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Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526 dverbera@msn.com

Rare and hard to comeby 4-Unit Apartment Building Investment Opportunity in sought

after Town of Los Gatos!

916 Castlewood Dr., Los Gatos, CA 95032 Offered at $2,395,000

Investment Property Offering

• 4 units with excellent mix• Elegantly upgraded turn-key property• Great Schools• 1 Building• Indoor laundry in 3 of 4 units + laundryroom

Offering Highlights

• 3 units rented• 4-Covered Carports plus 1-garage• Beautifully Landscape• Exclusive Town of Los Gatos

LOCATION! LOCATION! LOCATION!

Client Representation Since 1985 Each office independently owned & operated.

See video tour at www.916CastlewoodDr4plex.com

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Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

916 Castlewood Dr., Los Gatos CA 95032 Confidentiality & Disclaimer

The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving it from Realty World Villa California (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the sub-ject property (“Property”) for potential purchase.

The Materials have been prepared to provide unverified summary financial, physical, and market informa-tion to prospective buyers to enable them to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Prop-erty.

The information contained in the Materials has been obtained by Agent from sources believed to be reli-able, however, no representation or warranty is made regarding the accuracy or completeness of the Mate-rials. Agent makes no representation or warranty regarding the Property, including but not limited to: in-come, expenses, or financial performance (past, present, or future); size, square footage, condition, or qual-ity of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or busi-ness prospects of any tenant (tenant’s intentions regarding continued occupancy, payment of rent, etc).

Any prospective buyer must independently investigate and verify all of the information set forth in the Ma-terials. Any prospective buyer is solely responsible for any and all costs and expenses incurred in review-ing the Materials and/or investigating and evaluating the Property.

By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.

All Property showings are by appointment only and must be coordinated through the Listing Agent.

Villa California

Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Area Description

The Town of Los Gatos is a quaint upscale town nestled at the foothills of the Santa Cruz Mountain Range. Los Gatos is an established affluent neighborhood in the Silicon Valley. According to Bloomberg Business week, Los Gatos ranks 33rd in affluence in the United States. Homes in Los Gatos vary from cen-tury-old one million-dollar cottages in the downtown area to 15–30+ million-dollar large custom homes in the surrounding hills which has some of the bay areas elites living with in them. The town is noted for its small, pedes-trian-friendly downtown, with boutique shops, upscale Michelin Star restaurants, and thriv-ing arts community. It is also a preferred des-tination for antique & botique shopping. Due to excellent schools Los Gatos is a much desired place to live whether to rent or own.

Community Schools The town of Los Gatos isserved by the Los Gatos Unified School District and the Campbell Elementary & High Schools Districts. The schools that serve this property are Marshall Lane Elementary( Score of 9/10 on Great Schools & located in Saratoga, has received both the National Blue Ribbon Award and the California Distinguished School Award), Rolling Hills Middle School and Westmont High School (with a 9/10 for test scores and college readiness on Great Schools).

916 Castlewood Dr., Los Gatos CA 95032PROPERTY DESCRIPTION

This 4-plex consists of one two story building that has had extensive remodeling done in last 36 months including 3 units completle remodeled with granite counter tops, stainless steel appliances, glass stove top, dishwasher, garbage disposal, tiled backsplash and floors, canned lighting, drop lighting, new cabinites, hardwood floors, modern water conserving landscaping, new paint & doors and much more. The building consists of one-3 bedroom 2 bath single floor downstairs unit, one-1 bedroom 1 bathroom downstairs unit and two-2 bedroom 1 bathroom upstairs units. 3 units have thier own central heating & A/C systems as well as indoor full size washer & dryer and dual pane windows. The property also features 4 coverd parking spaces plus a 1 car garage. The surrounding area is a mix of apartment units,professional medical offices, shopping centers with excellent access to service commercial and commute routes. Located nearby Vasona Lake County Park and the Los Gatos Creek Parkway. The 150 acre park and connecting parkway are the most popular of Santa Clara County's regional park and recreation areas. Within 5 to 25 minutes to major Silicon Valley Companies such as Netflix, Apple, El Camino Hospital Los Gatos and Palo Alto, 55 minutes to San Francisco, and only 35 minutes to lovely Capitola/Santa Cruz beaches for all year round enjoyment.

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916 Castlewood Dr., Los Gatos CA 95032 Property Summary__________________________

Address: 916 Castlewood Dr. Los Gatos, CA 95032

Santa Clara County 409-12-011

Residential- 3-4 unit-Family

County: APN: County Use:

Utilities • Tenant responsible for individually metered gas

& electricity for their unit • Landlord pays for water services/garbage/

internetUnit Amenities • Tiled kitchen with granite counters• Microwave, Dishwasher & garbage disposal• Stainless Steel appliances, glass stove top• Wood or tile floors & crown molding, wide base

boardsInvestment Offering_________________________

Price

Price/ Unit:

Price/ Sq Ft:

$2,395,000

$598,750/unit

$650/sf

Cap Rate - Current: 3.42%

Cap Rate - Pro Forma: 4.01%

GRM - Current: 18.24

GRM - Pro Forma 16.40

Property Details____________________________

Rentable Units: 4 Year Built: 1963 Rentable Area: 3,681 sq. ft. Lot Area: 8,539 sq. ft. Parking: 5 spaces Foundation:Roof:

Concrete SlabComposition Shingle

Villa California

Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Los Gatos Apartment Building Investment Opportunity 4 Total Units

PROPERTY Address: 916 Castlewood Dr.

Los Gatos, CA 95032

Price: $2,395,000 Units: 4 Square Feet: 3,681

Cap Rate - Current: 3.42% Cap Rate - Pro Forma: 4.01%

GRM - Current: 18.24 GRM - Pro Forma:

Price/ Units:Price/ Sq Ft:

16.40 $598,750/unit

$650/sf

OPERATIONS SUMMARY

CURRENT PRO FORMA Total Income Vacancy 4%

$131,340 $146,040 -5,253 -5,841

Effective Rental Income $126,087 $140,199

Expenses $12,900 $12,900 Non-operational expenses $31,240 $31,240TOTAL EXPENSES $44,140 $44,140

NET OPERATING INCOME: $81,947 $96,059

Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526

916 Castlewood Dr., Los Gatos CA 95032 Rent Roll

Unit No. Bedroom/Bathroom/Aprx. Sq.Ft. Current Rent Pro-Forma Rent *1 3/2/1135 $3495.00 $3495.002 1/1/642 $2300.00 $2475.003 2/1/952 $2350.00 $3100.00

*Currently Vacant Total Rents $10,945.00 $12,170.00

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4 $2800.00 $3100.002/1/952

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Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526 dverbera@msn.com

INCOME ACTUAL (1) PRO FORMA

$146,040 Gross Scheduled Income $131,340 Vacancy 4% ($5253) Effective Gross operating Income (GOI) $126,087 TOTAL INCOME $126,087

($5,841) $140,199$140,199

$3,200 $3,200 $7,900 $1,500 $1,500 $300 $300

EXPENSES: Repairs/Reserves($800/unit)PG&E/garbage/water/sewer/internet Landscape Misc. Taxes/Licenses

SUBTOTAL $12,900 $12,900 $2,500 $2,500 Property Insurance Real

Real Estate Taxes (1) $28,740 $28,740 TOTAL EXPENSES $44,140

% of Scheduled Gross Rent 33.6% 30.2% Expenses/ Unit $11,035 $11,035 Expenses/ SQ FT $11.99 $11.99

(1)-Based on list price and only an estimate. County assesor's office makes final determination.

916 Castlewood Dr., Los Gatos CA 95032 Operating Statement

$7,900

$44,140

Villa California

Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Los Gatos Apartment Building Investment Opportunity 4 Total Units

Updates in 3 units and exterior:

··· Granite Countertops· New Cherry wood Cabinets· Crown Molding/wide baseboard· New Floors· New glass top ovens· New Stainless Steel Refrigerators· New Stainless Steel Microwave Ovens· Remodeled bathroom, New Toilets, Sinks· Painted interiors & exterior· Central Heating/Air conditioning· Dishwashers· Garbage disposals

Dual Pane WindowsProfessionally landscaped on auto sprinklers

Villa California

Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Los Gatos Apartment Building Investment Opportunity 4 Total Units

916 Castlewood Dr..

Villa California

Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Los Gatos Apartment Building Investment Opportunity 4 Total Units

Villa California

Los Gatos, California Demographics

People QuickFacts Los Gatos California Population, 2011 estimate

29,884 37,683,933 Population, 2010 (April 1) estimates base 29,424 37,253,956 Population, percent change, April 1, 2010 to July 1, 2011

1.6% 1.2% Population, 2010

29,413 37,253,956 Persons under 5 years, percent, 2010

4.7% 6.8% Persons under 18 years, percent, 2010 22.3% 25.0% Persons 65 years and over, percent, 2010 17.9% 11.4% Female persons, percent, 2010

52.1% 50.3%

White persons, percent, 2010 81.8% 57.6%

Black persons, percent, 2010 0.9% 6.2%

American Indian and Alaska Native persons, percent, 2010

0.3% 1.0% Asian persons, percent, 2010

10.9% 13.0%Native Hawaiian and Other Pacific Islander, percent, 2010

0.2% 0.4% Persons reporting two or more races, percent, 2010 4.4% 4.9% Persons of Hispanic or Latino origin, percent, 2010

7.2% 37.6% White persons not Hispanic, percent, 2010 77.0% 40.1% Information by US Census Bureau

Los Gatos California Living in same house 1 year & over, percent, 2007-2011 84.3% 84.2%Foreign born persons, per-cent, 2007-2011 16.5% 27.2%Language other than English spoken at home, percent age 5+, 2007-2011 20.6% 43.2%High school graduate or higher, percent of persons age 25+, 2007-2011 97.6% 80.8%Bachelor's degree or higher, percent of persons age 25+, 2007-2011 66.2% 30.2%Veterans, 2007-2011 2,300 1,997,566 Mean travel time to work (minutes), workers age 16+, 2007-2011 23.0 27.0

Housing units, 2010 13,050 13,680,081 Homeownership rate, 2007-2011 64.2% 56.7%Housing units in multi-unit structures, percent, 2007-2011 27.6% 30.8%Median value of owner-occupied housing units, 2007-2011 $1,000,001 $421,600 Households, 2007-2011 11,933 12,433,172 Persons per household, 2007-2011 2.39 2.91Per capita money income in the past 12 months (2011 dollars), 2007-2011 $69,134 $29,634 Median household income, 2007-2011 $122,875 $61,632 Persons below poverty level, percent, 2007-2011 4.9% 14.4%

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Contact Information: David A. Verbera-Broker CALDRE#00878672Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Climate in Los Gatos, California

Average climate in Los Gatos, California

Based on data reported by over 4,000 weather stations

Charts by city-data.com

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Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

History of Los Gatos

The Los Gatos Story

Located 60 miles south of San Francisco and sitting at the base of the Santa Cruz mountains, the Town of Los Gatos acts as a natural

gateway between the greater Santa Clara basin and the beautiful Pacific Coast of California. The Ohlone Indians are believed to be the

first to settle in the lush Santa Clara valley after crossing the Bering Strait some 10,000 years ago, living along the Los Gatos Creek

near what today is Vasona Park, while also crossing the Santa Cruz Mountains to the Pacific coast.

In August of 1791, Father Fermin Francisco de Lasuen, while searching for a site for Mission Santa Cruz, took the advice of the Ohlone

accompanying him and shortened an otherwise 100 mile journey via San Francisco for a more direct route over the Santa Cruz Moun-

tains. After the trip, Father Lasuen enlisted the Ohlone to improve the trail and it soon became a highly traveled route for supply pack

trains, mail, and cattle-drives, creating the foundation for Los Gatos to become a prominent trade and transportation center and the

bridge between the valley and the coast.

Prior to Father Lasuen’s efforts, Captain Juan Bautista de Anza was the first outsider to camp along Los Gatos Creek in 1776 during

his expedition to establish a presidio at San Francisco Bay.

There are several stories as to how Los Gatos received its name and all are plausible. One thing is for certain, due to the Los Gatos

Creek, the area attracted the many mountain lions from which each story finds the connection to the town’s name.

After Mexico won their independence from Spain in 1821, Mexican law allowed private citizens to petition for land formerly belonging

to the Missions built throughout California. Related through marriage, Jose Maria Hernandez and Sebastian Fabian Peralta petitioned

Mexico in 1840 and were granted 6631 acres in the area and named their new ranch, "El Rancho Rinconada de Los Gatos," in which

part of the town now lies.

In 1854, Scotsman James Alexander Forbes purchased part of El Rancho Rinconada and built a flourmill on Los Gatos Creek with plans

of capitalizing on California’s Gold Rush. Forbes intended to make his fortune on the 49ers’ endless need of flour for sustenance. A

man of dubious and questionable repute (it was never quite clear, for instance, whether Forbes actually paid Hernandez and Peralta

for their land), Forbes was never able to make his planned riches. Through several miscalculations and delays, the mill eventually

began to produce "Santa Rosa Brand" flour, but by this time there were several rival mills diluting the market and the seemingly lu-

crative $50 per barrel flour price had, like the Gold Rush, fizzled to a very pedestrian $5 per barrel. Forbes Mill changed hands several

times throughout the years after Forbes’ bankruptcy and, at one point, as The Los Gatos Manufacturing Company, produced a re-

ported 100 barrels of flour a day, bolstered by the arrival of the South Pacific Coast Railroad in 1878.

Damaged in the 1906 earthquake and not having been used to produce flour since 1887, the mill was demolished in 1916. The annex

to the mill now serves as the Forbes Mill Museum, one of Los Gatos’ two town museums. The flourmill did serve a greater purpose,

however, in that it became the nucleus to which the town of Los Gatos was built around. The town started as a small village and later

incorporated as a town on August 10, 1887.

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Contact Information: David A. Verbera-Broker CALDRE#00878672 Cell/Text: (408) 839-1072 Fax: (408) 879-7526

Los Gatos History continued

The history of Los Gatos hosts a share of lively characters, some of which, like Forbes (but, perhaps, not as shady), remain very

much a part of the local color, and whose namesakes act as subtle reminders of their legacy to the town’s history. Irishman Charles

Henry McKiernan, or Mountain Charley as he is known in local folklore, was an early settler in the summit area of Los Gatos, coming

to California in search of gold during the Rush of ’49. Although he never struck gold and experienced other challenges and setbacks

(being attacked by Grizzly bears on two separate occasions), Mountain Charley lived richly, having with his wife, Barbara Berricke,

seven children and offering his home as a stage station for stagecoaches as they ran from the valley to the sea and back.

With the continued development of the railroad system and the laying of tracks between San Francisco, Alameda, San Jose, and

Santa Cruz, Los Gatos became a desired destination and resting spot for those traveling North, South, East, and West. The town

grew to address the need for the number of visitors and sightseers, offering several hotels, one of which, the Lyndon Hotel, had the

privilege of hosting royalty, government officials, and socialites as guests. Over the next several decades, logging and fruit orchards

became the area’s main producing industries but eventually softened during the Depression and World War II. During the period

after the war, however, Los Gatos experienced strong commercial and residential growth, which continued to develop into its present

-day community.

Because of its position in the valley, Los Gatos is a uniquely complete community, still possessing its small town feel and charm of its

rich history but also acting as a primary player in the Silicon Valley’s dynamic high-tech fabric. Even with its dynamic connection with

Silicon Valley, keeping Los Gatos a well-balanced, bedroom community remains a primary goal of its citizens.

Presently, Los Gatos has a population approaching 30,000 and covers approximately 14 square miles. Although different in many

ways, the town will remain forever connected to the Ohlone, El Rancho Rinconada de Los Gatos, Forbes Mill, Mountain Charley, and

all the other facets that have helped to make Los Gatos the great community it is today