the coastal

counties compressed. As a result, deal flow jumped more than 45 percent during 2012.

■ The median sales price was $74,700 per unit in 2012, up 1 percent from the previous period. The median

price during the second half of last year was $87,500 per unit, an indication that buyers are bidding up

properties.

■ Assets traded last year at cap rates in the high-6 percent range, down 40 basis points from the previous year.

Current average cap rates are in the low- to mid-6 percent area, though variations can be dramatic across the

large metro.

■ Outlook: Investors will remain active in the Inland Empire while the spread in cap rates between the area and

the coastal counties remains elevated. Further compression, however, could push capital beyond the metro and

into other states.


* Forecast** Data reflect a full 12-month period, calculated on a trailing 12-month basis by quarter.



48

MARKET OVERVIEW


Submarket Overview

■ Developers broke ground on a Holiday Inn Express in Indio during the first quarter, the first new hotel in the

city in the last 25 years. The hotel will help boost employment in the Coachella Valley submarket, a trend that

should bode well for local apartment operators.

■ An Apple Valley developer will begin constructing new homes in a development that has been stalled since

2008, a sign that the local housing market is beginning to make a modest recovery. New construction jobs

should benefit the Victorville/Outer San Bernardino submarket, which has the highest vacancy in the metro.

■ Plans to build two Walmart Supercenters in Fontana is attracting some opposition, though plans for each will

likely succeed. Current estimates put completion for both properties in 2016, and a total of 600 jobs will be

added to the Fontana/Rialto/Colton submarket.


Capital Markets

■ The Federal Reserve continues to sustain actions to foster economic growth. During the first quarter, the

central bank reiterated its intention to purchase bonds to hold long-term interest rates near 0 percent until the

unemployment rate drops to 6.5 percent. The unemployment ticked down to 7.6 percent at the end of the first

quarter.

■ Continued improvement of property operations and enhanced commercial real estate loan performance are

expected to drive lending for 2013. Banks are streamlining underwriting standards and increasing commercial

mortgage originations. Lenders have relaxed underwriting standards over the past 12 months. Loans originate

at LTVs between 70 to 80 percent and debt service coverage varies between 1.15x and 1.25x. Interest rates for

loans over $3 million for a 10-year period are between 3.75 percent and 4.25 percent. For the same time

period, loans under $3 million range from the low-4 percent range to mid-4 percent.

■ Issuance of multifamily loans through government programs could slow in 2013. HUD’s ability to fund loans

could end this summer unless Congress authorizes funding. Additionally, the GSE regulator instructed Fannie

Mae and Freddie Mac to cut back on purchases of multifamily loans by 10 percent this year to draw increased

private capital to the multifamily market. The agencies will underwrite deals at up to 80 percent LTV and rates

200 to 250 basis points above the 10-year U.S. Treasury.

■ Apartment development is rapidly accelerating in many markets, and several major lenders appear willing to

underwrite construction on select projects. The primary considerations for lenders include the quality of

sponsorships, metro-level property trends, and the strength of intrinsic demand drivers for new properties.

Sources: Marcus & Millichap Research Services, Bureau of Labor Statistics, CoStar Group, Inc., Economy.com, MPF Research, National Associationof Realtors, Real Capital Analytics, TWR/Dodge Pipeline, U.S. Census Bureau, Real Estate Center at Texas A&M University


49

MARKET OVERVIEW


Market Highlights

Rapid employment growth

■ Employment is forecast to grow faster than the

nation's rate over the next five years.

Strong demographic trends

■ The Inland Empire is forecast to add nearly

290,000 new residents through 2017.

Low cost of living

■ Housing prices are considerably less than in

neighboring metros.

Geography

The Riverside-San Bernardino-Ontario

metro, also referred to as the Inland Empire,

is a 28,000-square-mile region in Southern

California comprised of San Bernardino and

Riverside counties. Valleys in the

southwestern portion of the region, adjacent

to Los Angeles, Orange County and San

Diego County, are the most populous in the

metro. These areas abut the San Bernardino

and San Jacinto mountains, behind which lies

the high desert area of Victorville/Barstow to

the north and, to the east, the low desert

Coachella Valley, home of Palm Springs.



Riverside-San Bernardino-Ontario Metro

50

MARKET OVERVIEW

Metro

The Riverside-San Bernardino metro contains a

population of nearly 4.4 million. The largest city is

Riverside with 314,400 residents, followed by San

Bernardino. Although population growth slowed

during the housing crisis, four of the six most populous

municipalities are still gaining residents at a pace faster

than the nation.


Largest Cities: Riverside-San Bernardino

Airports

■ Ontario International

■ Palm Springs International

■ 33 smaller airports

Major Roadways

■ Interstates 10, 15 and 215

■ Highways 60 , 71, 91 and 210

Rail

■ Freight - BNSF and Union Pacific

■ Passenger - Amtrak

■ Commuter - MetroLink

The Riverside-San Bernardino MSA is:

■ 60 miles from Los Angeles

■ 100 miles from San Diego

■ 113 miles from Tijuana

■ 400 miles from San Francisco


Infrastructure

Riverside-San Bernardino features three interstate

freeways — I-10, I-215 and I-15 — that form a

triangle around one of the region's core growth centers.

Also, completion of the 210 freeway extension makes

commuting to and from Rialto and San Bernardino

considerably easier.

The Riverside-San Bernardino metro has two major

airports: Ontario International and Palm Springs

International. The region also has a cargo dedicated

facility, the Southern California Logistics Airport,

located just north of Victorville in the High Desert.

Two rail lines serve Riverside-San Bernardino, and the

region boasts one of the largest and most modern

intermodal facilities in the nation. Amtrak provides

passenger rail service, and MetroLink connects the area

to Orange County and Los Angeles. Local transit

agencies run bus service throughout the area.

2012 EstimateSources: Marcus & Millichap Research Services, Experian

Riverside 314,400

San Bernardino 214,400

Fontana 201,200

Moreno Valley 200,700

Rancho Cucamonga 170,100

Ontario 167,500


51

MARKET OVERVIEW



Economy

The Riverside-San Bernardino metro has one of the

largest economies in the United States. While the

region's economic expansion has been fueled by a

number of factors, robust population growth has been

the primary demand driver. Despite recent pull backs

in housing costs, still-high home prices throughout

much of Southern California leave residents seeking

more affordable options in the Inland Empire. The

resulting increase in population will continue to

heighten the need for housing, retail goods, personal

services and government services.

There has also been exceptional growth in wholesale

trade and warehousing as the area becomes an

important distribution hub for the Southwest.

Riverside-San Bernardino is the premier location in the

Los Angeles Basin for new distribution facilities. This is

due to its large pool of experienced workers, relatively

inexpensive land, and highly efficient intermodal

transportation system that reduces the cost of both

aggregating and distributing shipments.

During the past year, the Riverside-San Bernardino

metro recorded higher industrial absorption than most

other industrial markets in the state. The distribution

system also benefits two major cargo airports: Ontario

International and the Southern California Logistics

Airport in Victorville.


52

MARKET OVERVIEW



Labor

The Riverside-San Bernardino metro employment base contains nearly 1.2 million workers and new jobs are

projected to be generated at an annual average pace of 2.3 percent through the next five years, even with the

national growth rate. Traditionally, area residents who relocated from neighboring Los Angeles County or Orange

County continued to commute to these markets for work. In recent years though, a rise in commercial

development in the Inland Empire has generated more local jobs. As such, the job pool is becoming increasingly

diverse, and many of the metro's population-serving industries are growing.

The metro's infrastructure and proximity to the Los Angeles and Long Beach ports attract companies seeking West

Coast distribution hubs. As a result, the trade, transportation and utilities sector accounts for 24 percent of all

metro jobs. Given the area’s considerable warehouse and distribution facilities, this trend is expected to persist,

expanding 1 percent each of the next five years.

While trade and transportation will continue to account for the largest share of metro jobs, growth of over 2

percent annually is expected in the construction, education and health services, and the leisure and hospitality

sectors over the next five years.

Additionally, freeway improvements that make accessing the eastern part of the metro and cities, including

Moreno Valley, Palm Springs and Palm Desert, easier should promote healthy employment growth as companies

move into these areas in the years ahead.


53

MARKET OVERVIEW


Employers

While Riverside-San Bernardino has a significant share

of large employers, the majority of companies are small.

More than 60 percent of firms in the metro have four

or fewer employees, and less than 1 percent have 250

employees or more. This emphasis on small firms

encourages innovation and flexibility and is positive for

the area's long-term outlook, as most of the growth

taking place in the economy is occurring in the small

business sector.

Government entities account for some of the largest

employers in the region, including Fort Irwin and

March Air Force Base. Major healthcare providers such

as Loma Linda University Medical Center and Kaiser

Permanente also maintain a big portion of the region's

jobs. Demand for medical services is projected to rise

rapidly in the coming years due to the area’s increasing

population and the baby-boomer generation's move

into its retirement years.

Another significant employer is Ontario International

Airport. The facility provides around 7,700 jobs at the

airport and another 55,400 indirect, off-site positions.

Strong growth will continue at the airport, given the

limits to expansion placed on neighboring airports in

Los Angeles and Orange counties.

Major Employers


San Bernardino County

Riverside County

Stater Bros.

Loma Linda University Medical Center

Kaiser Permanente

Walmart Stores, Inc.

University of California, Riverside

Fort Irwin

Ontario International Airport

March Air Force Base


54

MARKET OVERVIEW


Demographics

The Riverside-San Bernardino metro consists of more

than 1.3 million households and nearly 4.4 million

residents, making it one of the largest metropolitan

areas in the nation. While expansion will slow from

earlier in the decade, the Inland Empire is still on pace

to grow 1.5 percent per year during the next five years,

outpacing the national rate of 0.9 percent annually.

The majority of recent growth in the area was due to

in-migration rather than coming from natural

increases. Factors fueling in-migration include the

strong local economy; relatively affordable housing;

large parcels of vacant, developable land; and a sharp

drop in available land in Los Angeles County. The

median existing home price in Riverside-San

Bernardino, at $180,500, also remains much lower

than medians in adjacent counties, affording over 54

percent of households to own their home.

Residents are becoming more educated, as over 50

percent of adults in the metro have at least some college

education, and close to 20 percent of those ages 25 and

above have attained a bachelor’s degree or higher.

Increasing education levels have helped to raise

household earnings. The median household income

stands at $58,700 per year, higher than the national

median of $53,100. Over the next five years, the most

significant income gains will be among those earning

$150,000 or more annually.



55

MARKET OVERVIEW



Quality Of Life

Riverside-San Bernardino offers a wide diversity of

landscapes, including the palm tree-lined and pool-

studded Coachella Valley, the mountain communities

of Big Bear and Lake Arrowhead, the rolling hills and

wineries of Temecula Valley, and the suburban

communities of the West San Bernardino Valley and

Moreno Valley. A temperate climate offers moderate

winters, warm summers and generally low humidity.

One of the greatest draws of the metro is relatively

affordable housing. The median home price in

Riverside-San Bernardino is 42 percent lower than in

Los Angeles County and 65 percent lower than in

Orange County.

The Inland Empire provides a number of cultural

opportunities, including the Riverside Metropolitan

Museum, the Mission Inn Museum, and the Museum

of History and Art in Ontario. The California Theatre

of Performing Arts in San Bernardino stages a number

of performances throughout the year, as does the

refurbished Fox Center for the Performing Arts, which

reopened in 2010. The Riverside County Philharmonic

provides classical music concerts throughout the area.

Shopping opportunities are plentiful no matter where

you live in the metro, as are parks and golf courses.

The region features an impressive offering of more than

20 college campuses, including the University of

California, Riverside; two campuses of California State

University; and nine community colleges.


56

MARKET OVERVIEW


Investors Venturing Further East

As Payrolls Grow Across the Inland Empire

Last year’s lackluster job performance in the Inland Empire will give way to more rapid employment expansion

this year, maintaining healthy apartment operations in 2014. Although payroll gains will generate new apartment

demand, the increase in the number of employed workers will also siphon some demand away from rentals and

into the relatively affordable single-family housing market. The result will be a balanced market, keeping vacancy

in the mid-5 percent range and enabling operators to enjoy rent growth for the fifth consecutive year. In fact, rents

will surpass the pre-recession high in the first half of 2014, nearly two years after national rents accomplished the

same feat. Supply additions, meanwhile, will only amount to one-third of the average gains posted between 2003

and 2007 and lift inventory just 0.7 percent. A combination of strong employment and modest supply growth

indicates another strong year in operations for Inland Empire apartment owners.

Capital will continue to migrate from Los Angeles County in the coming months, combining with an active

contingent of local buyers and Asian funds. Listing activity improved prior to the beginning of the year as investors

that purchased during the previous real estate boom can finally divest properties without bringing cash to the

closing. However, interested buyers still outnumber sellers in the market, particularly west of Interstate 15. Cap

rates in this active area of the market begin in the low-5 percent range and trend up to the low-6 percent range,

depending on asset class. The gap between buyers and sellers dissipates as investors move inland into the high

desert and Coachella Valley. Although first-year returns for assets can fall into the mid-7 percent area, the

premium on Class A properties is only 25 basis points higher than in the western stretches of the metro.


* Estimate. ** Forecast. Sources: CoStar Group, Inc., RCA


57

MARKET OVERVIEW


2014 Market Outlook

■ 2014 NAI Rank: 19, Up 4 Places. The metro moved into the top-20 as job growth in core industries is forecast

and construction remains light.

■ Employment Forecast: After 9,200 positions were created in 2013, growth will accelerate to 30,200 jobs this

year, a rise of 2.6 percent.

■ Construction Forecast: Builders will finish work on 1,200 apartments in 2014, modestly lower than the 1,800

rentals completed last year.

■ Vacancy Forecast: Despite the jump in employment, vacancy will inch up 40 basis points to 5.5 percent,

erasing last year’s 30-basis point fall.

■ Rent Forecast: Rent growth will remain healthy at 2.8 percent in 2014, lifting year-end effective rents to

$1,133 per month.

■ Investment Forecast: Construction of the March LifeCare medical campus in Moreno Valley has stalled, which

dragged on employment growth last year. If the project is restarted, or another nearby development is

approved, apartment demand in the area should expand.

* Estimate. ** Forecast. Sources: CoStar Group, Inc., RCA




DEMOGRAPHIC ANALYSIS

1 Mile 3 Miles 5 Miles

2000 Population 1,778 16,089 48,596

2010 Population 2,240 27,977 78,980

2013 Population 2,321 29,637 82,704

2018 Population 2,819 34,844 95,297

2000 Households 740 5,942 18,515

2010 Households 884 9,988 28,008

2013 Households 921 10,584 29,381

2018 Households 1,135 12,506 33,667

2013 Average Household Size 2.64 2.70 2.76

2013 Daytime Population 208 2,985 11,568

2000 Median Housing Value $145,715 $150,212 $128,995

2000 Owner Occupied Housing Units 74.05% 71.76% 68.33%

2000 Renter Occupied Housing Units 18.40% 20.75% 24.09%

2000 Vacant 7.90% 7.21% 7.33%



2013 Vacant 5.31% 3.99% 4.90%



2018 Vacant 4.78% 3.44% 4.44%

$ 0 - $14,999 8.0% 8.8% 12.2%

$ 15,000 - $24,999 13.6% 11.4% 11.6%

$ 25,000 - $34,999 11.9% 11.4% 11.1%

$ 35,000 - $49,999 12.3% 12.8% 13.1%

$ 50,000 - $74,999 15.1% 17.2% 18.3%

$ 75,000 - $99,999 14.3% 15.0% 13.7%

$100,000 - $124,999 10.3% 9.9% 8.7%

$125,000 - $149,999 5.3% 4.8% 4.4%

$150,000 - $199,999 5.6% 5.1% 4.0%

$200,000 - $249,999 1.5% 1.5% 1.3%

$250,000 + 2.3% 2.0% 1.7%

Demographic data © 2010 by Experian/Applied Geographic Solutions.

59




DEMOGRAPHIC REPORT

Geography: 5 Miles

Population

In 2013, the population in your selected geography was 82,704. The population has changed by 70.18% since 2000. It is estimated

that the population in your area will be 95,297 five years from now, which represents a change of 15.22% from the current year. The

current population is 48.6% male and 51.3% female. The median age of the population in your area is 38.4, compare this to the U.S.

average which is 37. The population density in your area is 800.84 people per square mile.

Households

There are currently 29,381 households in your selected geography. The number of households has changed by 58.69% since 2000.

It is estimated that the number of households in your area will be 33,667 five years from now, which represents a change of 14.58%

from the current year. The average household size in your area is 2.75 persons.

Income

In 2013, the median household income for your selected geography is $52,716, compare this to the U.S. average which is currently

$53,535. The median household income for your area has changed by 39.89% since 2000. It is estimated that the median household

income in your area will be $61,244 five years from now, which represents a change of 16.17% from the current year.

The current year per capita income in your area is $25,041, compare this to the U.S. average, which is $28,888. The current year

average household income in your area is $69,907, compare this to the U.S. average which is $75,373.

Race & Ethnicity

The current year racial makeup of your selected area is as follows: 72.68% White, 3.71% African American, 1.52% Native American

and 4.95% Asian/Pacific Islander. Compare these to U.S. averages which are: 72.20% White, 12.65% African American, 0.96%

Native American and 5.01% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 33.85% of the current year

population in your selected area. Compare this to the U.S. average of 16.55%.

Housing

The median housing value in your area was $128,995 in 2000, compare this to the U.S. average of $110,781 for the same year. In

2000, there were 13,656 owner occupied housing units in your area and there were 4,815 renter occupied housing units in your area.

The median rent at the time was $498.

Employment

In 2013, there are 11,568 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed

that 55.1% of employees are employed in white-collar occupations in this geography, and 44.8% are employed in blue-collar

occupations. In 2013, unemployment in this area is 5.01%. In 2000, the median time traveled to work was 23.7 minutes.


60




SUMMARY REPORT

Number of people living in a given area per square mile.


61




POPULATION DENSITY

The number of people employed in a given area per square mile.


62




EMPLOYMENT DENSITY

Average income of all the people 15 years and older occupying a

single housing unit.


63




AVERAGE HOUSEHOLD INCOME

CHERRY VALLEY, CA

OFFERING MEMORANDUM


Offices Nationwide

www.MarcusMillichap.com

Date post:	19-Apr-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

Cherry Valley Estates - LoopNet · Recreation venues surrounding the development in the San...

Documents