Sierra Student Community: Student residence at 20 th and Mission, SF

Problem / Opportunity Approx. 30,000 vacant housing units in SF, primarily in residential hotels Rental rates have increase 14% over last 3 years Several major universities call the Bay Area home; including two medical universities that require 5+ years of enrollment Leverage owner tenant improvement and high vacancy rate of housing units P ROSPECTIVE TENANTS HAVE A LOT TO CHOOSE FROM, IF YOU SEE SOMETHING YOU LIKE, YOU SHOULD JUMP ON IT AND PUT YOUR APPLICATION IN QUICKLY – “ IF YOU LIKE IT, THEN OTHER PEOPLE ARE GOING TO LIKE IT AS WELL ” update-november-2010

Student Housing Market target of first property Sierra Hotel: located at 20 th /Mission 44 housing units, vacant for >10 years Popular location with bustling night-life activity Some of the heaviest foot-traffic in SF Near 2 major BART stations, other transit Within 1 mi of >5 higher-education institutions Within 15 mi of a >100,000 student population

Business Model 42 single rooms, approximately 12x14, $900/mo each Provide furniture (desk, bed, lamp) and small kitchen appliances (mini-fridge, microwave) On-site mgr. compensated with free room + 6% commission Utilities and internet included in rent (no cable TV) Shared bathrooms (1m, 1f) 4 showers each No kitchen facilities, no parking, no community room

Secret Sauce Short Term: Create an intentional community for Bay Area students that provides a solid return on investment Long Term: Create different communities for specific groups Eliminate vacancies in under-utilized real estate Foster environments that reduce turnover, waste Build stronger communities / Help environment Increase member’s quality of life

Marketing Strategies Partnerships: Capture overflow from schools Ads: Craigslist, school print (news, brochure) Info: Website, newsletter Incentives: Long-term lease, cash up-front Prospects: Maintain contact and waitlist Survey to improve ops max occ.

Competitors – Student Housing Golden Gate Hall – Student Housing in Civic Center Area – Single and shared rooms, shared kitchen, laundry and recreational facilities, towels and linen – Internet and Cable – $850 - $950 price for comparable rooms USA Student Residence – Downtown USA Hostel has floors dedicated to student housing – Shared kitchen, laundry, recreational facilities – Free breakfast, free laundry soap – Internet and cable – $800 price for comparable rooms

Competitors – Residential Clubs Residential clubs rent by week or month to students and business travelers Most are located downtown or near downtown Prices $900-$1,200 for comparable rooms depending upon amenities Housekeeping, linens, breakfast, and other hotel type amenities in addition to kitchen & laundry Internet and cable TV – Paramount Student Housing – Vantaggio Suites – San Francisco Residence Club

Management Team Principle: Avery Freeman Family business is student housing Operator and on-site mgr 10-year successful track record Heart is in the business

The Offering Secure initial funding of $45K or less exclusively through friends and family with flexible terms.

Actual Property Photos

Several higher-education institutions in area >100k students within 15 miles (mills)

University of California Berkeley Distance: 14.1 mi – on direct BART route MenWomenTotal 17,41217,98435,396 San Francisco State University MenWomenTotal 12,03017,98430,014 Distance: 4.1 mi Academy of Art University Distance: 1.8 mi – on direct bus route MenWomenTotal 5,8737,30813,181 Size and distance of target market:

University of California San Francisco Distance: 2.2 mi MenWomenTotal 1,0631,9352,998 MenWomenTotal 1,5491,9793,528 Golden Gate University Distance: 2.7 mi – on direct bus route University of San Francisco Distance: 3.5 mi MenWomenTotal 3,3655,3858,750 Total enrollment of 6 profiled schools: 93,876