SIGNIFICANT VALUE-ADD UPSIDE

Canyon Country Villas offers investors a highly executable value-add opportunity in one of Los Angeles County’s strongest suburban rental markets. Current ownership has already validated the renovation thesis: a light interior upgrade program has achieved upwards of $200 per unit in monthly rental premiums, confirming strong renter demand for improved finishes with significant remaining headroom still untapped. Ownership has also invested over $2.6M in common area and exterior improvements over the past five years, positioning unit interiors as the clear final phase of the value-add story for an incoming investor. With 187 classic market-rate units still untouched, a new owner can pursue a deeper, more comprehensive interior renovation program building on this proven foundation, unlocking significant annual rental revenue.

DIFFERENTIATED PRODUCT WITH A RARE OFFERING OF ATTACHED AND DIRECT-ACCESS GARAGES

Canyon Country Villas occupies a unique position within the Santa Clarita multifamily landscape, offering a residential experience that is increasingly difficult to replicate. The Property combines spacious floor plans, a low-density suburban layout, and a garage for every unit, whether single, tandem, or side-by-side, offering an amenity rarely found in conventional apartment communities and highly valued by today’s renter. Approximately 25% of the units also feature direct-access garages, further enhancing the Property’s appeal. As residents continue to prioritize privacy, storage, convenience, and a more home-like living environment, the Property offers a meaningful competitive advantage over traditional garden-style product. This differentiation not only supports resident satisfaction and retention but also strengthens long-term pricing power by delivering a level of functionality and lifestyle appeal unavailable at most competing communities.

INSTITUTIONAL-SCALE OPPORTUNITY IN A TIGHTLY HELD MARKET

Institutional-quality multifamily assets scarcely become available in Santa Clarita, a market characterized by extremely low trade velocity and long-term ownership. Over the past decade, only seven apartment communities over $50M have transacted, underscoring the limited number of opportunities to acquire meaningful scale in the submarket. Canyon Country Villas stands out as one of the largest apartment communities in Santa Clarita, offering investors immediate scale, stable in-place occupancy, and a clear value-creation strategy. Combined with favorable demographics and strong long-term growth fundamentals, the Property represents a rare opportunity to acquire a high-quality, strategically positioned asset in one of the region’s most supply-constrained multifamily markets.

SUPPLY-CONSTRAINED SUBMARKET WITH INDUSTRY-LEADING RENT GROWTH

Santa Clarita remains one of Southern California’s most supply-constrained and fundamentally attractive apartment markets. The development pipeline remains exceptionally limited despite strong demographic growth and an expanding employment base, with only one institutional multifamily community currently under construction. This combination of increasing demand and restricted new supply is expected to support one of the strongest rent growth fundamentals in the region as average annual rental growth projections of 4.4% through 2030 outperform every major Southern California market. As one of the area’s largest and most established apartment communities, Canyon Country Villas stands to directly benefit from these favorable supply-demand dynamics while offering investors exposure to a market with significant long-term pricing power.

BENEFICIARY OF THE-URBAN-TO-SUBURBAN MIGRATION TREND

While Los Angeles’ urban core recorded a 0.65% population decline between 2025 and 2026, Santa Clarita Valley grew by 1.36% over the same period, reflecting a roughly 2% growth differential that highlights its emergence as one of Southern California’s premier destinations for households seeking larger living environments, highly rated schools, enhanced safety, and a superior quality of life. As many urban neighborhoods across the county face demographic stagnation or contraction, Santa Clarita continues to capture population growth, creating a highly favorable demand backdrop for suburban multifamily housing.

EXCEPTIONAL AFFORDABILITY ADVANTAGE OVER HOMEOWNERSHIP

In a market where homeownership has become increasingly unattainable, Canyon Country Villas offers a compelling housing alternative for a broad segment of Santa Clarita residents. With the monthly cost of owning a comparable home exceeding $5,700 per month, renters can enjoy a similar suburban lifestyle, expansive living environment, and access to top-rated schools at a substantial discount. Even after implementing renovation premiums, the cost of homeownership remains approximately 121% higher than renting at the Property. This significant affordability gap creates a durable renter-by-necessity dynamic, insulating apartment demand during economic cycles while providing meaningful runway for future rental growth as home prices and ownership costs continue to rise.