WEST COAST LIVING EAST COAST STYLE - Jonathan Lee - Portfolio

W E S T C O A S T L I V I N G

E A S T C O A S T S T Y L E

A s t o r i a A t C e n t r a l P a r k W e s t i s a B r a n d N e w H i g h - r i s e D e v e l o p m e n t T o t a l l i n g 2 4 0 L u x u r y T o w n h o m e s

ExEcutivE Summary

• Executive Summary and amenities.................................................. 2

• Property and Location Description .................................................. 3

• investment Highlights ................................................................ 4

• Future Job Formation map ........................................................... 5

• Property Photos ........................................................................ 6

arEa OvErviEw FOr OrangE cOunty

• Orange county report card and rankings ......................................... 10

• regional Location map .............................................................. 11

• major Orange county market Drivers .............................................. 12

• Location aerial ....................................................................... 15

arEa OvErviEw FOr tHE city OF irvinE .......................................... 18

• major new commercial construction .............................................. 20

• Local amenities map ................................................................. 21

rEnt cOmParabLES maP ............................................................ 25

• astoria comparable Lease transactions .......................................... 26

• rent comparable graphs ............................................................ 27

FinanciaL anaLySiS anD PrOPErty Summary

• Property Summary and Site map ................................................... 30

• Pro Forma income and Expenses ................................................... 32

• 11 year cash Flow Projection ....................................................... 33

• marketing advisors contact information and confidentiality Statement ...... 34

T A B L E O F C O N T E N T S

E X E C U T I V E S U M M A R Y

c O m m O n a r E a a m E n i t i E S

• Business Center

• Central Courtyard

• Community Clubhouse

• Concierge Service

• Elevators

• Elevated Terrace with Pool and Spa

• Fitness Center

• Gated / Controlled Access

• Subterranean Central Garage

• Trash Shoot

• Video Surveillance Security

• Wine Vault and Tasting Room

c E n t r a L Pa r k w E S t a m E n i t i E S

• 19,700 SF of Retail Space

• 90,000 SF of Office Space

• The Club which features:

• Barbeque Pavilion and Outdoor Fireplace

• Catering Kitchen

• Children’s Wading Pool

• Courtyard and Entertaining Terrace

• Lounge with Bar, Fireplace and Flat-Screen TV

• Pool-Side Cabanas

• Resort-Style, Jr. Olympic Pool w/4 Lap Lanes

• Restrooms and Outdoor Showers

• Spa-Like Treatment Rooms

• Two Outdoor Jacuzzis /Spas

• Wireless Internet Technology

• State-of-the-Art Health and Fitness Center with Exercise Studio

E x c L u S i v E a S S i g n m E n t

Hendricks & Partners has been retained as the exclusive listing agent for the sale of Astoria

at Central Park West, a 240-unit luxury high-rise property currently under development in the

City of Irvine, County of Orange in Southern California.

P r O P E r t y S u m m a r y

Parcel Number ........................................................................................................................... 445-091-07

Number of Units ...................................................................................................................................... 240

Year Constructed ...................................................................................................................................2008

Type of Buildings ................one 14-story and one 15-story steel, concrete and glass high-rise

Parking .............. Secure two levels above grade and two levels of gated subterranean parking

Metering ..........................................................................................................................................Individual

HVAC ............................................................................................................................ Central AC and Heat

Hot Water ................................................................................................................................ Central Boiler

Site Acreage .............................................................................................................................................1.98

Density ............................................................................................................................121.2 Units / Acre

u n i t a m E n i t i E S

• Central Air Conditioning and Heating

• Granite Countertops and Italian Cabinetry

• Unique Tile Flooring

• Pre-wired for Cable and Internet

• Premium Stainless Steel Appliances Including: Microwave, Refrigerators and

Double Dishdrawer Dishwasher*

• Private Balconies

• Recessed Lighting

• Soaker Tubs and Marble Countertops and Flooring in Suite Bathrooms

• Stackable Washers/Dryers

* in select units



2

P r O P E r t y D E S c r i P t i O n

Astoria at Central Park West is a brand new high rise development consisting of two high-rise towers,

a 14-story tower with 88 units and a 15-story tower with 152 units, totaling 240 luxury residences.

Both towers have large sky terraces for use by residents, as well as two-story luxury penthouse

townhomes on the two top floors of each tower. The towers sit on a two-story podium which contains

two levels of secure above-grade parking and two levels of secure below-grade parking. The podium

is used as communal open space for all residents with access to a pool, spa, shade structure, fire pit,

sun deck and lushly landscaped areas. Astoria is part of Central Park West, a 43-acre master-planned

community being developed by Lennar and providing a hip, urban lifestyle that combines city and

natural living. Central Park West will encompass nine individual neighborhoods, 90,000 SF of Class

“A” office space, 19,500 SF of retail all surrounding a 2.2 acre Central Park which is home to The

Club - an 8,500 square foot community center which includes a resort-style pool, spa, privacy

cabanas, fitness centers and outdoor fireplaces, all within walking distance from the towers.

c O m m u n i t y D E S c r i P t i O n

Astoria at Central Park West is just moments from 6,900,000 square feet of the area’s most enviable

shopping and entertainment venues including the Fashion Island Mall in Newport Beach, the South

Coast Plaza in Costa Mesa, The Marketplace in Tustin and the Irvine Spectrum Center. The location

provides convenient access to the area’s finest cultural venues including Orange County Performing

Arts, South Coast Repertory, Orange County Museum of Art and the art galleries of Laguna Beach;

as well as the beaches of Newport Beach, Balboa Island, and Dana Point. Set amongst the Irvine

Business Complex and moments from the multitude of businesses located in the Irvine Spectrum,

travel to work is effortless in this commuter-friendly location with easy access to the 405, 5 and 55

Freeways as well as the 73 Toll Road.

P r O x i m i t y t O E m P L O y m E n t

Astoria’s exceptional location is within the second largest employment center in Orange County,

namely the Orange County Airport Area/Irvine Business Complex and less than ten minutes from

the largest employment center - the Irvine Spectrum. Additionally the Tustin Legacy redevelopment

project (formerly the 1,600-acre Tustin Marine Helicopter Air Base) will also have 7.3M square

feet of future developments which are expected to bring over 21,000 jobs and is located less than

five miles from Astoria.


C E N T R A L P A R K W E S T


3

i n v E S t m E n t H i g H L i g H t S

2008 high-rise development in Coastal Orange County in Southern California. One of

only seven high-rise communities in Irvine

E x c E L L E n t S O u t H O r a n g E c O u n t y L O c at i O n

• Within the brand new 43-acre Central Park West master-planned community

which includes four parks, a 8,500 SF community center, plans for 90,000 SF

Class “A” office space, and 19,500 SF of retail.

• Within the Orange County Airport Area and Irvine Business Complex (IBC) - over

3,300-acres, home to more than 4,500 companies, which employ more than 135,000

people. The complex encompasses more than 18 million square feet of Class “A”

corporate office space - almost half of the Orange County total real estate market -and

some 30 million square feet of research and development and industrial facilities.

c L O S E P r O x i m i t y t O m a J O r n E w J O b F O r m at i O n

irvine business complex (ibc)

• 3,350 acre business park consists of 47 Fortune 500 employers

• Daytime employment over 135,000

• contains over 3.5 MSF of entitlements

• projected to create 14,000 jobs.

tustin Legacy (fka: mcaS tustin) - within 5 minutes

• 1,600 acre site that will contain over 7.3 MSF of office, retail and research

• projected to create 21,900 jobs

Heritage Field - within 15 minutes

• 4,700 acres purchased by Lennar Homes in 2005 for $650 million

• entitled for 3 MSF of developments

• projected to create over 9,000 jobs

irvine Spectrum - within 15 minutes

• 5,000 acre business park consists of 25 Fortune 500 employers

• daytime employment of 90,000

• contains an additional 15 MSF of commercial entitlements

• projected to create over 30,000 jobs

total estimated employment formation within 15 minutes = 74,900 future jobs.

O u t S ta n D i n g L O c a L a m E n i t i E S a n D c E n t r a L L O c at i O n

the “South coast Plaza mall” - less than five minutes away

• 2.7 million square feet of retail and entertainment with over 280 stores

• 3rd largest mall in the United States, 14th largest mall in the World

• generating more than $1 billion/year making it the highest-volume mall in the United States

the “Fashion island mall” - less than five minutes away

• 1.3 million square feet of retail and entertainment with over 200 stores and restaurants

the “tustin market Place” - less than five minutes away

• 1.6 million square feet of retail and entertainment with over 120 stores and restaurants

the new tustin metrolink train Station - within 10 minutes

• providing residents with access to Los Angeles, Riverside and San Bernardino Counties,

and all Orange County areas.

newport beach - less than 5 minutes away

anaheim sports complexes and “Platinum triangle” - within 20 minutes

Disneyland - within 25 minutes

18 major universities and colleges - within 30 minutes

CENTRAL PARK WEST

HERITAGE FIELD4,700 Acres

3MSF Entitlements9,000 Future Jobs

405

405

IRVINE

Jamboree Rd.

Von Karman Ave.

Michelson Dr.

IRVINE SPECTRUM5,000 Acres

15MSF Entitlements30,000 Future Jobs

TUSTIN LEGACY1,600 Acres

7.3MSF Entitlements21,900 Future Jobs

N



4

R e c o R d A R e A H o m e VA l u e s

Average home price in a 3-mile radius is $718,591

• IBc average new condo price is $1,075,000 (approx. 1,517 sF)

Newport Beach average home price $1,240,000

orange county ranked #3 in us with median home price of $674,000

• Affordability Index is 22%

R e c o R d I N c o m e l e V e l s

Average household income in a 3-mile radius is $100,179

• projected to increase 21.6% by 2012 to $121,860

• over 21% of Irvine residents earn over $200,000+ each year

Newport Beach average household income is $147,697

• over 35% of Newport Beach Residents earn over $200,000+ each year

5

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55

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74

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Barranca Pkwy.

HERITAGE FIELDGREAT PARK

JOHNWAYNE

AIRPORTAREA

TUSTINLEGACY

ANGELSTADIUM

ARROWHEADPONDDISNEYLAND

RESORT

RIVERSIDE COUNTY

ORANGE COUNTY

SAN BERNARDINO COUNTY

ORANGE COUNTY

LOS ANGELESCOUNTY

ORANGE COUNTY

Alton Pkwy.

Talbert Ave.

Trabuco Rd.

Irvine Blvd.

4th St

State College Blvd.

Garden Grove Blvd.

Edinger Ave.

Sand C

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Ave.

Chapman Ave.

Portola Pkwy.

Main St.

Main St.

Red H

ill Ave.

Westminster Ave.

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Gr and Ave.

Golden West St.

Magnolia St. Brookhurst St.

Harbor Blvd.

Adams Ave.

Placentia Ave.

Main

St.

Ball Rd.

Lincoln Ave.

La Palma Ave

Ellis Ave.

Jeffre

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Lake Forest Dr.

Bake P

kwy.

Olympiad Rd.

Nohl Ranch Rd.

Katella Ave.

Sant iago Canyon Rd.

El Tor

o Rd.

17th St.

Bolsa Ave. 1st St.

Dyer Rd.

MacArthur Blvd.

Euclid St.

Jambo

ree Rd

.

Gothard St.

Knott Ave.

Beach Blvd.

Magnolia St.

Glasse ll St.

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ve.

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Imperial Hwy.

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La Mirada Blvd.

Commonwealth Ave.

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Lambert Rd.

Whittier Blvd.

Rosecrans Ave.

Ba

stan

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vd.

Lemo

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Birch St.

Orangethorpe Ave.

Telegraph Rd.

Mulberry Dr.

Carmenita Rd.

Valley View St.

Bolsa

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Rd.

Moody St.

Malvern Ave.

Harbor Blvd.

Rose

Dr.

Carbon Canyon Rd. Central Ave. La Habra Blvd.

Leffingwell Rd.

Krae

mer B

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Chapman Ave. Corona

Gilb ert St.

Marguerite Pkwy.

Newp

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oas

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Laguna Canyon Rd.

N iguel Rd.

Camino Capistrano

Avenida Pico

Irvine Center Dr.

Jambo

ree Rd

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Muirlands Blvd.

Maca

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Blvd

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University Dr.

Crown V

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Alicia Pkwy. La

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Marina Hills Dr.

Newp

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Bristol St.

Warner Ave.

Shady Canyon Dr.

Fairhaven Ave.

Trabuco Rd.

P a c i f i c O c e a n

Fairview St.

IRVINESPECTRUM

N ©2008 Ann Carr & Associates, Inc.

Taft Ave.

Santa Margarita Pkwy.

ClevelandNational Forest

MISSIONVIEJO

FOOTHILLRANCH

PLATINUMTRIANGLE

THEMARKETPLACE

SOUTH COASTPLAZA

2

1

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3

I R V I N e s u B m A R k e t s t R e N g t H s

• Occupancy 95%

• Avg. Rental growth 6.6% per year from 2003 - 2007

• Rental growth 12-month trailing is 5.3%

• 83% white collar workforce

c o u N t y R e N tA l g R o w t H

Orange County rents grew 24.1% over the past four years

• 51.6% growth for last eight years

• Rental growth 12-month trailing is 5.5%

south orange county Future Job Formationover 74,900 Jobs Based on entitlements

oc Airport Area

135,000+ Employees

3.5 MSF Entitlements

tustin legacy

1,600 Acres

7.3 MSF Entitlements

Irvine spectrum

Business Park

25 Fortune 500 Companies

15 MSF Entitlements

Heritage Field

4,700 Acres; 3625 Homes

3 MSF Entitlements

total Future entitlements 74,900 New Jobs 28.8 msF

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C O U N T Y O F O R A N G E O V E R V I E W

c O u n t y O F O r a n g E - O v E r v i E w

Orange County is a remarkably strong multi-housing market, often ranking within

the top five for the major fundamental indexes such as job formation, occupancy,

rental growth, home prices, and lowest affordability index. Additionally there is an

extreme lack of new supply. To illustrate this, in 2007 there were only 2,941 new

units built to supply a population base of over 3 million.

NEWPORT BEACHORANGE COUNTY

AIRPORT

OrangE cOunty rEPOrt carD anD uS rankingS

yearOccupancy rent growth Home Prices affordability

index

new units

built

apartment

Sold (1)# rank # rank # rank

2006 95.3% 4 7.1% 10 $709,000 3 21.3 2,622 2

2007 95.0% 5 5.5% 5 $674,000 3 21.7 2,941 2

(1) Sales for 100+ Units, Class “A”, condo conversions excludedSources: Hendricks & Partners Research, Reis, RealFacts, National Association of Realtors, National Association of Home Builders

J O b F O r m at i O n / H O u S E H O L D i n c O m E

• Orange County boasts the second largest labor force in California, with more than 1.6 million workers

and one of the lowest unemployment rates of any California county, registering 4.2% in 2007.

• The median household income in Orange County is $75,660, and this figure is projected by 2012 to

reach $88,876.



10

Rosecrans Ave.

Harb

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lvd.

Katella Ave.

Sepulveda

Jamboree Rd

.

Valley Blvd.

Huntington Dr.

Wes

tern

Ave

.

Whittier Blvd.

Slauson Ave.

Alam

eda

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Haw

thor

ne B

lvd.

Wilshire Blvd.

Manchester Blvd.

Foothill Blvd. Colorado Blvd.

Ramona Exwy.

5th St.

Gilman Springs Rd.

San Timoteo Canyon Rd.

Yucaipa Blvd.

Oak Glen Rd.

Beam

ont A

ve

Nuevo Rd.

Menifee Rd.

Simpson Rd.

Warren Rd.

Sage Rd.

Pala Rd.

Valley Center Rd.

Mission Rd.

Reche Rd.

Santa Fe Ave.

Grade E Rd.

San Felipe Rd.

Montezuma Vallry Rd.

Palm Canyon Rd.

Borrego Salton Seaway

Borrego Spring Rd.

Yaqui P

ass Rd

.

Box Canyon Rd.

Dillion Rd.

Indian Ave.

Canyon Dr.

Ramon Rd.

Washington St.

Lake Arrowhead

ArrowheadSprings

Glendale

Burbank

110

Sant

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LOS ANGELES COUNTY

ORANGE COUNTY

MISSIONVIEJO

VillaPark

CORONA

RANCHO CUCAMONGA

ORANGE

ONTARIO

DIAMONDBAR

ANAHEIM

CATALINA ISLAND

SAN DIEGO CO.

RIVERSIDE CO.

ORANGECOUNTY

Ventura Co.

Los Angeles Co.

LOS ANGELES CO.SAN BERNARDINO CO.

LongBeachAirport

Los AngelesInternational Airport

John Wayne Airport

LOSANGELES

LONGBEACH

LOSANGELESHARBOR

LONGBEACH

HARBOR

CENTURY CITY

HOLLYWOOD

WOODLANDHILLS

ENCINO

BRENTWOOD

MALIBU

SIMIVALLEY

THOUSANDOAKS

Moorpark

POINTDUME

WESTLAKEVILLAGE

SANTAMONICA

HERMOSA BEACH

MANHATTAN BEACH

RANCHOPALOS VERDES

FULLERTON

ARCADIA

PASADENA

LAGUNAHILLS

LAGUNANIGUEL

SAN CLEMENTE

MURRIETA

Lake Riverside

Pinyon Pines

Palm Springs

Coachella

La QuintaIndian Wells

PalmDesert

Thousand Palms

DesertHot Springs

Indio Hills

Cahuilla

TEMECULA

SAN LUISREY

Pala Mesa Village

La Jolla Amago

Oak Grove

San Felipe

Borrego SpringsSalton City

LakeElsinore

LakePerris

Big Bear Lake

Lake

Henshaw

SAN JUAN CAPISTRANO

LAGUNABEACH

HUNTINGTONBEACH

NEWPORTBEACH

SEALBEACH

Angeles National Forest


ORANGE COUNTY

RIVERSIDE COUNTY

ORANGE COUNTY

RIVERSIDE COUNTY

SAN DIEGO COUNTY

ORANGE COUNTY

SAN DIEGO COUNTY

OntarioInternational

Airport

Burbank Glendale Pasadena AirportVE

NTUR

A CO

UNTY

LOS

ANGE

LES

COUN

TY

UNIVERSALCITY

LakeMathews

PERRIS NUEVO

REDLANDS

YUCAIPAOAK GLEN

FOREST FALLS

BIG BEAR LAKE

Big Bear City

SNOW VALLEY

SUMMIT

MOUNT BALDY

BANNING

Twin Pines

Pines Meadow

Garnet

MorongoValley

Yucca Valley

Joshua TreeTwentynine

Palms

CALIMESA

SANJACINTO

AGUA TIBIAWILDERNESS AREA

SAN BERNARDINONATIONAL FOREST

ANZA-BORREGO DESERT STATE PARK

JOSHUA TREE NATIONAL PARK

SAN BERNARDINO NATIONAL FOREST

SAN GORGONIOWILDERNESS AREA

CLEVELANDNATIONAL FOREST

TUSTIN

IRVINE

P a c i f i c Oc e a n


R e n t G R o w t h

• As of fourth quarter 2007, the overall average rent in the Orange County

apartment market was $1,563, up 5.5% from the year-ago figure of

$1,481. Over the past eight years the average rent has increased

53.4% (over 6.7% per year).

o c c u pa n c y

• The overall average occupancy rate throughout Orange County held

firm at 95% from 2006 to 95% in 2007. Historically since 1995, the

vacancy factor has never exceeded 5.0%.

p o p u l at i o n G R o w t h

• Orange County is located in the Los Angeles-Riverside-Orange County

consolidated metropolitan statistical area (CMSA), which is home to

more than 16 million residents.

• Orange County has a population currently estimated at 3,081,783,

which is projected by 2012 to reach 3,219,175. Orange County is

one of the most densely populated areas in the United States and has

experienced an average growth over the last 20 years of over 50,000

new residents per year, each and every year.

top uS Markets for Rental increases 2Q06 to 2Q07average monthly rent for 1,000 SF apartment

Rank Metro area 2006 2007 change

1 San Francisco $1,413 $1,521 + 7.6%

2 Los Angeles $1,572 $1,669 + 6.2%

3 Orange County $1,481 $1,563 + 5.5%

4 San Diego $1,288 $1,352 + 5.0%

Source: Global Real Analytics



C O U N T Y O R O R A N G E O V E R V I E W

11

O r a n g E c O u n t y H O u S i n g

• Orange County currently ranks #2 out of 128 major US Areas

for median single family home prices, with the most recent

figures, at the end of 2007, topping just above $674,000.

The current condominium median price is $390,000. These

prices have resulted in one of the lowest affordability

indexes in the country. Currently, Orange County stands at

a mere 22% which means 78% of the local residents can

not afford to buy the current median priced home.

aDDitiOnaL OrangE cOunty maJOr markEt DrivErS

Orange county airport area and irvine business complex

(ibc) - a 3,350-acre business park with a diverse base of

commercial, office, industrial, and R&D businesses, which

total over 25 MSF. Currently, 47 Fortune 500 companies

have offices within the area; among them are Connexant,

$175K

$254K

$296K

$395K

$533K

$651K $674K

$810K

$0$60,000

$120,000$180,000$240,000$300,000$360,000$420,000$480,000$540,000$600,000$660,000$720,000$780,000$840,000$900,000

Atlanta Denver LasVegas Seattle Los

AngelesCounty

Ventura OrangeCounty

SanFranciscoCountySource: CAR, NAR, DataQuick

205%

22%

11%

17%20%

24% 25%

39%

61%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Orange

45%

50%

55%

SantaBarbara

SanMateo

LosAngeles

SouthernCalifornia

Ventura InlandEmpire

National

Source: California Association of Realtors, Nat'l Assoc. of Home Builders (updated 3Q07)

Rockwell International, Allergan, McGaw Laboratories,

Taco Bell, and more than 1,300 other firms employing

people in the electronic, bioscience and healthcare

fields. This represents well over 135,000 employees in

this area daily and there is an additional 3.5 MSF of

future office entitlements, which will create an additional

14,000 jobs.

John wayne airport - Within the IBC is the John Wayne

Airport, which employs more than 57,000 people. And

in August 2005 a proposal was presented to the Orange

County Board Supervisors which outlined an expansion

project that would add six new gates, a new terminal and

a third concourse to the airport with a estimated total

cost of $512 million.

u S m E D i a n H O m E P r i c E S D E c E m b E r 2 0 0 7 c a L i F O r n i a a F F O r D a b i L i t y i n D E x b y c O u n t y F O r m E D i a n H O m E P r i c E S

uci-brain center

uci-Health and Science

university research Park - Just minutes south of Astoria the Irvine

Company has created the University Research Park, a 185-acre business,

research and development complex located next to the University

of California Irvine (UCI) campus. This research/business park was

specifically developed to enhance and encourage research between

private companies and UCI graduate students. Key tenants include

ATL Products, America Online, Canon, Cisco Systems, Conexant, and

McKinsey & Company. The Irvine Company expects the park will be

home to 80 to 100 companies and 10,000 employees at full occupancy.

uci - owns a portion of the park, as it abuts the main campus. UCI is one

of the top public research universities in the nation and is also the fastest

growing in the nine-campus UC system. UCI employs 15,500, making it

Orange County’s second largest employer with an economic impact that

exceeds $1 billion annually.



12

irvine Spectrum - Located just 15 minutes south of the

property is the 5,000-acre Irvine Spectrum and International

Center for Technology and Research. The Spectrum

currently has over 35 MSF of office, retail, hi-tech, and

R&D space with entitlements to build an additional 15 MSF.

Current employment is 110,000 and upon build-out there

will be an additional 30,000 future jobs. At present there

are over 2,500 companies, including 25 in the Fortune 500.

Major companies include Broadcom, Verizon Wireless,

Toshiba, Advanced Sterilization Products, Quest Software,

Boeing, and Meade Instruments. The auto industry also

has a strong presence in the Irvine Spectrum, with many

automotive North American Headquarter offices for research

and development located there such as Lincoln Mercury,

Volvo, Jaguar, Land Rover, Aston Martin, Mercedes Benz,

Toyota, Lexus, Chrysler, Mazda, Isuzu, and Kia, In April

2005, Kia announced that it would build a new $70-million

headquarters in Irvine’s Jamboree Building Center East,

designed to contain its 500 local employees in one space.

Completion is scheduled for late 2006.

tustin Legacy (former tustin marine corps air Station-mcaS)

- In November of 2004, the Tustin City Council approved

development plans for the more than 700-acre former

Marine Corps Air Station. Plans include 7.3 million square

feet of commercial developments and 4,601 residential

units, with Shea Properties and Centex Homes having

been chosen as the master developers for the commercial-

business area. The development will also include:

• tustin Field i and ii: John Laing Homes has completed

560 homes in their first of two planned communities

called “Tustin Field”. These two-, three-, and four-

bedroom homes range in size from 1,495 to 2,145

square feet and were sold out prior to completion.

• villages of columbus: The first residents have already started to

move into another 2,000-single-family-home development that

is being built by the local office of Miami’s Lennar Corp. and

Newport Beach’s William Lyon Homes Inc.

• the District at tustin Legacy: A planned, upscale retail center

that will have a central-lifestyle component. Stores opened in

the fall of 2007.

• village of Hope: Tustin city officials awarded a portion of the

Legacy site to the Orange County Rescue Mission (OCRM), who

recently constructed a 128-dorm room facility for homeless

men and women. The estimated $20 million Village is one of the

nation’s largest transitional-housing facilities.

Heritage Field / Orange county great Park - Adjacent to the Irvine

Spectrum is the 4,700 acre El Toro Marine Base which was purchased in

March 2005 by Lennar Homes for $650 million and renamed “Heritage

Field”. Current plans include over 3,600 residential units, over 3,800

acres set aside for parks and schools, and three million square feet of

commercial and industrial space equating to another 9,000 future jobs.

The “Great Park” will be larger than New York City’s Central Park.

marblehead coastal Site - This 313-acre site in San Clemente is

under development (as of January of 2008). Build-out of this

massive mixed-use development will take seven to nine years.

Platinum triangle - 820-acre, mixed-use project surrounding Angel

Stadium and the Honda Center. This new urban center will ultimately

encompass more than 9,000 residences, five million square feet of

office space and over two million square feet of commercial uses.

• Stadium Lofts (first phase): 390 loft residences, intersection of

Katella Avenue and State College Boulevard (completed: late 2006)

• a-town Stadium: 878 lofts, condos, and flats across two high-

rise buildings up to 25 stories high, south of Angel Stadium

(status: construction planned for late 2008)

John wayne airport

irvine Spectrum

Disney’s california adventure and Disneyland

14.5 million visitors Per year

30,000 visitors Per year

10.8 million Passengers Per year




13

• atown metro: 2,681 homes in up to 11 high-rise towers, west of

Angel Stadium (status: construction planned for late 2008)

• anaheim regional transportation intermodal center: 16-acre

transportation center for trains and buses (status: in development)

anaheim garden walk - A $700 million, mixed-use retail and

hospitality development across 19.3 acres that will include 439,000

square feet of retail, dining, and entertainment; three hotels that will

encompass 866 rooms; 560,000 square feet of timeshare units; and

over one million square feet of parking for 3,200 vehicles. Completion

scheduled for 2010.

brookhurst triangle - Plans for the $220 million Brookhurst

Triangle project, located at Brookhurst Street and Garden Grove

Boulevard in Garden Grove will include 510 units of housing plus

88,000 square feet of commercial and retail space. The housing will

consist of a variety of high-density, for-sale attached product types,

including two, ten-story, high rise towers with 60 units each, as well

as three- and four-story lofts, flats and townhome-style buildings

constructed over parking either below or at grade.

international wESt

Garden Grove is developing its vision of a new, 400-acre resort and

entertainment destination located along Harbor Boulevard, just two

miles south of the Disney Resort area. The master plan includes a

dynamic mix of upscale dining, shopping, hotel, and entertainment

venues. As one major component of this new development, Starwood

Hotels and Resorts Worldwide, Inc., has selected International West

as the next resort location for a new, full-service Sheraton Hotel.

Construction of this seven-story, 288-room hotel began in 2005 with

completion slated for May 2007. The developer on this project is

Kam Sang Company, Inc. Garden Grove is already home to seven

large hotels with a total of 1,838 rooms.

newport coastline

Oc Performing arts center the marketplace



14

University of CA,Irvine Campus

CENTRAL PARK WEST

JOHN WAYNE AIRPORT

Orange County Airport Area3,300+ Acres, 4,500 Companies

25 MSF, 47 Fortune 500 Companies3.5 MSF Entitlements 14,500 Future Jobs

NEWPORTBEACH

HUNTINGTONBEACH

55

405

405

IRVINE

PACIFIC OCEAN

Von Karman Ave.

Jamboree Rd.

Mai

n St

.

Mic

hels

on D

r.

MacArthur Blvd.

MacArthur Blvd.

N




15

C I T Y O F I R V I N E O V E R V I E W

i r v i n E , c a

The City of Irvine is located in Orange County, southeast of Santa Ana along Interstate

405, and is part of the Los Angeles Metro Area. The city is one of the nation’s largest

planned urban communities, encompassing 69.7 square miles. Due to recent annexations,

Irvine is larger in land area than any other city in Orange County.

H O u S E H O L D i n c O m E / J O b F O r m at i O n

• Irvine’s continuous economic growth has ensured strong gains in personal income for

residents. From 1990 to 2007, the median household income rose from $55,258 to $92,587,

reflecting a substantial 67.6% increase. With a strong five-year growth rate of 18.0% projected,

that figure is expected to grow to $109,285 by 2012. Over 55% of Irvine households earn at

least $100,000 annually, with 21.1% earning $200,000 or more each year.

• Adjacent Newport Beach has one of the highest income levels in Orange County. In 2007

the median household income was $109,245 and is projected to increase 21.5% in 2012 to

$132,710. Over 54% of Newport Beach households earn at least $100,000 annually, with

approximately 35% earning $200,000 or more a year.

• Irvine’s labor force consists of over 115,000 workers, 2,668 of which were unemployed as

December of 2007. The city’s 2.3% unemployment rate was just below the previous year’s

2.5%, and lower than the Orange County (5.1%), statewide (5.6%), and nationwide (5.0%)

rates at that time.

• Over the one-year period ended in October of 2007, a total of 23,500 non-farm jobs

were added in the Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area.

i r v i n E E m P L O y m E n t

• Irvine employment is 82.7% white collar, with a diverse employment base consisting

of services, retail trade, manufacturing, finance, insurance, and real estate acting as

the largest industries in the city.

• Irvine is considered the hub of Southern California’s Technology Coast. Within the 5,000-acre

Irvine Spectrum Business Park, there are over 75,000 employees and 2,500 companies,

including 25 on the Fortune 500 list. The Irvine Spectrum was conceived with the idea of

propelling South Orange County to a world leader in high technology, rivaling Silicon Valley.

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

1990 2000

Irvine Newport

2007 2012*

$55,258

$72,039

$92,587

$109,285$83,235

$109,245

$132,710

0.0% 1.0% 2.0% 3.0% 4.0%

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007 2.3%

2.5%

2.7%

2.9%

3.4%

3.7%

3.4%

1.7%

1.9%

1.9%

2.4%

m E D i a n H O u S E H O L D i n c O m Ei r v i n E a n D n E w P O r t b E a c H , c a

D E c E m b E r u n E m P L O y m E n t r at E Si r v i n E , c a

maJOr EmPLOyErS in irvinE, ca

EmPLOyEr SEctOr EmPLOyEES

University of California, Irvine Education 7,645Irvine Unified School District Education 3,707St. John Knits Knit Garments 2,616The Irvine Company Real Estate 2,600Parker Hannifan Aircraft Parts 1,985Allergan Pharmaceutical 1,922Freedom Communication Inc. Media 1,875New Century Financial Corp. Finance 1,840Parker Aerospace Aerospace and Defense 1,825Edwards Lifesciences Corp. Heart Valves 1,723Washington Mutual Bank Financial 1,700Verizon Wireless Communications 1,695Albertsons / Sav-On Retail 1,508Claim Jumper Enterprises Restaurant Chain 1,400Broadcom Corp. Computer Chipmaker 1,313In-N-Out Burgers Restaurant Chain 1,041

Source: City of Irvine



18

r E n t g r O w t H

• The local apartment market has excelled in recent years, as evidenced by strong rent

growth. The Orange County-South apartment market posted an overall average rent of

$1,754 as of December of 2007, reflecting a strong 4.8% gain over the year-ago rent

of $1,673. Rents in this Orange County-South market have increased 30.4% since the

fourth quarter of 2001.

• Irvine posted an overall average rent of $1,870 as of December of 2007, reflecting

a strong 5.3% gain over the year-ago rent of $1,776, and over the past 8-years has

increased 44%.

$800

$900

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

$1,800

$1,900

$2,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

44%

$1,297

$1,412

$1,471

$1,461

$1,569

$1,669

$1,870$1,776

$1,480

0

50,000

100,000

150,000

200,000

250,000

1990 2000 2007 2012*

113,497

143,072

180,469

194,734

80%

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

2001 2002 2003 2004 2005 2006 200794%

94%

94%

94%

95%

95%

95%

Avg. = 95%

av E r a g E r E n ti r v i n E a Pa r t m E n t m a r k E t

H i S t O r i c P O P u L at i O ni r v i n E , c a

av E r a g E O c c u Pa n c yi r v i n E a Pa r t m E n t m a r k E t

O c c u Pa n c y

• During the fourth quarter of 2007, the occupancy in the Orange County-South apartment

market measured 94.3%, dropping slightly from the 94.7% reported 12 months prior.

• The Irvine apartment occupancy has held steady at 95% for the past three years.

P O P u L at i O n

• From 1990 to 2007, the population of Irvine grew from 113,497 to 180,469, equating to an increase

of 59.0%, more than double the national growth average of 23.2% during that time period. With a

1.5% projected annual growth rate, the population is expected to reach 194,734 by 2012.




19

current research/industrial to medium/medium high residential allowing for the development

of 3,918 residential dwelling units and 3,508,010 square feet of multi-use intensity. The City

of Irvine Planning Commission has delayed hearings on this application pending a draft EIR.

• uci - A 1,500 acre public university specializing in research and considered one of the top

universities in the nation. It is also the fastest growing in the nine campus UC system, and

employs 15,500 making it Orange County’s second largest employers with an economic

impact of $1B+ annually.

• university of california-irvine Hospital - Ground was broken in June of 2005 on the UCI

Medical Center’s new university hospital located at City Drive and Chapman Avenue. The

new, $371 million facility will supplant the main hospital building, which was originally built

in 1960. The seven-story, 480,000-square-foot hospital is slated to open in early 2009.

• vista del campo norte - American Campus Communities Inc. opened its newest fashionable

student-apartment community on the UC Irvine campus in the fall of 2006. Vista Del Campo

Norte is the second phase of the company’s $214.5 million initiative to bring an additional

3,052 beds to the campus.

Sources Hendricks & Partners Research Services; ESRI Business Information Solutions; REAL FACTS; Bureau of Labor Statistics; City of Irvine; Los Angeles Business Journal; DestinationIrvine.com; Orange County Business Council; Los Angeles Times; Orange County Register; California Association of Realtors; The Irvine Company; DataQuick Information Systems; Reed Construction Data; University of California-Irvine; Wikipedia.

i r v i n E ’ S H O u S i n g

• Only 24.0% of entry-level home buyers in Orange County were able to afford a median-

priced home as of the third quarter of 2007, up from 22.0% the year prior. As of December

of 2007, the median sale price of a single-family home in Irvine stood at $660,000.

• Irvine’s housing inventory contains an estimated 67,274 units, 59.1% of which were owner

occupied and 36.3% of which were renter occupied as of 2007.

m a J O r n E w c O m m E r c i a L c O n S t r u c t i O n

• Heritage Fields / great Park - In February of 2005, Lennar and LNR bought the 4,700-acre

decommissioned El Toro base from the U.S. Navy. Current plans include over 3,600

residential units, over 3,800 acres set aside for parks and schools, and 3-million square feet

of commercial and industrial space equating to another 9,000 future jobs. The development

firm has deeded the center 1,347 acres to the City of Irvine for the “Great Park,” a major

metropolitan park that will be twice the size of New York’s Central Park. Plans call for

construction of three mixed-use developments surrounding the park that will make up the

Heritage Fields project. Plans for the Great Park should be approved in the spring of 2008;

demolition and clean-up at the site could take up to three years.

• irvine Planning area 12 and 40 - 623 total acres divided into two parcels located north of

the Santa Ana (I-5) freeway, bounded on the west by Jeffrey Road, north by Trabuco Road and

on the east by the future “O” Street (also known as College Way) on the western edge of the

Orange County Great Park. The Irvine Company has proposed changing the zoning from the



20

5

15

5

5

405

405

55

73

73

74

91

71

133

133

55

57

9191

22

241

241

1

1

1

39

1

RIVERSIDE COUNTY

ORANGE COUNTY


ORANGE COUNTY

LOS ANGELESCOUNTY

ORANGE COUNTY

Alton Pkwy.

Talbert Ave.

Trabuco Rd.

Irvine Blvd.

4th St

State College Blvd.

Garden Grove Blvd.

Edinger Ave.

Sand C

anyon

Ave.

Chapman Ave.


Portola Pkwy.

Main St.

Main St.

Red H

ill Ave.

Westminster Ave.

Culve

r Dr.

Grand Ave.

Golden West St.


Harbor Blvd.

Adams Ave.

Placentia Ave.

Main

St.

Ball Rd.

Lincoln Ave.

La Palma Ave

Ellis Ave.

Jeffre

y Rd.

Lake Forest Dr.

Bake P

kwy.

Olympiad Rd.

Nohl Ranch Rd.

Katella Ave.

Sant iago Canyon Rd.

El Tor

o Rd.

17th St.

Bolsa Ave. 1st St.

Dyer Rd.

MacArthur Blvd.

Euclid St.

Jambo

ree Rd

.

Gothard St.

Knott Ave.

Beach Blvd.

Magnolia St.

Glasse ll St.

Santa

Ana A

ve.

Yorba Linda Blvd.

Imperial Hwy.

Brea

Blvd

.

La Mirada Blvd.

Commonwealth Ave.

Valen

cia A

ve.

Lambert Rd.

Whittier Blvd.

Rosecrans Ave.

Ba

stan

chury Rd.

Hacien

da Bl

vd.

Lemo

n St.

Birch St.

Orangethorpe Ave.

Telegraph Rd.

Mulberry Dr.

Carmenita Rd.

Valley View St.

Bolsa

Chica

Rd.

Moody St.

Malvern Ave.

Harbor Blvd.

Rose

Dr.


Leffingwell Rd.

Krae

mer B

lvd.

Chapman Ave. Corona

Gilb ert St.

Marguerite Pkwy.

Newp

ort C

oas

t Dr.

Laguna Canyon Rd.

N iguel Rd.

Avenida Pico

Irvine Center Dr.


Jambo

ree Rd

.

Barranca Pkwy.

Muirlands Blvd.

Maca

rthur

Blvd

.

University Dr.

Crown V

alley P

kwy.

Alicia Pkwy.

Oso Pkwy.

BREA

MISSIONVIEJO

LAKEFOREST

VILLAPARK

ANAHEIM

IRVINE

TUSTIN

HUNTINGTONBEACH

NEWPORTBEACH

BUENA PARK

YORBA LINDA

CYPRESS

FULLERTON PLACENTIA

LA HABRA

LAGUNABEACH

LAGUNAHILLS

LAGUNANIGUEL

ALISO VIEJO

SAN JUANCAPISTRANO

SANCLEMENT

FOOTHILLRANCH

Camino Del Avion

Marina Hills Dr.

Newp

ort Av

e.

Bristol St.

Warner Ave.

Shady Canyon Dr.

Fairhaven Ave.

Trabuco Rd.

Pa

c i f i c Oc e

an

Fairview St.



JOHNWAYNE

AIRPORTAREA

TUSTINLEGACY

ANGELSTADIUM

HONDACENTER

DISNEYLANDRESORT

IRVINESPECTRUM

PLATINUMTRIANGLE

La Pa

z Rd.

SOUTH COASTPLAZA

UCI

IRVINE VALLEY COLLEGE

SADDLEBACK VALLEY COLLEGE

ORANGE COAST COLLEGE

WESTERN LAW COLLEGE

USC (OFF CAMPUS)

CSUF (OFF CAMPUS)

SOKA UNIVERSITY

THE MARKET PLACE

THE CROSSROADS

FASHION ISLAND

PAVILION CENTER

IRVINE SPECTRUM

UNIVERSITY CENTER

SOUTH COAST PLAZA

CORONA DEL MAR PLAZA

THE IRVINE SPECTRUM

IRVINE BUSINESS COMPLEX

MACARTHUR COURT

JAMBOREE PLAZA

IRVINE INDUSTRIAL COMPLEX

UNIVERSITY RESEARCH PARK

NEWPORT CENTER

EXECUTIVE PARK

1 IRVINE BARCLAY THEATRE

OC PERFORMING ARTS CENTER

IRVINE MEADOWS AMPHITHEATRE

LAGUNA BEACH FESTIVAL OF ARTS

IRVINE BOWL

OC MUSEUM OF ART

SOUTH COAST REPERTORY THEATRE

1

2

3

4

5

6

7

2

3

4

5

6

7

8

1 PELICAN HILL GOLF COURSE

TUSTIN RANCH GOLF COURSE

OAK CREEK GOLF COURSE

BIG CANYON GOLF COURSE

SHADY CANYON GOLF COURSE

NEWPORT BEACH GOLF COURSE

1

2

3

4

5

6

2

3

4

5

6

7

8

1 TUSTIN METRO LINK

IRVINE TRANSPORTATION CENTER

JOHN WAYNE AIRPORT

1

2

3

2

3

4

5

6

7

8

UNIVERSITIES/COLLEGES

LOCAL AMENITIES

RETAIL CENTERS

OFFICE COMPLEXES

CULTURE CENTERS

GOLF COURSES

TRANSPORTATION

THEMARKETPLACE

4

1

25

7

6

3

8

1

2

6

7

8

5

4

3

1

2

3

8

6

4

7

5

1

2

3

45

6

7

1

4

2

3

5

6

1

3 2



21

R E N T C O M P A R A B L E S



24

5

15

5

5

405

405

55

73

74

74

91

71

133

133

55

57

91

22

241

241

241

1

1

1

1

Barranca Pkwy.


JOHNWAYNE

AIRPORTAREA

TUSTINLEGACY

ANGELSTADIUM

HONDACENTERDISNEYLAND

RESORTRIVERSIDE COUNTY

ORANGE COUNTY


ORANGE COUNTY

LOS ANGELESCOUNTY

ORANGE COUNTY

Alton Pkwy.

Talbert Ave.

Trabuco Rd.

Irvine Blvd.

4th St

Garden Grove Blvd.

Edinger Ave.

Sand C

anyon

Ave.

Chapman Ave.

Portola Pkwy.

Main St.

Main St.

Red H

ill Ave.

Westminster Ave.

Culve

r Dr.

Gr and Ave.

Golden West St.


Harbor Blvd.

Adams Ave.

Placentia Ave.

Main

St.

Ellis Ave.

Jeffre

y Rd.

Lake Forest Dr.

Bake P

kwy.

Olympiad Rd. Katella Ave.

El Tor

o Rd.

17th St.

Bolsa Ave. 1st St.

Dyer Rd.

MacArthur Blvd.

Euclid St.

Jambo

ree Rd

.

Gothard St.

Glasse ll St.

Santa

Ana A

ve.

Yorba Linda Blvd.

Imperial Hwy.

Brea

Blvd

.

La Mirada Blvd.

Commonwealth Ave.

Valen

cia A

ve.

Lambert Rd.

Whittier Blvd.

Rosecrans Ave.

Ba

stan

chury Rd.

Hacien

da Bl

vd.

Lemo

n St.

Birch St.

Orangethorpe Ave.

Telegraph Rd.

Mulberry Dr.

Carmenita Rd.

Bolsa

Chica

Rd.

Moody St.

Malvern Ave.

Harbor Blvd.

Rose

Dr.


Leffingwell Rd.

Krae

mer B

lvd.

Chapman Ave. Corona

Gilb ert St.

Marguerite Pkwy.

Newp

ort C

oas

t Dr.

N iguel Rd.

Camino Capistrano

Avenida Pico

Irvine Center Dr.

Jambo

ree Rd

.

Muirlands Blvd.

M a ca r

thur

Blvd.

University Dr.

Crown V

alley P

kwy.

Alicia Pkwy.

La Pa

z Rd.

Oso Pkwy.

BREA

LAKEFOREST

VILLAPARK

ANAHEIM

IRVINE

TUSTIN

HUNTINGTONBEACH

NEWPORTBEACH

YORBA LINDA

CYPRESS

FULLERTON PLACENTIA

LA HABRA

LAGUNABEACH

LAGUNAHILLS

LAGUNANIGUEL

ALISO VIEJO

SAN JUANCAPISTRANO

SANCLEMENT

Camino Del Avion

Marina Hills Dr.

Newp

ort Av

e.

Bristol St.

Warner Ave.

Shady Canyon Dr.

Fairhaven Ave.

Trabuco Rd.

P a c i f i c O c e a n

Fairview St.

IRVINESPECTRUM


Taft Ave.



MISSIONVIEJO

FOOTHILLRANCH

PLATINUMTRIANGLE

THEMARKETPLACE

SOUTH COASTPLAZA

2

1

4

3

5

astoria2500 michelson Drirvine, ca240 units - 2008

bordeaux1 AmbroiseNewport Coast, CA191 Units - 2002

marquee3131 Michelson Dr.Irvine, CA228 Units - 2006

newport bluffs100 VillagioNewport Beach, CA1,052 Units - 1999

the Plaza7040 ScholarshipIrvine, CA101 Units - 2006

the village @ irvine Spectrum22 PrismIrvine, CA1,550 Units - 2007

1

2

3

4

5




25

irvine / newport beach - On-market rentals in Low-rise Properties

Property type unit type rent / unit Size $/SF

The Village at

Irvine SpectrumGarden Apartments 2 Bed / 2 Bath $3,300 1,274 $2.59

Newport Bluffs Garden Apartments 3 Bed TH w/ Garage $3,415 1,317 $2.59

Bordeaux Townhomes 3 Bed TH w/ Garage $3,480 1,507 $2.31

Newport Bluffs Garden Apartments 3 Bed TH w/ Garage $3,595 1,395 $2.58

The Village at

Irvine SpectrumGarden Apartments 3 Bed / 2 Bath $5,000 1,500 $3.33

average $3,758 1,399 $2.68

Information collected from property tours and apartment community websites.

irvine - available rentals in High-rise Properties


Marquee High-Rise Condo 2 Bed / 2 Bath / Den $2,500 1,200 $2.08





The Plaza High-Rise Condo 2 Bed / 2 Bath / Den $5,600 1,800 $3.11

average $3,883 1,525 $2.52

Information collected from interviews and tours with local rental agents.

irvine - Lease transactions in High-rise Properties (Jan’07 - Dec’07)


The Plaza High-Rise Condo 1 Bed / 1 Bath / Den * $2,850 1,175 $2.43



The Plaza High-Rise Condo 2 Bed / 2.5 Bath / Den $3,500 1,430 $2.45


The Plaza High-Rise Condo 2 Bed / 2.5 Bath / Den $4,200 1,790 $2.35




average $4,000 1,620 $2.48

Information collected from 12-month trailing closed leases in local MLS system.Averages shown above exclude the 1 Bedroom / Den unit at The Plaza. astoria Proposed market rents


Astoria High-Rise Condo 1 Bed / 1 Bath $2,750 1,119 $2.46

Astoria High-Rise Condo 1 Bed / 1 Bath / Den $2,900 1,234 $2.35

Astoria High-Rise Condo 2 Bed / 2 Bath $3,800 1,480 $2.57

Astoria High-Rise Condo 2 Bed / 2 Bath / Den $4,300 1,686 $2.55

Astoria High-Rise Condo Penthouse - 2BD / 2BA $5,600 2,135 $2.62

Astoria High-Rise Condo Penthouse - 3BD / 3BA $6,700 3,008 $2.23

Astoria High-Rise Condo Penthouse - 3BD / 3BA / Den $6,800 2,967 $2.29

average $4,021 1,587 $2.53

a S t O r i a c O m Pa r a b L E L E a S E t r a n S a c t i O n S



26

$3,100 $3,200

$3,500 $3,500

$4,200

$4,500 $4,500 $4,500

$5,000

$2,600$2,800$3,000$3,200$3,400$3,600$3,800$4,000$4,200$4,400$4,600$4,800$5,000$5,200

Marquee2006

1,293 SF

Marquee2006

1,367 SF

The Plaza2007

1,430 SF

The Plaza 2007

1,675 SF

The Plaza2007

1,790 SF

Marquee2006

1,492 SF

Marquee2006

1,520 SF

The Plaza2007

1,950 SF

Marquee2006

2,062 SFAverage Price per SF = $2.48

Average Submarket Rent = $4,000/month

Average Unit Size = 1,620 SF

$2,500$2,825

$3,000

$3,500

$4,800

$5,600

$6,050

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

$6,500

Marquee2006

2BD 2BADen

1,200 SF

Marquee2006

2BD 2BADen

1,350 SF

Marquee2006

2BD 2BADen

1,400 SF

Marquee2006

2BD 2BADen

1,400 SF

Marquee2006

2BD 2BADen

2,000 SF

The Plaza2007

2BD 2BADen

1,800 SF

Astoria*2008

Penthouse2,519 SF

Astoria*2008

2BD 2BA &2BD 2BA Den

1,542 SF

Astoria*2008

1BD 1BA &1BD 1BA Den

1,177 SF

*Subject rents are weighted averages & not included in average Average Price per SF = $2.52

Average Submarket Rent: $3,883 /month

Average Unit Size = 1,525 SF

$3,900 $3,951

irvinE - LEaSE tranSactiOnS in HigH-riSE PrOPErtiES 2 bED / 2 batH / DEn unitS - (Jan’07 - DEc’07)

irvinE - avaiLabLE rEntaLS in HigH-riSE PrOPErtiES




27

PROPERTY DESCRIPTION AND PRO FORMA

GRANVILLELot 4

CHELSEA

Lots 1

3&14

MAXFIELD

Lots 5&6

RENWICKLots 1&3

COMMERCIA

L

Lot 2

THE L

ENNOX

Lot 15

Lot D

Lot A

Lot 12

THE B

ELVED

ERE

Lot 7

TRIBECAFLATSLot 8

Lot C

GRANVIL

LE

Lot 11

CHELSEA

Lots 1

6&17

Lot BMARLOWE

Lots 9&10

MICHELSON DRIVE

TELLER

YORK

ROCKE

FELLE

R

ROCKE

FELLE

R

LENNOX

GRAMMERCY

JAM

BOREE RO

AD

OBSID

IAN

SAN DIEGO FREEWAY

N

P r O P E r t y S u m m a r y

Parcel Number .................................................................................................................... 445-091-07

Number of Units ............................................................................................................................... 240

Year Constructed ............................................................................................................................ 2008

Type of Buildings .... one 14-story and one 15-story steel, concrete and glass high-rise towers

Parking ..................... Two levels above grade and two levels of gated subterranean parking

Metering ................................................................................................................................... Individual

HVAC ......................................................................................................................Central AC and Heat

Hot Water ..........................................................................................................................Central Boiler

Site Acreage ...................................................................................................................................... 1.98

Density ..................................................................................................................... 121.2 Units / Acre

S i t E P L a n



30




31

P r O F O r m a i n c O m E a n D E x P E n S E S

units type unit SF total SF market rent monthly mkt. rent annual mkt. rent rent/SF

11 1 Bed / 1 Bath 1,119 12,309 $2,750 $30,250 $363,000 $2.4611 1 Bed / 1 Bath / Den 1,234 13,574 $2,900 $31,900 $382,800 $2.35139 2 Bed / 2 Bath 1,487 206,693 $3,800 $528,200 $6,338,400 $2.5660 2 Bed / 2 Bath / Den 1,686 101,160 $4,300 $258,000 $3,096,000 $2.5510 *Penthouse 2 Bed / 2 Bath / Den 2,135 21,350 $5,600 $56,000 $672,000 $2.624 *Penthouse 3 Bed / 3 Bath 3,008 12,032 $6,700 $26,800 $321,600 $2.235 *Penthouse 3 Bed / 3 Bath / Den 2,967 14,835 $6,800 $34,000 $408,000 $2.29

240 1,591 381,953 $4,021 $965,150 $11,581,800 $2.53

NOTE: Some of the penthouse units have extremely large, outside balconies with skylights. Some 2/2/Den Penthouse units range up to 2,752sf and 3/3/D Penthouse units range up to 3,185sf.

StabilizedPro Forma

incomeScheduled market rent $11,581,800 Less: Loss to Lease 1.00% ($115,818) Less: Vacancy 5.00% ($579,090) Less: Concessions 2.00% ($231,636) Less: Manager / Model Unit (Two 2-Bedroom Units) 0.84% ($97,200) Plus: Year-One Rent Growth 5.00% $579,090 net rental income $11,137,146 Plus: Misc. Fee Income ($25/unit at 95%) 1 $68,400 Plus: Unit Location Premiums ($50/unit on 75% of units) 1 $108,000 Plus: RUBS Income ($45/unit on 95% of units) 1 $123,120 Plus: Other Income ($25/unit on 95% of units) 1 $68,400total Operating income (Egi) $11,505,066Expenses Per unit Administrative 2 $370 $88,806 Advertising and Promotion 2 $375 $90,000 Payroll 3 $1,500 $360,000 Repairs and Maintenance 2 $478 $114,636 Management Fee 1.75% $839 $201,339 Utilities 2 $753 $180,810 Contract Services 4 $419 $100,676 Insurance 2 $285 $68,388 Replacement Reserve $150 $36,000 Central Park West HOA Fees ($100/unit) 5 $1,200 $288,000 Total Expenses 6 $1,528,655net Operating income $9,976,411

NOTE 1: Misc. Fee Income and Other Income derived from ULI estimates. Unit location premiums and RUBS

derived from other local pricing premiums at nearby properties.

NOTE 2: Expenses from ULI Report entitled “Dollars & Cents of Apartment Properties” for elevatored buildings

in Southern California (includes high-rises). Those expenses are then grown 2.5%.

NOTE 3: Payroll is an estimate based on local apartment operation expenses for labor and includes an adjustment

for providing concierge and valet services to the residents.

NOTE 4: Contract Services includes the following amounts: Elevator maintenance at $36,000, Pest Control at

$3,876, Water Feature Maintenance at $14,400, Pool Maintenance at $2,400, and Window Washing at $44,000.

These amounts are from client’s budget.

NOTE 5: Master HOA Fees for Central Park West (“CPW”) were previously estimated at $150 per door. Because

of the delayed construction of some of the CPW ammenities, it is estimated that assessments will be only $100/

unit/month.

NOTE 6: Property Taxes are excluded from Pro Forma expenses. Taxes will be levied based on the sale price

of the property at a rate of 1.0630%. Special Assessments and CDF Taxes (based on square footage and unit

count) are projected to be $584,991. See H&P Document Center for Property Tax Summary Documents.



32

acquisition EOy 1 EOy 2 EOy 3 EOy 4 EOy 5 EOy 6 EOy 7 EOy 8 EOy 9 EOy 10 EOy 11

Income Scheduled Market Rent $11,581,800 $12,768,935 $13,407,381 $14,077,750 $14,781,638 $15,520,720 $16,296,756 $17,111,593 $17,967,173 $18,865,532 $19,808,808 Less: Loss to Lease (115,818) (127,689) (134,074) (140,778) (147,816) (155,207) (162,968) (171,116) (179,672) (188,655) (198,088) Less: Vacancy (579,090) (638,447) (670,369) (703,888) (739,082) (776,036) (814,838) (855,580) (898,359) (943,277) (990,440) Less: Concessions (231,636) (127,689) (134,074) (140,778) (147,816) (155,207) (162,968) (171,116) (179,672) (188,655) (198,088) Less: Manager / Model Unit (97,200) (107,163) (112,521) (118,147) (124,055) (130,257) (136,770) (143,609) (150,789) (158,329) (166,245) Plus: Year-One Rent Growth 579,090 net rental income 11,137,146 11,767,946 12,356,343 12,974,161 13,622,869 14,304,012 15,019,213 15,770,173 16,558,682 17,386,616 18,255,947 Plus: Misc. Fee Income 68,400 71,136 73,981 76,941 80,018 83,219 86,548 90,010 93,610 97,355 101,249 Plus: Unit Location Premiums 108,000 112,320 116,813 121,485 126,345 131,399 136,654 142,121 147,805 153,718 159,866 Plus: RUBS Income 123,120 128,045 133,167 138,493 144,033 149,794 155,786 162,018 168,498 175,238 182,248 Plus: Other Income 68,400 71,136 73,981 76,941 80,018 83,219 86,548 90,010 93,610 97,355 101,249 total Operating income (Egi) 11,505,066 12,150,583 12,754,286 13,388,021 14,053,283 14,751,643 15,484,749 16,254,331 17,062,206 17,910,281 18,800,558 Operating Expenses

Administrative (88,806) (91,470) (94,214) (97,041) (99,952) (102,950) (106,039) (109,220) (112,497) (115,872) (119,348) Advertising and Promotion (90,000) (92,700) (95,481) (98,345) (101,296) (104,335) (107,465) (110,689) (114,009) (117,430) (120,952) Payroll (360,000) (370,800) (381,924) (393,382) (405,183) (417,339) (429,859) (442,755) (456,037) (469,718) (483,810) Repairs and Maintenance (114,636) (118,075) (121,617) (125,266) (129,024) (132,895) (136,881) (140,988) (145,217) (149,574) (154,061) Management Fee 1.75% (201,339) (212,635) (223,200) (234,290) (245,932) (258,154) (270,983) (284,451) (298,589) (313,430) (329,010) Utilities (180,810) (186,234) (191,821) (197,576) (203,503) (209,608) (215,897) (222,373) (229,045) (235,916) (242,994) Contract Services (100,676) (103,696) (106,807) (110,011) (113,312) (116,711) (120,212) (123,819) (127,533) (131,359) (135,300) Insurance (68,388) (70,440) (72,553) (74,729) (76,971) (79,280) (81,659) (84,109) (86,632) (89,231) (91,908) Replacement Reserve (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) (36,000) Central Park West HOA Fees (288,000) (296,640) (305,539) (314,705) (324,147) (333,871) (343,887) (354,204) (364,830) (375,775) (387,048) total Expenses (1,528,655) (1,578,691) (1,629,157) (1,681,346) (1,735,320) (1,791,143) (1,848,882) (1,908,607) (1,970,389) (2,034,304) (2,100,430) Net Operating Income (NOI) 9,976,411 10,571,892 11,125,129 11,706,674 12,317,963 12,960,500 13,635,867 14,345,724 15,091,817 15,875,976 16,700,128 NOTE: 1) Assumptions 10-Year projection assumes rent growth of 5%, expense escalation of 3%, loss-to-lease of 1%, concessions of 1%, other income growth of 4%, and vacancy of 5%.

11 Year Cash Flow ProjeCtion - astoria (without ProPertY taxes)

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Hendricks & Partners and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Hendricks & Partners. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Hendricks & Partners Employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. COPYRIGHT 2004, All Rights Reserved. Hendricks & Partners.




33

JOE LEOnPartner

[email protected]

Hendricks & Partners (“Broker”) has been exclusively retained by the ownership as listing agent for the sale of Astoria in Irvine, California. The undersigned (“Recipient”) hereby acknowledges and agrees that certain confidential material and information regarding the properties that has been or may be in the future disclosed to Recipient (the “Information”) is intended solely for Recipient’s own limited use in considering whether to pursue negotiations to acquire the properties. The Owner and Broker reserve the right to make any change, to add, delete, or modify the Information, change the price, or withdraw the properties from the market at any time, without notice. Neither Owner nor Broker shall be under any obligation to update the Information.

Neither Owner nor Broker nor any of their officers, employees or agents make representation or warranty, express or implied, as to the accuracy or completeness of the Information and no legal liability is assumed or shall be implied with respect thereto. The Information provided has been or will be gathered from sources that are deemed reliable but neither Owner nor Broker warrant or represent that the Information is true or correct. Recipient is advised to verify the Information independently.

Recipient agrees that the Information provided is confidential, that Recipient will hold and treat it in the strictest of confidence, that Recipient will not, directly or indirectly, disclose or permit anyone else to disclose the Information to any other person, firm or entity without prior written authorization of Owner and that Recipient will not use or permit to be used the Information in any fashion or manner detrimental to the interests of the Owner. Photocopying or other duplication of the Information is strictly prohibited.

Recipient agrees not to contact the tenants or property management staff of the properties without prior authorization of Owner or Broker. Recipient shall not enter or conduct any investigations upon the properties without the prior authorization of Owner or Broker.

The delivery of the Information is not to be construed as an offer, an expression of intent, an obligation, or as part of any contract or commitment, to sell the properties. While Owner, Broker and Recipient may discuss the purchase and sale of the Properties with Recipient, Owner in its sole and absolute discretion, may terminate discussions at any time and for any reason. The discussions may be lengthy and complex and notwithstanding that we may reach one or more understandings or agreements on one or more issues, Owner shall not be bound by any oral agreement, proposal or letter of intent of any kind and no rights, claims, obligations or liabilities of any kind, either express or implied, shall arise, exist or be binding upon Owner, except to the extent expressly set out in a written purchase agreement signed by both Owner and Recipient.

If Recipient does not wish to pursue negotiations leading to an acquisition, or if any such negotiations are terminated, Recipient shall promptly return all confidential information to Owner or Broker as may directed.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Joe Leon at 949.223.0608 and mail the original to Hendricks & Partners, 5000 Birch Street #5600, Newport Beach, California 92660. Design and printing by Ann Carr & Associates, Inc. 714.740.0687.

nEwPOrt bEacH OFFicE5000 Birch Street, #5600Newport Beach, CA 92660P: 949.223.0600F: 949.223.0615

cHriS rOgErSSenior Investment Advisor

[email protected]

nick ingLEDirector Financial Services

[email protected]

San DiEgO OFFicE2878 Camino Del Rio South #100San Diego, CA 92108

PHOEnix OFFicE2525 E Camelback Rd #1150Phoenix, AZ 85016F: 602.955.9611

cOnFiDEntiaLity

ExcLuSivE markEting aDviSOrS



34



D e s i g n a n d P r i n t i n g b y A n n C a r r & A s s o c i a t e s , I n c . 7 1 4 . 7 4 0 . 0 6 8 7

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