esplanade-apartment-homes

11711 Collett Avenue, Riverside, CA 92505

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. This advertisement is not intended to solicit commercial mortgage company business in Nevada. © 2025 Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Berkadia® and Berkadia Commercial Mortgage® are trademarks of Berkadia Commercial Mortgage LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. For state licensing details for the above entities, visit www.berkadia.com/licensing.

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3121 Michelson Drive, Suite 400 Irvine, CA 92612

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KEVIN MIGNOGNA

Senior Managing Director 619.622.9238 Kevin.Mignogna@berkadia.com

CHARLIE HAGGARD

Senior Managing Director 949.572.9442 Charlie.haggard@berkadia.com

CHELSEA JERVIS

Managing Director DRE# 01964154 949.244.9810 chelsea.jervis@berkadia.com

CJ ANGLE

Managing Director DRE# 02074015 949.573.0931 cj.angle@berkadia.com

RYAN FITZPATRICK

Senior Managing Director DRE# 01314070 714.614.7002 ryan.fitzpatrick@berkadia.com

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Differentiated, Low Density Product – Esplanade is a 588-unit, two and three-story garden-style community in the La Sierra neighborhood of Riverside, California. Completed in 2004, Esplanade provides low-density (20 DU/AC) apartment living in a central and amenity-rich master planned community location.Demand Outpacing Supply - Since 2000, Riverside has seen its population increase by 66,000 (+26%), while the number of apartments constructed has averaged only 205 units per year. With continued forecasted population growth and no institutional sized apartment projects under construction within a 10-mile radius, investors have an incredible opportunity to capitalize on the region’s growth by repositioning Esplanade and capturing substantially higher rents. Proven Value-Add Opportunity – New ownership has the opportunity to continue the proven unit interior renovation strategy across 221 unrenovated units (±38% of the Property). With expansive floorplans and current renovation premiums north of $250/unit, post renovated rents at Esplanade still remain at a compelling discount to new construction in the market. In addition to improving unit interiors, new ownership has the opportunity to refresh common area amenities for additional rental upside. Favorable Ground Lease Structure – Esplanade is subject to a 99-year ground lease (77 years remaining) with La Sierra University. The favorable ground lease payment consists of: (1) a fixed annual ground lease payment of $1,009,596 for the duration of the term and (2) Additional Rent, fixed at 2.95% of Gross Income. Because of the ground lease’s fixed payment component, as operations and NOI continue to grow, the blended ground lease payment as a percentage of Gross income will decline annually, currently at 9.5% of Gross Income and diluting down over time (to 6.7% by way of example over the next 20 years). Fastest Growing Job Market – With a booming healthcare sector and one of the strongest industrial hubs in the country, the Inland Empire job market has been expanding at a rate unmatched in California. From 2014 to 2024, employment surged by 29.4%— outpacing every major metro in the state. Robust Regional Economy – With over 188 million square feet of industrial space and another 4.2 million square feet under construction, the Riverside/Moreno Valley submarket has become one of the nation’s most robust industrial hubs. The region also boasts a thriving healthcare sector, with over 8.4 million square feet of medical office space and nearly $2 billion in recent healthcare expansion projects within a 30-minute commute of Esplanade. Riverside also boasts a strong education sector, with UC Riverside as the cornerstone as well as La Sierra University, located directly adjacent to the Property. Rapidly Growing Population – Since 2000, the Inland Empire’s population has grown 34x faster than the construction of institutional quality apartment homes. The region’s population is forecasted to grow by another 299,915 (6.3%) over the next 5 years, outpacing every other metro in California and the construction of new housing. Ideal Location – Riverside is the Inland Empire’s most populous city, home to over 319,000 residents boasting an average household income of $113,400. The city offers an abundance of outdoor recreation, award-winning schools, outstanding retail options, and a nationally recognized university. Within Riverside, Esplanade is ideally situated with over 2.2 million sq. ft. of retail within a two-mile radius and just minutes from Downtown Riverside, a dynamic urban village with over 70 popular restaurants, bars, and shops. And with convenient access to the 91 Express Lanes, residents can easily reach Corona (6 mi.) and other destinations throughout the Inland Empire and Orange County in minutes.

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Berkadia, as exclusive advisor, is pleased to present for sale, the leasehold interest in Esplanade Apartment Homes (the “Property” or “Esplanade”), a 588-unit value-add opportunity in Riverside, California. Constructed in 2004 within the Riverwalk master planned community of Riverside, Esplanade is subject to a favorable 99-year ground lease (77 years of remaining term) in conjunction with La Sierra University (lessor). Strategically positioned within one of the fastest-growing MSAs in the nation, Esplanade benefits from proximity to high-quality employment opportunities and outstanding suburban lifestyle amenities. The site provides direct access to the 91-freeway, connecting residents to major employment hubs in every direction. Riverside itself is home to a diverse and thriving economic base, anchored by a booming healthcare sector, a robust logistics/industrial hub (spanning over 188 million sq. ft.), and a strong education sector. As the most populous city in the Inland Empire, Riverside attracts an affluent and diverse population drawn by its safe neighborhoods, highly ranked schools, abundant outdoor recreation, and premier retail and entertainment amenities. With the region’s rapidly expanding economy generating greater disposable incomes, demand for high-end rental product in Riverside is on the rise. Esplanade’s exceptionally well-maintained campus and low-density product is well positioned to capitalize on this growing demand through a completion of current ownership’s unit interior renovation program in the remaining 38% of units that has already proven out significant rent premiums.

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Riverside is the Inland Empire’s most populous city, home to over 319,000 residents boasting an average household income of $113,400. With an abundance of outdoor recreation, award-winning schools, outstanding retail and entertainment options, and a nationally recognized university, Riverside is one of the Inland Empire’s most dynamic and desirable submarkets. The city’s commitment to revitalization is evident in its ongoing downtown redevelopment and infrastructure investments, further enhancing its appeal. Within Riverside, Esplanade offers an exceptional location proximate to the best the city has to offer. The site is within two miles of over 2.2 million sq. ft. of retail space, including retailers like Costco, Vons, Target, and Stater Bros. The Property is also just 15 minutes away from Riverside’s historic downtown, a dynamic urban village filled with over 70 popular restaurants, bars, shops, and art galleries. And with convenient access to the 91 Express Lanes, residents can easily navigate to destinations throughout the Inland Empire and Orange County in minutes.

MARY ANN KING

Co-head of Berkadia Institutional Solutions949.242.4070CA DRE #01323188 maryann.king@berkadia.com

BRETT BETZLER

Senior Managing Director949.981.1196CA DRE #01330214brett.betzler@berkadia.com