Makena Collection120-124 Hiawatha Avenue

Santa Cruz, CA 95062

INVESTMENT OVERVIEW 01Offering SummaryExecutive SummaryDetailed Capital ImprovementsProperty SummaryDiscover Santa CruzAerial and Regional Maps

FINANCIAL ANALYSIS 02Rent Roll SummaryRent Roll DetailOperating StatementPricing Detail

MARKET COMPARABLES 03Sales ComparablesRent Comparables

SECTION

2

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure isproprietary and strictly confidential. It is intended to be reviewed only bythe party receiving it from Marcus & Millichap and should not be madeavailable to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared toprovide summary, unverified information to prospective purchasers, andto establish only a preliminary level of interest in the subject property. Theinformation contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made anyinvestigation, and makes no warranty or representation, with respect tothe income or expenses for the subject property, the future projectedfinancial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminatingsubstances, PCB's or asbestos, the compliance with State and Federalregulations, the physical condition of the improvements thereon, or thefinancial condition or business prospects of any tenant, or any tenant'splans or intentions to continue its occupancy of the subject property. Theinformation contained in this Marketing Brochure has been obtained fromsources we believe to be reliable; however, Marcus & Millichap has notverified, and will not verify, any of the information contained herein, norhas Marcus & Millichap conducted any investigation regarding thesematters and makes no warranty or representation whatsoever regardingthe accuracy or completeness of the information provided. All potentialbuyers must take appropriate measures to verify all of the information setforth herein. Marcus & Millichap is a service mark of Marcus & MillichapReal Estate Investment Services, Inc. © 2018 Marcus & Millichap. Allrights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by anycommercial tenant or lessee identified in this marketing package. Thepresence of any corporation's logo or name is not intended to indicate orimply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,service, or commercial listing of Marcus & Millichap, and is solely includedfor the purpose of providing tenant lessee information about this listing toprospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MOREDETAILS.

120-124 Hiawatha AvenueSanta Cruz, CA 95062

Makena HouseFeatures include a stylish, newly

updated kitchen, laundry room, private garage and large deck

Investment Overview

Gilroy Premium Outlets~ 34 miles

Makena Collection120-124 Hiawatha

Santa Cruz, CA 95062

Monterey ~ 42 miles

San Jose International Airport~ 30 miles

University Avenue, Palo Alto~ 44 miles

Downtown Los Gatos~ 20 miles

ATT Park – San Francisco GiantsChase Center – Golden State Warriors

~ 50 miles

OFFERING SUMMARY

120-124 Hiawatha Avenue, Santa Cruz

INVESTMENT OVERVIEW

120-124 Hiawatha Avenue in Santa Cruz, offers an investor the rare opportunity to acquire theMakena Collection, a single parcel – approximately 2/3 of an acre – with two buildings, in ahistorically strong rental market with low vacancy levels.

The multifamily dwelling, Makena Court, is a community of (14) 1 bed/1 bath units – most withprivate gated patios – a laundry care center and onsite parking. Recent improvements to thecommunity include:

• 6 fully renovated units• New exterior paint• New garage door – 120 Hiawatha• New garage door – 124 Hiawatha• New patio fences for patio apartments• New exterior doors for all apartments and house• Major repairs to parking lot and restripe• Upgraded low-maintenance landscaping• Successful completion of sewer lateral inspection and repairs

Makena House, a 3 bedroom/2 bathroom single family home shows beautifully with an updatedkitchen featuring stainless steel refrigerator, stove and microwave, new lighting, new flooringthroughout, new interior paint, doors and hardware, bedroom ceiling fans, a dedicated laundryroom with washer/dryer, private garage and large deck for outdoor entertainment.

This property is located a stone’s throw from Seabright State Beach, scenic East Cliff Drive and theSanta Cruz Museum of Natural History, in an area that offers the best of the Boardwalk andSeabright neighborhoods. The Makena Collection is centrally located between Downtown SantaCruz, Capitola and Rio Del Mar offering hundreds of shopping, dining and entertainment options.

Residents enjoy the convenience of Whole Foods Market, The Buttery, Seabright Brewery, IlPosta, and dozens more restaurants in the immediate neighborhood.

Exciting area improvements include the already-completed transformation to the San LorenzoRiver Bridge replacing the current 4-foot wide walkway with a 10-foot wide multi-use trail,providing direct bike/pedestrian access for the Makena Collection and the Santa Cruz BeachBoardwalk.

OFFERING SUMMARY

120-124 Hiawatha Avenue, Santa Cruz

Since 2019, approximately $100,000 in improvements have been made to Makena Court and Makena House.

Exterior landscaping

New exterior paint to building

Major repairs to parking lot and re-stripe

New garage door – 120 Hiawatha

New garage door – 124 Hiawatha

New exterior doors for all apartments and house

New patio fences for patio apartments

Discover the Makena CollectionSituated 2 blocks from Seabright Beach

Makena Court – a community of (14) 1 bedroom/1 bath apartments with private, gated patios and onsite parking

Makena House – a free-standing 3 bedroom/2 bath free-standing residence

Makena C

ourt

Makena H

ouse

Discover Santa Cruz

Discover Santa CruzFrom doorstep to beachfront ~

Makena Collection is a 10 minute walk to Seabright State

Beach, minutes to Santa Cruz Boardwalk, and less than a mile

from Downtown Santa Cruz/Pacific Avenue Mall, and the iconic

Catalyst Nightclub.

AERIAL PHOTO

MAKENA COLLECTION

Santa Cruz Boardwalk

Santa Cruz Riverwalk(Boardwalk Access)

Santa Cruz’s iconicEast Cliff Drive

Seabright Beach

Seabright Marina

Makena Collection120-124 Hiawatha Avenue

Santa Cruz – Area Overview

Offering a surplus of lifestyle amenities and located just 25 miles from Silicon Valley’s thriving employment base, Sant Cruz represents a highly sought-after place for Bay Area residents to call home. The city’s diverse and growing local economy, vibrant downtown district, surplus of recreation options, and favorable climate offer residents a superior quality of life. Santa Cruz has consistently ranked as one of the top 10 happiest places to live in the U.S. by publications and polling sources such as National Geographic, Forbes, and Gallup.

Santa Cruz boasts an eclectic employment base with a healthy balance of technology, healthcare, professional and business services, government, education, and biotechnology industries. The active and emerging tech scene in Santa Cruz has attracted both startups and more established tech companies, as well as tech investors, co-working programs and events.

Located just over 2 miles from Sandcastle Apartments, UC Santa Cruz is the city’s largest employer. Total enrollment at UCSC has grown by 13.4 percent over the past five years, now totaling approximately 18,765 students. The student population us expected to continue to increase with another 10,000 students by 2040. This growth, combined with a lack of new housing inventory, will continue to suppress vacancies and support rent growth at rental communities throughout Santa Cruz.

TOP 20 EMPLOYERS BY NUMBER OF EMPLOYEES

# COMPANY CITY EMPLOYEES DISTANCE

1 Google Mountain View 23324 39

2 eBay San Jose 16200 36.4

3 Apple Park (HQ) Cupertino 16000 33.8

4 University of California – Santa Cruz Santa Cruz 8569 2.4

5 Applied Materials Santa Clara 8500 33.9

6 Intel Santa Clara 7801 37.2

7 Lockheed Martin Santa Cruz 5600 19.2

8 Santa Clara Valley Medical Center San Jose 4000 28.8

9 Agilent Technologies Santa Clara 3280 29.7

10 San Jose State University San Jose 3251 33

11 LinkedIn Mountain View 3177 37.4

12 Advanced Micro Devices Santa Clara 3100 33.8

13 Hitachi Vanrtara Santa Clara 3000 33

14 PayPal San Jose 3000 34.4

15 Western Digital San Jose 3000 35.1

16 Adobe Systems San Jose 2750 32.5

17 County of Santa Cruz Santa Cruz 2438 1.4

18 Ericsson Inc. Santa Clara 2200 34

19 Good Samaritan Hospital San Jose 1950 25.1

20 Netflix Los Gatos 1864 24.7

120-124 Hiawatha Avenue, Santa Cruz

MAJOR REGIONAL EMPLOYERS – RANKED BY DISTANCE FROM ASSET

Financial Analysis

FINANCIAL ANALYSIS

MAKENA COLLECTION

RENT ROLL SUMMARY

RENT ROLL DETAIL

FINANCIAL ANALYSIS

MAKENA COLLECTION

OPERATING STATEMENT

FINANCIAL ANALYSIS

MAKENA COLLECTION

PRICING DETAIL

Market Comparables

MAKENA COLLECTION

22

MAKENA COLLECTION(SUBJECT)

Sandcastle Apartments

236 6th Avenue

101 Douglas Drive

208 1st Street

238 San Lorenzo Boulevard

313 Raymond Street

371 7th Avenue

Pacific View Apartments

1880 46th Avenue

SALES COMPARABLES

ON MARKET COMPARABLES

1

2

3

4

5

7

8

6

9

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

SALES COMPARABLES

SINGLE FAMILY RESIDENCE

3 BEDROOM / 2 BATH

23

PROPERTY NAMEMAKENA COLLECTION

Average Price per Unit

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

Average Price per Square Foot

Avg. $488.68

Avg. $610.00

$0.00

$80.00

$160.00

$240.00

$320.00

$400.00

$480.00

$560.00

$640.00

$720.00

$800.00

MakenaCollection

SandcastleApartments

236 6thAvenue

101 DouglasDrive

208 1stStreet

238 SanLorenzo

Boulevard

313 RaymondStreet

371 7thAvenue

PacificView

Apartments

1880 46thAvenue

Avg. $416,389

Avg. $371,833

$0

$80,000

$160,000

$240,000

$320,000

$400,000

$480,000

$560,000

$640,000

$720,000

$800,000

MakenaCollection

SandcastleApartments

236 6thAvenue

101 DouglasDrive

208 1stStreet

238 SanLorenzo

Boulevard

313 RaymondStreet

371 7thAvenue

PacificView

Apartments

1880 46thAvenue

24

Avg. 14.84Avg. 15.91

0.00

2.10

4.20

6.30

8.40

10.50

12.60

14.70

16.80

18.90

21.00

MakenaCollection

SandcastleApartments

236 6thAvenue

101 DouglasDrive

208 1stStreet

238 SanLorenzo

Boulevard

313 RaymondStreet

371 7thAvenue

PacificView

Apartments

1880 46thAvenue

PROPERTY NAMEMAKENA COLLECTION

Average GRM

SALES COMPARABLES

ON MARKET COMPARABLES

SALES COMPS AVG

ON MARKET COMPS AVG

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

Avg. 4.50%Avg. 4.74%

0.0

0.7

1.4

2.1

2.8

3.5

4.2

4.9

5.6

6.3

7.0

MakenaCollection

SandcastleApartments

236 6thAvenue

101 DouglasDrive

208 1stStreet

238 SanLorenzo

Boulevard

313 RaymondStreet

371 7thAvenue

PacificView

Apartments

1880 46thAvenue

Average Cap Rate

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SALES COMPARABLES ON MARKET COMPARABLES

Units Unit Type

Offering Price: $6,250,000 14 1 Bdr

Price/Unit: $416,667 1 3 Bdr

Price/SF: $664.89

CAP Rate: 4.15%

GRM: 15.55

Total No. of Units: 15

Year Built: 1947

Underwriting Criteria

Income $404,053 Expenses $144,759

NOI $259,294 Vacancy ($16,077)

MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062

1

Close Of Escrow: 7/23/2019

Sales Price: $4,500,000

Price/Unit: $375,000

Price/SF: $728.74

CAP Rate: 4.58%

GRM: 14.20

Total No. of Units: 12

Year Built: 1925

SANDCASTLE APARTMENTS124-206 1st Street, Santa Cruz, CA, 95060

Close Of Escrow: 7/11/2019

Sales Price: $4,400,000

Price/Unit: $733,333

Price/SF: $671.76

CAP Rate: 3.00%

Total No. of Units: 6

Year Built: 1950

2

236 6TH AVENUE236 6th Avenue, Santa Cruz, CA, 95062

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

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MARKETING TEAM

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SALES COMPARABLES ON MARKET COMPARABLES

Close Of Escrow: 5/17/2019

Sales Price: $2,280,000

Price/Unit: $380,000

Price/SF: $250.11

CAP Rate: 4.00%

GRM: 11.88

Total No. of Units: 6

Year Built: 1980

3

101 DOUGLAS DRIVE101 Douglas Drive, Soquel, CA, 95073

4

Close Of Escrow: 6/8/2018

Sales Price: $2,150,000

Price/Unit: $430,000

Price/SF: $461.97

GRM: 19.36

Total No. of Units: 5

Year Built: 1918

208 1ST STREET208 1st Street, Santa Cruz, CA, 95060

Close Of Escrow: 1/25/2019

Sales Price: $1,800,000

Price/Unit: $360,000

Price/SF: $412.09

CAP Rate: 4.74%

GRM: 13.92

Total No. of Units: 5

Year Built: 1964

5

238 SAN LORENZO BOULEVARD238 San Lorenzo Boulevard, Santa Cruz, CA, 95060

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

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SALES COMPARABLES ON MARKET COMPARABLES

Close Of Escrow: 6/21/2018

Sales Price: $1,100,000

Price/Unit: $220,000

Price/SF: $407.41

CAP Rate: 6.20%

Total No. of Units: 5

Year Built: 1898

6

313 RAYMOND STREET313 Raymond Street, Santa Cruz, CA, 95060

7

On Market

List Price: $2,050,000

Price/Unit: $410,000

Price/SF: $746.00

CAP Rate: 5.00%

GRM: 18.35

Total No. of Units: 5

Year Built: 1958

371 7TH AVENUE371 7th Avenue, Santa Cruz, CA, 95062

On Market

List Price: $4,695,000

Price/Unit: $313,000

Price/SF: $581.64

CAP Rate: 4.84%

GRM: 13.40

Total No. of Units: 15

Year Built: 1926

8

PACIFIC VIEW APARTMENTS81 Front Street, Santa Cruz, CA, 95062

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

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MARKETING TEAM

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SALES COMPARABLES ON MARKET COMPARABLES

9

1880 46TH AVENUE1880 46th Avenue, Capitola, CA, 95010

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

On Market

List Price: $3,925,000

Price/Unit: $392,500

Price/SF: $502.37

CAP Rate: 4.39%

GRM: 15.99

Total No. of Units: 10

Year Built: 1964

MAKENA COLLECTION

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

MAKENA COLLECTION(SUBJECT)

216 Liberty Street

129 S Park Way

137 Monterey Street

SALES COMPARABLES

1

2

3

SALES COMPARABLES

SINGLE FAMILY RESIDENCE

3 BEDROOM / 2 BATH

PROPERTY NAME

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SALES COMPARABLES

Offering Price: $6,250,000 14 1 Bedroom apartments

Price/Unit: $416,667 1 3 Bedroom 2 Bath SFR

Price/SF: $664.89

CAP Rate: 4.15%

GRM: 15.55

Total No. of Units: 15

Year Built: 1947

MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062

1

Close Of Escrow: 3/12/2019 3 Bdr 2 Bath

Sales Price: $1,375,000

Year Built: 1984

216 LIBERTY STREET216 Liberty Street, Santa Cruz, CA, 95062

Close Of Escrow: 3/12/2019 3 Bdr 2 Bath

Sales Price: $1,260,000

Year Built: 1934

2

129 S PARK WAY129 S Park Way, Santa Cruz, CA, 95062

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

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SALES COMPARABLES

Close Of Escrow: 11/25/2018 3 Bdr 2 Bath

Sales Price: $1,525,000

Year Built: 1933

3

137 MONTEREY STREET137 Monterey Street, Santa Cruz, CA, 95060

SALES COMPARABLES MAP120 Hiawatha – Single Family Residence

8

MAKENA COLLECTION

RENT COMPARABLES MAP

MAKENA COLLECTION(SUBJECT)

220 Atlantic Avenue

4

7

8

9

11

20

12

14

15

16

17

13

18

10

1

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RENT COMPARABLES

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YEAR BUILT: 1947

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Unit Type Units SF Rent Rent/SF

1 Bdr 14 600 $2,057 $3.43

3 Bdr 1 1,000 $4,695 $4.70

Total/Avg. 15 627 $2,233 $3.56

MAKENA COLLECTION120-124 Hiawatha Avenue, Santa Cruz, CA, 95062

YEAR BUILT: 1964

1

Unit Type Units SF Rent Rent/SF

1 Bdr 1 Bath 660-660 $2,400-$2,400 $3.64

Total/Avg. $2,400

220 ATLANTIC AVENUE220 Atlantic Avenue, Santa Cruz, CA, 95062

Average Rent - Multifamily

Avg. $2,400

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

MakenaCollection

220AtlanticAvenue

1 Bedroom

Exclusively Listed by

Andres LopezSenior Investment AssociateAndres .Lopez@MarcusMill ichap.com

Makena Collection120-124 Hiawatha AvenueSanta Cruz, CA 95062

Eduardo CernaSenior Managing Director InvestmentsSenior Director , na t ional Multi Housing GroupEd.Cerna@MarcusMil l ichap.com