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EXHIBIT IIIJ <br />PRODUCT RECOMMENDATIONS <br />2525 MAIN STREET, SANTA ANA <br />NOVEMBER 2017 <br />Project • Located in the Orange County dty of Santa Ana, an up-and-coming neighborhood with planned new term development <br />Dcscriptic m: • The area alongside I-5 and 55 moving south until the 405 highway make up the direct competitive area for the site labeled as Competitive Maker Area ("CMA") <br />• 522-units in an eight story wrapped stmcture <br />• Pry ect slated to have top -of -market specillcan ons (see lower dgbt comer) <br />Markefing • Shong Market Dynamics - Strong j ob growth in Orange County("OC")(2.6% annually over last 5 years) <br />Advantages: - Addifionally,2016 showed high occupancy and strong rent growth (96% and 12.2% respectively) in the CMA <br />• Household Rent Growth - High historical household rent growth, with 1.7%annual CMA growth from 2000 to 2017 in the CMA <br />• Proximity to retail m of transit - Adjacent to 5 and 55 freeways, main connectors to regional employment cores <br />- Close to downtown Santa Ana, with nightlife and employment <br />Markefing • Noise Pollution - Freeway adjacency will have some sound pollution that may be a slight marketing hurdle <br />Challenges: • Fedwe Developments - With large scale ofproject and projected deliveries, lease up will compete with new and similar location type product. <br />Target •Key demographics for the Project are Young Singles and Couples with some Families and Mature Professionals/Empty Nesters <br />Renter - Young Singles and couples are the majority ofnew demand with 92%(352)ofdemand <br />Profiles: - Families are projected to be 13%(M)of overall demand with mainly desiring 2 and 3 bedrooms <br />- Mature Professionals / Empty Nesters equate to 14%(90) of projected demand with equal desire for 1 and 2 bedrooms <br />• Based on TCG's detailed demand segmemmi on analysis, the CMA attracts households with the following housing needs 50% 113s, 45%213s, and 5% 313s <br />Positioning •Posihoned at mid -of -market within the CMA due to location, proximity to retail, and vintage <br />Rafioaale & • Discount to newer large scale product found in the Irvine Bui mess Center ("IBC') due to closer proximity to lager employment cores <br />Key Co npoufioa: <br />Rea[ TCG Recommendations Amenity Intedo: Quartz countertops, full file Meksplashes, basic <br />Rerommendafions: Bed/ Unit Mrs Unit Base Rereannu datiots: stainless still appliances, eco-plank/wood plank flooring <br />Bath Nam. Pert. Size S $/af in-unitwasher/dryer,squared-offmid-sizedbalemies, <br />high -end light fixtures, wide windows <br />0 / 1 73 14% 512 $1,800 53.52 <br />1 / 1 290 56% 926 $2,125 $2.93 Community: Business center /work space, lounge area w/ <br />2/2 140 27% 1,063 $2,700 $2.54 coffee and TV, pet friendly, secured <br />2/2 19 4% 1,311 $3,100 $2.36 self-service package delivery space <br />TotaVAvg.: 522 100% 808 52,269 $2.81 <br />Lease -Up 20-30 units/month <br />Projeefioa: <br />17590.00 RecCamps: Rea <br />11/12/17 <br />THE CONCORD GROUP <br />28 <br />60A-39 <br />