641 LEXINGTON AVENUE, SUITE 1400 NEW YORK, NEW YORK PHONE

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1 641 LEXINGTON AVENUE, SUITE 1400 NEW YORK, NEW YORK PHONE SAN MIGUEL DRIVE, SUITE 265 NEWPORT BEACH, CALIFORNIA PHONE KEARNY STREET, 6 TH FLOOR SAN FRANCISCO, CALIFORNIA PHONE PEACHTREE ST NE. SUITE 1200 ATLANTA, GEORGIA PHONE MARKET ANALYSES AND PROGRAMMING FOR HEMET MOBILITY HUB DEVELOPMENT AT HEMET, CA REPORT JUNE 8, 2017 PREPARED FOR: PSOMAS 1

2 LIST OF EXHIBITS I. EXECUTIVE SUMMARY 1. Market Area Delineation 2. Local Setting 3. Aerial 4. Parcel Map 5. Methodology Overview 6. TCG Marketability Assessment A. Macro Market Assessment B. Land Use Assessment 7. Site Potential A. Values and Absorption B. Parking Requirements MACRO DRIVERS II. INLAND EMPIRE DEMAND DRIVERS 1. Market Area Delineation 2. Commute Patterns 3. Long-Term Employment III. MARKET AREA MACRO TRENDS 1. Demographics A. Long-Term Projections B. City Comparison C. Population Trends D. Household Trends E. Income Trends RESIDENTIAL 2. Building Permits 3. Median Home Prices 4. RTA Ridership A. Forecasts B. Profiles IV. RENTAL APARTMENTS MARKET RATE 1. Historical Trends 2. Demand Projection 3. Future Development 4. Projected Supply vs. Demand 5. Current Inventory 6. Lease Rate Positioning Overall 7. Building Trades 8. Land Trades V. RENTAL APARTMENTS WORKFORCE 1. Historical Trends 2. Future Development 3. Projected Supply vs. Demand 4. Current Inventory 5. CTAC Maximum Rents PSOMAS June

3 The Concord Group VI. SMALL LOT FOR-SALE 1. Home Sale Heat Map 2. Home Sale Trends 3. Current Inventory 4. Price Positioning 5. Land Trades IX. LIGHT INDUSTRIAL ( MAKER S SPACE ) 1. Historical Trends 2. Food Hall Concept 3. Artist/Maker Space Concept COMMERCIAL VII. RETAIL 1. Historical Trends 2. Demand Projection 3. Future Development 4. Projected Supply vs Demand 5. Current Inventory 6. Pricing Recommendations 7. Building Trades 8. Land Trades VIII. OFFICE (SERVICE, PROFESSIONAL) 1. Historical Trends 2. Demand Projection 3. Future Development 4. Current Inventory 5. Lease Rate Positioning 6. Building Trades 7. Land Trades PSOMAS Page 2 June

4 I. EXECUTIVE SUMMARY The Concord Group 4

5 EXHIBIT I-1 MARKET AREA DELINEATION INLAND EMPIRE, CA JUNE 2017 The red outline represents the San Jacinto Valley, made up of Hemet, San Jacinto, East Hemet, and Valle Vista. The San Jacinto Valley represents the current geographic source of competitive supply. The blue outline represents the Secondary Market Area ("SMA), which stretches along I-215 from Moreno Valley in the north to Menifee in the south. The city of Hemet could follow a similar path of growth as Secondary Market Area cities (i.e. Perris) in the future. Together, the San Jacinto Valley and Secondary Market Area comprise the Combined Market Area (CMA). Inland Empire (Riverside & San Bernardino Counties) Secondary Market Area San Jacinto Valley Maps: RegLoc Page 1 of 2 The Concord Group 5

6 EXHIBIT I-1 MARKET AREA DELINEATION INLAND EMPIRE, CA JUNE 2017 Secondary Market Area San Jacinto Valley Maps: RegLoc Page 2 of 2 The Concord Group 6

7 EXHIBIT I-2 LOCAL SETTING HEMET,CA JUNE 2017 Key Green = Parks/Recreation Yellow = Major Education/Employment Hubs Blue = Retail Pink = Medical Orange = Transportation Walmart Shopping Center Soboba Casino 6.2 mi/14min California Water Storage Major Mobile Home Parks Hemet Stock Farm Riverside County Superior Court Riverside County Social Services Hemet Valley Mall Hemet Valley Hospital/ Medical Center Crossroad Shopping Center Hemet Unified School Distrct - 2,700 jobs Downtown Hemet - dining, shopping, various services Hemet Elementary and Acacia Middle School 74 West Florida Street TE Connectivity Ltd jobs Local Setting.xlsx:LS THE CONCORD GROUP 7

8 EXHIBIT I-3 AERIAL HEMET,CA JUNE 2017 Key N. State St Green = Parks/Recreation Yellow = Major Education/Employment Hubs Blue = Retail Pink = Medical Orange = Transportation State St 13,356 Traffic Ct. Major Employment Hub - Riverside County Superior Court Riverside Assessor's Office San Jacinto Valley Cementary County-owned land Riverside County Social Services Hemet Stock Farm Buena Vista/ Date St 4,950 Traffic Ct. Hemet Adult School Subject Site Devonshire/Harvard 4,625 Traffic Ct Jacob Wiens Elementary School Hemet Public Library and Police E. Florida Ave Downtown Corridor - Bars, Lounge, City Hall, Retail Major Commercial Corridor - Restaurants, Banks, Convenience Stores Walmart Neighborhood Market Local Setting.xlsx:Aerial THE CONCORD GROUP 8

9 EXHIBIT I-4 PARCEL MAP HEMET MOBILITY HUB JUNE 2017 E. Oakland Ave. Site Rail Line N. State St. Buena Vista St. Meier St. N. Harvard St. Devonshire Ave MktEval.xlsx: Site Plan The Concord Group 9

10 EXHIBIT I-5 METHODOLOGY OVERVIEW HEMET, CA JUNE 2017 Project Area Evaluation Market Analysis Lessons Learned from Analogue Projects Physical Walk- Throughs Site-Specific Data Review Prior Reports Demand Conditions Supply Trends Local Regional Evaluate strategic positioning of site in regional context Determine depth of demand for land uses under consideration Identify opportunites and challenges Analyze parcel constraints and suitability for land uses under consideration Project capture of future regional demand Utilize lessons learned to inform development program Preliminary Development Scenario Financial Analysis Recommended Strategic Plan Feedback from Client MktEval: Methodology Overview The Concord Group 10

11 EXHIBIT I-6A TCG MARKETABILITY ASSESMENT - MACRO MARKET ASSESMENT MOBILITY HUB, HEMET, CA JUNE 2017 Category Riverside County Combined MA Hemet Demand Drivers/Demographics: Total employment growth of 21.5% Total employment growth of 32% Total employment growth of 32% since 2011, with projected total growth projected from 2020 to 2035 resulting projected from 2020 to 2035, resulting at 19.7% by 2041 in Inland Empire in addition of nearly 15,500 jobs in addition of nearly 12,700 jobs. Total employment has surpassed 2006 peak, and is projected to grow 6% by 2021 and increase at a more moderate pace thereafter Annual population growth of 1.2% Annual population growth of 1.2%, Annual population growth of 1.1%, over the next 5 years, with median in-line with Riverside county and in line with SJV but slightly below income growth at 1.3% slightly above Hemet's growth growth of CMA and Riverside County Strong growth of 65+ population Strong growth of 65+ population with Strongest growth of population with total 5-year growth of 15% total 5-year growth of 13% in the market, projected at 8% over the next 5 years Residential Market: Recovering building permit activity, New home sales volume has increased Increase in building permit volume with post-recession peak volume in 2016 over 15% per year since 2011 in the last 4 years 5+ Unit MF building permit shares New home price growth of 10%+ per New home prices in Hemet jumped have increased over last 5 years, year since % in 2016 (although limited volume) averaging over 20% vs. 10% since 2000 General apt. occupancy rates remian General apt. occupancy rates strong at strong at 95%. Workforce housing 96% with workforce occupancy occupancy at 97% rates at 97% in SJV Commercial Market: - See Combined MA and Hemet - Net absorption of retail has been trending Post-recession peak net absorption of upward, with peak deliveries of over retail of 190,000 sf in 2016, with 5-year 300,000 sf in 2016 and YTD 2017 average of 56,000 sf in SJV Retail occupancy stabilized at 92%, Retail occupancy rates strong at peak occupancy since pre-recession 93%, near pre-recession levels Limited delivery or absorption of office Limited delivery or absorption of office space in market in recent years space in market in recent years Office occupancy rate strong at 93%, Office occupancy rates in SJV at 90%, above Inland Empire rate of 91% in-line with Inland Empire rates MktEval: Macro Assess 6/7/2017 The Concord Group 11

12 EXHIBIT I-6B LAND USE ASSESSMENT MOBILITY HUB, HEMET, CA JUNE 2017 Potential Uses Residential Commercial Market-Rate Rental Workforce Gen./Senior Rental Detached For-Sale Retail Office Community Space Concept 3 Story Walk-Up 3 Story Walk-Up 2-3 Story Small Lot Storefront/Restaurant Boutique/Professional Artist/Maker Space, Food Hall Density/FAR 30 Du/Ac 35 Du/Ac 10 Du/Ac 0.3 FAR 0.3 FAR 0.3 FAR Site Potential Moderate Strong Weak Strong Moderate Strong Strength/ City of Hemet has highest Market projected to be Home prices in Hemet Improving market with lease Improving economy with Given Riverside's county Opportunities % rentership in region at 44% extremely under-supplied have grown 42% in past year rates up last 2 years and 21.5% total growth since 2016 lack of food hall concepts, through 2022 occupancy rates staying with 6.0% projected growth site would have potential Strong rent growth y/y from Resale home prices has strong at 93%. in 2021 for Inland Empire to attract younger residences 1Q16 and 1Q17 by 5.2% in Strong occupancy rates seen positive growth students, and families SJV, and 7.0% in Combined MA at peak levels of 97% YTD with annual average of 10% Strong demand for additional Office lease rates has seen in past 5 years square footage totaling steady growth since 2013, Food Halls typically achieve Occupancy has been trending No current projects in 68,000 annually over the and grown 4% from 1Q16 higher rent premiums than upwards since 2010 to 96% pipeline, site would be newest Site is surrounded by more next 5 years to 1Q17 traditional restaurant retail, mature residential housing, but are much more compact No new net deliveries in past project would be newest Significant amount of Office would provide 7 years, existing product are Value-oriented product construction within total spending outflow that higher-wage employment Artist/Maker space will older construction in high demand would Downtown core can be captured with new opportunities in Hemet compliment well with fill significant need for retail on site already existing art spaces in Transit access to attract employees SJV and Combined MA Downtown Hemet who work in different regions but live in Hemet for Community space concept lifestyle and value will serve as incubator for new business start ups and integrate Transit and retail adjacencies prem. arts and culture within the city Weaknesses/ Rent rates have lower annual Market rents in SJV relatively Home prices in Downtown Lease rates in SJV are at a No lease rate growth since Food hall concepts require Threats growth in SJV at 3.9% low, capture of target Hemet are the lowest discount to retail in Menifee, pre-recession unique experiences with vs. Combined MA at 4.4% residents could be reduced within the region Perris, and Moreno Valley local indie vendors which may over past 5 yrs Negative net absorption be difficult to attract Requires incentives or other New permit activity may Downtown Hemet lease rates in both the Combined MA No new net deliveries in past financial support for private outstrip demand are at a discount among other and SJV in 2016 Older demographic segments 7 years in SJV, but 400-unit investment regions in Hemet and San not target market. May mixed use project proposed at Jacinto Downtown lease rates are prove difficult to attract unique Hemet Stock Farm site generally lower among local indie vendors Considerable amount of the region proposed projects in pipeline Planning Residential best suited in parcels C and D closest to Buena Vista St. Location abutting existing Position retail in close Office potentially best Community spaces in a plaza Consideration Each parcel approximately 4 acres, which provides ample room for SFD, serving as a buffer proximity to transit station located above retail in a configuration, ideally in a mixed residential density to higher density residential or close to Downtown later phase use setting for activation and commercial uses as possible Community space to be phased later in the development Conclusion Older rental stock with few There is a high demand for Low home values in Site visibility and proximity Considerable risk due to rent Food hall concepts are relatively additions during current workforce and senior housing. Downtown Hemet, but to Downtown a natural fit negative net absorption in unique, and therefore would housing cycle creates demand Significant benefit with strong growth in surrounding for retail. Retail projected past year, with lease rates help catalyze additional for new rental housing, although the community, despite areas of SJV. Weak site to have ridership uplift from growing at a very slow pace private investment rents likely to constrain moderate economic value potential for SFD homes completed plan since pre-recession highs economic feasibility currently MktEval.xlsx: Use Assess The Concord Group 12

13 EXHIBIT I-7A SITE POTENTIAL - PRODUCT VALUES AND ABSORPTION POTENTIAL MOBILITY HUB, HEMET, CA JUNE 2017 Site Overview: Mixed-use, transit-oriented development of approximately 14.8 AC, comprised of 5 city-owned parcels Located just north of Downtown Hemet, on a block with the following boundaries: North State Street (West), East Oakland Avenue (North), Buena Vista Street (East), and Devonshire Avenue (South). Scale Average Absorption Product/ Bldg. Du/ Average Rent Site Annual Duration Building Type Elev. AC Size FAR $ $/sf Total Site Mkt. (1) Share (Years) Acres Residential - Rental Min Apartments - Mkt. Rate Units Walk-Up 3-stories , $1,440 $ % (tuck-under) Apartments - WF - General Occ. Walk-Up 3-stories $914 $ Apartments - WF - Senior Walk-Up 3-stories $914 $ Residential - For Sale Small Lot Avg. Sale Price Units 10 du/ac 2-3 stories , $268,000 $ % Commercial Max Retail (Mixed Use) NNN Rent SF Casual Restaurant Ground $ ,000 10,000 68,000 15% Service-Oriented Ground $ ,000 10,000 68,000 15% Office (Mixed Use) Professional Above Ret $ ,000 12,000 16,000 75% Medical Above Ret $ ,000 12,000 16,000 75% Community Space Green Space/Arts/Kitchen Hall NNN Rent SF Leaseable Ground $ ,000 6, Park/ Garden Ground (1) 5% vacancy loss assumed for rental uses MktEval.xlsx: Menu1+2 The Concord Group 13

14 EXHIBIT I-7B SITE POTENTIAL - PARKING REQUIREMENTS MOBILITY HUB, HEMET, CA JUNE 2017 Parking Surface Area Product/ Bldg. Spaces Parking SF per Total Total Building Type Elev. Acres Per Unit Ratio Spaces Unit SF AC Acres Residential - Rental Apartments - Mkt Rate Walk-Up 3-stories , (60 tuck, 96 open) Apartments - WF - General Occ. Walk-Up 3-stories , Apartments - WF - Senior Walk-Up 3-stories , Residential - For Sale Small Lot (1) 10 du/ac 2-3 stories Commercial Retail (Mixed Use) Casual Restaurant Ground :1, , Service-Oriented Ground :1, , Office (Mixed Use) Professional Above Ret :1, , Medical Above Ret :1, , Community Space Green Space/Arts/Kitchen Hall Leaseable Ground :1, , Park/ Garden/ Plaza Ground (1) Small Lot assumed to have tuck under parking MktEval.xlsx: Parking The Concord Group 14

15 MACRO DRIVERS The Concord Group 15

16 II. INLAND EMPIRE DEMAND DRIVERS The Concord Group 16

17 EXHIBIT II-1 MARKET AREA DELINEATION INLAND EMPIRE, CA JUNE 2017 The red outline represents the San Jacinto Valley, made up of Hemet, San Jacinto, East Hemet, and Valle Vista. The San Jacinto Valley represents the current geographic source of competitive supply. The blue outline represents the Secondary Market Area ("SMA), which stretches along I-215 from Moreno Valley in the north to Menifee in the south. The city of Hemet could follow a similar path of growth as Secondary Market Area cities (i.e. Perris) in the future. Together, the San Jacinto Valley and Secondary Market Area comprise the Combined Market Area (CMA). Inland Empire (Riverside & San Bernardino Counties) Secondary Market Area San Jacinto Valley Maps: RegLoc Page 1 of 2 The Concord Group 17

18 EXHIBIT II-1 MARKET AREA DELINEATION INLAND EMPIRE, CA JUNE 2017 Secondary Market Area San Jacinto Valley Maps: RegLoc Page 2 of 2 The Concord Group 18

19 EXHIBIT II-2 COMMUTE PATTERNS COMBINED MARKET AREA 2002 AND 2014 Living In Market Area - Employed In Market Area - Employed in Market Area, Location of Home Location of Work Location of Home Metric Num. Share Num. Share v Num. Share Num. Share v Distance of Commute <10 miles 36,309 30% 41,683 25% 15% 28,594 51% 33,702 43% 18% miles 30,755 25% 44,039 26% 43% 13,549 24% 21,590 27% 59% miles 29,821 24% 41,236 25% 38% 7,257 13% 11,343 14% 56% >50 miles 25,170 21% 40,441 24% 61% 6,126 11% 11,935 15% 95% Total 122, ,399 37% 55,526 78,570 42% Jobs/Labor Ratio Jobs 55,526 78,570 42% Employed Labor 122, ,399 37% Jobs/Labor % Place of Origin/ Destination - Top 30 (Home) Riverside city, CA 15,519 13% 16,846 10% 9% 3,585 6% 3,945 5% 10% Moreno Valley city, CA 7,121 6% 10,520 6% 48% 8,422 15% 10,175 13% 21% Hemet city, CA 9,391 8% 8,917 5% -5% 6,335 11% 6,680 9% 5% Los Angeles city, CA 4,717 4% 7,166 4% 52% 1,117 2% 1,782 2% 60% Temecula city, CA 4,941 4% 6,603 4% 34% 1,089 2% 1,633 2% 50% Perris city, CA 4,544 4% 6,192 4% 36% 2,512 5% 4,104 5% 63% San Bernardino city, CA 3,579 3% 5,366 3% 50% 861 2% 1,008 1% 17% Living in Market Area, Location of Work San Diego city, CA 4,067 3% 4,864 3% 20% 634 1% 989 1% 56% Menifee city, CA 2,350 2% 3,819 2% 63% 2,140 4% 4,300 5% 101% Corona city, CA 2,717 2% 3,296 2% 21% 474 1% 678 1% 43% San Jacinto city, CA 2,897 2% 3,222 2% 11% 2,944 5% 4,010 5% 36% Ontario city, CA 2,201 2% 3,130 2% 42% 307 1% 406 1% 32% Murrieta city, CA 1,330 1% 3,078 2% 131% 1,022 2% 2,115 3% 107% Anaheim city, CA 1,971 2% 2,454 1% 25% 286 1% 508 1% 78% Irvine city, CA 1,551 1% 2,409 1% 55% 95 0% 167 0% 76% Rancho Cucamonga city, CA 1,338 1% 2,226 1% 66% 261 0% 430 1% 65% Santa Ana city, CA 1,517 1% 2,031 1% 34% 219 0% 343 0% 57% Jurupa Valley city, CA 1,536 1% 1,996 1% 30% 548 1% 911 1% 66% Fontana city, CA 1,553 1% 1,977 1% 27% 453 1% 661 1% 46% Redlands city, CA 1,078 1% 1,786 1% 66% 466 1% 554 1% 19% Lake Elsinore city, CA 913 1% 1,623 1% 78% 431 1% 945 1% 119% Orange city, CA 947 1% 1,438 1% 52% 126 0% 159 0% 26% Loma Linda city, CA 671 1% 1,269 1% 89% 106 0% 146 0% 38% Colton city, CA 816 1% 1,259 1% 54% 263 0% 327 0% 24% Long Beach city, CA 906 1% 1,078 1% 19% 236 0% 336 0% 42% Other 41,884 34% 62,834 38% 50% 20,594 37% 31,258 40% 52% Total 122, % 167, % 37% 55, % 78, % 42% Within CMA Cities 27,839 23% 34,666 21% 25% 25,575 46% 37,242 47% 46% Source: On The Map (US Census) Commute: Commute The Concord Group 19

20 EXHIBIT II-3 LONG TERM EMPLOYMENT PROJECTIONS - BY INDUSTRY INLAND EMPIRE 1991 THROUGH Yr Growth % MSA Employment Total Shift Share Historical Forecast Annual '15-' Employment Industry '90-'15 '15-'40 '90-'15 % # Nominal % Primarily Office Government % 0.9% 55% 26% 63 17% 17% 18% 18% 1% 4% Education & Health Services % 1.4% 173% 41% 87 15% 16% 17% 18% 2% 16% Professional & Business Services % 1.4% 133% 41% 60 10% 11% 11% 12% 2% 16% Financial Activities % 2.2% 33% 72% 33 3% 3% 4% 5% 1% 42% Information % -0.1% -16% -4% 0 1% 1% 1% 1% 0% -21% Subtotal (000s) % 1.3% 91% 37% % 48% 49% 51% 4% 8% 5-Year Change % Change 8.7% 24.8% 22.3% -0.3% 15.4% 7.5% 7.6% 6.1% 5.8% 5.4% Primarily Non-Office Retail Trade % -0.3% 75% -8% % 12% 11% 10% -3% -24% Leisure & Hospitality % 1.2% 110% 36% 57 11% 12% 12% 13% 1% 12% Transportation, Warehousing & Utiliti % 0.0% 278% -1% -1 7% 7% 7% 6% -1% -18% Manufacturing % -1.0% 25% -23% -23 7% 6% 5% 4% -3% -37% Construction % 1.2% 96% 36% 33 7% 7% 7% 7% 1% 12% Wholesale Trade % 0.1% 157% 2% 1 4% 4% 4% 4% -1% -16% Other Services (except Public Admin.) % 0.3% 76% 7% 3 3% 3% 3% 3% 0% -12% Natural Resources & Mining % -0.7% -39% -15% 0 0% 0% 0% 0% 0% -30% Subtotal (000s) % 0.3% 94% 8% 57 53% 52% 51% 49% -4% -7% Total Non-Farm (000s) ,038 1,286 1,154 1,403 1,488 1,549 1,595 1,643 1, % 0.8% 92% 21% % 100% 100% 100% 5-Year Change % Change 11.3% 27.8% 23.8% -10.2% 21.5% 6.0% 4.1% 3.0% 3.0% 3.6% 2,000 Historical Total Employment Forecast Employment Growth 19% 1,500 Employment (000) 1, Primarily Office 81% Primarily Non-Office Notes: All employment figures represent year end Source: Moody's Economy.com Employment_Off Demand.xlsxBy Ind the concord group

21 III. MARKET AREA MACRO TRENDS The Concord Group 21

22 EXHIBIT III-1A DEMOGRAPHICS - LONG-TERM PROJECTIONS RTA SERVICE AREA Population Employment Jobs per Resident Growth Growth Growth Jurisdiction # % # % # % CMA Cities Hemet 83, ,300 26,700 32% 39,800 52,500 12,700 32% % San Jacinto 50,400 99,100 48,700 97% 8,100 10,900 2,800 35% % Subtotal 134, ,400 75,400 56% 47,900 63,400 15,500 32% % % Total 6% 8% 12% --- 6% 6% 6% --- SMA Cities Menifee 93, ,400 26,100 28% 10,500 12,600 2,100 20% % Moreno Valley 214, ,200 40,700 19% 48,100 64,400 16,300 34% % Perris 82, ,000 31,900 39% 21,800 26,700 4,900 22% % Subtotal 389, ,600 98,700 25% 80, ,700 23,300 29% % % Total 18% 18% 16% % 10% 9% --- Other RTA Area Cities Banning 42,200 61,900 19,700 47% 11,300 15,900 4,600 41% % Beaumont 56,400 79,400 23,000 41% 8,600 13,400 4,800 56% % Calimesa 14,900 25,800 10,900 73% 2,800 4,300 1,500 54% % Canyon Lake 11,100 11, % 1,300 1, % % Corona 155, ,600 9,300 6% 88, ,000 16,700 19% % Eastvale 61,600 68,300 6,700 11% 5,500 10,100 4,600 84% % Jurupa Valley 103, ,000 22,700 22% 34,300 53,500 19,200 56% % Lake Elsinore 70,600 93,800 23,200 33% 15,000 20,100 5,100 34% % Murrieta 109, ,100 12,000 11% 50,000 86,500 36,500 73% % Norco 30,300 32,700 2,400 8% 17,100 21,600 4,500 26% % Riverside 338, ,700 44,000 13% 198, ,800 19,800 10% % Temecula 110, ,900 8,800 8% 59,700 72,800 13,100 22% % Wildomar 42,000 53,700 11,700 28% 5,900 9,300 3,400 58% % Unincorporated 470, , ,000 51% 124, ,200 79,200 64% % Other RTA Area 1,616,200 2,051, ,000 27% 621, , ,100 34% % % Total 76% 75% 71% % 83% 85% --- Total 2,140,100 2,749, ,100 28% 750,100 1,002, ,900 34% % Source: SCAG RTP RTA Exhibs: Trends New The Concord Group 22

23 Geography: San Jacinto Valley EXHIBIT III-1B DEMOGRAPHICS - MARKET AREA COMPARISON RIVERSIDE COUNTY 2011 THROUGH 2022 Combined Market Area Secondary Market Area Hemet San Jacinto Rem. SJV San Jacinto Valley Perris Menifee Moreno Valley Rem. SMA % SJ % SJ % SJ % % % % % Num. Valley Num. Valley Num. Valley Num. CMA Num. SMA Num. SMA Num. SMA Num. SMA Secondary Market Area % Num. CMA Combined Market Area % Riv Num. County Population ,657 51% 44,199 29% 31,996 21% 154,852 30% 68,386 13% 77,519 15% 193,365 38% 175,395 34% 359,813 70% 514,665 24% 2,189, ,039 52% 48,317 29% 32,663 20% 167,019 30% 77,454 14% 90,063 16% 209,826 37% 186,555 33% 396,879 70% 563,898 24% 2,398,108 Gr./ Yr. 1.5% % % % 2.1% % % % % % % ,830 51% 51,794 29% 33,777 19% 176,401 29% 83,154 14% 97,824 16% 221,742 37% 196,676 33% 422,995 71% 599,396 24% 2,541,180 Gr./ Yr. 1.1% % % % 1.4% % % % % % % Households ,817 55% 13,287 25% 10,847 20% 53,951 35% 16,295 10% 27,472 18% 51,666 33% 60,199 39% 101,681 65% 155,632 23% 686, ,214 56% 14,111 25% 11,072 19% 57,397 34% 17,953 11% 30,744 18% 55,393 33% 63,225 38% 109,918 66% 167,315 23% 741,636 Gr./ Yr. 1.3% % % % 1.6% % % % % % % ,837 56% 15,034 25% 11,460 19% 60,331 34% 19,132 11% 32,998 19% 58,394 33% 66,341 38% 116,534 66% 176,865 23% 783,116 Gr./ Yr. 1.0% % % % 1.3% % % % % % % Avg. HH Size Renters ('16) 44% % % % % % % % % % % vs. SJ vs. SJ vs. SJ vs. vs. vs. vs. vs. vs. Median Income Valley Valley Valley CMA SMA SMA SMA SMA CMA 2011 $27,372-8% $29,836 0% $36,982 24% $29,911-20% $35,719-4% $36,327-2% $47,515 28% $29,144-22% $42,169 13% $37,199-15% $43, $35,320-10% $46,217 18% $42,132 7% $39,313-21% $51,236 3% $59,502 20% $56,809 15% $37,782-24% $56,177 13% $49,516-17% $59,705 Gr./ Yr. 4.3% % % % % % % % % % % 2022 $37,468-10% $48,421 17% $44,236 7% $41,483-22% $54,505 3% $63,720 21% $60,107 14% $40,589-23% $59,724 13% $52,854-17% $63,703 Gr./ Yr. 1.2% % % % % % % % % % % Income Profile 2017 Over $50K 10,734 48% 6,537 29% 4,907 22% 22,178 27% 9,187 11% 17,697 21% 30,834 37% 25,098 30% 60,638 73% 82,816 20% 421,608 Over $75K 5,831 47% 3,635 29% 3,029 24% 12,495 25% 4,929 10% 11,580 23% 19,314 39% 14,325 29% 37,653 75% 50,148 17% 290,769 Over $100K 3,117 45% 2,019 29% 1,805 26% 6,941 24% 2,442 8% 6,902 24% 11,447 40% 8,019 28% 21,869 76% 28,810 15% 194, Over $50K 12,173 49% 7,291 29% 5,302 21% 24,766 27% 10,377 11% 19,984 22% 34,036 37% 27,939 30% 67,570 73% 92,336 20% 464,976 Gr./Yr. (#) % % 79 15% % % % % % 1,386 73% 1,904 22% 8,674 Gr./Yr. (%) 2.5% % % % % % % % % % % Over $75K 6,857 47% 4,231 29% 3,403 23% 14,491 25% 5,876 10% 13,634 23% 22,066 38% 16,568 28% 43,653 75% 58,144 18% 331,034 Over $100K 3,888 46% 2,437 29% 2,126 25% 8,451 24% 3,132 9% 8,750 25% 13,702 39% 9,737 28% 26,870 76% 35,321 15% 230,109 Riverside County Num. Source: Claritas, American Fact Finder Demos:DemoCL THE CONCORD GROUP 23

24 EXHIBIT III-1C DEMOGRAPHICS - POPULATION TRENDS RIVERSIDE COUNTY 2017 THROUGH 2022 Hemet Combined Market Area Riverside County Age Yr Change Yr Change Yr Change Range Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % 0-4 5,838 7% 6,274 7% 436 7% 41,783 7% 44,207 7% 2,424 6% 162,154 7% 170,792 7% 8,638 5% 5-9 5,960 7% 6,026 7% 66 1% 42,898 8% 43,093 7% 195 0% 167,595 7% 167,384 7% % ,025 7% 6,238 7% 213 4% 44,397 8% 44,122 7% % 176,693 7% 173,424 7% -3,269-2% ,518 4% 3,861 4% % 27,714 5% 28,402 5% 688 2% 111,033 5% 114,386 5% 3,353 3% ,217 4% 3,489 4% 272 8% 25,090 4% 26,068 4% 978 4% 107,035 4% 110,885 4% 3,850 4% ,449 5% 4,651 5% 202 5% 33,691 6% 35,892 6% 2,201 7% 141,701 6% 148,851 6% 7,150 5% ,600 12% 11,438 13% 838 8% 80,099 14% 85,909 14% 5,810 7% 326,856 14% 353,113 14% 26,257 8% ,508 11% 10,449 12% % 71,663 13% 77,756 13% 6,093 9% 303,793 13% 320,418 13% 16,625 5% ,932 10% 9,277 10% 345 4% 66,275 12% 69,138 12% 2,863 4% 304,474 13% 307,642 12% 3,168 1% ,720 10% 9,046 10% 326 4% 57,205 10% 62,116 10% 4,911 9% 268,077 11% 294,807 12% 26,730 10% ,681 10% 8,904 10% 223 3% 39,469 7% 44,976 8% 5,507 14% 187,069 8% 216,320 9% 29,251 16% ,863 8% 7,323 8% 460 7% 23,618 4% 27,050 5% 3,432 15% 102,107 4% 120,325 5% 18,218 18% 85+ 3,728 4% 3,854 4% 126 3% 9,996 2% 10,667 2% 671 7% 39,521 2% 42,833 2% 3,312 8% Total 86,039 90,830 4,791 6% 563, ,396 35,498 6% 2,398,108 2,541, ,072 6% Youth (0-17) 21,341 25% 22,399 25% 1,058 5% 156,792 28% 159,824 27% 3,032 2% 617,475 26% 625,986 25% 8,511 1% Senior (65+) 19,272 22% 20,081 22% 809 4% 73,083 13% 82,693 14% 9,610 13% 328,697 14% 379,478 15% 50,781 15% 16% Population Age Distribution % 12% 10% 8% 6% 4% 2% 0% Hemet Combined Market Area Riverside County Source: Claritas Senior Aff Demos: Pop The Concord Group 24

25 EXHIBIT III-1D DEMOGRAPHICS - HOUSEHOLD TRENDS RIVERSIDE COUNTY 2017 THROUGH 2022 Hemet Combined Market Area Riverside County Yr Change Yr Change Yr Change Geography: Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Households by Age Range Age of Householder (1) ,080 3% 1,170 3% 90 8% 5,478 3% 5,661 3% 183 3% 23,607 3% 23,964 3% 357 2% ,313 13% 4,557 13% 244 6% 26,769 16% 27,842 16% 1,073 4% 107,584 15% 112,280 14% 4,696 4% ,764 15% 5,247 16% % 32,363 19% 34,348 19% 1,985 6% 136,465 18% 141,191 18% 4,726 3% ,533 14% 4,683 14% 150 3% 31,877 19% 32,481 18% 604 2% 148,647 20% 146,975 19% -1,672-1% ,791 15% 4,901 14% 110 2% 28,828 17% 30,362 17% 1,534 5% 137,558 19% 147,392 19% 9,834 7% ,391 17% 5,504 16% 113 2% 21,404 13% 23,614 13% 2,210 10% 102,580 14% 115,709 15% 13,129 13% ,605 14% 4,918 15% 313 7% 14,132 8% 15,737 9% 1,605 11% 60,891 8% 69,620 9% 8,729 14% 85+ 2,737 8% 2,857 8% 120 4% 6,464 4% 6,820 4% 356 6% 24,304 3% 25,985 3% 1,681 7% Total 32,214 33,837 1, , ,865 9, , ,116 41,480 Age ,733 40% 13,279 39% 546 4% 42,000 25% 46,171 26% 4,171 10% 187,775 25% 211,314 27% 23,539 13% Household Size Age % Rent by Age (2) % 74% 81% % 54% 58% % 45% 44% % 33% 31% % 29% 25% % 23% 21% % 19% 18% % 24% 25% Age % 22% 21% Renters by Age % 1,030 7% 79 8% 4,061 7% 4,196 7% 136 3% 19,143 7% 19,432 7% 289 2% ,837 20% 2,998 20% 160 6% 14,461 24% 15,040 23% 580 4% 62,379 24% 65,102 24% 2,723 4% ,833 20% 3,121 21% % 14,548 24% 15,441 24% 892 6% 59,657 23% 61,723 23% 2,066 3% ,151 15% 2,222 15% 71 3% 10,651 17% 10,853 17% 202 2% 46,430 18% 45,908 17% % ,838 13% 1,880 13% 42 2% 8,276 14% 8,716 14% 440 5% 34,332 13% 36,786 14% 2,454 7% ,678 12% 1,714 12% 35 2% 4,999 8% 5,515 9% % 21,720 8% 24,500 9% 2,780 13% ,035 7% 1,105 7% 70 7% 2,626 4% 2,925 5% % 10,847 4% 12,401 5% 1,555 14% % 797 5% 33 4% 1,584 3% 1,671 3% 87 6% 6,033 2% 6,451 2% 417 7% Total 14,086 14, ,205 64,357 3, , ,302 11,763 % Rent 44% 44% 37% 36% 35% 35% Age 65+ 3,477 25% 3,616 24% 139 4% 9,208 15% 10,110 16% % 38,600 15% 43,352 16% 4,752 12% Rentership Rate Overall 44% 37% 35% Seniors (Age 65+) 27% 22% 21% Seniors Overall 62% Seniors rentership divided by Overall 60% Seniors rentership divided by Overall 59% Seniors rentership divided by Overall Source: (1) Claritas (2) American Factfinder (US Census) American Community Survey, 5-Year Estimates Senior Aff Demos: HH Page 1 of 2 The Concord Group 25

26 EXHIBIT III-1D DEMOGRAPHICS - HOUSEHOLD TRENDS RIVERSIDE COUNTY 2017 THROUGH 2022 Hemet Combined Market Area Riverside County Yr Change Yr Change Yr Change Geography: Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Households by Household Size Household Size (1) 1-Person 9,622 30% 10,074 30% 452 5% 31,013 19% 32,623 18% 1,610 5% 142,841 19% 150,794 19% 7,953 6% 2-Person 10,034 31% 10,469 31% 435 4% 41,582 25% 43,602 25% 2,020 5% 203,765 27% 213,274 27% 9,509 5% 3-Person 4,147 13% 4,402 13% 255 6% 25,572 15% 27,130 15% 1,558 6% 115,451 16% 122,530 16% 7,079 6% 4-Person 3,577 11% 3,745 11% 168 5% 25,824 15% 27,197 15% 1,373 5% 114,078 15% 119,810 15% 5,732 5% 5-Person 2,447 8% 2,575 8% 128 5% 19,770 12% 20,922 12% 1,152 6% 79,090 11% 83,727 11% 4,637 6% 6-Person 1,248 4% 1,338 4% 90 7% 11,653 7% 12,510 7% 857 7% 43,714 6% 46,987 6% 3,273 7% 7+ Person 1,139 4% 1,234 4% 95 8% 11,901 7% 12,881 7% 980 8% 42,697 6% 45,994 6% 3,297 8% Total 32,214 33,837 1, , ,865 9, , ,116 41,480 % Rent by Household Size (2) 1-Person 42% 36% 41% 2-Person 34% 30% 27% 3-Person 53% 39% 37% 4-Person 55% 39% 36% 5-Person 48% 39% 38% 6-Person 48% 40% 39% 7+ Person 59% 47% 41% Renters by Household Size 1-Person 4,026 29% 4,215 28% 189 5% 11,313 18% 11,900 18% 587 5% 57,985 22% 61,213 22% 3,228 6% 2-Person 3,453 25% 3,603 24% 150 4% 12,348 20% 12,948 20% 600 5% 55,814 21% 58,419 21% 2,605 5% 3-Person 2,194 16% 2,329 16% 135 6% 9,955 16% 10,561 16% 606 6% 42,999 16% 45,636 16% 2,637 6% 4-Person 1,966 14% 2,058 14% 92 5% 9,984 16% 10,515 16% 531 5% 41,067 16% 43,130 16% 2,063 5% 5-Person 1,169 8% 1,231 8% 61 5% 7,785 13% 8,238 13% 454 6% 30,199 12% 31,970 12% 1,771 6% 6-Person 597 4% 641 4% 43 7% 4,670 8% 5,014 8% 343 7% 16,863 6% 18,126 7% 1,263 7% 7+ Person 677 5% 733 5% 56 8% 5,538 9% 5,994 9% 456 8% 17,601 7% 18,960 7% 1,359 8% Total 14,083 14, ,592 65,170 3, , ,454 14,925 % Rent 44% 44% 45% 37% 37% 37% 35% 35% 36% Source: (1) Claritas (2) American Factfinder (US Census) American Community Survey, 5-Year Estimates Senior Aff Demos: HH Page 2 of 2 The Concord Group 26

27 EXHIBIT III-1E DEMOGRAPHICS - INCOME TRENDS - OVERALL RIVERSIDE COUNTY 2017 THROUGH 2022 Hemet Combined Market Area Riverside County Yr Change Yr Change Yr Change Geography: Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Median Income (1) $35,320 $37,468 $2,148 6% $49,516 $52,854 $3,338 7% $59,705 $63,703 $3,998 7% Households by Income (1) Under $15K 5,829 18% 5,650 17% (179) -3% 20,211 12% 19,686 11% (525) -3% 75,937 10% 73,567 9% (2,370) -3% $15-25K 5,779 18% 5,741 17% (38) -1% 19,719 12% 19,468 11% (251) -1% 74,516 10% 73,189 9% (1,327) -2% $25-35K 4,382 14% 4,593 14% 211 5% 18,475 11% 18,762 11% 287 2% 70,769 10% 70,889 9% 120 0% $35-50K 5,490 17% 5,680 17% 190 3% 26,094 16% 26,613 15% 519 2% 98,806 13% 100,495 13% 1,689 2% $50-75K 4,903 15% 5,316 16% 413 8% 32,668 20% 34,192 19% 1,524 5% 130,839 18% 133,942 17% 3,103 2% $75-100K 2,714 8% 2,969 9% 255 9% 21,338 13% 22,823 13% 1,485 7% 95,964 13% 100,925 13% 4,961 5% Over $100K 3,117 10% 3,888 11% % 28,810 17% 35,321 20% 6,511 23% 194,805 26% 230,109 29% 35,304 18% Total 32,214 33,837 1, , ,865 9, , ,116 41,480 Households by Income (2) Under $10K 2,887 9,982 39,421 $10-15K 2,949 9,776 35,276 $15-25K 5,351 18,736 72,374 $25-35K 4,115 17,778 70,049 $35-50K 5,144 24,974 94,816 $50-75K 4,457 30, ,816 $75-100K 2,660 20,050 91,796 Over $100K 2,346 23, ,684 Total 29, , ,232 Households by Income (3) Under $10K 2,884 9% 2,795 8% (89) -3% 10,211 6% 9,946 6% (265) -3% 40,075 5% 38,825 5% (1,251) -3% $10-15K 2,945 9% 2,855 8% (90) -3% 10,000 6% 9,740 6% (260) -3% 35,862 5% 34,742 4% (1,119) -3% $15-25K 5,779 18% 5,741 17% (38) -1% 19,719 12% 19,468 11% (251) -1% 74,516 10% 73,189 9% (1,327) -2% $25-35K 4,382 14% 4,593 14% 211 5% 18,475 11% 18,762 11% 287 2% 70,769 10% 70,889 9% 120 0% $35-50K 5,490 17% 5,680 17% 190 3% 26,094 16% 26,613 15% 519 2% 98,806 13% 100,495 13% 1,689 2% $50-75K 4,903 15% 5,316 16% 413 8% 32,668 20% 34,192 19% 1,524 5% 130,839 18% 133,942 17% 3,103 2% $75-100K 2,714 8% 2,969 9% 255 9% 21,338 13% 22,823 13% 1,485 7% 95,964 13% 100,925 13% 4,961 5% Over $100K 3,117 10% 3,888 11% % 28,810 17% 35,321 20% 6,511 23% 194,805 26% 230,109 29% 35,304 18% Total 32,214 33,837 1, , ,865 9, , ,116 41,480 % Rent by Income (2) Under $10K 66% 62% 59% $10-15K 60% 59% 62% $15-25K 50% 50% 53% $25-35K 41% 42% 45% $35-50K 42% 38% 41% $50-75K 35% 31% 33% $75-100K 32% 24% 26% Over $100K 19% 18% 16% Renters by Income Under $10K 1,895 14% 1,837 13% (58) -3% 6,306 10% 6,143 10% (164) -3% 23,474 9% 22,742 9% (733) -3% $10-15K 1,757 13% 1,703 12% (54) -3% 5,916 10% 5,762 9% (154) -3% 22,107 9% 21,417 8% (690) -3% $15-25K 2,913 21% 2,894 20% (19) -1% 9,872 16% 9,746 16% (126) -1% 39,802 16% 39,093 15% (709) -2% $25-35K 1,785 13% 1,871 13% 86 5% 7,715 13% 7,835 13% 120 2% 31,854 12% 31,908 12% 54 0% $35-50K 2,305 17% 2,385 17% 80 3% 10,023 17% 10,223 16% 199 2% 40,343 16% 41,033 16% 690 2% $50-75K 1,713 12% 1,857 13% 144 8% 10,237 17% 10,714 17% 478 5% 43,097 17% 44,119 17% 1,022 2% $75-100K 864 6% 945 7% 81 9% 5,089 8% 5,443 9% 354 7% 24,630 10% 25,903 10% 1,273 5% Over $100K 593 4% 739 5% % 5,077 8% 6,225 10% 1,147 23% 31,206 12% 36,862 14% 5,655 18% Total 13,824 14, ,236 62,091 1, , ,077 6,563 % Rent 43% 42% 25% 36% 35% 19% 35% 34% 16% Source: (1) Claritas (2) American Factfinder (US Census) American Community Survey, 5-Year Estimates Senior Aff Demos: Income Page 1 of 2 The Concord Group 27

28 EXHIBIT III-1E DEMOGRAPHICS - INCOME TRENDS - SENIORS AGE 65+ RIVERSIDE COUNTY 2017 THROUGH 2022 Hemet Combined Market Area Riverside County Yr Change Yr Change Yr Change Geography: Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Num. Shr. Num. Shr. Num. % Median Income (1) $29,915 $31,156 $1,241 4% $36,712 $38,516 $1,804 5% $45,204 $48,731 $3,527 8% Households by Income (1) Under $15K 2,630 21% 2,574 19% (56) -2% 6,499 15% 6,617 14% 118 2% 25,685 14% 26,511 13% 826 3% $15-25K 2,872 23% 2,893 22% 21 1% 7,501 18% 7,797 17% 296 4% 27,608 15% 29,034 14% 1,426 5% $25-35K 2,131 17% 2,250 17% 119 6% 6,921 16% 7,417 16% 496 7% 23,480 13% 25,357 12% 1,877 8% $35-50K 2,272 18% 2,385 18% 113 5% 7,566 18% 8,289 18% % 29,396 16% 32,243 15% 2,847 10% $50-75K 1,572 12% 1,705 13% 133 8% 6,509 15% 7,326 16% % 30,127 16% 33,489 16% 3,362 11% $75-100K 535 4% 580 4% 45 8% 3,132 7% 3,577 8% % 17,025 9% 19,580 9% 2,555 15% Over $100K 721 6% 892 7% % 3,872 9% 5,148 11% 1,276 33% 34,454 18% 45,100 21% 10,646 31% Total 12,733 13, ,000 46,171 4, , ,314 23,539 Households by Income (4) Under $10K 1,301 10% 1,273 10% (28) -2% 3,283 8% 3,343 7% 60 2% 13,555 7% 13,991 7% 436 3% $10-15K 1,329 10% 1,301 10% (28) -2% 3,216 8% 3,274 7% 58 2% 12,130 6% 12,520 6% 390 3% $15-25K 2,872 23% 2,893 22% 21 1% 7,501 18% 7,797 17% 296 4% 27,608 15% 29,034 14% 1,426 5% $25-35K 2,131 17% 2,250 17% 119 6% 6,921 16% 7,417 16% 496 7% 23,480 13% 25,357 12% 1,877 8% $35-50K 2,272 18% 2,385 18% 113 5% 7,566 18% 8,289 18% % 29,396 16% 32,243 15% 2,847 10% $50-75K 1,572 12% 1,705 13% 133 8% 6,509 15% 7,326 16% % 30,127 16% 33,489 16% 3,362 11% $75-100K 535 4% 580 4% 45 8% 3,132 7% 3,577 8% % 17,025 9% 19,580 9% 2,555 15% Over $100K 721 6% 892 7% % 3,872 9% 5,148 11% 1,276 33% 34,454 18% 45,100 21% 10,646 31% Total 12,733 13, ,000 46,171 4, , ,314 23,539 % Rent by Income (5) Under $10K 38% 34% 31% $10-15K 34% 32% 33% $15-25K 28% 27% 28% $25-35K 22% 22% 23% $35-50K 23% 20% 21% $50-75K 19% 16% 16% $75-100K 17% 11% 12% Over $100K 9% 8% 6% Renters by Income Under $10K % % (11) -2% 1,117 13% 1,137 12% 20 2% 4,239 12% 4,376 11% 136 3% $10-15K % % (10) -2% 1,044 12% 1,063 11% 19 2% 4,012 11% 4,141 10% 129 3% $15-25K % % 6 1% 2,026 23% 2,106 22% 80 4% 7,801 21% 8,204 20% 403 5% $25-35K % % 27 6% 1,525 17% 1,634 17% 109 7% 5,480 15% 5,918 15% 438 8% $35-50K % % 26 5% 1,515 17% 1,660 17% % 6,141 17% 6,736 17% % $50-75K 296 9% % 25 8% 1,027 12% 1,156 12% % 4,903 13% 5,450 14% % $75-100K 90 3% 98 3% 8 8% 354 4% 404 4% 50 14% 2,046 6% 2,353 6% % Over $100K 64 2% 79 2% 15 24% 293 3% 389 4% 97 33% 2,196 6% 2,875 7% % Total 3,223 3, ,899 9, ,818 40,052 3,234 % Rent 25% 25% 16% 21% 21% 16% 20% 19% 14% Source: (1) Claritas (2) American Factfinder (US Census) American Community Survey, 5-Year Estimates (3) American Factfinder distribution applied to Claritas data (4) TCG utilized same distribution for "Under $10K" and "$10-15K" as overall distribution (5) TCG applied the ratio of senior rentership to overall rentership (see the ratio in a box [ ] on page 1), less 3% points, to the overall percent rent distribution Senior Aff Demos: Income Page 2 of 2 The Concord Group 28

29 Riverside County San Jacinto Valley 5+ Unit MF 5+ Unit MF Period Total Num. Shr. Total Num. Shr. Annual ,362 2,857 19% 2, % ,283 1,744 19% % , % % , % % , % % , % % , % % , % % ,527 1,796 14% % ,154 1,553 11% % ,025 1,553 10% % ,012 2,017 11% % ,255 1,038 5% % ,353 4,363 14% 1, % ,446 3,564 11% 1, % ,373 3,250 9% 3, % ,765 3,170 13% 1, % ,334 2,289 19% % ,763 1,849 32% % , % % , % % , % % , % % ,924 1,488 25% % ,761 1,541 23% % ,158 1,189 19% % , % % Annual Average 5-Yr 5,978 1,211 20% % 10-Yr 5,987 1,223 20% % 15-Yr 13,671 1,841 13% % 20-Yr 13,776 1,772 13% % 2016 vs. Peak (80%) (95%) 15-Yr (49%) (75%) Source: US Department of Housing and Urban Development 3,500 3,000 2,500 2,000 1,500 1, EXHIBIT III-2 BUILDING PERMITS RIVERSIDE COUNTY AND SAN JACINTO VALLEY 1990 THROUGH 2016 San Jacinto Valley Total Permits San Jacinto Valley (bar, left axis) Home Sale Trends:BP THE CONCORD GROUP 29

30 NEW HOME SALES EXHIBIT III-3 HOME SALE TRENDS - NEW SAN JACINTO VALLEY AND SECONDARY MARKET AREA 2000 THROUGH 2016 Annual Average Period: Yr 10-Yr 15-Yr New Volume (000s) San Jacinto Valley Gr/Yr (%) --- 9% -4% 7% -9% 97% 40% -59% -52% -33% -5% -39% -11% 76% -10% 9% 4% 10% -19% -8% Hemet Gr/Yr (%) % -13% 23% -30% 51% 39% -50% -42% -26% -22% -22% -18% 61% 22% -24% -31% -3% -20% -11% % SJV 64% 70% 63% 73% 56% 43% 43% 51% 63% 70% 57% 73% 68% 62% 84% 59% 39% San Jacinto Gr/Yr (%) % 15% -22% 49% 157% 41% -65% -63% -46% 36% -62% 5% 108% -63% 181% 54% 29% -19% -3% Secondary Market Area Gr/Yr (%) % 74% 27% 4% 17% -10% -42% -39% -30% -7% -50% 1% 17% 53% 26% 10% 20% -12% -2% Perris Gr/Yr (%) % 192% 132% 43% 53% -25% -35% -49% -18% 18% -80% 19% 15% 62% 53% -5% 26% -14% 6% Menifee Gr/Yr (%) % 36% -14% -20% 74% -13% -39% -39% -14% -12% -13% 2% 20% 27% 8% 4% 12% -8% -3% New Prices (000s) San Jacinto Valley $155 $167 $176 $209 $272 $349 $381 $347 $267 $218 $207 $198 $199 $225 $265 $276 $297 Gr/Yr (%) --- 7% 6% 19% 30% 28% 9% -9% -23% -18% -5% -4% 1% 13% 18% 4% 7% 8% -2% 4% Hemet $165 $174 $181 $214 $275 $358 $393 $348 $278 $220 $217 $209 $199 $231 $271 $279 $398 Gr/Yr (%) --- 5% 4% 18% 29% 30% 10% -11% -20% -21% -2% -3% -5% 16% 17% 3% 42% 14% 0% 6% San Jacinto $138 $150 $168 $196 $270 $342 $372 $347 $249 $212 $194 $166 $199 $216 $234 $272 $231 Gr/Yr (%) --- 9% 12% 17% 38% 27% 9% -7% -28% -15% -8% -14% 20% 8% 8% 16% -15% 7% -5% 3% Secondary Market Area $186 $200 $218 $256 $343 $396 $456 $397 $316 $257 $248 $235 $254 $310 $351 $376 $352 Gr/Yr (%) --- 8% 9% 17% 34% 16% 15% -13% -20% -19% -3% -6% 8% 22% 13% 7% -6% 8% -3% 4% SJV vs. SMA -17% -17% -19% -19% -21% -12% -16% -12% -16% -15% -17% -16% -22% -27% -25% -27% -16% Perris $138 $156 $188 $223 $292 $373 $441 $355 $282 $201 $197 $207 $214 $250 $307 $330 $368 Gr/Yr (%) % 20% 19% 31% 28% 19% -20% -21% -29% -2% 5% 4% 17% 23% 8% 12% 12% -2% 6% Menifee $192 $207 $230 $279 $361 $424 $442 $398 $330 $285 $273 $219 $259 $316 $349 $389 $395 Gr/Yr (%) --- 8% 11% 21% 29% 17% 4% -10% -17% -13% -4% -20% 18% 22% 10% 11% 1% 13% -1% 4% New Volume (000s) Home Volume (left axis) and Price (right axis) Home Volume - Hemet Home Volume - Rem. San Jacinto Valley Home Price - Hemet Home Price - San Jacinto Valley $500 $400 $300 $200 $100 $0 New Price ($000s) Source: DataQuick Home Sale Trends: Trends New Page 1 of 2 The Concord Group 30

31 RESALES EXHIBIT III-3 HOME SALE TRENDS - RESALE SAN JACINTO VALLEY AND SECONDARY MARKET AREA 2000 THROUGH 2016 Annual Average Period: Yr 10-Yr 15-Yr Resale Volume (000s) San Jacinto Valley Gr/Yr (%) --- 7% 29% 4% 12% 1% -17% -48% 90% 48% -22% -13% -5% 4% -3% 7% 8% 2% 1% 2% Hemet Gr/Yr (%) --- 5% 25% 3% 11% 1% -20% -47% 67% 40% -19% -11% 0% 5% 2% 5% 8% 4% 1% 2% % SJV 82% 80% 78% 77% 76% 76% 73% 75% 66% 63% 65% 66% 70% 70% 73% 72% 71% San Jacinto Gr/Yr (%) % 43% 7% 17% 2% -7% -52% 159% 61% -27% -16% -14% 3% -12% 12% 9% -1% 2% 5% Secondary Market A Gr/Yr (%) % 16% 9% 12% 6% -6% -54% 144% 30% -25% -14% -10% -6% -12% 10% 1% -4% -2% 1% Perris Gr/Yr (%) % 6% 10% 10% 21% 5% -57% 162% 44% -32% -11% -20% -12% -8% 8% -2% -7% -4% 1% Menifee Gr/Yr (%) % 30% 23% 5% 10% -3% -29% 103% 19% -5% -17% 6% 2% -16% 20% 4% 2% 4% 7% Resale Prices (000s) San Jacinto Valley $91 $111 $131 $167 $231 $282 $309 $278 $169 $123 $127 $122 $125 $159 $182 $197 $193 Gr/Yr (%) % 19% 27% 38% 22% 10% -10% -39% -27% 3% -4% 2% 27% 15% 8% -2% 10% -5% 4% Hemet $91 $110 $130 $167 $230 $280 $304 $272 $163 $116 $121 $117 $120 $154 $177 $190 $188 Gr/Yr (%) % 18% 28% 38% 22% 8% -11% -40% -29% 5% -4% 3% 28% 15% 8% -1% 10% -5% 4% San Jacinto $90 $113 $135 $166 $233 $288 $324 $297 $180 $136 $138 $132 $134 $169 $195 $213 $207 Gr/Yr (%) % 19% 23% 41% 24% 13% -8% -39% -25% 1% -4% 1% 26% 15% 9% -3% 9% -4% 4% Secondary Market A $113 $132 $155 $195 $268 $340 $384 $355 $197 $151 $168 $165 $171 $218 $251 $272 $278 Gr/Yr (%) % 17% 26% 37% 27% 13% -7% -45% -23% 11% -2% 4% 27% 15% 8% 2% 11% -3% 5% SJV vs. SMA -20% -16% -15% -15% -14% -17% -19% -22% -14% -18% -25% -26% -27% -27% -28% -28% -30% Perris $95 $115 $135 $172 $240 $319 $372 $340 $182 $140 $151 $149 $150 $190 $225 $244 $255 Gr/Yr (%) % 17% 27% 40% 33% 17% -9% -46% -23% 8% -1% 1% 27% 18% 8% 5% 11% -4% 5% Menifee $155 $177 $210 $260 $338 $379 $409 $358 $242 $195 $203 $200 $202 $259 $292 $314 $314 Gr/Yr (%) % 19% 24% 30% 12% 8% -12% -32% -20% 4% -2% 1% 28% 13% 7% 0% 9% -3% 4% Resale Volume (000s) Source: DataQuick Home Volume (left axis) and Price (right axis) Home Volume - Hemet Home Volume - Rem. San Jacinto Valley Home Price - Hemet Home Price - San Jacinto Valley Home Sale Trends: Trends Resale Page 2 of 2 The Concord Group 31 $400 $300 $200 $100 $0 Resale Price ($000s)

32 EXHIBIT III-4A RTA RIDERSHIP PROJECTIONS RTA SERVICE AREA RTA System Historical Projected System Ridership Period Daily Weekday 31,016 33,428 37,451 38,635 39,818 41,002 42,765 44,529 46,292 46,432 46,572 Saturday 15,970 16,490 17,447 18,070 18,692 19,315 20,067 20,818 21,570 21,616 21,662 Sunday 11,865 12,340 13,006 13,785 14,565 15,344 15,992 16,641 17,289 17,347 17,405 Annual Total Weekday 8,064,160 8,691,280 9,737,260 10,045,013 10,352,767 10,660,520 11,118,987 11,577,453 12,035,920 12,072,320 12,108,720 Saturday 830, , , , ,001 1,004,380 1,043,467 1,082,553 1,121,640 1,124,032 1,126,424 Sunday 616, , , , , , , , , , ,060 Total 9,511,580 10,190,440 11,320,816 11,701,473 12,082,131 12,462,788 12,994,055 13,525,321 14,056,588 14,098,396 14,140,204 % Growth % 11.1% 3.4% 3.3% 3.2% 4.3% 4.1% 3.9% 0.3% 0.3% Hemet Routes Projected Hemet Ridership (1) Route Gillmore 432, , , , , , , , , ,300 Kirby/ Latham 24,600 27,300 28,200 29,100 30,000 31,300 32,600 33,900 34,000 34,100 Florida FS Gilmore W/B 10,700 11,900 12,300 12,700 13,100 13,700 14,300 14,900 14,900 14,900 Devonshire/ Kirby 6,400 7,100 7,300 7,500 7,700 8,000 8,300 8,600 8,600 8,600 Total 473, , , , , , , , , ,900 % Growth % 3.4% 3.3% 3.2% 4.3% 4.1% 3.9% 0.3% 0.3% % Passing Site (2) 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% Total Hemet Boarding/ Unboarding 402, , , , , , , , , ,365 (1) Hemet ridership growth projections assumed to follow RTA Ridership Projection trends (2) Assumes 15% of riders board/ unboard at mall and do not continue to the Mobility Hub Source: TCG; RTA RTA Exhibs: RTA Ridership (2) The Concord Group 32

33 EXHIBIT III-4B RTA RIDER PROFILES RTA SERVICE AREA 2014 Gender 3% Age 3% Household Income 11% 8% 9% 8% 10% 6% 28% 52% 48% 12% 17% 37% 12% 16% 19% Male Female < <$7,500 $7,500-$14,999 $15,000-$24,999 $25,000-$34,999 $35,000-$49,999 $50,000-$74,999 $75,000+ Student 46% Frequency of Use 23% 14% 3% 4% 4% 54% 26% 25% Yes No First Time <Once a Month <Once a Week 1-2 Days a Week 3-4 Days a Week 5 Days a Week 6-7 Days a Week RTA Exhibs: RTA Rider Profs The Concord Group 33

34 RESIDENTIAL The Concord Group 34

35 IV. RENTAL APARTMENTS MARKET RATE The Concord Group 35

36 EXHIBIT IV-1 APARTMENT MARKET PERFORMANCE - HISTORICAL TRENDS MARKET AREA 2002 THROUGH 1Q 2017 Annual YTD Annual Average Year Over Year Metric Yr 10-Yr 15-Yr 1Q16 1Q17 % Var. Inventory (Units) Combined MA 16,428 16,614 16,614 18,162 18,802 20,219 20,651 20,881 21,149 21,149 21,149 21,327 21,327 21,327 21,327 21,327 21,297 21,076 19,903 21,327 21, % SJV 10,334 10,334 10,334 10,334 10,386 10,395 10,421 10,421 10,441 10,441 10,441 10,441 10,441 10,441 10,441 10,441 10,441 10,433 10,405 10,441 10, % % Combined MA 63% 62% 62% 57% 55% 51% 50% 50% 49% 49% 49% 49% 49% 49% 49% 49% 49% 50% 53% 49% 49% --- Net Deliveries Combined MA , , SJV Occupancy Combined MA 94% 94% 94% 93% 92% 92% 91% 92% 93% 93% 93% 93% 95% 95% 95% 95% 94% 93% 93% 95% 95% 0.1% SJV 94% 95% 94% 94% 94% 93% 92% 92% 92% 93% 93% 93% 94% 95% 96% 96% 94% 93% 94% 95% 96% 0.6% Net Absorption Combined MA (49) 176 (66) 1, , SJV (21) 21 (41) (10) 28 (64) (111) (21) (10) Asking Rent Combined MA $765 $806 $836 $911 $964 $1,013 $953 $875 $885 $894 $910 $943 $978 $1,047 $1,132 $1,157 $1,028 $981 $942 $1,081 $1, % Gr./Yr. or Gr./Q. 7.9% 5.4% 3.7% 9.0% 5.8% 5.1% (5.9%) (8.2%) 1.1% 1.0% 1.8% 3.6% 3.7% 7.1% 15.7% 10.5% 4.9% 1.3% 2.8% 2.9% 2.4% --- SJV $716 $751 $777 $803 $842 $858 $817 $742 $737 $743 $759 $773 $797 $858 $914 $934 $839 $812 $801 $888 $ % Gr./Yr. or Gr./Q. 6.1% 4.9% 3.5% 3.3% 4.9% 1.9% (4.8%) (9.2%) (0.7%) 0.8% 2.2% 1.8% 3.1% 7.7% 14.7% 8.9% 4.2% 0.9% 1.8% 3.2% 2.4% --- % Variance (6.4%) (6.8%) (7.1%) (11.9%) (12.7%) (15.3%) (14.3%) (15.2%) (16.7%) (16.9%) (16.6%) (18.0%) (18.5%) (18.1%) (19.3%) (19.3%) (18.4%) (17.2%) (14.9%) (17.9%) (19.3%) --- 1,600 1,400 1,200 Annual Net Deliveries ( ) $1,300 $1,200 Average Annual Asking Rent ( ) 1, $1,100 $1,000 $900 $800 (19.3%) (6.4%) (15.2%) $ Combined MA SJV Combined MA SJV Source: CoStar Apt Trends.xlsx: MarketTrends (All) THE CONCORD GROUP 36

37 EXHIBIT IV-2 APARTMENT DEMAND - DEMOGRAPHICS BASED MODEL COMBINED MARKET AREA 2017 THROUGH 2022 I. Stabilized Demand - Demographics Driven - Primary Market Area Current Households (1) Existing Households New Households MF Renters Total Renters MF Renters Annual Rental Demand Income Income to Average Total Renters % Rent MF Renters Moving New % % Rent New HH Combined MA SJV Range Housing Monthly Rent Num. % Rent (1) Renters MF (2) Renters Turn. (3) Total % Obs (4) Demand HHs Rent (1) Renters MF (2) Demand All New Capture New $0 - $25,000 42% $0 - $900 39,930 55% 22, % 22,124 65% 14, % 144 (155) 55% % , % 35 $25,000 - $35,000 37% $900 - $1,100 18,475 42% 7, % 7,715 50% 3, % % % 24 3, % 38 $35,000 - $50,000 33% $1,100 - $1,400 26,094 38% 10,023 70% 7,016 40% 2, % % 40 70% 28 2, % 31 $50,000 - $75,000 31% $1,400 - $1,900 32,668 31% 10,237 70% 7,166 40% 2, % % 96 70% 67 2, % 43 $75,000 - $100,000 28% $1,900 - $2,300 21,338 24% 5,089 70% 3,562 30% 1, % % 71 70% 50 1, % 24 $100,000 - $150,000 25% $2,300 - $3,100 19,088 20% 3,829 70% 2,680 30% % % % % 42 $150,000 - $200,000 20% $3,100 - $3,300 5,885 18% 1,059 70% % % % 48 70% % 13 $200,000 - $250,000 20% $3,300 - $4,200 2,000 15% % % % % 28 70% % 7 $250,000 - $500,000 18% $4,200 - $7,500 1,468 10% % % % % 11 70% % 3 $500, % $7, % 18 70% 13 15% 2 1.0% % 2 70% % 0 II. Historical Scale of Market Total: 167,315 31% 60,541 76% 51,330 51% 26, % 260 1,910 13% % , % 235 Income Qualified ($1,100 -$3,100) 99,188 21% 29,178 70% 20,424 37% 7, % 75 1,401 17% % 242 7, % 140 III. Absorption Projection Combined SJV 5-Yr. Metric MA Num. % PMA Year: Total Households (4) Total ,315 57,397 34% $1,100-$3,100 Demand Annual Growth - '17-'22 1, % CMA ,294 % Rent 35% 39% SJV Renters (% Rent x Growth) % % PMA 44% 44% 44% 44% 44% 44% Net Absorption (5) % 5-Yr % 10-Yr % 15-Yr % Inventory(5) ,327 10,441 49% 5-Yr 21,297 10,441 49% 10-Yr 21,076 10,433 50% 15-Yr 19,903 10,405 52% Footnotes: (1) Ownership - American Community Survey (2014) (2) % of total renters that rent in buildings with 4 or more units (excludes single family and townhome renters) (3) Turnover - American Community Survey (2014) (4) 1.0% obsolescence indicated obsolete product every 100 years (5) Exhibit III-1B Demand: Demand The Concord Group 37

38 EXHIBIT IV-3 APARTMENT MARKET RATE - FUTURE DEVELOPMENT COMBINED MARKET AREA JUNE 2017 Map Project Units Lease-up of Market Rate Units % Deliv. Key Project Name Address City Applicant/Developer Type Status Notes Mkt Aff Total Like. (1) Units '17-'21 A Villa Camille Edgemont St. Moreno Valley Lacto Enterprises Apt-2s U/C Market % B Oak Parc Box Springs Rd Moreno Valley Wermers Companies Apt-2s Approved Market % C 241-Unit Rental Condo Fruitvale and Menlo Ave. Hemet Santa Fe Pointe Condo Approved Market % D Hemet Stockfarm N State St Hemet --- MR Proposed Market % E Rosetta Canyon Apts Riverside St. Perris DTI Investments MR Proposed Market % Total 1, , B A D C E (1) % likelihood of completion in specified timeframe (TCG, local planning departments) Source: City Planning Departments Note: Pipeline excludes Subject Site SvD.xlsx: psurv The Concord Group 38

39 EXHIBIT IV-4 PROJECTED SUPPLY VS. DEMAND SAN JACINTO VALLEY FOURTH QUARTER 2016 THROUGH 2021 Projection Annual 5-Yr Year: 1Q Total Source: Apartment Inventor Start of Period 10,441 10,441 10,441 10,634 11,054 Planned Supply Exhibit IV-3 Total Additions End of Period 10,441 10,441 10,441 10,634 11,054 11,160 Exhibit IV-1 Occupancy Start of Period Occupied Units 10,002 10,091 10,192 10,306 10,433 Additional Demand Exhibit IV-2 End of Period Occupied Units 10,002 10,091 10,192 10,306 10,433 10,574 Occupancy Rate 95.8% 96.6% 97.6% 96.9% 94.4% 94.7% Exhibit IV-1 Over / Under Supply Evaluation Stabilized Occupancy 95% 95% 95% 95% 95% 95% Stabilized Occupied Units 9,919 9,919 9,919 10,102 10,501 10,602 (Under) / Over Supply (84) (172) (273) (204) (Under) / Over Supply 98% 0 (100) (200) (300) (400) (500) 97% 96% 95% 94% 93% (Under) / Over Supply - Bar Occupancy - Line (600) 1Q % SvD.xlsx: SD THE CONCORD GROUP 39

40 EXHIBIT IV-5 INVENTORY - LOCATION - GENERAL OCCUPANCY COMBINED MARKET AREA JUNE 2017 Map Year Key Project Name Built Subject Site Combined Market Area A Willowcreek Meadows Townhomes 2006 B Lighthouse Townhomes 2008 C Vista Gardens Apartment Homes 1987 D Santa Fe Palms II 2010 E The Overlook at Rancho Belago 2007 F Antelope Ridge Apartments 2010 G Enclave at Menifee 2007 H Cantabria Apartments 2009 I Redlands Towne Square Apartments2003 J Perris Garden Apartments RecComps.xlsx: Loc-Mkt The Concord Group 40

41 EXHIBIT IV-5 INVENTORY - PERFORMANCE - GENERAL OCCUPANCY COMBINED MARKET AREA JUNE 2017 Project Averages (Size and List Rent) Unit Mix Overall One-Bedrooms Two-Bedrooms Three-Bedrooms Map Year (by Bed Count) Base Rent Base Rent Base Rent Base Rent Key Project Name Elev. Units Built Occ Size $ $/sf Size $ $/sf Size $ $/sf Size $ $/sf San Jancinto Valley A Willowcreek Meadows Townhomes 2s % 0% 0% 27% 73% 1,096 $1,317 $ $1,199 $1.30 1,161 $1,361 $1.17 B Lighthouse Townhomes 2s % 0% 0% 23% 77% 1,400 $1,213 $ ,400 $1,206 $0.86 1,400 $1,215 $0.87 C Vista Gardens Apartment Homes 2s % 0% 20% 80% 0% 762 $1,083 $ $980 $ $1,109 $ D Santa Fe Palms II 2s % 0% 0% 40% 60% 1,193 $1,076 $ $1,015 $1.07 1,353 $1,117 $0.83 Subtotal: % 0% 12% 59% 29% 941 $1,148 $ $980 $ $1,117 $1.31 1,262 $1,277 $1.01 Select Riverside County Cities E The Overlook at Rancho Belago 3s % 0% 86% 5% 9% 934 $1,475 $ $1,407 $1.61 1,105 $1,650 $1.49 1,369 $1,995 $1.46 F Antelope Ridge Apartments 3s % 0% 80% 20% 0% 935 $1,461 $ $1,439 $1.62 1,121 $1,549 $ G Enclave at Menifee 2s % 0% 41% 60% 0% 958 $1,428 $ $1,264 $1.64 1,086 $1,540 $ H Cantabria Apartments 3s % 0% 67% 34% 0% 931 $1,358 $ $1,262 $1.47 1,073 $1,545 $ I Redlands Towne Square Apartments 2s % 0% 2% 81% 17% 973 $1,217 $ $995 $ $1,200 $1.26 1,104 $1,325 $1.20 J Perris Garden Apartments 2s % 0% 17% 57% 26% 1,086 $1,105 $ $886 $1.01 1,045 $1,087 $1.04 1,315 $1,289 $0.98 Subtotal: 1, % 0% 54% 40% 6% 955 $1,380 $ $1,260 $1.52 1,073 $1,486 $1.39 1,267 $1,640 $1.29 Market Area Total: 1, % 0% 48% 43% 9% 953 $1,345 $ $1,218 $1.54 1,040 $1,430 $1.38 1,267 $1,586 $1.25 Note: Italicized projects currently in lease-up Source: Appendix A RecComps.xlsx: Inv-Mkt The Concord Group 41

42 EXHIBIT IV-5 INVENTORY - FLOOR PLAN MIX - GENERAL OCCUPANCY COMBINED MARKET AREA JUNE 2017 Units by Rent Range (Base) Bed Under $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 Total Count $500 $600 $700 $800 $900 $1,000 $1,100 $1,200 $1,300 $1,400 $1,500 $1,600 $1,700 $1,800 $1,900 $2,000 $2,100 $2,200 $2,300 Plus Num. Share % Share 0% 0% 0% 0% 2% 4% 0% 7% 41% 8% 26% 12% 0% 0% 0% 0% 0% 0% 0% 0% % Share 0% 0% 0% 0% 0% 0% 12% 15% 23% 0% 17% 25% 2% 4% 2% 0% 0% 0% 0% 0% % Share 0% 0% 0% 0% 0% 0% 0% 8% 29% 47% 0% 0% 0% 0% 0% 16% 0% 0% 0% 0% Total , % Share 0% 0% 0% 0% 1% 2% 5% 10% 32% 8% 20% 16% 1% 2% 1% 2% 0% 0% 0% 0% Units by Floor Plan Size Range Bed Under ,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 Total Count ,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 Plus Num. Share % Share 0% 0% 4% 0% 0% 25% 34% 0% 2% 3% 20% 0% 12% 0% 0% 0% 0% 0% 0% 0% % Share 0% 0% 0% 0% 0% 0% 4% 13% 0% 2% 37% 8% 8% 24% 0% 0% 0% 4% 0% 1% % Share 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 21% 28% 0% 0% 16% 16% 19% Total , % Share 0% 0% 2% 0% 0% 12% 18% 6% 1% 3% 25% 3% 9% 13% 3% 0% 0% 3% 2% 2% 600 Unit Count by Rent Range (Base) Bed 2 Bed 1 Bed Source: Appendix A Note: Total may differ slightly from inventroy due to rounding RecComps.xlsx: MixMA The Concord Group 42

43 EXHIBIT IV-6 LEASE RATE POSITIONING - OVERALL COMBINED MARKET AREA JUNE 2017 $2,000 $1,900 $1,800 Color = City Red = San Jancinto Valley Blue = Select Riverside County Cities $1,700 $1,600 $1,500 Base Rent $1,400 $1,300 $1,200 $1,100 $1,000 $900 Vista Garden Apartment Homes Trendline $ ,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 Unit Size (sf) TCG - Recommendations Willowcreek Meadows Townhomes Santa Fe Palms II Lighthouse Townhomes Vista Gardens Apartment Homes Perris Garden Apartments Redlands Towne Square Apartments Antelope Ridge Apartments Enclave at Menifee Cantabria Apartments The Overlook at Rancho Belago Linear (Willowcreek Meadows Townhomes) Linear (Vista Gardens Apartment Homes) Source: Appendix A RecComps: RS The Concord Group 43

44 EXHIBIT IV-7 BUILDING TRADES - RENTAL COMBINED MARKET AREA LAST YEAR ENDING EARLY MAY 2017 Sale Map Year Cap Key Project Name Street Address City Built/Renov. Units Buyer Date Price $/Unit Rate Executed 1 Perris Garden Apartments 620 E. Nuevo Rd Perris Dick S. Lin Jun-15 $12,000,000 $130, % 2 Amberwood Villas 2098 W. Acacia Ave Hemet John C. Chiu Apr-17 $20,360,000 $113, % 3 The Courtyard Apartments 150 S. San Jacinto St Hemet Pi Properties No 148 LLC Oct-16 $1,700,000 $68, % E. Whittier Ave E. Whittier Ave Hemet Pama Management Mar-16 $1,285,000 $67, Mayflower Terrace 204 N. Mayflower St. Hemet Neil Kay May-15 $1,300,000 $59, % N. Buena Vista St. 307 N. Buena Vista St. Hemet Payam Shabboui Jun-16 $225,000 $56, E. 10th St 155 E. 10th St Perris Zaveri Family Trust May-16 $665,000 $55, % N. Buena Vista St. 306 N. Buena Vista St. Hemet 1947/ Michael Bakshi Nov-15 $195,000 $48, Park Columbia 201 S. Columbia St Hemet Srinivas Yalamanchili Sep-14 $6,600,000 $43, % Straight Total/Average: $4,925,556 $86, % Source: CoStar Apt Bldg Trades.xlsx: Bldg THE CONCORD GROUP 44

45 EXHIBIT IV-8 LAND TRADES - RENTAL COMBINED MARKET AREA LAST THREE YEARS ENDING EARLY JUNE 2017 Map Sale Sale Price Key Building/Project Address City Buyer/Owner Date AC $ Per Acre MF Units Via Del Lago Moreno Valley --- Oct $5,700,000 $547, Unit Entitled Box Springs Rd Moreno Valley Wermers Companies Dec $5,000,000 $359, Day St Day St Moreno Valley --- May $280,000 $291, Eucalyptus Ave Eucalyptus Ave Moreno Valley Mohita K Anand Jun $113,000 $251, Units MF Alessandro Lasselle Moreno Valley La Jolla Pacific Development Group, Inc Oct $5,500,000 $199, S Santa Fe Ave S Santa Fe Ave San Jacinto --- Jul $260,000 $95,588 7 Redlands Blvd Redlands Blvd Moreno Valley --- Apr $625,000 $92,456 Total/Average: $17,478,000 $278, Apt Land Trades.xlsx:Apt-Land The Concord Group 45

46 V. RENTAL APARTMENTS - WORKFORCE The Concord Group 46

47 EXHIBIT V-1 MACRO MARKET METRICS - APARTMENTS - SCALE (WORKFORCE) COMBINED MARKET AREA 2000 THROUGH FOURTH QUARTER Q14 3Q14 3Q14 3Q14 Annual YTD Annual Average Values in 000s Yr 10-Yr 15-Yr Job Growth Inland Empire 5.1% 4.3% 3.5% 3.5% 5.7% 5.4% 3.8% 0.4% -3.3% -6.3% -1.6% 0.4% 2.7% 4.0% 4.5% 4.9% 3.7% 2.4% Inventory (000s) Combined MA SJV % of Combined 39% 43% 43% 43% 43% 43% 44% 42% 48% 48% 48% 48% 47% 45% 45% 44% 44% 44% Completions Combined MA SJV % of Combined 0% 100% 0% 0% 0% 0% 100% 0% 100% 0% 0% 100% 0% 0% 0% 0% 0% 0% 0% 47% 55% Absorption Combined MA SJV % of Combined 0% -150% 40% 0% 25% 100% 0% -7% 109% 63% 12% -4% 1% 6% 10% 9% 33% 33% 9% 30% 19% Completions (bar) and Job Growth (line) 8% % % 2% 0% -2% -4% % SJV (left axis) Inland Empire (left axis) -8% Source: Jobs - BLS; Apartment - CoStar, CTCAC Workforce.xlsx: aptscale 1 of 2 The Concord Group 47

48 EXHIBIT V-1 MACRO MARKET METRICS - APARTMENTS - OCCUPANCY AND RENT (WORKFORCE) COMBINED MARKET AREA 2000 THROUGH FOURTH QUARTER Q14 3Q14 3Q14 3Q14 Annual YTD Annual Average 1-Year Period: Yr 10-Yr 15-Yr 1Q16 1Q17 Job Growth Inland Empire 5.1% 4.3% 3.5% 3.5% 5.7% 5.4% 3.8% 0.4% -3.3% -6.3% -1.6% 0.4% 2.7% 4.0% 4.5% 4.9% 4.9% 2.4% Asking Rent ($) Combined MA Gr/Yr 10.3% 6.8% 5.4% 4.0% 3.0% -0.4% 3.7% 0.1% -8.2% -4.0% -1.0% 2.0% 1.5% -3.8% -6.1% -2.3% 3.6% 0.2% -1.0% 0.3% Y/Y: 3.5% SJV Gr/Yr 10.8% 6.3% 4.8% 4.3% 2.2% 4.7% 3.2% 1.1% -9.1% -5.3% -1.6% 1.3% 1.0% -4.5% -6.1% -3.4% 3.0% -0.1% -1.5% 0.3% Y/Y: 3.1% vs. Combined MA 5% 5% 5% 4% 4% 3% 9% 8% 9% 8% 7% 6% 5% 5% 4% 5% 4% 4% 4% 4% Occupancy Combined MA 95% 96% 95% 95% 95% 95% 93% 94% 93% 94% 94% 95% 94% 94% 96% 96% 97% 97% 96% 95% 95% 96% 97% SJV 96% 96% 95% 95% 95% 95% 95% 95% 91% 94% 94% 95% 94% 95% 96% 97% 97% 97% 96% 95% 95% 97% 97% 15% Rent Growth (bar) and Job Growth (line) 7% 10% 5% 5% 3% 0% 1% -5% -1% -10% -3% -15% SJV (left axis) Combined MA (left axis) Inland Empire (left axis) -5% Source: Jobs - BLS; Apartment - Costar, CTCAC Workforce.xlsx: aptrent 2 of 2 The Concord Group 48

49 EXHIBIT V-2 APARTMENT DEVELOPMENT PIPELINE (WORKFORCE) COMBINED MARKET AREA JUNE 2017 Map Unit Mix Key Project Name Address City Developer Type Housing Type Status Units No affordable projects in the pipeline Source: City Planning Departments, CTCAC 49

50 EXHIBIT V-3 PROJECTED SUPPLY VS DEMAND (WORKFORCE) SAN JACINTO VALLEY 2017 AND 2021 General Occupancy Seniors (65+) Workforce Workforce Apartments Apartments Demand Factors Demand Factors Demand (Income Qual) $35,000 Demand (Income Qual) $35,000 Internal Generated Demand - Market Area Internal Generated Demand - Market Area Population (1) 563, ,396 Population (1) 73,083 82,693 x Percent Renters (1) 37% 36% x Percent Renters (1) 22% 22% = Renter Population 206, ,105 = Renter Population 16,023 18,130 Average Household Size (1) Average Household Size (1) = Renter Households 61,205 64,357 = Renter Households 9,208 11,454 x Percent Income Qualified (1)(2) 35% 33% x Percent Income Qualified (1)(2) 50% 47% = Income Qualified Households 21,365 21,074 = Income Qualified Households 4,587 5,416 5-Year Change: (291) 5-Year Change: 829 Supply Supply Competitive Supply Competitive Supply Current Supply Current Supply Inventory 3,175 3,175 Inventory 2,385 2,385 Future Supply 0 0 Future Supply 0 0 Total Supply 3,175 3,175 Total Supply 2,385 2,385 Penetration of Demand 15% 15% Penetration of Demand 52% 44% Over / (Under) Supply (18,190) (17,899) Over / (Under) Supply (2,202) (3,031) 5-year change: year change: (829) Notes: Notes: (1) Exhibit I-3A (1) Exhibit I-3A (2) Household income of $35,000 or less (2) Household income of $35,000 or less Workforce.xlsx: Dem-Combined 1 of 2 The Concord Group 50

51 EXHIBIT V-3 PROJECTED SUPPLY VS DEMAND (WORKFORCE) HEMET 2017 AND 2021 General Occupancy Seniors (65+) Workforce Workforce Apartments Apartments Demand Factors Demand Factors Demand (Income Qual) $35,000 Demand (Income Qual) $35,000 Internal Generated Demand - Market Area Internal Generated Demand - Market Area Population (1) 86,039 90,830 Population (1) 19,272 20,081 x Percent Renters (1) 44% 44% x Percent Renters (1) 27% 27% = Renter Population 37,622 39,904 = Renter Population 5,262 5,483 Average Household Size (1) Average Household Size (1) = Renter Households 14,086 14,865 = Renter Households 3,477 3,778 x Percent Income Qualified (1)(2) 50% 47% x Percent Income Qualified (1)(2) 60% 58% = Income Qualified Households 6,992 7,022 = Income Qualified Households 2,084 2,196 5-Year Change: 30 5-Year Change: 111 Supply Supply Competitive Supply Competitive Supply Current Supply Current Supply Inventory 1,404 1,404 Inventory Future Supply 0 0 Future Supply 0 0 Total Supply 1,404 1,404 Total Supply Penetration of Demand 20% 20% Penetration of Demand 28% 27% Over / (Under) Supply (5,588) (5,618) Over / (Under) Supply (1,495) (1,607) 5-year change: (30) 5-year change: (111) Notes: Notes: (1) Exhibit I-3A (1) Exhibit I-3A (2) Household income of $35,000 or less (2) Household income of $35,000 or less Workforce.xlsx: DemAV-Hemet The Concord Group 51

52 EXHIBIT V-4 CURRENT INVENTORY MAP - RENTAL - PERFORMANCE (WORKFORCE) COMBINED MARKET AREA JUNE 2017 Map Key Project Name Subject Site San Jacinto Valley 1 Hemet Estates 2 Terracina Apartments 3 Hemet Vistas I & II 4 San Jancinto Villas 5 Sahara Senior Villa Secondary Market Area 6 Perris Station Apartments 8 Vintage Wood Apartments 9 Mercado Apartments 11 The Vineyards at Menifee 12 Oakwood 7 Rancho Dorado Apartments 10 Hemlock Family Apartments 13 Verano 14 Bay Family Apartments 7,12 9,13 6, Workforce.xlsx: Inv Map 1 of 2 The Concord Group 52

53 EXHIBIT V-4 CURRENT INVENTORY - RENTAL - PERFORMANCE (WORKFORCE) COMBINED MARKET AREA JUNE 2017 Projects Sorted by Location (Neighborhood) and Overall Base Rent (Descending Order) Map Year Unit Mix - Bed Count Avg Base Rent Key Project Name Type Elev. Units Built Occ Size $ $/sf San Jacinto Valley 1 Hemet Estates Non-Targeted 2s % 20% 55% 25% 0% 922 $1,200 $ Terracina Apartments Non-Targeted 2s % 0% 65% 35% 0% 1,052 $862 $ Hemet Vistas I & II Large Family 2s % 0% 0% 76% 25% 1,152 $736 $ San Jancinto Villas Non-Targeted 2s % 0% 50% 50% 0% 1,096 $713 $ Sahara Senior Villa Senior 3s % 100% 0% 0% 0% 560 $510 $0.91 Subtotal/Weighted Average: % 21% 28% 44% 8% $794 $0.81 Secondary Market Area 6 Perris Station Apartments Senior 3s % 79% 21% 0% 0% 660 $792 $ Rancho Dorado Apartments Non-Targeted 3s % 0% 67% 33% 0% 1,014 $784 $ Vintage Wood Apartments Non-Targeted 3s % 0% 39% 50% 11% 1,065 $776 $ Mercado Apartments Non-Targeted 3s % 0% 70% 30% 0% 970 $774 $ Hemlock Family Apartments Large Family 2s % 0% 50% 50% 0% 914 $751 $ The Vineyards at Menifee Senior 2s % 80% 20% 0% 0% 703 $733 $ Oakwood Non-Targeted 2s % 0% 34% 20% 46% 1,052 $632 $ Verano Non-Targeted 3s % 0% 50% 50% 0% 1,018 $446 $ Bay Family Apartments Non-Targeted 3s % 0% 51% 49% 0% 983 $400 $0.41 Subtotal/Weighted Average: % 17% 41% 26% 16% $679 $0.72 Total/Weighted Average: 1, % 19% 34% 35% 12% 966 $737 $ Workforce.xlsx: Inv 2 of 2 The Concord Group 53

54 EXHIBIT V-5 CALIFORNIA TAX CREDIT ALLOCATION GUIDELINES RIVERSIDE COUNTY JUNE 2017 I. Maximum Rent Max Rent by Bed Count Income Level % Income Level $1,120 $1,200 $1,440 $1,662 $1,854 60% Income Level $672 $720 $864 $997 $1,113 55% Income Level $616 $660 $792 $914 $1,020 50% Income Level $560 $600 $720 $831 $927 45% Income Level $504 $540 $648 $748 $834 40% Income Level $448 $480 $576 $665 $742 35% Income Level $392 $420 $504 $581 $649 30% Income Level $336 $360 $432 $498 $556 II. TCG Mix Unit Unit Maximum Rent Floorplan Mix Size $ $/ft 1B 10% 650 $720 $1.11 2B 50% 850 $864 $1.02 3B 30% 1,100 $997 $0.91 4B 10% 1,250 $1,113 $0.89 Weighted Avg: 100% 945 $914 $0.97 Sources: HUD, California Tax Credit Allocation Committee Affordable: AffMix The Concord Group 54

55 VI. SMALL LOT FOR-SALE The Concord Group 55

56 EXHIBIT VI-1 SFD SALES HEAT MAP SAN JACINTO VALLEY LAST 6 MONTHS ENDING JUNE 2017 Color = Sales Price Red = > 300K Orange = 270K - 300K Yellow = 240K - 270K Green = 210K - 240K Blue = K Purple = < 180K See p.2 for zoom Maps: SFD Heat Page 1 of 2 The Concord Group 56

57 EXHIBIT VI-1 SFD SALES HEAT MAP SAN JACINTO VALLEY LAST 6 MONTHS ENDING JUNE 2017 Color = Sales Price Red = > 300K Orange = 270K - 300K Yellow = 240K - 270K Green = 210K - 240K Blue = K Purple = < 180K Maps: SFD Heat Page 2 of 2 The Concord Group 57

58 NEW HOME SALES EXHIBIT VI-2 HOME SALE TRENDS - NEW SAN JACINTO VALLEY AND SECONDARY MARKET AREA 2000 THROUGH 2016 Annual Average Period: Yr 10-Yr 15-Yr New Volume (000s) San Jacinto Valley Gr/Yr (%) --- 9% -4% 7% -9% 97% 40% -59% -52% -33% -5% -39% -11% 76% -10% 9% 4% 10% -19% -8% Hemet Gr/Yr (%) % -13% 23% -30% 51% 39% -50% -42% -26% -22% -22% -18% 61% 22% -24% -31% -3% -20% -11% % SJV 64% 70% 63% 73% 56% 43% 43% 51% 63% 70% 57% 73% 68% 62% 84% 59% 39% San Jacinto Gr/Yr (%) % 15% -22% 49% 157% 41% -65% -63% -46% 36% -62% 5% 108% -63% 181% 54% 29% -19% -3% Secondary Market Area Gr/Yr (%) % 74% 27% 4% 17% -10% -42% -39% -30% -7% -50% 1% 17% 53% 26% 10% 20% -12% -2% Perris Gr/Yr (%) % 192% 132% 43% 53% -25% -35% -49% -18% 18% -80% 19% 15% 62% 53% -5% 26% -14% 6% Menifee Gr/Yr (%) % 36% -14% -20% 74% -13% -39% -39% -14% -12% -13% 2% 20% 27% 8% 4% 12% -8% -3% New Prices (000s) San Jacinto Valley $155 $167 $176 $209 $272 $349 $381 $347 $267 $218 $207 $198 $199 $225 $265 $276 $297 Gr/Yr (%) --- 7% 6% 19% 30% 28% 9% -9% -23% -18% -5% -4% 1% 13% 18% 4% 7% 8% -2% 4% Hemet $165 $174 $181 $214 $275 $358 $393 $348 $278 $220 $217 $209 $199 $231 $271 $279 $398 Gr/Yr (%) --- 5% 4% 18% 29% 30% 10% -11% -20% -21% -2% -3% -5% 16% 17% 3% 42% 14% 0% 6% San Jacinto $138 $150 $168 $196 $270 $342 $372 $347 $249 $212 $194 $166 $199 $216 $234 $272 $231 Gr/Yr (%) --- 9% 12% 17% 38% 27% 9% -7% -28% -15% -8% -14% 20% 8% 8% 16% -15% 7% -5% 3% Secondary Market Area $186 $200 $218 $256 $343 $396 $456 $397 $316 $257 $248 $235 $254 $310 $351 $376 $352 Gr/Yr (%) --- 8% 9% 17% 34% 16% 15% -13% -20% -19% -3% -6% 8% 22% 13% 7% -6% 8% -3% 4% SJV vs. SMA -17% -17% -19% -19% -21% -12% -16% -12% -16% -15% -17% -16% -22% -27% -25% -27% -16% Perris $138 $156 $188 $223 $292 $373 $441 $355 $282 $201 $197 $207 $214 $250 $307 $330 $368 Gr/Yr (%) % 20% 19% 31% 28% 19% -20% -21% -29% -2% 5% 4% 17% 23% 8% 12% 12% -2% 6% Menifee $192 $207 $230 $279 $361 $424 $442 $398 $330 $285 $273 $219 $259 $316 $349 $389 $395 Gr/Yr (%) --- 8% 11% 21% 29% 17% 4% -10% -17% -13% -4% -20% 18% 22% 10% 11% 1% 13% -1% 4% New Volume (000s) Home Volume (left axis) and Price (right axis) Home Volume - Hemet Home Volume - Rem. San Jacinto Valley Home Price - Hemet Home Price - San Jacinto Valley $500 $400 $300 $200 $100 $0 New Price ($000s) Source: DataQuick Home Sale Trends: Trends New Page 1 of 2 The Concord Group 58

59 RESALES EXHIBIT VI-2 HOME SALE TRENDS - RESALE SAN JACINTO VALLEY AND SECONDARY MARKET AREA 2000 THROUGH 2016 Annual Average Period: Yr 10-Yr 15-Yr Resale Volume (000s) San Jacinto Valley Gr/Yr (%) --- 7% 29% 4% 12% 1% -17% -48% 90% 48% -22% -13% -5% 4% -3% 7% 8% 2% 1% 2% Hemet Gr/Yr (%) --- 5% 25% 3% 11% 1% -20% -47% 67% 40% -19% -11% 0% 5% 2% 5% 8% 4% 1% 2% % SJV 82% 80% 78% 77% 76% 76% 73% 75% 66% 63% 65% 66% 70% 70% 73% 72% 71% San Jacinto Gr/Yr (%) % 43% 7% 17% 2% -7% -52% 159% 61% -27% -16% -14% 3% -12% 12% 9% -1% 2% 5% Secondary Market A Gr/Yr (%) % 16% 9% 12% 6% -6% -54% 144% 30% -25% -14% -10% -6% -12% 10% 1% -4% -2% 1% Perris Gr/Yr (%) % 6% 10% 10% 21% 5% -57% 162% 44% -32% -11% -20% -12% -8% 8% -2% -7% -4% 1% Menifee Gr/Yr (%) % 30% 23% 5% 10% -3% -29% 103% 19% -5% -17% 6% 2% -16% 20% 4% 2% 4% 7% Resale Prices (000s) San Jacinto Valley $91 $111 $131 $167 $231 $282 $309 $278 $169 $123 $127 $122 $125 $159 $182 $197 $193 Gr/Yr (%) % 19% 27% 38% 22% 10% -10% -39% -27% 3% -4% 2% 27% 15% 8% -2% 10% -5% 4% Hemet $91 $110 $130 $167 $230 $280 $304 $272 $163 $116 $121 $117 $120 $154 $177 $190 $188 Gr/Yr (%) % 18% 28% 38% 22% 8% -11% -40% -29% 5% -4% 3% 28% 15% 8% -1% 10% -5% 4% San Jacinto $90 $113 $135 $166 $233 $288 $324 $297 $180 $136 $138 $132 $134 $169 $195 $213 $207 Gr/Yr (%) % 19% 23% 41% 24% 13% -8% -39% -25% 1% -4% 1% 26% 15% 9% -3% 9% -4% 4% Secondary Market A $113 $132 $155 $195 $268 $340 $384 $355 $197 $151 $168 $165 $171 $218 $251 $272 $278 Gr/Yr (%) % 17% 26% 37% 27% 13% -7% -45% -23% 11% -2% 4% 27% 15% 8% 2% 11% -3% 5% SJV vs. SMA -20% -16% -15% -15% -14% -17% -19% -22% -14% -18% -25% -26% -27% -27% -28% -28% -30% Perris $95 $115 $135 $172 $240 $319 $372 $340 $182 $140 $151 $149 $150 $190 $225 $244 $255 Gr/Yr (%) % 17% 27% 40% 33% 17% -9% -46% -23% 8% -1% 1% 27% 18% 8% 5% 11% -4% 5% Menifee $155 $177 $210 $260 $338 $379 $409 $358 $242 $195 $203 $200 $202 $259 $292 $314 $314 Gr/Yr (%) % 19% 24% 30% 12% 8% -12% -32% -20% 4% -2% 1% 28% 13% 7% 0% 9% -3% 4% Resale Volume (000s) Source: DataQuick Home Volume (left axis) and Price (right axis) Home Volume - Hemet Home Volume - Rem. San Jacinto Valley Home Price - Hemet Home Price - San Jacinto Valley Home Sale Trends: Trends Resale Page 2 of 2 The Concord Group 59 $400 $300 $200 $100 $0 Resale Price ($000s)

60 EXHIBIT VI-3 CURRENT INVENTORY (DETACHED) COMBINED MARKET AREA JUNE 2017 Project Averages Map Product Home Sale Price Key Project Name Builder Type Units FPs Size $ $/sf San Jacinto Valley A Luz Del Sol (Frontier) Frontier Communities SFD ,069 $337,329 $163 B Luz Del Sol Signature Homes USA SFD ,896 $286,990 $151 C Parkside RSI Communities SFD ,189 $301,567 $138 D Harvest Pointe at Potter Ranch D.R. Horton SFD ,053 $278,918 $136 E Stonecrest at the Cove KB Home SFD ,106 $281,865 $134 Total/ Weighted Average: ,038 $304,766 $150 Select Secondary Market Area Cities F The Lakes: Mariposa Lennar SFD ,898 $374,035 $197 F The Lakes: Camellia Lennar SFD ,420 $391,590 $162 G Mountain Gate Woodside Homes SFD ,336 $342,995 $147 H Winchester Trails D.R. Horton SFD ,254 $330,323 $147 I Avelina Pulte Homes SFD ,627 $348,190 $133 J Cottonwood at Pacific Mayfield Pacific Communities SFD ,201 $415,490 $130 Total/ Weighted Average: ,519 $368,000 $146 I A B D E C G H J F For Sale: fsinvn The Concord Group 60

61 EXHIBIT VI-4 PRICE POSITIONING COMBINED MARKET AREA JUNE 2017 $425,000 Color = Location $400,000 Red = San Jacinto Valley Blue = Select Secondary Market Area Cities $375,000 $350,000 $325,000 San Jacinto Valley Trendline $300,000 $275,000 $250,000 $225,000 1,500 1,600 1,700 1,800 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2,900 3,000 Rec- Newport Parkside (RSI Communities) Stonecrest at the Cove (KB Home) Luz Del Sol (Signature Homes USA) Harvest Pointe at Potter Ranch (D.R. Horton) Luz Del Sol (Frontier Communities) Winchester Trails (D.R. Horton) Mountain Gate (Woodside Homes) Cottonwood at Pacific Mayfield (Pacific Communities) The Lakes: Mariposa (Lennar) The Lakes: Camellia (Lennar) Avelina (Pulte Homes) For Sale: PS The Concord Group 61

62 COMMERCIAL The Concord Group 62

63 VII. RETAIL The Concord Group 63

64 EXHIBIT VII-1 PERFORMANCE METRICS - RETAIL COMBINED MARKET AREA 2006 THROUGH 2017 Annual YTD Average Growth 1Q17 vs. Period: Yr 10-Yr 5-Yr 10-Yr 1Q17 1Q16 Inventory (000s) Combined MA 17,497 17,907 19,030 19,905 20,030 20,040 20,105 20,172 20,258 20,431 20,647 20,800 20,323 19, , SJV 7,072 7,268 7,446 7,614 7,719 7,728 7,751 7,789 7,820 7,850 7,869 7,899 7,816 7, , Mile 6,228 6,424 6,602 6,770 6,875 6,884 6,907 6,945 6,976 7,006 7,025 7,055 6,972 6, , Net Deliveries (000s) Combined MA , SJV Mile Occupancy Combined MA 93% 94% 93% 90% 90% 90% 90% 90% 91% 92% 91% 92% 91% 91% SJV 92% 94% 94% 92% 92% 91% 91% 91% 92% 91% 92% 93% 91% 92% 5-Mile 93% 94% 93% 90% 90% 90% 90% 90% 91% 92% 91% 92% 91% 91% Absorption (000s) Combined MA (68) 139 (71) (14) SJV (57) (24) (56) 187 (19) Mile (57) (24) (56) 187 (19) Lease Rate Growth (%) Combined MA $16.40 $17.84 $18.98 $20.95 $20.17 $19.91 $16.23 $14.67 $14.49 $15.11 $15.40 $14.63 $15.18 $17.37 ($0.90) ($0.24) $ % SJV $15.91 $17.77 $19.86 $19.03 $16.70 $14.71 $13.98 $13.83 $13.44 $13.83 $13.84 $14.26 $13.78 $15.70 ($0.17) ($0.39) $ % 5-Mile $15.91 $17.77 $19.86 $19.03 $16.70 $14.71 $13.98 $13.83 $13.44 $13.83 $13.84 $14.26 $13.78 $15.70 ($0.17) ($0.39) $ % SJV - Absorption (000s SF) (50.0) (100.0) $ SJV - Lease Rate ($/SF/Yr) $22.00 $20.00 $18.00 $16.00 $14.00 Source: CoStar $12.00 $ Retail Trends.xlsx: Retail Trends The Concord Group 64

65 EXHIBIT VII-2 CONSUMER SPENDING CAPACITY AND RETAIL OPPORTUNITY GAPS 5-MILE RADII 2017 Consumer Spending Capacity (Demand) Gap Spending Category Total Per Capita Share Actual Sales $ % GAFO (1) (A) (B) (A - B) Furniture $42,986,711 $258 3% $11,046,595 $31,940,116 74% Sporting Goods/Hobby $33,367,811 $200 2% $15,269,837 $18,097,974 54% Books & Music $6,053,713 $36 0% $1,115,783 $4,937,930 82% Department Stores $135,783,190 $814 10% $162,017,831 ($26,234,641) (19%) Office Supplies, Gift Stores $12,071,502 $72 1% $3,134,848 $8,936,654 74% Electronics/Appliances $36,345,476 $218 3% $8,352,947 $27,992,529 77% Clothing & Accessories $100,113,020 $600 7% $32,113,483 $67,999,537 68% Other General Merchandise $59,664,378 $358 4% $22,964,769 $36,699,609 62% GAFO Total: $426,385,800 $2,555 30% $256,016,092 $170,369,708 40% Non-GAFO Eating & Drinking Places $19,918,565 $119 1% $435,811 $19,482,754 98% Florist $21,666,372 $130 2% $4,745,455 $16,920,918 78% Used Merch $27,254,794 $163 2% $12,499,344 $14,755,450 54% Other Misc. Stores $213,145,037 $1,277 15% $112,411,733 $100,733,304 47% Health & Personal Care $134,271,296 $805 9% $91,083,830 $43,187,467 32% Building/Garden Materials $236,965,027 $1,420 17% $73,549,279 $163,415,747 69% Food & Beverage $338,262,844 $2,027 24% $264,862,637 $73,400,206 22% Non-GAFO Total: $991,483,934 $5,942 70% $559,588,089 $431,895,846 44% Total Excl. Vehicle/Gas/Non-Store: $1,417,869,735 $8, % $815,604,181 $602,265,554 42% Outflow Categories: $883,745,499 $550,674,361 $483,493,114 55% Gas/Motor Vehicle/Non-Store Gas Stations $140,592,697 $ $103,173,832 $37,418,865 27% Motor Vehicle $413,085,542 $2, $339,229,767 $73,855,774 18% Other Non-Store Retailers (2) $261,364,321 $1, $186,174,178 $75,190,144 29% Gas/Motor Vehicle/Non-Store Total: $815,042,560 $4, $628,577,777 $186,464,783 23% Total: $2,232,912,294 $13, $1,444,181,958 $788,730,337 35% Total (Without Non-Store): $1,971,547,973 $11, $1,258,007,780 $713,540,193 36% Total (Without Gas/Motor Vehicle): $1,679,234,056 $10, $1,001,778,358 $677,455,697 40% (1) GAFO=General Merchandise, Apparel, Furniture and Other (2) Includes vending machine operators and direct-selling establishments (online sales) Note: Gray = categories with spending outflow Source: Claritas Note: Red = inflow of spending from outside the trade area Retail GAP.Consumer Spending.xlsx: Gap 1 of 3 The Concord Group 65

66 EXHIBIT VII-2 RETAIL DEMAND - PROJECTED RETAIL SPACE 5-MILE RADII 2017 Projected Retail Spending and Supportable Demand Current Projected Additional PTA Conditions Year Demand I. Population and Income Growth Population 166, , , , , ,111 Households 57,102 57,666 58,235 58,810 59,391 59,977 Persons/HH Median HH Income $39,324 $39,749 $40,178 $40,612 $41,051 $41,494 Growth 1.1% 1.1% 1.1% 1.1% 1.1% Total Spending: Per Capita $13,381 $13,526 $13,672 $13,819 $13,969 $14,119 Per HH $39,104 $39,564 $40,029 $40,500 $40,977 $41,459 Aggregate Spending (000s) $2,232,912 $2,281,488 $2,331,120 $2,381,833 $2,433,648 $2,486,591 Added Spending Capacity $48,576 $49,632 $50,712 $51,815 $52,943 Sales/ Square Foot (1) $750 $750 $750 $750 $750 Additional Supportable GLA 64,768 66,177 67,616 69,087 70, ,238 Annual 67,648 II. Ridership Uplift Projected Ridership 402, , , , , ,270 Spending per Rider Trip $1.50 $1.55 $1.59 $1.64 $1.69 $1.74 Gr/ Yr 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Ridership Sprending Capacity $603,968 $691,032 $711,763 $733,116 $755,109 $777,763 Sales/ Square Foot (1) $750 $750 $750 $750 $750 Additional Supportable GLA ,007 1,037 4,892 Annual 978 III. Total Retail Demand Growth Additional Supportable GLA 65,689 67,126 68,594 70,094 71, ,129 Annual 68,626 (1) Total Actual Sales Exhibit VII-2 and Existing Square Foot VII Retail GAP.Consumer Spending.xlsx: Demand2 2 of 3 The Concord Group 66

67 EXHIBIT VII-2 RETAIL DEMAND - CURRENT RETAIL SPACE 5-MILE RADII 2017 I. Consumer Spending Opportunity Gap Demand Potential Unfulfilled Consumer Spending Current Existing (3) Current Target Retail Space Consumer Actual Sales/ Resident Retail Retail Sales Retail Sales Outflow (s.f.) Spending Categories Demand Sales Demand Spending Gap Space (s.f.) per SF per $750/s.f. GAFO (1) Furniture $42,986,711 $11,046,595 26% $31,940,116 53,234 Sporting Goods/Hobby $33,367,811 $15,269,837 46% $18,097,974 30,163 Books & Music $6,053,713 $1,115,783 18% $4,937,930 8,230 Department Stores $135,783,190 $162,017, % ($26,234,641) 0 Office Supplies, Gift Stores $12,071,502 $3,134,848 26% $8,936,654 14,894 Electronics/Appliances $36,345,476 $8,352,947 23% $27,992,529 46,654 Clothing & Accessories $100,113,020 $32,113,483 32% $67,999, ,333 Other General Merchandise $59,664,378 $22,964,769 38% $36,699,609 61,166 GAFO Total: $426,385,800 $256,016,092 60% $170,369,708 $ ,674 Non-GAFO Eating & Drinking Places $19,918,565 $435,811 2% $19,482,754 21,648 Florist $21,666,372 $4,745,455 22% $16,920,918 18,801 Used Merch $27,254,794 $12,499,344 46% $14,755,450 16,395 Other Misc. Stores $213,145,037 $112,411,733 53% $100,733, ,926 Health & Personal Care $134,271,296 $91,083,830 68% $43,187,467 47,986 Building/Garden Materials $236,965,027 $73,549,279 31% $163,415, ,573 Food & Beverage $338,262,844 $264,862,637 78% $73,400,206 81,556 Non-GAFO Total: $991,483,934 $559,588,089 56% $431,895,846 $ ,884 Gas/Motor Vehicle/Non-Store Gas Stations $140,592,697 $103,173,832 73% $37,418,865 41,577 Motor Vehicle $413,085,542 $339,229,767 82% $73,855,774 82,062 Other Non-Store Retailers (2) $261,364,321 $186,174,178 71% $75,190,144 83,545 Non-GAFO Total: $815,042,560 $628,577,777 77% $186,464,783 $ ,183 All Spending Categories: $2,232,912,294 $1,444,181,958 65% $602,265,554 7,055,444 $205 $ ,558 (1) GAFO=General Merchandise, Apparel, Furniture and Other (2) Includes vending machine operators and direct-selling establishments (online sales) (3) Exhibit VI-2 Sources: Claritas; CoStar Retail GAP.Consumer Spending.xlsx: Demand The Concord Group 67

68 EXHIBIT VII-3 FUTURE DEVELOPMENT - RETAIL 5-MILE RADII JUNE 2017 Map Year Key Name Address Developer City GLA Deliv. Status 1 San Jacinto Esplanade 2171 W Esplanade Ave 0 Quality Properties Asset Management Co San Jacinto 32, Proposed 2 Florida Promenade Expansion 4602 W Florida Ave West Coast Development Hemet 13, Proposed 3 The Crossroads at San Jacinto 727 State St TNG Investments LLC San Jacinto 56, Proposed 4 Commonwealth Plaza Expansion 1861 S. San Jacinto Ave. --- San Jacinto 40, Proposed 5 Moutain View Plaza E Florida Ave --- Hemet 13, Proposed 6 Ramona Creek 5800 W Florida Ave Regent Properties Hemet 322, Proposed 7 The Boardwalk 1950 W Florida Ave N & S Investment Company Hemet 60, Proposed Total: 537, Color Coded by Status Red = Under Construction/Approved Green = Pending/Proposed Source: Planning Departments, CoStar RetailPP.xlsx: Retail P+P the concord group 68

69 EXHIBIT VII-4 SUPPLY VERSUS DEMAND - RETAIL 5-MILE RADII 2017 THROUGH 2021 Projection Annual 5-Yr Year: 1Q Total Retail Inventory (000s) Start of Period 7,055 7,055 7,055 7,101 7,211 Planned Supply End of Period 7,055 7,055 7,055 7,101 7,211 7,593 Occupancy Start of Period Occupied SF (000s) 6,533 6,602 6,671 6,739 6,808 Additional Retail Demand End of Period Occupied SF (000s) 6,533 6,602 6,671 6,739 6,808 6,876 Occupancy Rate 92.6% 96.0% 94.5% 94.9% 94.4% 90.6% Over / Under Supply Evaluation Stabilized Occupancy 92% 92% 92% 92% 92% 92% Stabilized Occupied Units 6,491 6,491 6,491 6,533 6,634 6,986 (Under) / Over Supply (42) (282) (180) (206) (174) (100) (200) (300) (400) (Under) / Over Supply 100% 98% 96% 94% 92% 90% 88% 86% 84% (Under) / Over Supply - Bar Occupancy - Line (500) % RetailPP.xlsx: S-D THE CONCORD GROUP 69

70 EXHIBIT VII-5 CURRENT INVENTORY - RETAIL SAN JACINTO VALLEY LAST 5 YEARS THROUGH MAY 2017 Lease Transaction RBA Year Bldg Sign Leased/ Rate Key Project Name Address City Blt/Rnv. RBA Occ. Date Tenant/ Type Avail. $ Type Subject Site Transactions 1 San Jacinto Plaza 1821 S. San Jacinto Ave San Jacinto ,940 88% Oct-16 Grocery-Anchored 1,137 $30.00 NNN 2 Wentworth Plaza Sanderson Ave Hemet ,321 49% Jun-14 Jersey Mikes Subs 2,222 $24.00 NNN 2 Jun-14 Allstate Insurance 849 $23.40 NNN 3 Village at San Jacinto 1271 N. State St San Jacinto ,795 94% Sep-14 Neighborhood Center 1,500 $24.00 NNN 3 Dec-14 Neighborhood Center 1,200 $18.00 NNN 3 Dec-14 Neighborhood Center 1,200 $18.00 NNN 4 Mountain View Plaza State Hwy 74 Hemet , % Apr-13 Grocery-Anchored 10,000 $21.00 NNN 5 Ramona Plaza E. Florida Hemet 1967/ ,728 89% Jun-16 Grocery-Anchored 1,500 $16.20 NNN N. Harvard St. 118 N. Harvard St. Hemet --- 4, % Mar-14 Elite Bar and Lounge 4,000 $6.86 NNN Total/ Weighted Avg: ,531 91% 2,623 $20.16 NNN Listings 7 San Jacinto Plaza 1821 S. San Jacinto Ave San Jacinto ,940 88% --- Grocery-Anchored 1,419 $33.00 NNN 8 Hemet Valley Mall 2200 W. Florida Ave Hemet 1986/ ,963 95% --- Community Center Retail 1,200 $24.00 NNN 8 5,934 $22.56 NNN 8 3,852 $22.56 NNN 8 1,250 $20.04 NNN 9 Wentworth Plaza Sanderson Ave Hemet ,321 49% --- Strip Center 10,321 $18.00 NNN 10 Village at San Jacinto 1271 N. State St San Jacinto ,795 94% --- Fast Food 1,500 $18.00 NNN 10 Fast Food 2,000 $18.00 NNN 11 Ramona Plaza E. Florida Hemet 1967/ ,728 89% --- Grocery-Anchored 1,200 $16.20 NNN 11 3,000 $13.80 NNN Total/ Weighted Avg: ,807 95% 3,168 $20.62 NNN RetailComps.xlsx:Retail InventoryCMA The Concord Group 70

71 EXHIBIT VII-5 CURRENT INVENTORY - RETAIL SECONDARY MARKET AREA LAST 1 YEAR THROUGH MAY 2017 Lease Transaction RBA Year Bldg Sign Leased/ Rate Key Project Name Address City Blt/Rnv. RBA Occ. Date Tenant/ Type Avail. $ Type Subject Site Transactions 1 Town Center Marketplace Haun Rd Menifee , % Jan-17 Neighborhood Center 3,000 $42.00 NNN 1 El Pollo Loco 1,000 $38.28 NNN 1 China One 1,205 $35.76 NNN 2 Towngate Promenade Day St. Moreno Valley ,000 83% Sep-16 Cupcake Espresso Bar 1,400 $39.96 NNN 3 Perris Crossing 3150 Case Rd. Perris , % Sep-16 Corky's Kitchen & Bakery 5,000 $39.00 NNN 4 Wal-Mart Center 1820 B. Perris Blvd Perris ,000 89% May-17 Great Clips 1,040 $36.00 NNN 5 Perris Plaza 1688 N. Perris Blvd Perris ,984 91% Apr-16 Hammer Insurance 900 $27.00 NNN 5 Mar-16 Samurai Sushi 1,100 $27.00 NNN 6 Perris Towne Center W. Nuevo Rd Perris ,048 89% Mar-16 Neighborhood Center 15,000 $24.00 NNN Total/ Weighted Avg: ,587 89% 3,294 $34.33 NNN Listings 7 Graham Square Alessandro Blvd Moreno Valley ,498 56% --- Strip Center 525 $36.00 NNN 8 Perris Plaza 1688 N. Perris Blvd Perris ,984 91% --- Community Center Retail 1,200 $30.00 NNN 8 Community Center Retail 930 $26.40 NNN 9 Perris Towne Center W. Nuevo Rd Perris ,048 89% --- Neighborhood Center 15,000 $22.20 NNN Total/ Weighted Avg: ,530 88% 4,414 $28.65 NNN Miles to Perris Station 1.25 Miles to Perris Station Miles to Perris Station Perris Station RetailComps.xlsx:Retail InventorySMA The Concord Group 71

72 EXHIBIT VII-6 SITE POSITIONING - RETAIL SAN JANCINTO VALLEY JUNE 2017 Site Positioning Site - Storefront Transactions - L3Y 118 N. Harvard St. Ramona Plaza Mountain View Plaza Village at San Jacinto Village at San Jacinto Village at San Jacinto Wentworth Plaza Wentworth Plaza San Jacinto Plaza Listings Ramona Plaza Ramona Plaza Village at San Jacinto Village at San Jacinto Wentworth Plaza Hemet Valley Mall Hemet Valley Mall Hemet Valley Mall Hemet Valley Mall San Jacinto Plaza $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00 $30.00 $32.00 $34.00 $36.00 Lease Rate ($/SF/Yr.) Source: Co-Star, TCG RetailComps.xlsx: RetailPositioning The Concord Group 72

73 EXHIBIT VII-7 BUILDING TRADES - RETAIL COMBINED MARKET AREA LAST THREE YEARS ENDING EARLY MAY 2017 Sale Map Year Cap Key Project Name Street Address City Built/Renov. SF Buyer Date Price $/SF Rate Executed 1 Wendy's 2000 N. Perris Blvd Perris ,000 Cotti Foods Corporation Mar-17 $2,109,500 $ % 2 Dollar General Fairview Ave Hemet ,200 Thomas T & Susan S Shu Aug-15 $3,430,000 $ % 3 CVS Pharmacy 102 S. Sanderson Ave. Hemet ,286 Ezequiel Nacach Ambe Oct-15 $4,853,243 $ Wentworth Plaza Sanderson Ave Hemet ,867 7 Summit Properties 2 LLC May-17 $4,500,000 $ % 5 Sizzler 4762 W. Florida Ave Hemet ,500 SGJ, Inc. Feb-15 $1,580,000 $ Straight Total/Average: ,971 $3,294,549 $ % Source: CoStar Retail Bldg Trades.xlsx: Bldg THE CONCORD GROUP 73

74 EXHIBIT VII-8 LAND TRADES - RETAIL COMPETITIVE MARKET AREA LAST THREE YEARS ENDING EARLY MAY 2017 Map Sale Sale Price Key Building/Project Address City Buyer/Owner Date AC $ Per Acre 1 Mountain Rd & Esplanade Mountain Rd & Esplanade San Jacinto Eastern Municipal Water District Dec $1,350,000 $894,040 2 Florida Promenade 4602 W Florida Ave Hemet SGJ, Inc. Jan $750,000 $808,625 3 S Sanderson Ave S Sanderson Ave San Jacinto Prohas Enterprises Inc Jul $889,000 $800, S. Palm Ave S. Palm Ave Hemet Aeme Investments LLC Sep $102,000 $237, N. State St. 573 N. State St. Hemet Riverside County IT Aug $800,000 $209, N. San Jacinto 678 N. San Jacinto Hemet Fayez & Mona Sedrak Oct $255,000 $136,364 Total/Average: 9.67 $4,146,000 $428, Retail Land Trades.xlsx:Retail-Land The Concord Group 74

75 VIII. OFFICE (SERVICE, PROFESSIONAL) The Concord Group 75

76 EXHIBIT VIII-1 OFFICE HISTORICAL TRENDS COMBINED MARKET AREA 2002 THROUGH JUNE 2017 Q116 Q117 Annual YTD Growth Year Over Year Period: Yr 10-Yr 1Q16 1Q17 Inventory (000s) Inland Empire 53,917 54,719 56,282 58,561 61,573 65,125 69,278 72,447 72,990 73,157 73,373 73,414 73,646 73,761 73,981 74, ,408 73,828 74,059 Combined MA 2,988 2,989 3,039 3,111 3,129 3,239 3,325 3,430 3,484 3,493 3,487 3,486 3,545 3,571 3,616 3, ,610 3,631 SJV 1,380 1,381 1,389 1,407 1,409 1,409 1,432 1,516 1,553 1,565 1,562 1,562 1,575 1,573 1,571 1, ,571 1,571 Net Deliveries (000s) Inland Empire ,563 2,279 3,012 3,552 4,153 3, Combined MA (6) (1) SJV (3) 0 13 (2) (2) Occupancy Inland Empire 93% 93% 92% 93% 92% 91% 87% 84% 84% 85% 86% 87% 88% 89% 90% 91% % 91% Combined MA 93% 94% 94% 96% 95% 96% 94% 92% 92% 92% 93% 93% 94% 94% 93% 93% % 93% SJV 92% 93% 93% 94% 94% 97% 97% 94% 92% 91% 90% 90% 91% 92% 89% 90% % 89% Net Absorption (000s) Inland Empire ,466 2,824 2,541 2, , ,452 9, Combined MA (63) (27) 1 SJV (10) (4) (27) (1) (2) (50) (21) 5 Lease Rate Inland Empire $16.37 $17.99 $19.84 $21.14 $23.09 $24.90 $24.59 $22.57 $21.17 $19.48 $18.38 $18.38 $18.94 $19.78 $20.04 $ $19.77 $20.47 Gr./Yr % 10% 7% 9% 8% -1% -8% -6% -8% -6% 0% 3% 4% 1% 2% --- 4% Combined MA $15.42 $17.60 $15.99 $15.90 $25.91 $23.87 $22.57 $20.82 $21.38 $22.06 $18.25 $17.43 $18.12 $18.26 $18.72 $ $18.04 $18.70 Gr./Yr % -9% -1% 63% -8% -5% -8% 3% 3% -17% -4% 4% 1% 3% 1% --- 4% SJV $18.07 $20.48 $16.35 $15.21 $18.05 $21.62 $21.15 $20.59 $23.34 $24.17 $18.43 $18.14 $18.98 $18.19 $18.50 $ $17.08 $19.48 Gr./Yr % -20% -7% 19% 20% -2% -3% 13% 4% -24% -2% 5% -4% 2% 7% % 81,000 Office Inventory (000s sf) Office Lease Rate ($/sf) 71,000 $ ,000 $ ,000 $ ,000 31,000 $ ,000 $ ,000 1, YTD 2017 Combined MA Rem. Inland Empire $ YTD 2017 Inland Empire Combined MA Source: CoStar Employment_Off Demand.xlsx: Office The Concord Group 76

77 EXHIBIT VIII-2 OFFICE DEMAND ESTIMATE INLAND EMPIRE 2016 THROUGH 2041 I. Key Ratios - Inland Empire II. Employment Projection (000s) - Inland Empire Office Space (000s sf) Office Ratio % 000s Total SF Occ % Occ. SF Jobs (000s) SF/Job Industry/ Location Office (1) Occupied Space & Office Jobs Government % ,981 90% 66, Education & Health Services % ,157 85% 62, Professional & Business Services % Financial Activities % Net Absorption Growth Information % 5-Yr , Retail Trade % Leisure & Hospitality % TCG Estimated Demanded Office SF per Added Office Job 90 Transportation, Warehousing & U % Manufacturing % Construction % Wholesale Trade % Other Services (except Public Adm % Natural Resources & Mining % Office Subtotal 1,154 1,403 1,488 1,549 1,595 1,643 1,702 51% Weighted Subtotal % Growth (#) Growth (%) % 6.0% 4.1% 3.0% 3.0% 3.6% IV. Historical Capture III. Office Demand - Inland Empire, Combined Market Area, SJV Combined Market Area SJV Inland Empire Capture Capture Office Jobs Added (000s) Geography: Inland Empire # Inland Empire # Combined MA Occupied Space / Job Office Demand (000s, sf) 3,880 2,816 2,093 2,178 2,718 Occupied Inventory ,601 3,358 5% 1,403 42% Combined Market Area ,092 3,228 5% 1,428 44% Inland Empire Capture 5% 6% 6% 7% 7% Total Combined MA Office Demand Total Absorption 5-Yr 4, % (15) --- SJV 10-Yr 9, % 71 22% Combined Market Area Capture 42% 42% 42% 42% 42% Total SJV Office Demand Annual SJV Office Demand Site Capture 75% 75% 75% 75% 75% Potential Annual Site Office Absorp (1) Estimated industry percentage of employment requiring office space Source: Moody's, CoStar, TCG Employment_Off Demand.xlsx: OffDemand The Concord Group 77

78 EXHIBIT VIII-3 FUTURE OFFICE DEVELOPMENT COMBINED MARKET AREA JUNE NO OFFICE PRODUCT CURRENTLY PLANNED OR PROPOSED IN THE CMA --- Map Est. Property Key Name/Building Park Address City Deliv. Owner Status Rent RBA Under Construction A Kaiser Medical Center Keller Rd Menifee 2017 Kaiser Permanente Under Construction ,000 B 520 W. 4th St 520 W. 4th St Perris 2017 Sunland Real Estate Under Construction $24.00/MG 14,080 Under Construction Subtotal: $24.00/MG 94,080 Proposed C Menifee Medical Plaza Town Center Drive Menifee 2018 Stone Creek Company Proposed ,000 D Menifee Meadows Holland Rd & Sherman Rd Menifee 2018 Lee & Associates Proposed 27.00/NNN 102,924 E Cenerpointe Business Park Cactus Ave Moreno Valley 2019 Ridge Property Trust Proposed 27.00/NNN 49,973 Proposed Subtotal: 27.00/NNN 184,897 Pipeline Combined MA Total: 278,977 E B C D A Office Pipeline.xlsx: Pipe the concord group 78

79 EXHIBIT VIII-4 OFFICE INVENTORY SAN JACINTO VALLEY LAST 3 YEARS THROUGH JUNE 2017 Lease Transaction RBA Effective Year Bldg Sign Leased/ Rate Mo. Rent Key Project Name Address City Blt/Rnv. RBA Occ. Date Tenant/ Type Avail. $ Type (NNN) Subject Site Transactions A Valley Medical Center 1695 San Jacinto Ave San Jacinto ,124 91% Jul-16 Medical 1,743 $19.80 NNN $19.80 B Latham Ave. Medical Building 1031 E. Latham Ave San Jacinto ,301 76% Jun-15 Medical 1,080 $15.00 MG $11.25 C 151 N. Gilbert St. 151 N. Gilbert St. Hemet , % Apr-16 Office 4,200 $9.60 NNN $9.60 D 901 S. State St. 901 S. State St. Hemet , % May-15 Office 1,200 $12.00 MG $9.00 E 464 S. Palm Ave 464 S. Palm Ave Hemet , % Mar-16 Office 1,000 $9.00 FSG $6.75 Total/ Straight Avg: ,306 93% 1,845 $13.08 $11.28 Listings F Valley Medical Center 1695 San Jacinto Ave San Jacinto ,124 91% --- Medical 1,084 $19.08 NNN $19.08 G Parkside Medical Suites 1091 W. Esplanade Ave San Jacinto , % --- Medical 37,490 $16.80 NNN $16.80 H 250 N. State Street Suite A 250 N. State Street Suite A Hemet --- 2,880 50% Office 1,430 $15.00 NNN $15.00 I 125 West Florida Ave. 125 West Florida Ave. Hemet , Office 1,800 $17.76 MG $13.32 J 941 S. State St 941 S. State St Hemet ,202 51% --- Office 8,500 $12.00 NNN $12.00 K Latham Ave. Medical Building 1031 E. Latham Ave San Jacinto ,301 76% --- Medical 1,014 $14.16 MG $10.62 L 705 E. Florida Ave 705 E. Florida Ave Hemet --- 2,394 0% --- Medical 2,394 $9.48 NNN $9.48 M Atwater Business Center 211 N. State St. Hemet ,817 86% --- Office 1,500 $12.00 MG $9.00 N Hemet Professional Building 539 E. Florida Ave Hemet --- 5,802 74% --- Strip Center 1,506 $11.40 MG $8.55 Total/ Straight Avg: ,034 54% 6,302 $14.19 $ Office Comps.xlsx:Office Inventory-CMA The Concord Group 79

80 EXHIBIT VIII-4 OFFICE INVENTORY SECONDARY MARKET AREA LAST 3 YEARS THROUGH JUNE 2017 Lease Transaction RBA Effective Year Bldg Sign Leased/ Rate Mo. Rent Key Project Name Address City Blt/Rnv. RBA Occ. Date Tenant/ Type Avail. $ Type (NNN) Subject Site Transactions A North Perris Medical Center 126 Avocado Perris , % Dec-16 Office 1,182 $21.00 NNN $21.00 B 180 E. 4th St 180 E. 4th St Perris , % Oct-15 Office 1,150 $13.08 NNN $13.08 C Heacock St Heacock St. Moreno Valley , % May-17 Office 5,453 $15.60 MG $11.70 D 170 Wilkerson Ave 170 Wilkerson Ave Perris , % May-14 Office 3,200 $12.00 MG $9.00 Total/ Straight Avg: ,497 95% 2,746 $15.42 $13.70 Listings E Professional Center Newport Rd Menifee ,600 75% --- Office 1,900 $23.40 NNN $23.40 F North Perris Medical Center 126 Avocado Perris , % --- Office 2,489 $21.00 NNN $21.00 G Frederick St Frederick St. Moreno Valley ,600 90% --- Office 1,700 $21.60 MG $16.20 Total/ Straight Avg: ,595 87% 2,030 $22.00 $20.20 F E Office Comps.xlsx:Office Inventory-SMA The Concord Group 80

81 EXHIBIT VIII-5 OFFICE - LEASE RATE POSITIONING SAN JACINTO VALLEY JUNE 2017 Site Positioning Site - Professional Transactions 464 S. Palm Ave 901 S. State St. 151 N. Gilbert St. Latham Ave. Medical Building Valley Medical Center Listings Hemet Professional Building Atwater Business Center 705 E. Florida Ave Latham Ave. Medical Building 941 S. State St 125 West Florida Ave. 250 N. State Street Suite A Parkside Medical Suites Valley Medical Center $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 Lease Rate ($/SF/Yr.) Source: Co-Star, TCG Office Comps.xlsx: Office Positioning The Concord Group 81

82 EXHIBIT VIII-6 BUILDING TRADES - OFFICE SAN JACINTO VALLEY LAST THREE YEARS ENDING EARLY JUNE 2017 Sale Map Year Key Project Name Street Address City Built/Renov. SF Buyer Date Price $/SF Executed E Latham Ave 413 E Latham Ave Hemet ,080 Bangert Family Trust Jun-16 $207,000 $ Laursen St 225 Laursen St Hemet --- 2,300 AG Properties Group LLC Jan-15 $375,000 $ N Buena Vista St N Buena Vista St Hemet --- 1,402 Bangert Family Trust Jun-16 $207,000 $ E Florida Ave E Florida Ave Hemet ,477 Joseph & Maria C Dattilo Jan-17 $350,000 $ S Harvard St 120 S Harvard St Hemet --- 2,911 Chu S & K Family 2006 Trust Sep-15 $319,000 $ S State St 1230 S State St Hemet --- 1,600 Qianji Llc Apr-16 $175,000 $ N Juanita St 130 N Juanita St Hemet --- 1, Apr-17 $129,000 $ W Stetson Ave 430 W Stetson Ave Hemet ,720 The Stetson Group Inc. Dec-14 $715,000 $ S Harvard St 146 S Harvard St Hemet --- 1,053 Fresh Start Homes Llc Oct-16 $96,000 $ E Florida Ave 801 E Florida Ave Hemet --- 1,778 Jason R & George G Oropeza Feb-16 $160,000 $ E Florida Ave E Florida Ave Hemet --- 4,698 Jason R Oropeza Jul-15 $400,000 $ W 7th St 684 W 7th St San Jacint ,000 Jose A Romo May-16 $170,000 $ Dartmouth St 3292 Dartmouth St Hemet ,220 Sonya J Feigen Jun-15 $590,000 $ Fairview Ave Fairview Ave Hemet --- 3,250 Robert S & Susan B Righetti Dec-16 $250,000 $ N Gilbert St 151 N Gilbert St Hemet ,200 Dorothy Kimbrell Jul-16 $299,000 $71.19 Straight Total/Average: ,926 $296,133 $ Source: CoStar Office Bldg Trades.xlsx: Bldg THE CONCORD GROUP 82

83 EXHIBIT VIII-7 LAND TRADES - OFFICE COMBINED MARKET AREA LAST THREE YEARS ENDING EARLY JUNE 2017 Map Sale Sale Price Key Building/Project Address City Buyer/Owner Date AC $ Per Acre 1 Business Park Dr. Business Park Dr. Perris Therese K De Kassar Dec $275,000 $143,229 2 McCall Blvd & Chatham Ln McCall Blvd & Chatham Ln Menifee --- Oct $250,000 $136, N. San Jacinto St. 678 N. San Jacinto St. Hemet Fayez & Mona Sedrak Oct $255,000 $136, Alessandro Blvd Alessandro Blvd Moreno Valley Naji & Mary Doumit Jun $375,000 $114,329 Total/Average: 8.90 $1,155,000 $129, Office Land Trades.xlsx:Retail-Land The Concord Group 83

84 IX. LIGHT INDUSTRIAL ( MAKER S SPACE ) The Concord Group 84

85 EXHIBIT IX-1 PERFORMANCE METRICS - INDUSTRIAL COMBINED MARKET AREA 2006 THROUGH 2017 Annual YTD Average Growth 1Q17 vs. Period: Yr 10-Yr 5-Yr 10-Yr 1Q17 1Q16 Inventory (000s) Combined MA 15,872 19,611 22,345 24,021 24,023 24,478 27,231 28,971 33,597 37,988 41,936 44,119 33,944 28,420 3,492 2,606 44,119 3,323 SJV 2,622 2,802 2,824 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2, ,831 0 Net Deliveries (000s) Combined MA --- 3,739 2,733 1, ,753 1,739 4,626 4,391 8,340 6,132 4,370 3,046 SJV Occupancy Combined MA 92% 84% 83% 85% 87% 93% 90% 91% 93% 94% 97% 95% 93% 90% SJV 94% 98% 98% 95% 93% 93% 95% 92% 94% 97% 97% 97% 95% 95% Absorption (000s) Combined MA 909 2,805 1,144 1, , ,201 7,117 3,242 4, , ,695.2 SJV (53) (58) (16) 30 (38) (39) Lease Rate Growth (%) Combined MA $6.28 $5.71 $5.66 $4.50 $3.79 $3.65 $4.11 $4.40 $4.36 $4.45 $5.98 $5.11 $4.66 $4.66 $0.47 $0.03 $ % SJV $6.51 $7.87 $8.78 $7.75 $7.16 $6.75 $7.75 $6.85 $6.24 $5.75 $5.58 $5.69 $6.43 $7.05 ($0.24) ($0.23) $ % SJV - Absorption (000s SF) (50.0) (100.0) $ SJV - Lease Rate ($/SF/Yr) $9.00 $8.00 $7.00 $6.00 Source: CoStar $5.00 $ Industrial Trends.xlsx: Retail Trends The Concord Group 85

86 EXHIBIT IX-2 ANALOGUE STUDIES - FOOD HALL CONCEPT SOUTHERN CALIFORNIA JUNE 2017 Analogue Studies - Food Hall Concept Highlights and Key Points Costa Mesa - The OC Mix Union The District A rising trend among retail markets and shops is the implementation of the Located within Costa Mesa's SoCo, this food hall Located within Tustin's The District. Industrial-chic market "Food Hall" concept. Food halls, typically indoor and multi-faceted, showcase contains locally owned boutiques and specialty food spots with open space for food stalls, restaurants, and boutiques a variety of local food vendors and indie shops packed together in smaller spaces than traditional retail. Additionally, it can serve as an incubator for new Project Details: Project Details: restaurant concepts and businesses Horizontal Commercial - 1 Story Horizontal Commercial - 1 Story Retail SF: 24,000 Retail SF: 23,000 Food halls address potential opportunity for differentiated retail and economic Occupancy: 100% Occupancy: 95% development for incubators and start-ups in Downtown Hemet. Food halls Average Rent : $72/SF, NNN with CAM Average Rent : $72/SF, NNN with CAM have higher communal area than retail area and feature large outdoor seating Tenants/Avg SF: 10/ sf Tenants/Avg SF: 14/ sf areas with a high emphasis on art. Many food halls have modern upscale Retail Segmentation Mix: 25% Dessert, 37% Restaurants Retail Segmentation Mix: 29% Restaurants, 14% Cafes, architecture 25% Bars/Alcohol and 13% Cafes 14% Bars/Alcohol and 36% Desserts, and 7% Specialty On a rent basis, food halls will typically have nearly a 50% premium to traditional restaurant retail, but will have higher CAM fees. Moreover, individual stores in food hall tend to be much smaller averaging about 500-1,000 sf total Currently, Southern California has one of the highest densities of food halls in the country with Northern California and San Diego currently building more Significance of Evaluation for Hemet Pros: Creation of more modern "destination" retail and incubator for new businesses that will complement transit well as a later opportunity Induce more modern retail shops to Downtown Hemet to better compete with newer retail construction in San Jacinto and surrounding areas Cons: Food halls mainly target younger audiences, which makes a small percentage of people living in Hemet. However, Hemet has potential to attract students/young residences from Riverside County and gain traffic from existing families that live in the area Existing food halls are located in areas of high retail visibility and walkscore which Hemet does not currently have, but will improve with transit Analogue Studies.xlsx: Food-Hall The Concord Group 86

87 EXHIBIT IX-3 ANALOGUE STUDIES - ARTIST/MAKER SPACE CONCEPT SAN JACINTO VALLEY JUNE 2017 Analogue Studies - Artist/Maker Space Concept Highlights and Key Points San Jacinto Valley has a strong contingent of artists and artist spaces in the region Both the downtown Hemet Theatre and Diamond Valley Arts Council has current expansions to provide better room for art exhibits, performance areas, and classrooms Hemet currently has a high concentration of art-related spaces, especially in Downtown, with few in San Jacinto. Recently, there has been a desire to create a collaboration with nearby restaurants with artist spaces Key Artist Space - Location Art Spaces 1 Diamond Valley Arts Center 2 Historic Hemet Theatre 3 Hemet Valley Art Association 4 Esplanade Arts Center 5 Mt. San Jacinto College Art Gallery 6 San Jacinto Museum 7 Hemet Train Depot/ Museum In Costa Mesa, there is a corridor on 17th street that contains a plaza with integration of both artist and wood-working maker space. Local artists and makers are able to rent these incubators for use Significance of Evaluation for Hemet Pros: Given the strong existing artist space in Hemet, an artist-studio space would integrate well and gain traffic from existing artists looking to rent Gray Matter Museum of Art + 36 W. 17th Induce a "destination" type of retail that complements transit, provides space Diamond Arts Valley Center Artist/Maker Incubators - Costa Mesa for residents/visitors to spend time at the area Artist-studio space with extensive art gallery area, Creative space for local artists to rent out. Offers space for Cons: seating for at least 80 for classes and performers art classes, gallery showings, and company events Since Hemet currently has existing several art spaces, there may be a Newly renovated to promote Hemet's downtown and Mini-incubators that can be rented by local artists and makers "competition" factor that may limit demand for new art spaces culture for entire San Jacinto Valley Artist spaces may not achieve high retail traffic as other potential uses Analogue Studies.xlsx: Artist-Space The Concord Group 87