EXHIBIT (c)(2)      

COMPLETE APPRAISAL OF
REAL PROPERTY

Villa Las Posas
24 Las Posas Road
Camarillo, Ventura County, California

IN A SELF-CONTAINED
APPRAISAL REPORT

As of 10/21/03

Prepared For:
ARV Assisted Living, Inc.
245 Fischer Avenue, D-1
Costa Mesa, CA 92626

Prepared By:

Cushman & Wakefield of California, Inc.
Senior Housing/Healthcare Industry Group
Valuation Services, Advisory Group
601 S. Figueroa Street, 47th Floor
Los Angeles, CA 90017
C&W File ID: 03-41002-9342

VALUATION SERVICES	ADVISORY GROUP

Cushman & Wakefield of California, Inc.

601 S. Figueroa Street, 47th Floor

Los Angeles, CA 90017

213-955-5130 Tel

213-627-4044 Fax

WWW.CWVAS.COM

October 23, 2003

Mr. Douglas Armstrong
Senior Vice President and General Counsel
ARV Assisted Living, Inc.
245 Fischer Avenue, D-1
Costa Mesa, CA 92626

Re:	Complete Appraisal of Real Property
	In a Self-Contained Report
	Villa Las Posas
	24 Las Posas Road
	Camarillo, Ventura County, California
	C&W File ID: 03-41002-9342

Dear Mr. Armstrong:

In fulfillment of our agreement as outlined in the Letter of Engagement, we are pleased to transmit our complete appraisal report (the “Appraisal”) on the property referenced above.

The value opinion reported below is qualified by certain assumptions, limiting conditions, certifications, and definitions, which are set forth in the Appraisal. We particularly call your attention to the following extraordinary assumptions and hypothetical conditions:

Extraordinary Assumptions:	This Appraisal assumes that the property continues to meet the licensing requirements of the State of California as a residential care facility for the elderly and continues to remain in compliance with applicable life safety codes.
	This Appraisal employs no other Extraordinary Assumptions.
Hypothetical Conditions:	This Appraisal employs no Hypothetical Conditions.

This Appraisal was prepared for ARV Assisted Living, Inc. and is intended for use in connection with the proxy solicitation/tender offer filed with the SEC and distributed to the holders of limited partnership interests in American Retirement Villas Properties III, L.P. (the “Partnership”). Unless we otherwise consent in writing, the Appraisal cannot be used other than in the material related to proxy solicitation/tender offer referred to above for any purpose. If the Appraisal is submitted to a lender or investor with the prior approval of C&W, Inc., such party should consider this Appraisal as only one factor together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Extraordinary Assumptions and Hypothetical Conditions and the Assumptions and Limiting Conditions incorporated in the Appraisal.

Mr. Douglas Armstrong
ARV Assisted Living, Inc.
October 23, 2003
Page 2

This Appraisal has been prepared in accordance with our interpretation of FIRREA, the regulations of OCC, and the Uniform Standards of Professional Appraisal Practice (USPAP) including the competency provision, as promulgated by the Appraisal Institute.

The property consists of an existing 123-unit assisted living facility known as Villa Las Posas. The facility is licensed for 140 beds. The facility contains 88,368± square feet of gross floor area and is situated on a 3.04 acres site. The facility was 97 percent occupied at the time of inspection.

The property has been appraised as a going concern which assumes a fair sale, which includes the transfer of a valid operating license, adequate working capital, an assembled workforce, and the transfer of all business assets necessary for the operation of a licensed assisted living facility.

The property was inspected by and the Appraisal was prepared by Sally U. Haft, MAI. This appraisal employs all three typical approaches to value: the Cost Approach, the Sales Comparison Approach and the Income Capitalization Approach. Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that all approaches would be considered meaningful and applicable in developing a credible value conclusion.

Based on our Complete Appraisal as defined by the Uniform Standards of Professional Appraisal Practice, we have developed an opinion that the going concern market value of the fee simple estate of the referenced property, subject to the assumptions and limiting conditions, certifications, Extraordinary Assumptions and Hypothetical Conditions, if any, and definitions, “as-is” on October 21, 2003 was:

FOURTEEN MILLION TWO HUNDRED THOUSAND DOLLARS

$14,200,000

The above value estimate is inclusive of $540,000 in personal property and $4,900,000 in business value as an integral part of the going concern.

Based on recent market transactions, as well as discussions with market participants, a sale of the subject property at the above-stated opinion of market value would have required an exposure time of approximately twelve (12) months. Furthermore, a marketing period of approximately twelve (12) months is currently warranted for the subject property.

VALUATION SERVICES	ADVISORY GROUP

Mr. Douglas Armstrong
ARV Assisted Living, Inc.
October 23, 2003
Page 3

This letter is invalid as an opinion of value if detached from the Appraisal, which contains the text, exhibits, and Addenda.

Respectfully submitted,

CUSHMAN & WAKEFIELD OF CALIFORNIA, INC.

Sally U. Haft, MAI
Director
Senior Housing/Healthcare Industry Group
California Certified General Appraiser
License No. AG003905
sally_haft@cushwake.com
213-955-5130 Office Direct
213-477-2046 Fax

VALUATION SERVICES	ADVISORY GROUP

SUMMARY OF SALIENT FACTS

Common Property Name:	Villa Las Posas
Location:	24 Las Posas Road
	Camarillo, Ventura County, California
	The subject site is located at the southeast corner of Las Posas Road and Crestview Avenue.
Property Description:	The property consists of a one-building, three-story assisted living facility containing 123 units on a 3.04-acre parcel of land.
Assessor’s Parcel Number:	164-0-111-065
Interest Appraised:	Fee Simple Estate
Date of Value:	October 21, 2003
Date of Inspection:	October 21, 2003
Ownership:	ARV Las Posas, L.P.
Occupancy:	Current physical occupancy is 97 percent
Current Property Taxes
Total Assessment:	$2,292,275
2003 Property Taxes:	$29,574
Highest and Best Use
If Vacant:	Multi-family residential property developed to the highest density possible
As Improved:	As it is currently utilized as an assisted living facility.
Site & Improvements
Zoning:	RPD-20
Land Area:	3.04 acres or 132,478± square feet
Number of Units:	123
Number of Licensed Beds:	140
Number of Stories:	Three
Number of Buildings:	One
Year Built:	1997
Type of Construction:	Wood Frame
Gross Building Area:	88,368 square feet
Parking:	86 spaces (0.70 per unit)

VALUATION SERVICES	ADVISORY GROUP

SUMMARY OF SALIENT FACTS

VALUE INDICATORS
Cost Approach:
Indicated Value:	$11,900,000
Sales Comparison Approach:
Indicated Value:	$14,100,000
Income Capitalization Approach
Direct Capitalization
Net Operating Income:	$1,566,881
Capitalization Rate:	11.00%
Indicated Value:	$14,200,000
FINAL VALUE CONCLUSION
Going Concern Market Value As-Is	$14,200,000
Fee Simple:
Exposure Time:	Under 12 months
Marketing Time:	Under 12 months

VALUATION SERVICES	ADVISORY GROUP

SUMMARY OF SALIENT FACTS

Extraordinary Assumptions and Hypothetical Conditions

Extraordinary Assumptions

An extraordinary assumption is defined by the Uniform Standards of Professional Appraisal Practice (2001 Edition, The Appraisal Foundation, page 2) as “an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”

This appraisal assumes that the property continues to meet the licensing requirements of the State of California as a residential care facility for the elderly and continues to remain in compliance with applicable life safety codes.

This Appraisal employs no other Extraordinary Assumptions.

Hypothetical Conditions

A hypothetical condition is defined by the Uniform Standards of Professional Appraisal Practice (2001 Edition, The Appraisal Foundation, page 3) as “that which is contrary to what exists but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property; or about conditions external to the property, such as market conditions or trends; or about the integrity of data used in an analysis.”

This Appraisal employs no Hypothetical Conditions.

VALUATION SERVICES	ADVISORY GROUP

PHOTOGRAPHS OF SUBJECT PROPERTY

Front View of Subject Property

Rear View of Building

PHOTOGRAPHS OF SUBJECT PROPERTY

Living Room

Dining Room

PHOTOGRAPHS OF SUBJECT PROPERTY

Interior Hallway

Interior Courtyard

PHOTOGRAPHS OF SUBJECT PROPERTY

Typical Unit and Kitchenette

East View Along Las Posas

TABLE OF CONTENTS

INTRODUCTION	1
LOS ANGELES REGIONAL ANALYSIS	6
LOCAL AREA ANALYSIS	23
SENIOR LIVING INDUSTRY OVERVIEW	25
MANAGEMENT AND OPERATIONS OVERVIEW	33
COMPETITIVE MARKET ANALYSIS	35
SITE DESCRIPTION	52
IMPROVEMENTS DESCRIPTION	54
REAL PROPERTY TAXES AND ASSESSMENTS	58
ZONING	59
HIGHEST AND BEST USE	60
VALUATION PROCESS	62
LAND VALUATION	64
COST APPROACH	69
SALES COMPARISON APPROACH	73
INCOME CAPITALIZATION APPROACH	81
RECONCILIATION AND FINAL VALUE OPINION	101
ASSUMPTIONS AND LIMITING CONDITIONS	103
CERTIFICATION OF APPRAISAL	106
ADDENDA	107

VALUATION SERVICES	ADVISORY GROUP

INTRODUCTION

Identification of Property
Common Property Name:	Villa Las Posas
Location:	24 Las Posas Road
	Camarillo, Ventura County, California
	The subject site is located at the southeast corner of Las Posas Road and Crestview Avenue in the city of Camarillo.
Property Description:	The property consists of a one-building, three-story assisted living facility containing 123 units and licensed for 140 beds situated on a 3.04-acre site.
Assessor’s Parcel Number:	164-0-111-065
Property Ownership and Recent History
Current Ownership:	ARV Las Posas, L.P., a wholly owned subsidiary of American Retirement Villas Properties III, L.P.
Sale History:	The property has not transferred within the past three years to the best of our knowledge.
Current Disposition:	American Retirement Villas Properties III, L.P. is involved in a proxy/solicitation offer filed with the SEC that involves this property.

Intended Use and Users of the Appraisal

This Appraisal is intended to provide an opinion of the going concern market value of the fee simple interest in the property for the use of ARV Assisted Living, Inc. in connection with the proxy solicitation/tender offer filed with the SEC and distributed to the holders of the limited partnership interests in the Partnership. All other uses and users are unintended.

Dates of Inspection and Valuation

The value conclusion reported herein is as of October 21, 2003. The property was inspected on October 21, 2003 by Sally U. Haft, MAI.

Property Rights Appraised

Fee simple interest

Scope of the Appraisal

This is a Complete Appraisal presented in a self-contained report, intended to comply with the reporting requirements set forth under the Uniform Standards of Professional Appraisal Practice (USPAP) for a Self-Contained Appraisal Report. In addition, the report was also prepared to conform to the requirements of the Code of Professional Ethics of the Appraisal Institute and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Title XI Regulations.

VALUATION SERVICES	1	ADVISORY GROUP

INTRODUCTION

In preparation of this Appraisal, we investigated a wide array of vacant land sales in the subject’s submarket, improved sales from a local, regional or national basis, analyzed rental data, and considered the input of buyers, sellers, brokers, property developers and public officials. Additionally, we investigated the general regional economy as well as the specifics of the local area of the subject.

The scope of this Appraisal required collecting primary and secondary data relative to the subject property. The depth of the analysis is intended to be appropriate in relation to the significance of the appraisal issues as presented herein. The data has been analyzed and confirmed with sources believed to be reliable, whenever possible, leading to the value conclusions set forth in this report. In the context of completing this report, we have made a physical inspection of the subject property and the comparables. The valuation process involved utilizing market-derived and supported techniques and procedures considered appropriate to the assignment.

The scope of this analysis, and the analysis contained herein, is reflective of “the amount and type of information researched and the analysis applied in an assignment” (2001 USPAP, page 4). This appraisal employs all three typical approaches to value: the Cost Approach, the Sales Comparison Approach and the Income Capitalization Approach. Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that all approaches would be considered meaningful and applicable in developing a credible value conclusion.

Definitions of Value, Interest Appraised and Other Terms

The following definitions of pertinent terms are taken from the Dictionary of Real Estate Appraisal, Third Edition (1993), published by the Appraisal Institute, as well as other sources.

Market Value

Market value is one of the central concepts of the appraisal practice. Market value is differentiated from other types of value in that it is created by the collective patterns of the market. A current economic definition agreed upon by agencies that regulate federal financial institutions in the United States of America follows, taken from the glossary of the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation:

The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1.	Buyer and seller are typically motivated;
2.	Both parties are well informed or well advised, and acting in what they consider their own best interests;
3.	A reasonable time is allowed for exposure in the open market;
4.	Payment is made in terms of cash in US dollars or in terms of financial arrangements comparable thereto; and
5.	The price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.

VALUATION SERVICES	2	ADVISORY GROUP

INTRODUCTION

Fee Simple Estate

Absolute ownership unencumbered by any other interest or estate, subject to the limitations imposed by the governmental powers of taxation, eminent domain, police power, and escheat.

Going Concern Value

The value created by a proven property operation; considered as a separate entity to be valued with a specific business establishment. Common going-concern appraisals are conducted for assisted living facilities, nursing homes, hotels and motels, restaurants, bowling alleys, industrial enterprises, retail stores, and similar property uses. For these property types, the physical real estate assets are integral parts of an ongoing business such that the market values from the land and building are difficult, if not impossible, to segregate from the total value of the ongoing business.

Market Rent

The rental income that a property would most probably command on the open market, indicated by the current rents paid and asked for comparable space as of the date of appraisal.

Cash Equivalent

A price expressed in terms of cash, as distinguished from a price expressed totally or partly in terms of the face amounts of notes or other securities that cannot be sold at their face amounts.

Market Value As Is on Appraisal Date

The value of specific ownership rights to an identified parcel of real estate as of the effective date of the appraisal; related to what physically exists and is legally permissible and excludes all assumptions concerning hypothetical market conditions or possible rezoning.

Exposure Time and Marketing Time

Exposure Time

Under Paragraph 3 of the Definition of Market Value, the value opinion presumes that “A reasonable time is allowed for exposure in the open market”. Exposure time is defined as the length of time the property interest being appraised would have been offered on the market prior to the hypothetical consummation of a sale at the market value on the effective date of the appraisal. Exposure time is presumed to precede the effective date of the appraisal.

The reasonable exposure period is a function of price, time and use. It is not an isolated opinion of time alone. Exposure time is different for various types of real estate and under various market conditions. As noted above, exposure time is always presumed to precede the effective date of appraisal. It is the length of time the property would have been offered prior to a hypothetical market value sale on the effective date of appraisal. It is a retrospective opinion based on an analysis of recent past events, assuming a competitive and open market. It assumes not only adequate, sufficient and reasonable time but adequate, sufficient and a reasonable marketing effort. Exposure time and conclusion of value are therefore interrelated.

VALUATION SERVICES	3	ADVISORY GROUP

INTRODUCTION

Based on discussions with market participants and information gathered during the sales verification process, a reasonable exposure time for the subject property at the value concluded within this report would have been approximately twelve (12) months. This assumes an active and professional marketing plan would have been employed by the current owner.

Marketing Time

Marketing time is an opinion of the time that might be required to sell a real property interest at the appraised value. Marketing time is presumed to start on the effective date of the appraisal. (Marketing time is subsequent to the effective date of the appraisal and exposure time is presumed to precede the effective date of the appraisal). The opinion of marketing time uses some of the same data analyzed in the process of estimating reasonable exposure time and it is not intended to be a prediction of a date of sale.

We believe, based on the assumptions employed in our analysis, as well as our selection of investment parameters for the subject, that our value conclusion represents a price achievable within twelve (12) months.

Legal Description

The subject site is identified by the Ventura County assessor as Assessor’s Parcel Number 164-0-111-065. A complete legal description is located in the Addenda to this report.

VALUATION SERVICES	4	ADVISORY GROUP

REGIONAL MAP

REGIONAL MAP

VALUATION SERVICES	5	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

Introduction

The short- and long-term value of real estate is influenced by a variety of factors and forces that interact within a given region. Regional analysis serves to identify those forces that affect property value, and the role they play within the region. The four primary forces that influence real property value include environmental characteristics, governmental forces, social factors, and economic trends. These forces determine the supply and demand for real property, which, in turn, affect market value.

The subject property is located in Camarillo, California within Ventura County, which is part of the greater Los Angeles Consolidated Metropolitan Statistical Area (CMSA).

Regional Economic and Demographic Analysis

Regional Area Overview

The Los Angeles-Long Beach Primary Metropolitan Statistical Area (PMSA) in Southern California is the largest of the four PMSAs within the Los Angeles Consolidated Metropolitan Statistical Area (CMSA), which is also comprised of the PMSAs of Ventura, Orange County and Riverside-San Bernardino. Los Angeles County is the Los Angeles PMSA (Los Angeles) and encompasses 4,060 square miles and 88 independent cities, towns, and municipalities. Within the Los Angeles PMSA, the City of Los Angeles is the largest incorporated area. The Los Angeles PMSA’s central Southern California location provides an extensive transportation network that includes major north-south and east-west interstate highways, four major airports, including Los Angeles International (LAX), and the Port of Los Angeles-Long Beach the third busiest airport and the third busiest port in the world, respectively.

LOS ANGELES CMSA AND COMPONENT PMSAS

Source: Cushman & Wakefield Analytics

While the four economies of the PMSAs that comprise the regional CMSA are intertwined with each other, each PMSA is also distinguished by its demographic and economic characteristics. Among the region’s four PMSAs, Los Angeles is by far the largest in terms of gross metro product (GMP), total employment and population.

VALUATION SERVICES	6	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

In fact, Los Angeles is the largest metropolitan economy in California and the third largest metropolitan economy in the nation – trailing only New York and Chicago in terms of GMP. In terms of total employment, Los Angeles ranks third, again trailing New York and Chicago. Los Angeles accounts for 3.6 percent of the U.S. Gross Domestic Product (GDP), 3.4 percent of its population and 3.1 percent of its total employment.

Orange County is the CMSA’s second largest economy in terms of GMP and employment. It is also the region’s most diverse economy in terms of industry sectors, with a growing high-tech sector that includes well-positioned aerospace and satellite telecommunications industries. Trade is also a key component of its economy, as many foreign producers have marketing and distribution centers in Orange County.

Riverside-San Bernardino is the second most populous PMSA within the CMSA, but ranks a distant third in employment, indicating that many of its residents commute outside of the metro area to their places of employment. Wage earners living in the Riverside-San Bernardino PMSA are likely to work in the Los Angeles or Orange County PMSAs. While services, construction and retail trade are major economic drivers, the government sector is a major component of the PMSA’s employment composition, as public school teachers, who are classified as local government employees, are a large share of the PMSA’s employment base.

Ventura County is a significantly smaller economy in terms of its GMP, total employment and population, and serves primarily as a bedroom community to Los Angeles. Ventura’s key economic drivers are the military and an expanding biotech industry.

Given its sheer size, the Los Angeles PMSA, which is the focus of the following demographic and economic overview, has a number of distinct regions within the county.

• Downtown includes the revitalized Central Business District (CBD), which is increasingly regaining favor among traditional businesses such as banks, insurance companies and law firms seeking large blocks of high-quality space at a lower cost, and a central location with good access to public transportation.

• Los Angeles West/Century City is situated among the executive residential neighborhoods of Brentwood, Bel Air and Beverly Hills, and also benefits from its proximity to Los Angeles International Airport (LAX). The tenant base is predominantly entertainment companies, law firms and their supporting services. Further west is Santa Monica, favored by high-technology/internet firms

• The diversity of the Los Angeles South region enabled it to weather this recession better than the last one. The area still has a significant concentration of aerospace businesses and is expected to benefit from increased defense spending and more government contracts.

• The Tri-Cities region includes the cities of Burbank, Pasadena, and Glendale. This area is home to auxiliary entertainment companies that favor locations near the major studios. Also, biotechnology is establishing a presence in the Pasadena Corridor.

• The Los Angeles North region is dominated by the San Fernando Valley, and is characterized by back office operations of insurance and title companies.

Demographic Profile

The Los Angeles metro area’s median age is a young 32.2 years – significantly below both the median age of the nation’s top 100 largest metropolitan areas (Top 100) and the U.S. of 35.1 and 35.6 years, respectively. While the share of the population in Los Angeles with bachelor and advanced degrees at 22.1 percent is greater than the U.S. share of 20.8 percent, it is less

VALUATION SERVICES	7	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

than the Top 100 share of 23.9 percent. In addition, a significantly larger share of the population within Los Angeles has less than a high school education – particularly in comparison to the Top 100 metro areas. Los Angeles’s average household income is 98 percent that of the Top 100 metro areas, but its median household income only 92 percent of the Top 100’s median. In comparison to the U.S. overall averages, the average income is 10.9 percent higher and its median income is 5.9 percent higher – not surprising given Southern California’s relatively high cost of living.

DEMOGRAPHIC CHARACTERISTICS
Los Angeles PMSA vs. Top 100 MSAs and U.S.
2002 Estimates

		Los Angeles			Top 100
Characteristic		PMSA			Metro Areas*			U.S.
Median Age (years)			32.2			35.1			35.6
Average Annual Household Income		$	71,300		$	72,700		$	64,300
Median Annual Household Income		$	50,300		$	54,700		$	47,500
Households by Annual Income Level:
	<$25,000		23.2	%		21.0	%		25.3	%
	$25,000 to $49,999		26.7	%		25.1	%		27.3	%
	$50,000 to $74,999		19.7	%		20.8	%		20.2	%
	$75,000 to $99,999		12.1	%		13.4	%		11.8	%
	$100,000 plus		18.5	%		19.7	%		15.5	%
Education Breakdown:
	< High School		30.0	%		21.8	%		24.1	%
	High School Graduate		20.8	%		27.8	%		29.8	%
	College < Bachelor Degree		27.1	%		26.5	%		25.4	%
	Bachelor Degree		14.4	%		15.5	%		13.5	%
	Advanced Degree		7.7	%		8.4	%		7.3	%

Source: Claritas, Inc., Cushman & Wakefield Analytics

* The Top 100 Metro Areas are comprised of the 100 largest metropolitan statistical areas within the U.S. in terms of total employment as of 2002.

Population

The Los Angeles PMSA, with a current population of over 9.8 million, has consistently lagged the Top 100 metro areas in terms of the rate of population growth during the past 10 years. The metro area actually lost population in 1994 and 1995. Population growth did rebound, however, in the late 1990s to a level on par with the Top 100 metro areas. But overall, between 1992 and 2002, the PMSA’s erratic annual population growth averaged a meager 0.8 percent – well below the 1.3 percent rate of growth within the Top 100. Through 2007, the Los Angeles PMSA population is expected to grow on average at 1.0 percent annually, on par with the projected growth rate of the Top 100 of 1.1 percent per year.

VALUATION SERVICES	8	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

POPULATION GROWTH BY YEAR
Los Angeles PMSA vs. Top 100 Metros
1990 – 2007

Source: Economy.com, Cushman & Wakefield Analytics

NOTE: In this Exhibit and all subsequent time-series graphs, the shaded bars indicate the periods of a U.S. economic recession.

Demographics are a positive force for the Los Angeles economy, with net migration increasing consistently for five consecutive years. A reduction in the out-migration of domestic residents and strong in-migration from abroad have driven the accelerating net population growth rate. Persistent international migration for more than 10 years means there is now a large pool of migrant households with sufficient assets ready to enter the housing market, driving demand for housing throughout Los Angeles County.

Of the four PMSAs comprising the CMSA, Los Angeles has experienced the slowest rate of growth during the 10 years ending 2002. Riverside-San Bernardino has been and is expected to remain the fastest growing PMSA among these four in terms of population. Although population growth in Los Angeles is projected to increase steadily through the next four years, the PMSA’s growth rate is expected to continue to lag that of the other PMSAs in the region, with Riverside/San Bernardino in particular expected to grow at a 3.7 percent average annual rate between year-end 2002 and 2007. Overall, however, the Los Angeles PMSA still accounts for roughly 38 percent of the CMSA’s absolute increase in population.

VALUATION SERVICES	9	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

ANNUALIZED POPULATION GROWTH BY PMSA
Los Angeles CMSA
1992 – 2007

										Annual			Annual
								2007		Growth			Growth
Population (000s)				1992		2002		Forecast		92-02			02-07
United States					256,514.0		287,363.0		297,458.0		1.1	%		0.9	%
	Top 100 MSAs				159,733.7		180,969.0		188,730.5		1.3	%		1.1	%
		Los Angeles CMSA			15,057.9		16,977.1		18,181.4		1.2	%		1.7	%
			Los Angeles PMSA		8,948.1		9,730.0		10,156.1		0.7	%		1.1	%
			Orange County PMSA		2,452.7		2,923.1		3,088.9		1.8	%		1.4	%
			Riverside-San Bernardino PMSA		2,739.1		3,540.3		4,097.8		2.6	%		3.7	%
			Ventura PMSA		675.7		783.7		838.7		1.5	%		1.7	%

Source: Economy.com, Cushman & Wakefield Analytics

Los Angeles’s population is clustered in the southern half of the PMSA south of the San Gabriel Mountains. The most densely populated regions are located in close proximity to the major freeways such as the I-10 (Culver City, Hollywood, Los Angeles), between the I-110 and I-710 north of I-105, and between I-710 and I-605 south of I-105. The most sparsely populated zip codes are located in the undeveloped San Gabriel Mountains and along the highly desirable, affluent beach regions around Malibu north of Santa Monica as well as in the southern coastal area of Rancho Palos Verdes. In addition, the Santa Monica Mountains between the ocean and the San Fernando Valley is an area where development is highly restricted and is sparsely populated. The direction of development is generally north and east.

VALUATION SERVICES	10	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

POPULATION DENSITY BY ZIP CODE
Los Angeles PMSA
2002

Source: Claritas, Inc., Cushman & Wakefield Analytics

Households

Like its population growth, the rate of household formations in the Los Angeles PMSA lagged that of the Top 100 between 1992 and 2002. During the last 10 years, Los Angeles’s average annual growth in its number of households of merely 0.6 percent per year significantly trailed the Top 100’s pace of 1.3 percent due in part to a net decrease in the number of households from 1993 through 1995.

Since 2001, the Los Angeles PMSA household formation rate has actually exceeded the Top 100 rate, and this is expected to continue through 2004. Looking forward to 2007, however, Los Angeles is expected to match the average annual growth rate of the Top 100 at 1.3 percent per year.

VALUATION SERVICES	11	ADVISORY GROUP

LOS ANGELES REGIONAL ANALYSIS

HOUSEHOLD GROWTH BY YEAR
Los Angeles PMSA vs. Top 100 Metros
1990 – 2007

Source: Economy.com, Cushman & Wakefield Analytics

Income

In 2002, Los Angeles’s median household income was $50,300, 5.9 percent higher than the national average of $47,500. Over the past 10 years, Los Angeles’s 2.0 percent average annual growth in median household income significantly lagged the nation’s average annual growth of 3.7 percent.

Through 2007, Los Angeles’s median household income growth is expected to grow at an annual average rate of 2.6 percent, just under the Top 100 average of 2.7 percent.

Among the four regional PMSAs, Los Angeles ranks last in median household income. Household incomes in Ventura and Orange County are expected to widen their lead over Los Angeles between year-end 2002 and 2007, with a projected average annual increase of 3.1 percent, while Riverside-San Bernardino is forecast to grow at an average of only 2.5 percent per year.

Within Los Angeles County, the highest median incomes are concentrated in five areas: 1) the sparsely-populated beach and mountain communities around Malibu and the hills to the south of San Fernando Valley, 2) the communities of Brentwood, Bel-Air and Beverly Hills to the east of Interstate 405, 3) Palos Verdes to the south, at the west of the southern terminus of Interstate 110, 4) the area around Pasadena above Interstate 210, and 5) the more sparsely developed northern region around Interstate 5. The lowest median household incomes are in Central and East Los Angeles. In general, median household incomes are inversely proportional to population density.

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LOS ANGELES REGIONAL ANALYSIS

MEDIAN HOUSEHOLD INCOME DISTRIBUTION BY ZIP CODE
Los Angeles PMSA
2002

Source: Claritas, Inc., Cushman & Wakefield Analytics

Regional Economic Overview

The Los Angeles economy continues its moderate downturn as the business services and manufacturing industries cut payrolls further and retail trade has leveled off. Employment losses have slowed, but not ended. The unemployment rate has fallen from the high reached in mid-2002, yet remained stubbornly unchanged during fourth quarter 2002 and first quarter 2003. The moderate nature of Los Angeles’s downturn is reflected in the number of personal bankruptcy filings, which has fallen over the past year following a mild rise in 2001. Housing markets remain robust and even commercial real estate markets illustrate some improvement.

Cutbacks still hamper manufacturing payrolls, but the pace of decline has slowed due to some stability in aircraft and apparel manufacturing. The local aerospace industry got a boost in June with AirTran contracting to buy 10 Boeing 717s. Boeing had been seeking further sales to keep its Long Beach commercial jetliner assembly line open for the long term, and with this recent contract, it expects to keep the line rolling for the next several years. The 717 could gain more

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LOS ANGELES REGIONAL ANALYSIS

orders if it proves effective for AirTran to run as a low-cost aircraft for long-distance routes such as Atlanta to Los Angeles.

Net aerospace employment has yet to rise due to cutbacks by Boeing’s commercial assembly in Long Beach. Yet, all major defense aerospace firms are hiring. At least 2,000 workers will be added to payrolls this year at firms such as Northrop Grumman, Raytheon, Lockheed Martin and Boeing, causing aerospace employment in Los Angeles to increase for the first time in five years. While the local industry remains just one-third its size in 1990, its addition of well-paid jobs will generate growth for the economy through much of this decade. Los Angeles’s high-end apparel industry is stable as global security concerns force this industry, which requires fast turnaround and close quality control, to be kept close to local demand.

Payrolls in the leisure and hospitality industry barely faltered over the past two years. The regional drive-in market is large enough to offset some of the falloff in national and international travel. The hotel industry remains at risk, however, as occupancy remains well below pre-September 11th rates. The short duration of the war in Iraq minimized its risk, but now the expansion of SARS poses further risk to international travel. With its high exposure to pan-Pacific travel, Los Angeles hotels may not rebound by the end of 2003 as expected elsewhere, creating continued financial pressure.

The film and entertainment industry has come off a stellar year, providing an important pillar of support for the local economy. Domestic box office receipts rose by more than 10 percent last year and production activity in Los Angeles is rising. Theater improvements are bringing fans back to the movies. Global security concerns have bolstered the local industry, resulting in more than half of current major studio productions being shot at least partially in Los Angeles, well above average. Longer term, however, there is some risk of consolidation in the filmmaking industry.

Despite continued demand for housing since the mid-1990s, supply has been slow to respond. New construction has been constrained by a lack of developable land, strict building regulations, and a reticence among lenders to fuel construction too strongly. Thus, house price appreciation has been consistently strong, remaining in double digits, which is contributing to deteriorating affordability. With pressure from household formation rates easing, the market is closer to balance, although the continued excess demand will keep prices from correcting sharply once interest rates begin to rise.

Strong house price appreciation continues to support household balance sheets in Los Angeles, as there is plenty of home equity for homeowners to tap to support income streams. Thus, while personal bankruptcy filings rose moderately during the 2001 recession, they are now falling and remain well below their record level of the 1990s. This bodes well for continued stable consumer spending and provides some prospect of greater income elasticity for spending when the economy accelerates. Housing, retail sales and consumer services should thus perform well.

The Los Angeles economy is expected to improve in the second half of 2003. The primary factor is defense spending, which will be felt widely for the next several years. Entertainment will also contribute to the near-term turnaround. International trade and travel generates some downside risk depending on the pace of the global rebound and the impact of the SARS on the Asian economy. The Los Angeles economy will be one of the first to turn around nationwide, although high costs and increasing congestion will keep it from outpacing the U.S. average over the long term.

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LOS ANGELES REGIONAL ANALYSIS

Gross Product

During the economic recession that began in 1991, Los Angeles’s economic growth, in terms of gross product was negative for four consecutive years, and since that time consistently lagged the Top 100 gross product growth. As in many U.S. markets, gross product slowed during the recent U.S. economic recession and was on par with the Top 100 during 2002.

REAL GROSS PRODUCT GROWTH BY YEAR
Los Angeles PMSA vs. Top 100 Metros
1990 – 2007

Source: Economy.com, Cushman & Wakefield Analytics

The entertainment and defense industries will help support Los Angeles’s gross product growth through 2007, but at an expected annual average growth of only 2.7 percent, compared to 3.0 percent for the Top 100. In addition, Los Angeles County is forecast to lag Riverside-San Bernardino, Orange County and Ventura over the next five years, where gross product is expected to exceed the Top 100 with growth rates of 4.2 percent, 3.5 percent and 3.4 percent, respectively.

Employment Trends

In terms of its industry sector composition, the economic diversity of Los Angeles is highly comparable to the average among the Top 100 metro areas. Only the Trade, Transportation and Utilities sector accounts for more than 15 percent of the metro area’s total employment. While more heavily weighted in the Manufacturing and Information sectors than the Top 100 as a whole, the metro area’s employment base is relatively under-weighted in the Construction sector and to a lesser degree in the Financial Activities sector.

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LOS ANGELES REGIONAL ANALYSIS

EMPLOYMENT BY SECTOR
Los Angeles PMSA vs. Top 100 Metros
2002

Source: Economy.com, Cushman & Wakefield Analytics

One indicator of the good health of the Los Angeles economy is a rising amount of industrial construction. While industrial vacancy rates have risen, they remain well below the national average. A stable economy, increasing trade volumes through the ports of Los Angeles and Long Beach, and expanding production among defense aerospace contractors are among the factors that are driving new construction activity. This is further evidence of a near-term rise in production activity in manufacturing that will help accelerate the economy.

While the national recession of 1991 resulted in negative employment growth for the U.S. overall during that year, employment within the Los Angeles PMSA’s continued to contract through 1994. And while the Los Angeles PMSA was among the last metro areas to emerge from the 1991 recession, it has weathered the nation’s 2001 economic downturn on par with the Top 100 metro areas as a whole. The PMSA, along with the U.S., is expected to continue to emerge from the recession, albeit slowly, during 2003. Looking forward through 2007, Los Angeles’s average annual employment growth of 1.1 percent is expected to significantly lag that of the Top 100 1.6 percent growth.

TOTAL EMPLOYMENT GROWTH AND UNEMPLOYMENT RATE BY YEAR
Los Angeles PMSA vs. Top 100 Metros
1990 – 2007

Source: Economy.com, Cushman & Wakefield Analytics

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LOS ANGELES REGIONAL ANALYSIS

Following its severe and lengthy economic downturn during the first half of the decade, Los Angeles posted significantly higher unemployment rates than the Top 100 through the 1990s. The unemployment rate for the Los Angeles PMSA as of year-end 2002 was 6.8 percent, compared to the Top 100 unemployment rate of 5.6 percent. Los Angeles’s unemployment rate is expected to remain at 6.8 percent in 2003, and is forecast to trend slightly downward, in sync, but 70 to 80 basis points above that of the Top 100 metro areas overall through 2007.

Despite the size of its economy, Los Angeles is home to a relatively small share of the nation’s Fortune 500 corporations, which number 16 within the PMSA. The once-huge defense-related industry is poised for growth, but is no longer the dominant engine driving the local economy that it once was, having been supplanted somewhat by software and information technology industries. The growth sectors within the Los Angeles economy are now characterized by smaller, entrepreneurial businesses — many of those being technology companies related to the entertainment industry.

TOP NON-GOVERNMENT EMPLOYERS
Los Angeles PMSA
2002

Employer	Number of PMSA Employees
University of California, Los Angeles		36,300
Kaiser Permanente		27,600
The Boeing Company		23,500
Ralph’s Grocery		17,200
Bank of America Corporation		11,900
Walt Disney Company		11,200
Target		11,000
SBC Pacific Bell		10,700
CPE		10,200
Northrop Grumman Corporation		10,000
University of Southern California		9,300
ABM Industries, Inc.		9,300
Cedars-Sinai Medical Center		8,600
Federated Department Stores		7,300
Kelly Services		7,300
Medical Management Consultants, Inc.		6,400
Washington Mutual, Inc.		6,200
Edison International		5,600
Sempra Energy		5,100
Provident Health System		5,000
Countrywide Credit Industries, Inc.		3,900
Lockheed Martin Corporation		3,800

Source: LosAngelesAlmanac.com, Economy.com, Cushman & Wakefield Analytics

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LOS ANGELES REGIONAL ANALYSIS

FORTUNE 500 COMPANIES
Los Angeles PMSA
2002

Rank		Company Name	Rank		Company Name
	61	The Walt Disney Company		305	Amgen, Inc.
	99	Northrop Grumman Corporation		316	Unocal Corporation
	103	Wellpoint Health Networks Inc.		332	KB Home
	163	Edison International		337	Mattel, Inc.
	167	Computer Sciences Corporation		359	Jacobs Engineering Group Inc.
	185	Health Net Inc.		371	Dole Food Company, Inc.
	209	Countrywide Credit Industries, Inc.		384	Avery Dennison Corporation
	252	Occidental Petroleum Corporation		416	Hilton Hotels

Source: Fortune, Cushman & Wakefield Analytics

Like its total employment trends, Los Angeles’s office-using employment growth consistently lagged the Top 100’s average growth rate during the 1990s by significant margins. Los Angeles experienced negative office-using employment growth for three consecutive years from 1991 to 1993. The 2001 national recession, however, had a somewhat less adverse effect on Los Angeles’s office-using employment, but growth is expected to remain negative through 2003.

Between 1992 and 2002, office-using employment growth in Los Angeles averaged just 0.9 percent per year – roughly one-third the pace of the Top 100. Looking forward through 2007, office using employment is expected to continue to significantly lag the Top 100 at 1.4 percent average annual growth, compared to 2.1 percent for the Top 100.

TOTAL OFFICE-USING EMPLOYMENT GROWTH BY YEAR
Los Angeles PMSA vs. Top 100 Metros
1990 – 2007

Source: Economy.com, Cushman & Wakefield Analytics

The office-using employment is concentrated in numerous clusters within the county, generally along the major freeways. Significant concentrations are located in: the Los Angeles CBD/Financial District, Downtown Non-CBD along the I-10 and I-5; Mid-Wilshire and Miracle Mile in the Los Angeles Central market north of the I-10; Warner Center, Encino and Westlake Village in the Los Angeles North market; Glendale and Pasadena in the Tri-Cities market; El Segundo/Manhattan Beach, Los Angeles Airport in the Los Angeles South market along the

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LOS ANGELES REGIONAL ANALYSIS

405; and Century City, Santa Monica and Beverly Hills in the Los Angeles West market at the intersection of I-10 and I-405.

OFFICE-USING EMPLOYMENT CONCENTRATION BY ZIP CODE
Los Angeles PMSA
2002

Source: Claritas, Inc., Cushman & Wakefield Analytics

Transportation Network

Without a doubt, the automobile has been key in the evolution of Los Angeles’s transportation infrastructure. The local communities are connected through a complex system of freeways. This has led to a congested, car-oriented culture in Los Angeles, where people schedule their days around the three-hour morning and evening rush hours. While the Metropolitan Transportation Authority operates the 59.4-mile Metro Rail service and a fleet of over 2,300 busses serving over 1.1 million passengers per day, the car remains the mode of choice.

Three major airports serve the Los Angeles PMSA: Los Angeles International (LAX), Burbank/Glendale/Pasadena and Long Beach. Other major airports in the region, but outside

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LOS ANGELES REGIONAL ANALYSIS

the PMSA itself are John Wayne Airport in Orange County and Ontario International Airport in Riverside County. LAX is among the world’s busiest airports, having served 56.2 million passengers and processed 1.9 million tons of air cargo for 2002. These figures represent 91 percent of passenger volume and 100 percent of air cargo processed by LAX through the same period in 2001. The decline in passenger volume is largely due to the economic downturn, which has affected tourism and business travel through LAX.

The combined Port of Los Angeles-Long Beach is the third largest port complex in the world in terms of tonnage, behind only Hong Kong and Singapore. Individually, the Port of Los Angeles and the Port of Long Beach rank first and second in the U.S., respectively. Combined, these terminals annually handle more than 185 million metric revenue tons of cargo, representing some $190 billion in 2002.

With cargo volume forecast to dramatically increase through the early 21st century, the Port has embarked on extensive modernization of existing facilities and development of new terminals.

Quality of Life/Amenities

Major Attractions and Amenities

Los Angeles’s quality of life has historically been one of its selling points, offering its residents a variety of outdoor recreational and cultural amenities. Both the San Gabriel Mountains and miles of ocean beaches are close by. The climate is mild, generally dry and warm year round.

As Southern California’s cultural center, not to mention the entertainment capital of the world, Los Angeles has a tradition rich in the arts. Its menu of attractions and cultural amenities, which has grown and diversified with its population over the past decade, includes the Getty Center, Huntington Botanical Gardens, Hollywood, Universal Studios, Beverly Hills, Rodeo Drive, Farmers Market, Olvera Street, Santa Monica, and Venice Boardwalk to name but a fraction.

Los Angeles’s major professional sports franchises include the Los Angeles Dodgers and the Anaheim Angels (just south in Orange County) baseball teams, the Los Angeles Lakers and Clippers (NBA) and the Los Angeles Kings (NHL). Ironically, in one of the largest media markets in the country, there is no professional football team. Its collegiate sports offerings include the nationally ranked USC Trojans and UCLA Bruins. Its world-class sports facilities include Dodger Stadium, Staples Center and the Rose Bowl in Pasadena.

Additional recreational facilities in the Los Angeles PMSA include the nationally recognized Six Flags Magic Mountain amusement park. Also nearby, the world-famous Disneyland is located in Orange County, roughly an hour to the south.

Education

Educational opportunities abound within the metro area. With 27 major institutions of higher learning educating nearly a quarter-million students, the metropolitan area has one of the largest student populations in the nation. Nationally recognized programs in engineering, business, and medicine are found throughout Los Angeles’s educational system at universities such as the University of California, Los Angeles (UCLA), University of Southern California (USC) and California Institute of Technology.

Medical Facilities

Anchored by the world famous Cedars-Sinai Health System, the Los Angeles metro area has a comprehensive healthcare network, including 41 general medical/surgical facilities, five psychiatric hospitals, and hospitals specializing in tuberculosis/respiratory disease, obstetrics/ gynecology, orthopedics, children’s general and children’s orthopedic.

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LOS ANGELES REGIONAL ANALYSIS

Regional Summary

Los Angeles is a mature economy that has been undergoing structural changes since its downturn in the mid-1990s. It has transitioned from the 1980s economy that was highly dependent on the massive defense outlays to a few large defense contractors, and a more balanced economy increasingly comprised of diverse, smaller and more entrepreneurial firms, especially within in the technology and services sectors.

The Los Angeles economy faces some downside risks in the near term. California’s current budget shortfall will cause a reduction in state-funded infrastructure projects, affecting employment in the near term and economic growth over the long term. If the global economic rebound is delayed or is lethargic, international business and travel to and from Los Angeles could be limited. Finally, Los Angeles’s large share of consumer-oriented industries could falter should the U.S. economy dip back into recession.

The Los Angeles economy also has a number of strengths. As the global entertainment capital, Los Angeles is expected to maintain its primacy in the entertainment industry that supports high-paying, high-technology jobs. In addition, the improved outlook for defense aerospace is also expected to support both high-tech and manufacturing employment levels through 2007 and beyond.

Los Angeles’s long term growth is tied to its two major shipping ports. Increased activity at the Ports of Los Angeles and Long Beach will have a multiplier effect on the local economy. That, along with ongoing infrastructure improvements to the ports, is expected to result in Los Angeles capturing an increasing share of west coast shipping traffic. Projected concurrent economic recoveries in both Asia and the U.S. are expected to have positive effects on travel and tourism in Los Angeles.

As the California and Los Angeles economies rebound, Los Angeles is expected to experience strong growth trends in population, employment and gross product as companies are attracted by the county’s high quality of life and relatively low (for California) business costs.

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LOCAL AREA MAP

LOCAL AREA MAP

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LOCAL AREA ANALYSIS

Location

The property is located in Ventura County, within the city of Camarillo. The neighborhood boundaries are the Ventura Freeway (I-101) to the south, Camarillo city limits to the north, Carmen Drive to the west and Central Boulevard to the east.

Access

Local area accessibility is generally good, relying on the following arteries:

Local:	Las Posas Road is a major arterial thoroughfare running north/south off of I-101 then traveling east/west in the subject area. Ponderosa Street also travels east/west. Carmen Drive and Los Rosas Boulevard are north/south arterial streets.
Regional:	Interstate I-101 provide primary east and west access through the metropolitan Los Angeles Area.

Camarillo has bus, rail and air transportation. All forms of ground and air shipping are available. Las Posas Road is a major thoroughfare through Camarillo. No know changes in the planning or construction of local arterials or nearby highway is known or reported.

Nearby and Adjacent Uses

The subject’s local area is composed of residential and supportive uses. Development west and east of the subject is primarily residential. This consists primarily of large well-kept single-family homes with some scattered apartment complexes.

Adjacent south of the subject is the Las Posas Elementary School and playground. Across Las Posas Road, is Crestview Park and St. Mary’s Catholic Church. Retail and commercial development is located approximately one-half mile south near the Las Posas Road and I-101 interchange. Pleasant Valley Hospital is located approximately two miles northeast of the subject. Surrounding secondary connector streets are generally improved with residential development.

Special Hazards or Adverse Influences

There are no detrimental uses in the local area that would impact the subject’s use. The general area is outside of the 100 and 500-year flood plains as identified on the FEMA maps. No unusual noise pollution was noted. No noxious odors were noted at or near the subject and none were reported.

Land Use Changes

No known land use changes were reported or observed. No demolition or closing of senior housing was known.

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LOCAL AREA ANALYSIS

Demographics

Population

The area’s demographic characteristics within the Camarillo region were reviewed. Claritas, Inc. provides historical, current and forecasted population estimates for the area.

The population of the City of Camarillo was 57,901 in 2002. Between 2000 and 2002, the population within Camarillo increased by an annual rate of 0.72 percent. The rate of growth is projected to remain essentially stable during the next five years. By the year 2007, the population of Camarillo is expected to increase to 59,979 persons, representing annual average growth of 0.71 percent between 2002 and 2007.

The 2002 population within a 5-mile radius surrounding the subject site is 68,781. Between 2000 and 2002, the population within this radius increased by an annual rate of 0.95 percent. The rate of growth is projected to increase slightly during the next five years. By the year 2007, the population within this radius will have increased to 71,957 persons, representing annual average growth of 0.91 percent between 2002 and 2007.

Households

A household consists of all the people occupying a single housing unit. According to Claritas, Inc., the persons per household in Camarillo averaged 2.62 people and averaged 2.79 people within a 5-mile radius in 2002. The areas average household size is less than the county and state as a whole at 3.04 and 2.87 persons per household, respectively.

Income

Income levels, either on a per capita, per family or household basis, of the residents of the market area form an important component of this total analysis. According to Claritas, Inc., the average household within Camarillo has an average income of $89,132 per capita and $90,169 per household within a 5-mile radius. The average household income for the county and state was $84,232 and $75,364, respectively for 2002.

Conclusions

In summary, the subject site is located in an established residential and commercial area. The trends for the local area appear stable but healthy. Very little vacant land is available for development. No known land use changes were reported or observed. No demolition or closing of senior housing facilities was identified. We anticipate the neighborhood will achieve moderate growth in property values into the foreseeable future.

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SENIOR LIVING INDUSTRY OVERVIEW

Independent Living

Congregate care or independent living units are designed for seniors who pay for some congregate services (i.e. housekeeping, transportation, meals, etc.) as part of the monthly fee or rental rate, and who require little, if any, assistance with activities of daily living. Residents of congregate/independent living units may have some health care-type services provided to them by in-house staff or an outside agency. Congregate units may be part of a congregate residence, a property that provides congregate and assisted living services, or a continuing care retirement community.

The retirement housing industry overall has matured considerably over the past two decades as the elderly population has increased and seniors have come to accept and seek alternatives to remaining in their homes. Retirement housing has expanded beyond the early dominance of life care and continuing care retirement communities (CCRCs). These communities, which typically included independent living and nursing care on a single campus, typically charged residents an entrance fee and a monthly fee. Rental retirement communities represented a major area of growth in the 1980s, fueled in part by the Department of Housing and Urban Development’s 221(d)(4) Retirement Service Center mortgage insurance program. Although the program no longer exists, the rental model is still a popular option for newly developed retirement communities. In addition, a small but definite increase in the number of cooperatives and condominiums has taken place, particularly among communities targeting a more affluent segment of the elderly population.

The retirement community of today is a smaller complex consisting of 100 to 200 independent living units versus the 200 to 300 independent living units that characterized the early CCRCs. In some cases, the communities are being developed in stages to avoid some of the up front risk associated with initial lease-up and to allow the facility to be more responsive to the market needs and preferences.

The rental retirement communities of the early 1980s typically offered no nursing care or assistance with daily living. These facilities were designed to provide hospitality services such as meals, housekeeping, transportation, and activities. These facilities met with slow lease-up rates and exceedingly high turnover due to their inability to meet changing resident needs.

Independent living communities, particularly rental communities, are least heavily monitored and governed by state regulations. In some states, this has resulted in a fair degree of flexibility in providing additional services.

It has become quite clear over the past ten years that the retirement communities are attracting an older and somewhat frailer population than originally anticipated. The average age of entrance into independent living units is between the late 70’s and early 80’s, rather than the late 60’s and early 70’s originally anticipated. As a result of the change in resident profile as well as the experience gained in the 1980s, it is clear that some form of health care or supportive services for the frail elderly is a necessary component of a retirement community.

Assisted Living

The emergence of assisted living as an option in the long-term care continuum for elders in the 1990’s represented the convergence of social, political, economic and treatment trends. Prior to this, most dependent seniors had only two long-term care options: be cared for by a family member or enter a nursing home. Today, as the number of elders and their frailty increases, these options have proven inadequate for seniors, their families and society. For many elderly, nursing homes are overly intensive and expensive. Therefore, for the segment of seniors with

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moderate to intermediate care needs, assisted living has become a favored form of long-term care.

The Assisted Living Facilities Association of America (ALFAA) defines assisted living as a special combination of housing, personalized supportive services and health care designed to respond to the individual needs of those who require help in activities of daily living, but do not need the skilled medical care provided in a nursing home. Assisted living care promotes the maximum independence of dignity for each resident and encourages the involvement of a resident’s family, neighbors and friends.

Although industry proponents are clear as to the general characteristics and philosophy of an assisted living community, there is no national agreement on the details and legal definition of assisted living. As the assisted living industry becomes increasingly standardized, and as the industry expands, it can expect to acquire a defined legal status with respect to licensure, reimbursement and financing.

Some states have enacted laws using the term assisted living, however, in most jurisdictions licensure statutes combine a variety of terms and programs. In referring to residential housing and services, most state licensing laws use terms such as: rest homes, homes for the aged, supportive living facilities, residential care facilities, board and care homes, elderly group homes, congregate care housing and senior housing.

Assisted living programs are located in a variety of environments. They may be housed in newly constructed freestanding facilities, retrofitted buildings such as former hotels, units attached to nursing homes, senior apartments with services, units within CCRC developments and congregate care units. Whatever the environment, there must be private, or at a minimum companion suite residential living space.

Typically, a resident will have a compact studio or efficiency apartment. Living space will almost always include a private bathroom. The living space may or may not include a kitchen or kitchenette, washer and dryer, a living room or storage space. Economics generally dictate the size of the private living space, which can range from a small one-room efficiency of less than 300 square feet to a large one-bedroom apartment of 750 square feet.

Assisted living residences also provide for a considerable amount of common space for the residents to share. Newer assisted living facilities generally allocate from 30 percent to 40 percent of all gross square footage of the building to common area. Such space includes dining rooms, libraries, lounges, activity centers, kitchens and laundry rooms. The size of an assisted living facility depends on many variables including market forces and site constraints. Most newer freestanding facilities typically fall into the range of 40 to 80 units.

The level of service in assisted living facilities varies. However, within a broad range, there are certain basic services offered:

• 24-hour a day on-site supervision or access to an emergency call system;

• Two or three meals and regular snacks are available;

• Light housekeeping and laundry services are available;

• Residents are entitled to some level of personal care each day from the facility staff;

• A personalized health care plan delineates how health care needs may be addressed; and;

• Activity, social service and transportation resources are made available.

Because it is a goal of assisted living to enable residents to age- in- place, the level of personal care, food services or health care may be adjusted upwards as needed. However, arranging

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SENIOR LIVING INDUSTRY OVERVIEW

services to allow aging- in- place can be difficult if residents need increasing amounts of nursing care and the states limit or prohibit skilled nursing care in assisted living facilities. With this in mind, it should be noted that there is a growing trend by states to extend the scope of assisted living services far into the long-term care continuum.

The typical resident of assisted living is 83 years old, is a woman and is single or widowed. Today’s assisted living residents have care needs and characteristics that were associated with patients in intermediate care facility nursing homes in the 1970’s and 1980’s. Senior care needs are gauged by the extent to which an individual requires regular assistance with ongoing activities of daily living (ADLs) such as bathing, eating, walking, toileting and dressing. In order to determine that there is an ADL dependency, a clinician must determine that an individual cannot safely or routinely perform a specific activity unless he or she has help. Unless such help is provided, the individual is at risk of not meeting an essential daily need.

While the number of ADLs with which a person needs help is used clinically as a measure of dependency, having such dependency does not mean that medical care is required. In assisted living facilities, residents generally have at least one ADL dependency, and it is not uncommon that they have as many as three or four.

Assisted living fees are typically structured around a fixed monthly amount that covers both housing and services. The monthly amount generally includes a base level of personal care with additional personal care charged separately. There also may be entrance fees, typically equivalent to the first and last month’s rent. Assisted living facilities do not require the large endowment type entrance fees required in some CCRCs.

Occupancy Patterns

Occupancy data compiled by the American Seniors Housing Association for the various senior housing community types (congregate, assisted and CCRCs) has been summarized in the following table.

Median Occupancy Rates
For Profit Senior Housing Facilities

Property Type	1995			1996			1997			1998			1999			2000			2001			2002
Independent		95.0	%		98.0	%		96.0	%		98.0	%		95.0	%		95.0	%		94.5	%		93.1	%
Assisted Living		97.0	%		95.0	%		95.0	%		92.0	%		94.0	%		90.0	%		93.8	%		94.2	%
CCRCs		95.0	%		95.0	%		94.0	%		95.0	%		93.2	%		93.2	%		93.1	%		92.4	%
All Communities		95.0	%		96.0	%		95.0	%		95.0	%		93.7	%		93.7	%		94.0	%		93.5	%

Source: American Seniors Housing Association

As seen, assisted living facilities in 2002 exhibited the highest occupancy rate of any of the property types. This was in contrast to the other property types that saw median occupancy rates decline slightly over 2001.

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SENIOR LIVING INDUSTRY OVERVIEW

The average length of stay in a senior facility also varies as to the property type. In the following table is average length of stay data compiled by the American Seniors Housing Association.

Average Resident Length of Stay
(Stated In Months)

Property Type		1998		1999		2000		2001		2002
Independent			45.5		43.4		38.1		43.1		33.4
Assisted Living			24.8		18.5		20.5		28.0		17.7
All CCRCs
	Independent		61.0		45.4		59.8		37.3		37.0
	Assisted Living		16.0		18.2		16.8		12.8		12.0
	Nursing		20.0		23.2		18.6		9.0		9.0

Source: American Seniors Housing Association

As shown, the average length of stay in an assisted living facility in 2002 was 17.7 months and which reflected a notable decline over the length of stay average for 2001. Both assisted and independent living facilities showed declines, while CCRCs maintained generally similar occupancies over 2001. Much of the reasoning for the decline is from increased lateral movement of residents between existing facilities caused by such factors as facility operations (management, staffing, etc.), as well as foreclosures and closings of poorly operated facilities.

Absorption Trends

Net absorption data compiled by the American Seniors Housing Association (ASHA) for senior housing facilities is summarized in the following table.

2001 National Average Net Absorption Rates
Senior Housing Facilities

	1st		Months		Months		2nd		3rd
Property Type	Month		2 - 6		7 - 12		Year		Year
Independent		25.5		6.7		3.7		2.8		2.9
Assisted Living		11.7		5.2		2.9		2.2		5.3
CCRCs		37.4		18.9		9.0		5.5		4.1
All Communities		28.4		10.3		5.2		3.5		4.1

Figures based on number of residents

Source: American Seniors Housing Association

As seen, initial absorption of new residents for all facility types is strong in the first month, then it tapers off during the following months.

VALUATION SERVICES	28	ADVISORY GROUP

SENIOR LIVING INDUSTRY OVERVIEW

California Assisted Living Environment

The California Department of Social Services, Community Care Licensing Division, is the state agency responsible for approving, monitoring and regulating residential care facilities for the elderly, which provide temporary or long-term, 24-hour non-medical residential care services to the elderly, who are substantially unable to live independently. Resident dependence may be the result of physical or other limitations associated with age, physical or mental disabilities or other factors.

Residential facilities are group living facilities with shared bedrooms for the residents. Services provided typically include three meals daily, recreation, housekeeping, security and personal services. Personal services in general include assistance with bathing and dressing and dispensing of medications.

Regulation of residential care facilities in California is documented by the State Department of Social Services (“Department”), contained in Residential Care Facilities for the Elderly, Title 22, Division 6, Chapter 8. Included in these regulations are application procedures, license requirements, enforcement provisions, continuing requirements, physical environment and health related services. Unless a facility is exempt from licensure as specified in regulatory Section 80007, no adult, firm, partnership, association, corporation, county, city, public agency or other government entity shall operate, establish, manage, conduct or maintain a community care facility without first obtaining a valid license.

General Requirements

The following is an outline of the basic requirements for residential care facilities in the State of California:

Admission

Prior to accepting a resident for care, the facility shall conduct an interview with the applicant and responsible person, perform a pre-admission appraisal, and evaluate a recent medical assessment. The licensee is to complete and maintain individual written admission agreements with all persons admitted to the facility or their designated representatives. The agreement shall specify basic services to be made available, payment provisions, modification conditions, refund conditions, general facility policies, and that the Department or licensing agency has the authority to examine residents’ records. The agreement must also specify conditions under which the agreement may be terminated.

Medical Assessment

Prior to a person’s acceptance as a resident, the licensee shall obtain and keep on file, documentation of a medical assessment, signed by a physician, made within the last year. The medical assessment shall include a physical examination of the resident, documentation of prior medical services and history, and a current medical status. There should be a record of current prescribed medications, identification of physical limitations of the person, and a determination of the person’s ambulatory status. The licensee shall obtain an updated medical assessment when required by the Department.

VALUATION SERVICES	29	ADVISORY GROUP

SENIOR LIVING INDUSTRY OVERVIEW

Resident Records

A separate record shall be maintained for each resident. The record shall be current and complete and be generally accessible. A current register of all residents in the facility shall be maintained and kept in a central location.

Personal Rights

Each person shall have personal rights, which include but are not limited to:

1.	To be accorded dignity in his/her personal relationships with staff, residents, and other persons.
2.	To be accorded safe, healthful and comfortable accommodations, furnishings and equipment.
3.	To be free from corporal or unusual punishment, humiliation, intimidation, mental abuse or other actions of a punitive nature, which interfere with daily living and functions.
4.	To leave or depart the facility at any time and to not be locked in any room, building, or on the premises by day or night.

All persons accepted to facilities or their responsible persons, shall be personally advised and given a copy of these rights at admissions.

Incidental Medical and Dental Care

Each facility shall have a plan for incidental medical and dental care. The plan shall encourage routine medical and dental care and provide for assistance in obtaining such care by compliance with the following:

The licensee shall arrange, or assist in arranging, for medical and dental care appropriate to the condition and needs of the residents.

The licensee shall provide assistance in meeting necessary medical and dental needs. This includes transportation to the nearest available medical or dental facility.

There shall be arrangements for separation and care of residents, whose illness requires separation from others.

When residents require prosthetic devices, vision and hearing aids, the staff shall be familiar with the use of these devices, and shall assist the resident with the utilization of them.

The licensee shall provide for assisting residents with self-administered medications as needed.

There shall be adequate privacy for first aid treatment of minor injuries and for examination by a physician if necessary.

If the facility has no medical unit, a complete first aid kit shall be maintained and readily available.

Food Service

Meals on the premises shall be served in one or more dining rooms or similar areas in which the furniture, fixtures and equipment necessary for meal service are provided. Such dining areas shall be located near the kitchen so that food may be served quickly and easily. The dining rooms are to be attractive to promote socialization among the diners. Tray service shall be provided in case of temporary need.

VALUATION SERVICES	30	ADVISORY GROUP

SENIOR LIVING INDUSTRY OVERVIEW

In facilities with 50 or more residents and providing three meals a day to these residents, a full-time employee qualified by formal training or experience shall be responsible for the operation of the food service. If this person is not a dietician, then a provision should be made for regular consultation. The food should be of a good quality.

Personal Accommodations and Services

The facility shall be safe, clean, sanitary and in good repair at all times for the safety and wellbeing of residents, employees and guests. The facility should be large enough to provide comfortable living accommodations and privacy for the residents, staff and others. There should be common rooms such as living rooms, dining rooms, dens or other activity rooms. Bedrooms shall sleep no more than two residents and be large enough to allow for easy passage and comfortable use of any required resident assistance devices. Bedrooms are not to be used as passageways and no room for any other use can double as a bedroom.

Equipment and supplies necessary for personal care and maintenance of adequate hygiene practice shall be readily available to each resident.

Each resident is to be provided with a bed in good repair, a chair, a nightstand, a lamp for reading, and adequate closets and drawer space. Clean linen and towels in good repair are to be provided weekly at a minimum, and more often if necessary. Toilets and bathrooms are to be located near the resident’s bedrooms. There is to be at least one toilet and sink for each six persons, and at least one tub or shower for each ten persons, with adequate privacy.

A comfortable temperature must be maintained at all times. All windows are to be in good repair and free of insects, dirt and other debris. There should be adequate lighting throughout the facility for the safety and comfort of all persons in the facility.

Personal Services

Licensees shall provide necessary personal assistance and care with activities of daily living including, but not limited to dressing, eating, and bathing.

Activities

The licensee shall ensure that planned recreational activities are provided for the resident. These activities include physical activities such as games, sports and exercise, as well as group interaction.

Evaluation Visits

Every licensed community care facility is periodically inspected and evaluated for quality of care. Evaluations are to be conducted at least once a year to ensure the quality of care. The Department shall notify the facility in writing of all deficiencies and shall set a reasonable timeframe for compliance by the facility. Upon a finding of noncompliance, the Department may levy a civil penalty not to exceed $50 per day for each day until the Department finds the facility in compliance. If the facility fails to comply in the allotted time, then the amount collected shall be forfeited to the Department. Reports shall be kept on file in the Department and open to public inspection. A follow up visit is required to determine if the deficiency has been corrected.

Corrective action is taken by the Department when a licensee fails to protect the health, safety and personal rights of individuals in its care, or is unwilling or unable to maintain substantial compliance with licensing regulations.

VALUATION SERVICES	31	ADVISORY GROUP

SENIOR LIVING INDUSTRY OVERVIEW

Enforcement is maintained through:

1.	Fines and civil penalties (vary according to the violation)
2.	Non-compliance office conferences

Administrative legal actions as follows:

• Denial of applications

• Compliance plans

• Probationary license

• Temporary suspension of license

• Revocation of license

• License and employee exclusions

The Department may suspend or revoke any license on any of the following grounds stipulated in Health and Safety Code Sections 1569.1515(c) and 1569.50:

• The Department may revoke the license of any corporate licensee that has a member of the board of directors, the executive director or an officer who is not eligible for licensure pursuant to regulations.

• Violations of the specifics rules and regulations.

• Aiding, abetting or permitting the violation of the rules and regulations.

• Conduct which is inimical to the health, morals or safety of either an individual in or receiving services from the facility or the people of the State of California.

• The conviction of a licensee, or individuals in contact with residents at any time before or during licensure, of a crime as defined in the regulations.

• Engaging in acts of financial malfeasance concerning the operation of a facility, including, but not limited to, improper use or embezzlement of resident monies and property or fraudulent appropriation for personal gain of facility moneys and property, or willful or negligent failure to provide services for the care of the residents.

When the Department intends to seek revocation of a license, the Department shall notify the licensee of the proposed action and at the same time shall serve such licensee with an accusation. The licensee has a right to a hearing prior to the revocation or suspension of a license, except when an “Immediate Temporary Suspension Order” is written.

The Immediate Temporary Suspension Order temporarily suspends any license prior to any hearing when in the Department’s opinion such action is necessary to protect the residents in the facility from any physical or mental abuse or any other substantial threat to health and safety. When the Department intends to temporarily suspend a license prior to a hearing, the Department shall notify the licensee of the temporary suspension and the effective date thereof and at the same time serve the licensee with an accusation.

For either a revocation or a revocation and temporary suspension action, the Department shall within 15 days of receipt of notice of defense ask the Office of Administrative Hearings to set the matter for hearing.

For a revocation and temporary suspension action, the Department shall ask the Office of Administrative Hearings to hold the hearings as soon as possible but not later than 30 days after receipt of the Notice of Defense.

VALUATION SERVICES	32	ADVISORY GROUP

MANAGEMENT AND OPERATIONS OVERVIEW

Management Overview

The subject is managed by ARV Assisted Living, Inc. (ARV). Villa Las Posas was constructed in 1997. The facility was upgraded in 2000. Revenues have essentially been increasing over the last three years, while expenses have been stable. Revenues have increased in annualized year-to-date 2003 figures. The facility’s occupancy has been in the 90 percent range since 2000 exclusive of 2002 when occupancy declined to an average of 83 percent. The facility was 97 percent occupied at the time of our inspection. We believe that ARV has competently managed the facility.

Operations Overview

Services

Villa Las Posas is designed for assisted living and offers all the services typical of these types of facilities. This facility has been designed as a rental community and provides most services under a fixed monthly rate. All resident contracts are for the term of stay. According to the terms of the agreement, a thirty (30) day written notice is required prior to any increase in fees for additional charges or for increases due to increased cost of operations. Included in the monthly rates are:

• Three meals daily and snacks;

• Base level of personal care for assisted living

• All utilities except for personal telephone

• Scheduled Transportation;

• Twenty-four (24) hour security and numerous safety features throughout the apartments;

• Weekly housekeeping services;

• Linen services;

• Organized individual and group activities

In addition to the monthly fee there are optional services available at an additional charge. These services include additional personal care, guest meals, beauty shop fees and additional transportation fees. There are regularly scheduled health assessments that help determine which level of services each individual resident receives.

Regulations and Health Matters

The facility has a license for a capacity of 140 residential care/assisted living beds and is regulated by the State of California Department of Social Services. A copy of the Regulations is posted in a conspicuous place in the facility and the residents acknowledge at the time of entry that the operation of this facility is governed by these regulations. Furthermore, if the licensing entity amends these regulations, the resident and the provider must obey by the amended regulations.

State Monitoring

The State of California conducts annual surveys of licensed assisted living facilities. The most recent survey for the subject was conducted on September 23, 2002. The survey reported that the facility met all requirements with no deficiencies. A new license, dated November 2002 was issued for the facility.

Admission Policies

Villa Las Posas requires all potential assisted living residents to undergo a health evaluation by a physician before entrance into the facility. The operator has the right to terminate the

VALUATION SERVICES	33	ADVISORY GROUP

\

MANAGEMENT AND OPERATIONS OVERVIEW

agreement at any time when they feel that the resident’s personal care needs cannot be adequately served by the facility.

There is to be a chart for each resident in assisted living. At the time of admission, a dated and signed medical evaluation, which conforms to the licensing regulations, must be on file. Thereafter, a medical evaluation, which also conforms to licensing regulations, must be made at least every twelve (12) months.

The operator may seek appropriate evaluation and assistance and may arrange for the transfer of a resident to an appropriate and safe location, prior to termination of an admission agreement and without ninety (90) days notice or court review for the following reasons:

• When a resident fails to pay the monthly rent 30 days prior to written notice of such absence;

• When the operator feel that the residents mental or physical needs cannot be adequately met by the facility;

• In the event a resident’s behavior poses an imminent risk of death or serious physical injury to himself/herself or to others;

• Breach of contract for any reason by the resident or operator;

• Any prolonged health-related or other absence.

Villa Las Posas caters to the full range of needs of seniors requiring assisted living services. The administrator develops and maintains a personalized service plan, which is amended if necessary. Furthermore, the aging-in-place and out-placement policies appear to be reasonable and well implemented. Services at the facility are standard for this type of complex and are in keeping with the residential make-up at the subject.

Marketing

Villa Las Posas has a full time marketing director. Marketing personnel are actively involved in the community, as well as with discharge planners for area hospitals. They do not do any telemarketing. Direct mailings, scheduled community events, and networking, on the other hand are a routine part of marketing efforts.

Overall, given the history of the subject, it appears that the marketing efforts are adequate. The subject’s reputation and marketing campaign are considered to be part of the reason behind the current performance at the subject facility.

Conclusion

Overall, based on our inspection of the facility, discussions with some of the personnel and our review of the Policies and Procedures, it is our opinion that the facility is being operated in a competent manner. The facility has been adequately maintained and the residents appear to be content.

VALUATION SERVICES	34	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Primary Market Area

The first step in analyzing the competitive market for the subject is delineating its primary market area (PMA). The primary market area is typically described as either a defined radius around the subject, zip codes, or the subject’s county. In order to delineate the subject’s primary market area, we have interviewed the subject’s Executive Director as well as the competitive properties we have used in our analysis.

Our discussions indicated that approximately 70 percent of the subject’s residents come from the primary market area. This encompasses an area of approximately five miles. The remaining 30 percent emanate from the surrounding area. Residents relocate to Camarillo to either retire or be near their adult children that work in the area. The following chart details the competitors primary market areas (PMA), as well as the estimated percentage that comes from their PMA.

		% of Residents
Name	PMA	from PMA
AlamaVia of Camarillo	5.0 Miles		70	%
Wilshire/Heritage House	7.0 Miles		75	%
Brighton Gardens Assisted Living	10.0 Miles		85	%
Hillcrest Inn	5.0 Miles		70	%
SUBJECT	5.0 Miles		70	%

In the case of the subject, we have determined the primary market area to encompass an area of approximately five miles with 70 percent of the residents emanating from this PMA. Although a project like the subject may also attract residents from outside of the area, the geographic market area within a radius of five miles of the subject is considered to represent the primary draw for the subject. As indicated on the chart, the subject’s primary market area of seven miles is similar to the comparables.

Most of the marketing directors we interviewed also indicated that adult children in this market are the driving forces in the decision making process for their parents.

VALUATION SERVICES	35	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Supply/New Construction

Existing Facilities

Because of the subject’s levels of personal care services, and type of amenities, the personal care homes in the market with less than 25 units do not generally compete directly with the subject. However, the following charts detail the number of assisted living units in the subject’s market area that pose direct and indirect competition to the subject. We note that the table includes facilities located in both the subject’s primary and secondary market area in Camarillo.

MARKET AREA SUPPLY

	Total AL
Name	Units		PMA/SMA*
AlamaVia of Camarillo		78	PMA
Wilshire/Heritage House		123	PMA
Brighton Gardens Assisted Living		120	PMA
Hillcrest Inn		138	SMA
SUBJECT		123
Totals		582

* PMA - Primary Market Area; SMA - Secondary Market Area

Hillcrest Inn is a sister facility to the subject as it is also owned and operated by ARV. AlamaVia of Camarillo and Wilshire/Heritage House are located in Camarillo. AlamaVia is similar to the subject. Wilshire/Heritage House is considered inferior in terms of conditions and amenities offered. Brighton Gardens Assisted Living was a Marriott property that was acquired by Sunrise Assisted Living in March 2003. Brighton Gardens Assisted Living is superior in terms of age, condition, appeal and amenities offered.

Proposed Units

Regarding planned or pending projects in the subject’s primary market area, discussions with local providers and planning departments indicated that there are no facilities planned at this time. However, because of the large retirement draw of the market area, it would be reasonable to assume that the primary market area could possibly see some new development through the mid-term.

Occupancy Patterns

Industry Statistics

Assisted living facilities generally exhibit the lowest overall occupancy patterns of any of the senior housing community types (congregate, assisted and CCRCs). As was noted in the Senior Housing Industry Overview presented earlier, assisted living facilities indicated an average occupancy rate of 94.2 percent in 2002, which represented an increase from 93.8 percent in 2001. Assisted living facilities in 2002, according to the survey, indicated the highest occupancies of the senior housing property types (independent, assisted and CCRCs).

Competitive Market Area

The senior living facilities we surveyed for our analysis totaled approximately 459 units and the current available occupancy of those properties, which were not in lease-up was from 91 to 95 percent. Villa Las Posas is noted as having been at 97 percent occupancy at the time of

VALUATION SERVICES	36	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

inspection. The subject appears to have a good reputation in the market and should continue based on its living options. A summary showing the competitive properties and their overall average occupancy levels is shown below. Please note that not all of these properties may fall within the defined market area of the subject, however, in the Elderly Demographics section we have defined the total supply in the competitive market area.

	Total AL
Name	Units		Occupancy Level
AlamaVia of Camarillo	*	78		95	%
Wilshire/Heritage House	*	123		93	%
Brighton Gardens Assisted Living	*	120		91	%
Hillcrest Inn		138		100	%
SUBJECT		123		97	%

*     Denotes facilities located in subject’s primary market area.

AlamaVia of Camarillo, Wilshire/Heritage House and Brighton Gardens Assisted Living are located within the subject’s PMA. Hillcrest Inn is located within the secondary market area (SMA).

Rental Rates

Current rental rates for assisted living units in the Camarillo area begin at around $2,750 per month for a one-bedroom unit and go up to around $3,800 per month for a one-bedroom unit. For the most part, assisted living facilities provide three meals per day, weekly to bi-weekly housekeeping, weekly laundry, all utilities including cable TV except telephone, activities, transportation, as well as a base level of assisted living or personal care services.

Rent Increases

Most assisted living facilities in the Camarillo market area have been instigating annual rent increases over the last several years. Although no specific data was available, discussions with several providers indicated that they have been routinely increasing rents between three and five percent per year. Discussions with the subject’s Executive Director indicated that the facility has also been increasing rents annually over the last several years.

Concessions

Rent concessions, or incentives, provide a good indication of the condition, or strength of current market conditions. Rent concessions are generally found in markets exhibiting high vacancy and diminished absorption levels, as well as being used by new projects as a part of their overall marketing programs. At the time of our investigation of the Camarillo market area, no specific concessions were noted. Similar to the market, Villa Las Posas reported that they are not offering concessions for leasing vacant units. Concession will not likely be part of the market and used only to stimulate any unforeseen vacancies. They should, however, not be of any major significance to a property like the subject.

Absorption Trends

An assisted living facility generally exhibits lower initial absorption patterns during the first year of any of the senior housing community types (independent, assisted and CCRCs). Occupancy

VALUATION SERVICES	37	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

data compiled by the American Seniors Housing Association (ASHA) was previously summarized in the Assisted Living Industry Overview. The industry data indicated that initial absorption of new residents for all facility types is strong in the first month, then it tapers off dramatically during the following months. Specifically, net absorption averaged 11.7 residents for the Month 1, 5.2 residents for Months 2 – 6, 2.9 residents for Months 7 – 12, and 2.2 residents during Year 2.

Villa Las Posas opened in 1997. Its occupancy levels have been inconsistent over the last few years. Occupancy was 98 percent in 2000, 95 percent in 2001, 84 percent in 2002 and equated to 90 percent annualized for 2003. At the time of our inspection, the subject was 97 percent occupied.

Senior Demographics

We have evaluated the current and future market potential by analyzing demographic trends and the supply of elderly housing in the facility’s market area. Most market areas for assisted living are considered to comprise up to five miles for the primary area and up to 10 to 20 miles for the secondary area. As was discussed earlier, the primary market area for the subject is considered to effectively encompass an area of approximately five miles and a secondary area of approximately seven miles. This assumption was based on our review of the demographics of the area, trends on where most of the competition is being constructed, as well as from discussions with facility’s Executive Director regarding its primary market area.

The demographic data used in our analysis was compiled by Claritas, Inc. The data includes figures for the most recent census year in 2002 estimates and projections for the year 2007. For purposes of this analysis, we have relied upon the 2002 estimates for current demographic information. Additional state and national information has also been obtained from A Profile of Older Americans: 2001, prepared by the American Association of Retired Persons and the Administration on Aging and based on data from the U.S. Bureau of the Census.

VALUATION SERVICES	38	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Senior Population/Growth Rates

Population and growth statistics for the subject’s primary and secondary market area is shown in the following chart.

Population Statistics

	PMA					SMA
	5 Miles					7 Miles
	Population		%			Population		%
2000
Total *		67,498					185,873
65+		10,176		15.1	%		21,211		11.4	%
75+		5,552		8.2	%		10,674		5.7	%
85+		1,429		2.1	%		2,597		1.4	%
2002	Estimate
Total *		68,780					191,108
65+		10,310		15.0	%		21,666		11.3	%
75+		5,745		8.4	%		11,110		5.8	%
85+		1,530		2.2	%		2,807		1.5	%
2007	Projection
Total *		71,955					203,885
65+		10,775		15.0	%		23,026		11.3	%
75+		5,942		8.3	%		11,675		5.7	%
85+		1,710		2.4	%		3,195		1.6	%

* Total population unadjusted for age
Source: Claritas, Inc.

Growth Rates

	PMA						SMA
	5 Miles						7 Miles
	Total			Annual			Total			Annual
2000-2007
Total *		6.6	%		0.9	%		9.7	%		1.3	%
65+		5.9	%		0.8	%		8.6	%		1.2	%
75+		7.0	%		1.0	%		9.4	%		1.3	%
85+		19.7	%		2.6	%		23.0	%		3.0	%
2000-2002
Total *		1.9	%		0.9	%		2.8	%		1.4	%
65+		1.3	%		0.7	%		2.1	%		1.1	%
75+		3.5	%		1.7	%		4.1	%		2.0	%
85+		7.1	%		3.5	%		8.1	%		4.0	%
2002-2007
Total *		4.6	%		0.9	%		6.7	%		1.3	%
65+		4.5	%		0.9	%		6.3	%		1.2	%
75+		3.4	%		0.7	%		5.1	%		1.0	%
85+		11.8	%		2.2	%		13.8	%		2.6	%

* Total population unadjusted for age
Source: Claritas, Inc.

The population in the subject’s market area indicates a moderate level of demand for senior housing. As seen from the data, the elderly population is growing in terms of absolute numbers and as a percentage of total population. Comparatively, the national average of residents age 65+ constituted 13.0 percent of the total population in 2000 according to Claritas, Inc. The subject’s primary market area indicates a slightly higher ratio of similar aged older population to the national average.

Adult Children Population/Growth Rates

We have also analyzed population trends for what the industry refers to as “adult children”. This segment of the population generally plays a significant role in the placement of a senior in a senior housing facility. This is especially true as many seniors or elderly will relocate to be near their adult children or relatives. This fact is widely recognized by senior housing operators who indicate that market areas exhibiting a higher concentration of adults between the age of 45 and 65 can generally support a much larger supply of senior housing than would be shown through analyzing only the percentage of seniors currently residing in the market area. This situation is more prevalent with regard to higher levels of care such as assisted living and nursing. Population and growth statistics for the subject’s primary market (PMA), as well as the secondary market (SMA) areas for these age groups are shown below

VALUATION SERVICES	39	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Population Statistics - Adult Children

	PMA					SMA
	Population		%			Population		%
2000
Total *		67,498					185,873
45 - 54		9,039		13.4	%		22,222		12.0	%
55 - 59		3,403		5.0	%		7,753		4.2	%
60 - 64		2,649		3.9	%		6,191		3.3	%
2002		2002
Total *		68,780					191,108
45 - 54		9,515		13.8	%		23,652		12.4	%
55 - 59		3,777		5.5	%		8,701		4.6	%
60 - 64		2,795		4.1	%		6,621		3.5	%
2007		2007
Total *		71,955					203,885
45 - 54		10,443		14.5	%		26,573		13.0	%
55 - 59		4,499		6.3	%		10,607		5.2	%
60 - 64		3,502		4.9	%		8,458		4.1	%

* Total population unadjusted for age
Source: Claritas, Inc.

Growth Rates - Adult Children

	PMA						SMA
	Total			Annual			Total			Annual
2000-2007
Total *		6.6	%		0.9	%		9.7	%		1.3	%
45 - 54		15.5	%		2.1	%		19.6	%		2.6	%
55 - 59		32.2	%		4.1	%		36.8	%		4.6	%
60 - 64		32.2	%		4.1	%		36.6	%		4.6	%
2000-2002
Total *		1.9	%		0.9	%		2.8	%		1.4	%
45 - 54		5.3	%		2.6	%		6.4	%		3.2	%
55 - 59		11.0	%		5.4	%		12.2	%		5.9	%
60 - 64		5.5	%		2.7	%		6.9	%		3.4	%
2002-2007
Total *		4.6	%		0.9	%		6.7	%		1.3	%
45 - 54		9.8	%		1.9	%		12.3	%		2.4	%
55 - 59		19.1	%		3.6	%		21.9	%		4.0	%
60 - 64		25.3	%		4.6	%		27.7	%		5.0	%

* Total population unadjusted for age
Source: Claritas, Inc.

As shown, the 45 to 64 age group showed strong growth between 2000 and 2002 in both the primary and secondary market area. Going forward, this age group is forecast to grow at higher rates. Overall, adult children are expected to contribute positively towards living options for the subject and its market area.

Income and Households

In addition to the absolute number and growth of the elderly population, the number of households with appropriate income levels will dictate the actual population available to support the subject. Statistics on income levels are typically presented by the household. We note that in the case of the elderly, most households include a single adult. For comparison purposes it is therefore reasonable to utilize the household statistics. Furthermore, the housing cost and income requirements for a second person are significantly less than the primary occupant.

Compared with the local competition, the subject has monthly rates in the lower end of the range. To afford the various accommodations at the subject, it is estimated that an average annual income of $38,800 would be necessary. We have utilized the average projected revenue per resident of approximately $33,000 as calculated in the Income Capitalization Approach to value. We have assumed that a resident would spend approximately 85 percent of their income on housing, meals and utilities. The balance of the income is required for taxes, insurance, and personal needs. By dividing the $33,000 by 85 percent we arrive at an average income of $38,800, rounded.

Assuming no child subsidy, it is estimated that most residents would require an annual income of $38,800 or more to afford the majority of the accommodations at the subject. We note that this is a conservative assumption given that there are a significant number of elderly who are receiving some form of child subsidy. Furthermore, these indicators are somewhat skewed given that there are recent findings suggesting that the elderly are indeed spending down their assets other than income from their house while residing in senior living facilities. Given the relatively short term of stay anticipated in these facilities, it is reasonable to assume that there would be a greater spend-down of assets. Reference is made to the findings in the State of

VALUATION SERVICES	40	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Seniors Housing Report, 2002 published by the Americans Senior Housing Association, which cites the average length of stay in an assisted living facility to be 18 months.

We also note that the indicated income level does not account for child subsidies or a sale of a home. According to the Claritas report, 66.3 percent of the 65+-householder population owns their own residences in the primary market area and the median housing value was reported to be $358,523 in 2002 . Given that the elderly population typically own their residence free and clear, it is reasonable to assume that there would be additional income available from the sale of a residence which could be amortized over the length of stay. Given the average price of a house and that the majority of the elderly own their houses free and clear, we have assumed that this cash would provide for additional income of say $21,511 annually or a safe rate of return of 6.0 percent of the investment (6.0 percent x $358,523).

After accounting for this ($38,800 - $21,511 = $17,300), we have considered still considered an income qualifier of $25,000 to be a reasonable threshold for entrance to the subject facility due to the rent structure at the property. Reference is made to the table below for a summary of household income for the income qualifiers in the $25,000+ range.

Income Statistics

Households With Incomes Greater Than            $25,000

	PMA					SMA
	5 Miles					7 Miles
	Total		%			Total		%
2002
* Total 65+		6,514		—			13,035		—
65+		5,857		89.9	%		11,317		86.8	%
75+		3,394		52.1	%		5,979		45.9	%
85+		868		13.3	%		1,453		11.1	%
2007
* Total 65+		6,894		—			13,768		—
65+		6,358		92.2	%		12,407		90.1	%
75+		3,660		53.1	%		6,546		47.5	%
85+		1,036		15.0	%		1,744		12.7	%

* Unadjusted for Income
Source: Claritas, Inc.

Income Statistics - Growth Rates

Households With Incomes Greater Than            $25,000

	PMA						SMA
	5 Miles						7 Miles
2002-2007	Total			Annual			Total			Annual
* Total 65+		5.8	%		1.1	%		5.6	%		1.1	%
65+		8.6	%		1.7	%		9.6	%		1.9	%
75+		7.8	%		1.5	%		9.5	%		1.8	%
85+		19.4	%		3.6	%		20.0	%		3.7	%

* Unadjusted for Income
Source: Claritas, Inc.

We have found that for households over $25,000 within our primary market area in 2002 (5-mile radius), there were 5,857 for the 65+ age group, 3,394 for the 75+ age group and 868 for the 85+ age group. The number of households earning $25,000 or more in the primary market area is anticipated to increase over the next five years at an annual average rate of 1.66 percent for age 65+ households, 1.52 percent per year for age 75+ and 3.60 percent for the age 85+ households. Overall, these figures appear to be consistent with the population trends.

Penetration Rates

A market penetration analysis provides insight into project feasibility. It indicates the ability of a project to lease-up or maintain stabilized operation based on a ratio analysis of other geographic areas (units to population) applied to the subject’s market area. The applicability of the penetration analysis is dependent on the similarities of the area analysis to the subject area. Other factors may cause variations in the penetration rates in an individual market such as competition from similar property types (assisted versus independent living) and unique market demand characteristics (urban versus rural). Given the relatively small number of units and population in an individual area, some divergence from the macro ratio is not unlikely.

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COMPETITIVE MARKET ANALYSIS

In this analysis we have defined the penetration rate to be the percentage of primary market assisted living units to age and income-qualified residents. The 2002 penetration rate is compared to that projected for 2007 based on a supply increase of 25 percent. While there are no firm industry standards for penetration rates, studies across the country suggest that assisted living penetration rates up to 7.0 percent reflect good markets or markets in equilibrium. These percentages have been provided by the MDS Research Company, Inc., who specializes in the market and feasibility analysis of senior housing facilities. Furthermore, a Cushman & Wakefield survey of over 120 senior housing markets across the nation supports acceptable penetration rates of 7.0 percent or below.

Through a review of senior demographics, industry surveys noted above and local market characteristics; we have utilized the following criteria to determine the subject’s market area characteristics.

MARKET CLASSIFICATIONS

	Market Wide	Market Penetration	Rent
Type of Market	Occupancy	Rate	Concessions
Good	90%+	Up to 3.9%	None
Equilibrium	80 – 89%	4.0% – 6.9%	Nominal
Saturation	70 – 79%	7.0% – 9.9%	Moderate
Saturated (Over Built)	69% and Below	10% and Above	Substantial

Nationally, it is generally anticipated that 60 to 70 percent of residents will come from the primary market area and an additional 15 to 20 percent will be from the secondary market area. The remainder of the residents will generally be from other areas and have relocated to be closer to family members. Primary market residents lost to other market areas generally offset residents coming from the secondary market.

The demand for elderly housing is determined by analyzing the relationship between the supply of senior housing units and the number of qualified residents with adequate income to afford the units. In general, a higher ratio of qualified residents, coupled with a high overall occupancy in the area indicates a strong demand for senior housing. At the same time, a low ratio of units to available households coupled with a high occupancy also indicates a high demand. A low occupancy for the area always indicates a low demand. In other words, the ratio of qualified residents is only one component.

We have calculated the market wide occupancy as of the date of inspection for the subject’s primary market area. The primary competing facilities in the PMA, including the subject, are shown in the following table. We acknowledge that the following summary of properties may not represent all of the facilities in the market area, but are what we believe to be the most competitive to the subject.

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COMPETITIVE MARKET ANALYSIS

MARKET OCCUPANCY CHARACTERISTICS
Primary Market Area

Name	No. Units		Occupancy			Occupied Units
AlamaVia of Camarillo		78		95	%		74
Wilshire/Heritage House		123		93	%		114
Brighton Gardens Assisted Living		120		91	%		109
SUBJECT		123		97	%		119
Totals		444		94	%		417

These, along with the previous factors shown will be used in our age and income qualified penetration analysis that follows.

Age and Income Qualified Penetration Analysis

In our analysis we have assumed that 70 percent of the residents will come from the primary market area. We note that the population in the area is moderate and that the general population is increasing and the elderly population is on the rise. This suggests that the subject facility will have to place greater weight on attracting residents to move to be close to family members. We note that areas where the younger population is expanding would be more apt to attract residents from outside the community to move to be closer to their children.

Based on the population and income data presented earlier, the following chart shows our market penetration analysis for the subject.

Market Penetration Analysis
Primary Market Area
5 Miles

	2002			2007
65+ Income Qualified Households		5,857			6,358
Average Household Size*		1.58			1.56
Available Persons		9,270			9,937
Total Supply**		444			555
Required Resident % From PMA		70	%		70	%
Required Residents		311			389
Available Persons		9,270			9,937
Indicated Penetration Rate***		3.35	%		3.91	%

^*     Total 65+ Population Divided by Total 65+ Households

^**     No. of assisted living units (includes dementia) in primary market area. 2007 figure accounts for 25 percent new or forecast competition

^***     Required Residents divided by Available Persons

Source: Claritas, Inc.

Based on the data, the indicated penetration rate for the subject in 2002 is 3.35 percent. The projected growth of 25 percent in the unit supply in the next five years indicates a penetration rate of 3.91 percent in 2007.

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COMPETITIVE MARKET ANALYSIS

Based on the market classification chart presented earlier, penetration rates of up to 3.9 percent were classified for good markets, 4.0 to 6.9 percent signifies the market is at equilibrium, 7.0 to 9.9 percent indicates a market is nearing saturation and rates above 10 percent signify the market is saturated.

The subject’s indicated penetration rate for 2002 signifies that there is good demand in the primary market area. Even assuming a 25 percent increase in supply over the next five years indicates good demand in the primary market area.

Conclusion

Overall, these findings suggest that there appears to be good demand for the subject facility in the primary market area from both the general population base and the project specific targeting. Based on the current inventory, the subject’s primary market area is not close to reaching a saturation point. Also, the lack of rent concessions is positive. Further, current statistics appear to be leaning towards a greater spend down of assets by the elderly and that traditional income levels may be conservative. With this in mind, and based on the indicated penetration rate of 3.35 percent for the general population, there appears to be an adequate marketplace for the subject facility.

Market Rate Comparisons

On the following pages are data sheets of the facilities we have compared with the subject. A map showing their location follows these pages. Exclusive of Hillcrest Inn, all of the facilities are noted as being located in the subject’s primary market area (PMA). Hillcrest Inn is located within the secondary market area (SMA).

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COMPETITIVE MARKET ANALYSIS

Senior Housing Rent No.	1
AlamaVia of Camarillo
2500 Ponderosa Drive, North
Camarillo, CA
Property Type:	ALF
Verification:	Pat Muntz
	Community Relations Director 805-388-5277 10/27/03

No. Units		Unit Types	Occupancy
	60	Assisted Living Units		95	%
	18	Alzheimer Units/Beds		95	%
	78	Total Units/Beds		95	%

Rent Schedule

	Assisted Living					Unit Size				Dementia				Unit Size
Unit Description	Monthly Rent Range					Range				Monthly Rent Range				Range
Semi-Private		—	to		—		—	to	—		—	to	—		—	to	—
Studio	$	2,770	to	$	2,950		424	to	424		—	to	—		—	to	—
Studio Alcove		—	to		—-		—	to	—		—	to	—		—	to	—
One-Bedroom	$	3,080	to	$	3,315		537	to	537		—	to	—		—	to	—
Two-Bedroom		—	to		—		—	to	—		—	to	—		—	to	—
Cottage/Villa		—	to		—		—	to	—		—	to	—		—	to	—
2nd Occupant Rent	$	700	to	$	700						—	to	—
Additional Personal Care		—	to		—						—	to	—
Community Fee	$	1,500	to	$	1,500

Basic Service Care Package:			Additional Care:
Meals:	3		Care Hours Included in Base Rate:
Utilities:	Water/Sewer	X	Additional Personal Care Charges	Points Ala Carte Levels
	Electricity	X
	Cable TV	X
	Telephone		Incontinence Care:	Yes
Housekeeping:	Weekly	X	Dressing Assistance:	Yes
Activities:	Daily	X	Bathing Assistance:	Yes
Transportation:	Bus Van Limo	X	Medication Assistance:	Yes
Security (Hrs):	24	X	Alzheimer Dementia Area:	Secured
Nursing Staff:	CNA RN LPN	X

Improvement Description

Year Opened	2001	Common Area	Lobby	X	Dining Room	X
Construction Type	Wood Frame		Activity	X	Salon	X
Floors	2		Library	X	Laundry	X
Site Suitability	Good
Construction Quality	Good	Unit Amenities	Call System	X	Fire Detectors	X
Exterior Siding	Stucco		Pvt Bath	X	Shared Bath	No
Roofing	Shingles		Kitchenettes	Yes
Building Area (Sq. Ft.)	N/A
Condition	Good	HVAC System	Central/Wall Units
Effective Age (Yrs):	N/A	Covered Parki	No

Remarks: Almavia of Carmarillo is located approximate four miles east of the subject. Facility is owned by Elder Care Alliance. The site is suitable for senior housing development. Visibility is and access is good. This facility offers assisted living and Alzheimer care.

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COMPETITIVE MARKET ANALYSIS

Senior Housing Rent No. 2

Wilshire/Heritage House
903 Carmen Drive
Camarillo, CA

Property Type:	ALF
Verification:	Marketing Director
	805-484-2777
	10/27/03

No. Units		Unit Types	Occupancy
	123	Assisted Living Units		93	%
	0	Alzheimer Units/Beds		0	%
	123	Total Units/Beds		93	%

Rent Schedule

	Assisted Living					Unit Size				Dementia				Unit Size
Unit Description	Monthly Rent Range					Range				Monthly Rent Range				Range
Semi-Private		—	to		—		—	to	—		—	to	—		—	to	—
Studio	$	1,950	to	$	1,950		235	to	300		—	to	—		—	to	—
Studio Alcove		—	to		—		—	to	—		—	to	—		—	to	—
One-Bedroom	$	2,750	to	$	2,750		450	to	450		—	to	—		—	to	—
Two-Bedroom		—	to		—		—	to	—		—	to	—		—	to	—
Cottage/Villa		—	to		—		—	to	—		—	to	—		—	to	—
2nd Occupant Rent		—	to		—						—	to	—
Additional Personal Care		—	to		—						—	to	—
Community Fee		—	to		—

Basic Service Care Package:			Additional Care:
Meals:	3		Care Hours Included in Base Rate:
Utilities:	Water/Sewer	X	Additional Personal Care Charges
	Electricity	X
	Cable TV	X
	Telephone		Incontinence Care:	Yes
Housekeeping:	Weekly Bi-Weekly	X	Dressing Assistance:	Yes
Activities:	Daily	X	Bathing Assistance:	Yes
Transportation:	Bus Van Limo	X	Medication Assistance:	Yes
Security (Hrs):	24	X	Alzheimer Dementia Area:	No
Nursing Staff:	CNA RN LPN	X

Improvement Description

Year Opened	1974	Common Area	Lobby	X	Dining Room	X
Construction Type	Wood Frame		Activity	X	Salon	X
Floors	2		Library	X	Laundry	X
Site Suitability	Average
Construction Quality	Average	Unit Amenities	Call System	X	Fire Detectors	X
Exterior Siding	Stucco		Pvt Bath	X	Shared Bath	No
Roofing	Shingles		Kitchenettes	Yes
Building Area (Sq. Ft.)	N/A
Condition	Average	HVAC System	Central/Wall Units
Effective Age (Yrs):	N/A	Covered Parki	No

Remarks: This is a large assisted living facility located in Carmarillo. The facility offers only assisted living. The site is suitable for senior housing development. Visibility is and access is good. This facility offers only assisted living care.

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COMPETITIVE MARKET ANALYSIS

Senior Housing Rent No. 3

Brighton Gardens Assisted Living
6000 Santa Rosa Road
Camarillo, CA

Property Type:	ALF/ALZ
Verification:	Sales Manager
	805-388-8086
	10/27/03

No. Units		Unit Types	Occupancy
	90	Assisted Living Units		88	%
	30	Alzheimer Units/Beds		100	%
	120	Total Units/Beds		91	%

Rent Schedule

	Assisted Living					Unit Size				Dementia				Unit Size
Unit Description	Monthly Rent Range					Range				Monthly Rent Range				Range
Semi-Private	$	2,000	to	$	2,740		400	to	400		—	to	—		—	to	—
Studio	$	2,830	to	$	3,470		400	to	400		—	to	—		—	to	—
Studio Alcove		—	to		—		—	to	—		—	to	—		—	to	—
One-Bedroom	$	3,590	to	$	3,800		510	to	510		—	to	—		—	to	—
Two-Bedroom		—	to		—		—	to	—		—	to	—		—	to	—
Cottage/Villa		—	to		—		—	to	—		—	to	—		—	to	—
2nd Occupant Rent	$	800	to	$	800						—	to	—
Additional Personal Care	$	243	to	$	1,460						—	to	—
Community Fee	1 Mo. Rent		to	1 Mo. Rent

Basic Service Care Package:			Additional Care:
Meals:	3		Care Hours Included in Base Rate:	0.5
Utilities:	Water/Sewer	X	Additional Personal Care Charges	Levels
	Electricity	X
	Cable TV	X
	Telephone		Incontinence Care:	Yes
Housekeeping:	Weekly	X	Dressing Assistance:	Yes
Activities:	Daily	X	Bathing Assistance:	Yes
Transportation:	Bus Van Limo	X	Medication Assistance:	Yes
Security (Hrs):	24	X	Alzheimer Dementia Area:	Secured
Nursing Staff:	CNA RN LPN	X

Improvement Description

Year Opened	2000	Common Area	Lobby	X	Dining Room	X
Construction Type	Wood Frame		Activity	X	Salon	X
Floors	2		Library	X	Laundry	X
Site Suitability	Good
Construction Quality	Good	Unit Amenities	Call System	X	Fire Detectors	X
Exterior Siding	Stucco		PvtBath	X	Shared Bath	No
Roofing	Shingles		Kitchenettes	Yes
Building Area (Sq. Ft.)	N/A
Condition	Good	HVAC System	Central/Wall Units
Effective Age (Yrs):	N/A	Covered Parki	No

Remarks: Brighton Gardens is located approximately 6 miles east of the subject. This facility was owned and operated by Marriott until March 2003 when it was acquired by Sunrise Assisted Living. This property offers three levels of care, assisted living, Alzheimer’s and skilled nursing. The site is suitable for senior housing development. Visibility and access is good. Adjacent development is complimentary.

VALUATION SERVICES	47	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Senior Housing Rent No. 4

Hillcrest Inn
405 Hodencamp Road
Thousand Oaks, CA

Property Type:	ALF
Verification:	Marianne Knight
	Sales and Marketing Director
	805-373-0606
	10/27/03

No. Units		Unit Types	Occupancy
	138	Assisted Living Units		100	%
	0	Alzheimer Units/Beds		0	%
	138	Total Units/Beds		100	%

Rent Schedule

	Assisted Living					Unit Size				Dementia				Unit Size
Unit Description	Monthly Rent Range					Range				Monthly Rent Range				Range
Semi-Private		—	to		—		—	to	—		—	to	—		—	to	—
Studio	$	2,600	to	$	2,600		340	to	340		—	to	—		—	to	—
Studio Alcove		—	to		—		—	to	—		—	to	—		—	to	—
One-Bedroom	$	3,000	to	$	3,300		409	to	483		—	to	—		—	to	—
Two-Bedroom	$	3,650	to	$	3,650		612	to	612		—	to	—		—	to	—
Cottage/Villa		—	to		—		—	to	—		—	to	—		—	to	—
2nd Occupant Rent		—	to		—						—	to	—
Additional Personal Care		—	to		—						—	to	—
Community Fee		—	to		—

Basic Service Care Package:			Additional Care:
Meals:	3		Care Hours Included in Base Rate:	0.5
Utilities:	Water/Sewer	X	Additional Personal Care Charges	Points and Levels
	Electricity	X
	Cable TV	X
	Telephone		Incontinence Care:	Yes
Housekeeping:	Weekly Bi-Weekly	X	Dressing Assistance:	Yes
Activities:	Daily	X	Bathing Assistance:	Yes
Transportation:	Bus Van Limo	X	Medication Assistance:	Yes
Security (Hrs):	24	X	Alzheimer Dementia Area:	No
Nursing Staff:	CNA RN LPN	X

Improvement Description

Year Opened	1988	Common Area	Lobby	X	Dining Room	X
Construction Type	Wood Frame		Activity	X	Salon	X
Floors	2		Library	X	Laundry	X
Site Suitability	Good
Construction Quality	Average	Unit Amenities	Call System	X	Fire Detectors	X
Exterior Siding	Stucco		Pvt Bath	X	Shared Bath	X
Roofing	Shingles		Kitchenettes	Yes
Building Area (Sq. Ft.)	N/A
Condition	Average	HVAC System	Central/Wall Units
Effective Age (Yrs):	N/A	Covered Parki	No

Remarks: Hillcrest Inn is a sister facility of the subject and is located approximately 13 miles east of the subject. This property is owned and operated by ARV Assisted Living. The site is suitable for senior housing development. Visibility and acces is good. Adjacent development is complimentary.

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COMPETITIVE MARKET ANALYSIS

RENT COMPARABLE MAP

VALUATION SERVICES	49	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

Direct Comparisons

As a basis for comparing the subject’s asking rental rates to the comparables shown in the previous summary, we have classified each comparable in relation to the subject as either similar, inferior, or superior. The overall classification was based on the five primary factors (aside from pricing) used by potential residents in choosing an assisted living facility. These factors are based on our discussions with hundreds of marketing directors and administrators across the nation. The five main factors in order of importance are as follows: reputation for quality care or social status of the facility; age and condition of the building; unit sizes; amenities and planned activities; and location.

Based on our physical inspection of the comparables and the subject, discussion with local market participants, and interviews with marketing directors, we have classified the comparables as follows:

Rental No.	Comparison To Subject
1	Similar
2	Inferior
3	Superior
4	Similar

Rental Rate Analysis

The assisted living rates at Villa Las Posas include three meals per day, weekly housekeeping/laundry, utilities (except for telephone), activities and scheduled transportation.

A summary of the asking or street rents for the subject, as well as the rates for the competitive properties are shown below.

Studio Units – Assisted Living

The following chart indicates the asking rates for assisted living studio units at the subject, as well as the comparables:

Studio Units - AL

Facility Name	Unit Size (SF)				Rental Range
AlamaVia of Camarillo		424	-	424	$	2,770	-	$	2,950
Wilshire/Heritage House		235	-	300	$	1,950	-	$	1,950
Brighton Gardens Assisted Living		400	-	400	$	2,830	-	$	3,470
Hillcrest Inn		340	-	340	$	2,600	-	$	2,600
SUBJECT		380	-	402	$	2,200	-	$	2,850
Range (Excluding Subject)		235	-	424	$	1,950	-	$	3,470

The comparables indicate a range of asking rents from $1,950 to $3,470 per month, with the subject’s asking rent of $2,200 to $2,850 per month falling within the indicated range. According

VALUATION SERVICES	50	ADVISORY GROUP

COMPETITIVE MARKET ANALYSIS

to the rent roll, actual rents being paid for a studio apartment at the subject range from $1,600 to $2,850 with an average rate of $2,456 per month. The current average asking rent at the subject is $2,525 per month for a studio unit. Based on the subject’s historical performance as well local market conditions, a monthly rent of $2,500 per month has been used in our analysis for studio units.

One-Bedroom Units – Assisted Living

The following chart indicates the asking rates for assisted living one-bedroom units at the subject, as well as the comparables:

One-Bedroom Units - AL

Facility Name	Unit Size (SF)				Rental Range
AlamaVia of Camarillo		537	-	537	$	3,080	-	$	3,315
Wilshire/Heritage House		450	-	450	$	2,750	-	$	2,750
Brighton Gardens Assisted Living		510	-	510	$	3,590	-	$	3,800
Hillcrest Inn		409	-	483	$	3,000	-	$	3,300
SUBJECT		504	-	507	$	2,850	-	$	3,650
Range (Excluding Subject)		409	-	537	$	2,750	-	$	3,800

The comparables indicate a range of asking rents from $2,750 to $3,800 per month, with the subject’s asking rent of $2,850 to $3,650 per month falling within the indicated range. According to the rent roll, actual rents being paid for a one-bedroom apartment at the subject range from $2,400 to $3,650 with an average rate of $3,201 per month. The current average asking rent at the subject is $3,250 per month. Based on the subject’s historical performance as well local market conditions, a monthly rent of $3,200 per month has been used in our analysis for one-bedroom units.

Summary/Conclusion

The subject is one of several competing facilities in the marketplace and offers assisted living units. The subject’s occupancy level over the last several years has been consistently high with the exception of 2002. The subject rates are generally at the lower end of the range indicated by the competition along with its sister facility although it appears to be reflective of market rates. Concessions are not prevalent in the marketplace. The subject’s current occupancy of 97 percent reflects its ability to continue to attract, as well as retain residents and suggests that there is a good marketplace for this type of facility and which should continue into the foreseeable future.

VALUATION SERVICES	51	ADVISORY GROUP

SITE DESCRIPTION

Location:	24 Las Posas Road Camarillo, Ventura County, California The site is located at the southeast corner of the Las Posas Road and Crestview Avenue in the city of Camarillo.
Shape:	Irregular
Topography:	Below street grade and sloping to the south.
Land Area:	3.0400 gross acres (3.0413 net acres) 132,47837 gross square feet (132,478 net square feet)
Frontage, Access, Visibility:	The subject site has 833 feet of frontage along Las Posas Road (approximately 333 feet to the west; 500 fee to the north) with irregular depth. The site is a corner parcel and access is provided via curb cuts on the south side of Las Posas Road. Visibility and access is considered good.
Soil Conditions:	We did not receive nor review a soil report. However, we assume that the soil’s load-bearing capacity is sufficient to support existing and/or proposed structure(s). We did not observe any evidence to the contrary during our physical inspection of the property. Drainage appears to be adequate.
Utilities
Water:	City of Camarillo
Sewer:	Camarillo Sanitary District
Electricity:	Southern California Edison Company
Gas:	Southern California Gas Company
Telephone:	Pacific Bell
Site Improvements:	The site improvements include asphalt paved parking areas, concrete walkways, landscaping, yard lighting and drainage.
Land Use Restrictions:	We were not given a title report to review. We do not know of any easements, encroachments, or restrictions that would adversely affect the site’s use. However, we recommend a title search to determine whether any adverse conditions exist.
Flood Map:	National Flood Insurance Rate Map Community Map 065020 0001B, effective date September 29, 1986.
Flood Zone:	Flood Zone B-Areas outside of the 100-and 500-year floodplains. An underground flood control easement crosses the southeastern portions of the site and this easement is located in Flood Zone B. Flood insurance is not required.
Wetlands:	We were not given a Wetlands survey. If subsequent engineering data reveal the presence of regulated wetlands, it could materially affect property value. We did not note any presence of wetlands during our inspection We recommend a wetlands survey by a competent engineering firm.

VALUATION SERVICES	52	ADVISORY GROUP

SITE DESCRIPTION

Seismic Hazard:	The site is located in a Special Study Zone as established by California’s Alquist-Priolo Geological Hazards Act. Several earthquake faults crisscross Camarillo and could impact the subject; the subject has been built to comply with all local seismic code requirements.
Hazardous Substances:	We observed no evidence of toxic or hazardous substances during our inspection of the site. However, we are not trained to perform technical environmental inspections and recommend the services of a professional engineer for this purpose.
Overall Functionality:	The subject site is functional for the current use.

VALUATION SERVICES	53	ADVISORY GROUP

IMPROVEMENTS DESCRIPTION

The following description of improvements is based upon our physical inspection of the improvements along with our discussions with the Executive Director. Please refer to the floor plans in the Addenda.

The facility was constructed in 1997 and contains 88,368 square feet of gross building area within one, three-story building. The facility contains 123 units and is licensed for 140 beds. The unit mix for the development is as follows.

Villa Las Posas

			Unit		Ave.
	No.		Size		Unit		Total
Description	Units		Sq.Ft.		Sq.Ft.		Sq.Ft.
Assisted Living
Studio		79		380-402		400		31,600
One-Bedroom		44		504-507		505		22,220
Totals		123				438		53,820

The subject’s main entrance is located on the second level of the facility due to the slope of the site. This main level contains the main entrance and lobby, administrative offices, wellness center, living room, private dining room, employee lounge, beauty salon, recreation room, activity room, two public restrooms and resident units. The second or top floor contains the main dining room, a private dining room, commercial kitchen, activity room, and resident units. The “lower level” includes resident units as well as mechanical and storage rooms. Access to all of the floors is provided by two elevators and three stairwells.

General Description

Year Built:	1997
Number of Buildings:	One
Number of Stories:	Three
Gross Building Area:	88,368 square feet
Number of Units:	123
Number of Licensed Beds:	140
Design and Functionality:	The building is an assisted living property of good quality construction. The improvements have good appeal to prospective assisted living residents.
Amenities:	Dining Room, Private Dining Room, Living Room, Wellness Center, Sitting Areas, Administrative Offices, Activity Rooms, Resident Laundry, Commercial Laundry, Kitchen, Beauty Salon, Library, Enclosed Courtyard.

VALUATION SERVICES	54	ADVISORY GROUP

IMPROVEMENTS DESCRIPTION

Construction Detail

Basic Construction:	Wood frame
Foundation:	Poured concrete slab
Framing:	Wood wall construction.
Floors:	Reinforced concrete poured over gravel. The upper floor is bridged by wood stud floor beams.
Exterior Walls:	The exterior facade of the building consists of stucco.
Roof Cover:	Wood truss roofing system covered clay tile.
Windows:	Units have thermal windows in aluminum vinyl frames. The windows are single pane with sliders.

Mechanical Detail

Heating:	The common areas of the building is heated and cooled by common gas fired HVAC systems. All of the units have “through wall” HVAC units
Plumbing:	The plumbing system is assumed to be adequate for existing use and in compliance with local law and building codes. The plumbing system is typical of other assisted living properties in the area with a combination of copper supply lines and plastic or cast iron waste and vent lines throughout the improvements.
Electrical Service:	Electricity for the building is obtained through low voltage underground power lines. Electrical service appears adequate.
Emergency Power:	The building’s electrical system is backed by one emergency natural gas generator serving all building safety and support systems.
Elevator Service:	The building contains two elevators.
Fire Protection:	The building is fire sprinklered. Each apartment has electric smoke detectors in compliance with local code.
Security:	Resident call systems in all of the resident living areas and bathrooms, as well as emergency battery back-up lighting system and corridor handrails on both sides.

Interior Detail

Layout:

The building is designed in an irregular shape. The resident living units include all studios and one-bedroom, all of which have kitchenettes. The kitchenette consists of a sink, microwave, small refrigerator, countertop and cabinets. All units have baths with a sink, toilet and prefabricated shower stalls. Overall, the unit sizes and layouts are typical for assisted living. Reference is made to the unit and floor plans in the Addenda.

Floor Covering:

Carpet in the unit with sheet vinyl tile in the bathroom.

VALUATION SERVICES	55	ADVISORY GROUP

IMPROVEMENTS DESCRIPTION

Walls:	Painted and textured gypsum board.
Ceilings:	Acoustical tile.
Bathrooms:	Each resident unit is equipped with a full bathroom. All bathrooms consist of a walk-in shower with wall-mounted showerhead, toilet and sink and sheet vinyl floor covering, and a combination wall papered gypsum board walls.
Kitchen Facilities:	All meals for the residents are prepared in a central kitchen. Equipment includes a gas range, steel hood with fire suppression system, dishwashers, stainless steel preparation tables, walk-in coolers and walk-in freezers.

Site Improvements

Parking:	86 spaces (0.70: Unit).
Onsite Landscaping:	A variety of trees, shrubbery and grass.
Other:	Other site improvements include paved asphalt parking areas, concrete walkways, landscaping, yard lighting and drainage as well as fencing.

Summary

Condition:	The subject improvements are in good condition. The improvements have been well maintained and provide a good appearance relative to competing buildings within its market. The improvements were upgraded in 2000. We did not inspect the roof of the building or make a detailed inspection of the mechanical systems. The appraisers, however, are not qualified to render an opinion as to the adequacy or condition of these components. The client is urged to retain an expert in this field if detailed information is needed about the adequacy and condition of mechanical systems.
Quality:	The overall quality of the improvements is rated as good and is consistent with the competition in the market area.
Layout & Functional Plan:	Good. The facility is considered to be functional for its current use. There are adequate common areas and units are considered to be comparable too most competing projects within the area. The furnishings and fixtures appear to be of good quality. The living area of the facility equates to around 60 percent of the total area. This equates to around 40 percent of the facility being designated common area, somewhat similar to today’s design of around 40 percent to 60 percent common area.
Year Built:	1997
Effective Age:	5 years
Expected Economic Life:	50 years
Remaining Economic Life:	45 years

VALUATION SERVICES	56	ADVISORY GROUP

IMPROVEMENTS DESCRIPTION

Americans With Disabilities Act

The Americans With Disabilities Act (ADA) became effective January 26, 1992. We have not made, nor are we qualified by training to make, a specific compliance survey and analysis of this property to determine whether or not it is in conformity with the various detailed requirements of the ADA. It is possible that a compliance survey and a detailed analysis of the requirements of the ADA could reveal that the property is not in compliance with one or more of the requirements of the Act. If so, this fact could have a negative effect upon the value of the property. Since we have not been provided with the results of a survey, we did not analyze the results of possible non-compliance.

Hazardous Substances

We are not aware of any potentially hazardous materials (such as formaldehyde foam insulation, asbestos insulation, radon gas emitting materials, or other potentially hazardous materials), which may have been used in the construction of the improvements. However, we are not qualified to detect such materials and urge the client to employ an expert in the field to determine if such hazardous materials are thought to exist.

VALUATION SERVICES	57	ADVISORY GROUP

REAL PROPERTY TAXES AND ASSESSMENTS

Taxes are levied against all real property in this locale for the purpose of providing funding for the various municipalities. The amount of ad valorem taxes is determined by the current assessed value for the property in conjunction with the total combined tax rate for the municipalities. The property is subject to the taxing jurisdiction of Ventura County. The assessors’ parcel identification number is 164-0-111-065.

Under the provisions of Article XIIIA of the California Tax and Revenue Code, properties are assessed their market value as of March 1, 1975, the base year lien date. This value may be increased only 2.0 percent per year, with few exceptions. Events such as a transfer of ownership, or significant new construction will trigger a reassessment of the property. The county assessor usually accepts the sale price, or the cost of improvements, in calculating assessed value. Assessed values are usually poor indicators of actual market value and are useful only to estimate effective tax rates.

The 2003 calendar fiscal tax year is the most recent year for both assessed value and tax information for the subject. This data is shown below.

Current Tax Calculation

Tax Year	2002 -2003
Improvement Assessed Value	$	8,444,852
Plus Land	$	2,477,440
Plus Personal Property	$	551,600
R. P. Assessed Value	$	11,473,892
Assessment Ratio		100	%
Tax Rate		1.0864756
Per	$	100
Real & P. P. Taxes	$	124,661
Total Assessed Value P S F	$	1.41
Estimated Taxes Per Bed	$	1,014

The definition of market value used in this report assumes a sale of the property. If the property were sold, it would be reassessed according to the county assessor’s opinion of its market value, which is typically the sale price. The current assessment of the property of $11,473,892 is considered reasonable based on our market value estimates (after accounting for any business value, if any). For our Year 1 proforma, we have increased the current taxes. Property taxes of $130,000 rounded will be utilized reflected in our proforma model in the Income Capitalization Approach.

VALUATION SERVICES	58	ADVISORY GROUP

ZONING

The property is zoned RPD-20 by the City of Camarillo. This is a residential planned district allowing 20 units per acres. This zoning district allows construction of senior housing with a conditional use permit, which was approved for the subject site in 1989 (CUP 103). The subject improvements are a legal nonconforming land use.

We are not experts in the interpretation of complex zoning ordinances but the property appears to be a conforming use based on our review of public information. The determination of compliance is beyond the scope of a real estate appraisal.

We know of no deed restrictions, private or public, that further limit the subject property’s use. The research required to determine whether or not such restrictions exist, however, is beyond the scope of this appraisal assignment. Deed restrictions are a legal matter and only a title examination by an attorney or title company can usually uncover such restrictive covenants. Thus, we recommend a title search to determine if any such restrictions do exist.

VALUATION SERVICES	59	ADVISORY GROUP

HIGHEST AND BEST USE

Definition Of Highest And Best Use

According to The Dictionary of Real Estate Appraisal, Third Edition (1993), a publication of the Appraisal Institute, the highest and best use is defined as:

The reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum profitability.

Highest And Best Use Criteria

We evaluated the site’s highest and best use both as currently improved and as if vacant. In both cases, the property’s highest and best use must meet four criteria described above.

Legally Permissible

The first test concerns permitted uses. According to our understanding of the zoning ordinance, noted earlier in this report, the site may legally be improved with structures that accommodate residential uses. Aside from the site’s zoning and regulations, we are not aware of any legal restrictions that limit the potential uses of the subject.

Physically Possible

The second test is what is physically possible. As discussed in the “Property Description,” the site’s size, soil, topography, etc. do not physically limit its use. The subject site is of adequate shape and size to accommodate almost all urban land uses.

Financial Feasibility and Maximal Productivity

The third and fourth tests are, respectively, what is feasible and what will produce the highest net return. After analyzing the physically possible and legally permissible uses of the property, the highest and best use must be considered in light of financial feasibility and maximum productivity. For a potential use to be seriously considered, it must have the potential to provide a sufficient return to attract investment capital over alternative forms of investment. A positive net income or acceptable rate of return would indicate that a use is financially feasible.

As stated in the Competitive Market Analysis section, population, income and age statistics would indicate that demand for senior living options in the subject area is considered good. This relates to the economic feasibility of developing a property similar to the subject. The stabilized facilities in the subject’s market area are exhibiting occupancies above 90 percent. As such, market conditions for senior living in the subject’s primary market area is considered adequate .

Highest and Best Use of Site As Though Vacant

Considering the subject site’s size, configuration and topography, location among other assisted living properties and state of the local assisted living market, it is our opinion that the Highest and Best Use of the subject site as though vacant is multi-family residential property developed to the highest density possible.

VALUATION SERVICES	60	ADVISORY GROUP

HIGHEST AND BEST USE

Highest and Best Use of Property As Improved

According to the Dictionary of Real Estate Appraisal, highest and best use of the property as improved is defined as:

The use that should be made of a property as it exists. An existing property should be renovated or retained as is so long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one.

As discussed, an assisted living facility exists on the site. The design, layout, as well as average unit size of the facility is good and there is no functional obsolescence in the improvements. As will be demonstrated in the Sales Comparison Approach and the Income Capitalization Approach, the operating characteristics of an assisted living facility represents a viable facility from a revenue-producing standpoint.

Alternative uses for the existing improvements, however, would be limited due to the overall design (smaller rooms and limited cooking facilities). As a result, any conversion to an alternative use would be costly.

It is our opinion that the existing complex adds value to the site as if vacant, and rent levels of existing leases encumbering the subject property would dictate a continuation of the current use. Therefore, it is our opinion that the Highest and Best Use of the subject property as improved is as it is currently utilized as an assisted living facility.

VALUATION SERVICES	61	ADVISORY GROUP

VALUATION PROCESS

Methodology

There are three generally accepted approaches available in developing an opinion of value: the Cost, Sales Comparison and Income Capitalization approaches. We have considered and analyzed each in this appraisal to develop an opinion of the market value of the subject property, because this is a complete appraisal. In appraisal practice, an approach to value is included or eliminated based on its applicability to the property type being valued and the quality of information available. Each approach is discussed below, and applicability to the subject property is briefly addressed in the following summary.

Land Value

Developing an opinion of land value is typically accomplished via the Sales Comparison Approach by analyzing sites of comparable utility adjusted for differences, to indicate a value for the subject parcel. Valuation is typically accomplished using a unit of comparison such as price per square foot or acre. Adjustments are applied to the units of comparison from an analysis of comparable sales, and the adjusted unit of comparison is then used to derive a total value.

The reliability of this approach is dependent upon (a) the availability of comparable sales data; (b) the verification of the sales data; (c) the degree of comparability; (d) the absence of nontypical conditions affecting the sales price.

Cost Approach

The Cost Approach is based upon the proposition that an informed purchaser would pay no more for the subject than the cost to produce a substitute property with equivalent utility. This approach is particularly applicable when the property being appraised involves relatively new improvements, which represent the highest and best use of the land; or when relatively unique or specialized improvements are located on the site, for which there exist few sales or leases of comparable properties.

In the Cost Approach, the appraiser forms an opinion of the cost of all improvements, depreciating them to reflect value loss from physical, functional and external causes. Land value, entrepreneurial profit and depreciated improvement costs are then added for a total value.

Sales Comparison Approach

The Sales Comparison Approach utilizes sales of comparable properties, adjusted for differences, to indicate a value for the subject property. Valuation is typically accomplished using a unit of comparison such as price per square foot, effective gross income multiplier or net income multiplier. Adjustments are applied to the units of comparison from an analysis of comparable sales, and the adjusted unit of comparison is then used to derive a total value.

The reliability of this approach is dependent upon (a) the availability of comparable sales data; (b) the verification of the sales data; (c) the degree of comparability; (d) the absence of nontypical conditions affecting the sales price.

Income Capitalization Approach

This approach first determines the income-producing capacity of a property by utilizing contract rents on leases in place and by estimating market rent from rental activity at competing properties. Deductions then are made for vacancy and collection loss and operating expenses. The resulting net operating income is capitalized at an overall capitalization rate to derive an

VALUATION SERVICES	62	ADVISORY GROUP

VALUATION PROCESS

opinion of value. The capitalization rate represents the relationship between net operating income and value.

Related to the Direct Capitalization Method is the Discounted Cash Flow Method. In this method, periodic cash flows (which consist of net operating income less capital costs) and a reversionary value are developed and discounted to a present value using an internal rate of return that is determined by analyzing current investor yield requirements for similar investments.

The reliability of the Income Capitalization Approach depends upon whether investors actively purchase the subject property type for income potential, as well as the quality and quantity of available income and expense data from comparable investments.

Summary

This appraisal employs all three typical approaches to value: the Cost Approach, the Sales Comparison Approach and the Income Capitalization Approach. Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that all approaches would be considered meaningful and applicable in developing a credible value conclusion.

The valuation process is concluded by analyzing each approach to value used in the appraisal. When more than one approach is used, each approach is judged based on its applicability, reliability, and the quantity and quality of its data. A final value opinion is chosen that either corresponds to one of the approaches to value, or is a correlation of all the approaches used in the appraisal.

VALUATION SERVICES	63	ADVISORY GROUP

LAND VALUATION

We used the Sales Comparison Approach to develop an opinion of land value. In this method, we analyzed prices buyers have recently paid for similar sites in this area, as well as examined current offerings. In making comparisons, we adjusted the sale prices for differences between this site and the comparable sites. We present on the following pages a summary of pertinent details of sites recently sold that we compared to the site appraised.

In the valuation of the subject’s fee simple interest, the Sales Comparison Approach has been used to establish prices being paid for comparably zoned land. The most widely used and market oriented unit of comparison for properties with characteristics similar to those of the subject is the sale price per square foot of land area. All transactions utilized in this analysis are computed on this basis.

Real estate developers make qualitative and quantitative judgments in the acquisition of a site with development potential such as the subject property. Subjectively, a developer considers the nature of surrounding land uses and proximity to complimentary services to a potential project. Objectively, the physical and functional attributes of the site, and the cost of preparing it for construction must be calculated. Lying between these two considerations are the many aesthetic and economic factors, which come to influence the final product.

The major elements of comparison for analysis of this type include the property rights conveyed, the financial terms incorporated into a particular transaction, the conditions or motivations surrounding the sale, changes in market conditions since the sale, the location of the real estate, its utility and the physical characteristics of the property.

VALUATION SERVICES	64	ADVISORY GROUP

LAND VALUATION

LAND SALES MAP

VALUATION SERVICES	65	ADVISORY GROUP

LAND VALUATION

SUMMARY OF LAND SALES

		Price		Site SqFt	Zoning			$/SqFt
						Public Utilities
No.	Location	Date		Site Acres	Utility*	Units		$/Unit		COMMENTS
1	Reino Road/ south of Kimber Dr.	$	3,049,500	466,528 SF	RPD	Yes		$	6.54	Intended use to construct
	Newbury Park, CA		1/03	10.7100 Ac	Average		N/A		N/A	single family residences
2	195 Park Lane	$	3,200,000	412,949 SF	CPD	Yes		$	7.75	Intended use to construct
	Moorpark, CA		9/02	9.4800 Ac	Average		190	$	16,842	190-unit senior apartment complex.
3	367 E Thousand Oaks Blvd.	$	1,200,000	79,889 SF	PL	Yes		$	15.02	Intended use to construct
	Thousand Oaks, CA		12/02	1.8340 Ac	Average		57	$	21,053	57-unit senior apartment complex.
4	2851 N. Vineyard Ave.	$	750,000	67,945 SF	C2PD	Yes		$	11.04	Intended use to construct
	Oxnard		6/02	1.5598 Ac	Good		N/A		N/A	multi-familyu housing.

	Price		Site SqFt			Zoning				$/SqFt
								Utilities
	Date		Site Acres			Utility*		Units		$/Unit
Survey Low	$	750,000	67,945		SF		N/A		N/A	$	6.54
Survey High	$	3,200,000	466,528		SF		N/A		N/A	$	15.02
Average	$	2,049,875	256,828		SF		N/A		N/A	$	10.09
Survey Low		6/02	1.5598		Ac		N/A		57	$	16,842
Survey High		1/03	10.7100		Ac		N/A		190	$	21,053
Average		10/02	5.8960		Ac		N/A		124	$	18,947
Subject Property				132,478		RPD 20		Yes			N/A
				3.0413		Good			123		N/A

*Utility includes shape, access, frontage and visibility.

VALUATION SERVICES	66	ADVISORY GROUP

LAND VALUATION

Adjustment Process

Property Rights Conveyed

All of the sales utilized in this analysis involved the transfer of the fee simple interest. No adjustments were required.

Financial Terms

To the best of our knowledge, all of the sales utilized in this analysis were accomplished with cash and/or cash and market-oriented financing. Therefore, no adjustment for financial terms is required for the comparables.

Conditions of Sale

Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. In many situations the conditions of sale may significantly affect transaction prices. However, all sales used in this analysis are considered to be “arms-length” market transactions between both knowledgeable buyers and sellers on the open market. Therefore, no adjustments for conditions of sale are required for the comparables.

Market Conditions

The sales included in this analysis date between June 1, 2002 and January 1, 2003. The market has changed over this time period. The appropriate adjustment was made to each comparable.

Location

An adjustment for location is required when the locational characteristics of a comparable property are different from those of the subject property. A senior housing location is dependent on its visibility and access, as well as proximity to transportation and support services. The subject property is considered to exhibit a good location and visibility and it has good access. We have made a negative adjustment to those comparables considered superior in location versus the subject. Conversely, a positive adjustment was made to those comparables considered inferior. Each comparable was adjusted accordingly.

Size

The size adjustment generally reflects the inverse relationship expressed between unit price and lot size. Smaller lots tend to sell for higher unit prices than larger lots, and vice versa. Hence, positive adjustments were made to larger land parcels, and negative adjustments were made to smaller land parcels. Each comparable was adjusted accordingly.

Public Utilities

All of the sales, like the subject, had full access to public utilities at the time of sale; therefore, no adjustments for this characteristic were required.

Utility

The subject property has good utility. The parcel is adequately shaped to accommodate a typical building, and it has good access, frontage and visibility. When a comparable is considered to have superior or inferior utility, an adjustment was made.

VALUATION SERVICES	67	ADVISORY GROUP

LAND VALUATION

Other

In some cases, other variables will impact the price of a transaction. Some examples would include soil or slope conditions, restrictive zoning, easements, wetlands or external influences. In our analysis of the comparables we found that no unusual conditions existed at the time of sale. As a result, no adjustments were required.

A summary of our land sale adjustments is presented below.

LAND SALE ADJUSTMENT GRID

			Economic Adjustments (Cumulative)
			Property			Financing &
	$/SqFt		Rights			Conditions			Exp. After			Market*
No.	Date		Conveyed			of Sale			Purchase			Conditions			Subtotal
1	$	6.54	Fee Simple/Mkt.			Arms-Length			None			Similar			$	6.54
		1/03		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
2	$	7.75	Fee Simple/Mkt.			Arms-Length			None			Similar			$	7.75
		9/02		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
3	$	15.02	Fee Simple/Mkt.			Arms-Length			None			Similar			$	15.02
		12/02		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
4	$	11.04	Fee Simple/Mkt.			Arms-Length			None			Similar			$	11.04
		6/02		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

			Property Characteristic Adjustments (Additive)
	$/SqFt								Public									Adj.
No.	Date		Location			Size			Utilities			Utility**			Other			$/SqFt			Overall
1	$	6.54	Inferior			Similar			Similar			Inferior			Similar			$	10.46		Inferior
		1/03		50.0	%		0.0	%		0.0	%		10.0	%		0.0	%		60.0	%
2	$	7.75	Inferior			Similar			Similar			Inferior			Similar			$	12.40		Inferior
		9/02		50.0	%		0.0	%		0.0	%		10.0	%		0.0	%		60.0	%
3	$	15.02	Inferior			Smaller			Similar			Inferior			Similar			$	19.53		Inferior
		12/02		25.0	%		-5.0	%		0.0	%		10.0	%		0.0	%		30.0	%
4	$	11.04	Inferior			Smaller			Similar			Inferior			Similar			$	14.35		Inferior
		6/02		25.0	%		-5.0	%		0.0	%		10.0	%		0.0	%		30.0	%

**Utility includes shape, access, frontage and visibility.

SUMMARY		Unadjusted			Adjusted
Price Range		$/SF Land			$/SF Land
	Low	$	6.54		$	10.46
	High	$	15.02		$	19.53
	Average	$	10.09		$	14.18
Net Adjustment Range (Additive Property Characteristics)
	Low		30.0	%
	High		60.0	%
	Average		45.0	%

Summary of Sales and Opinion of Site Value

After considering the differences between each comparable and the subject, the adjusted sales price range is $10.46 to $19.53 per square foot of site area. We have elected to conclude within this range and our opinion of land value indicated by the Sales Comparison Approach is:

	Sq.Ft.
Sq.Ft.:		132,478
Opinion of Value:		X $17.00
Indicated Land Value:	$	2,252,126
Rounded Land Value:	$	2,300,000

VALUATION SERVICES	68	ADVISORY GROUP

COST APPROACH

Methodology

The Cost Approach is based on the principle of substitution, which states that no prudent person will pay more for a property than the cost of acquiring a site and constructing, without undue delay, an equally desirable and useful property. The steps have been outlined under the Valuation Process section of this report. We have previously developed an opinion of land value at $2,300,000.

Replacement Cost New (RCN)

In this section, we will estimate the replacement cost of the existing improvements. Generally, there are three methods of estimating replacement cost; 1) review of the actual/proposed costs of the subject, 2) review of construction costs of other similar type properties, and 3) estimating costs from published cost data sources. In the case of the subject, we were not not provided with actual construction costs for the improvements.

Marshall Valuation Service

As a check towards the above comparisons, we have estimated the replacement cost for the improvements from the Calculator Section in the Marshall Valuation Service, a nationally recognized publication containing construction costs for all types of improvements. Base costs in the Marshall Valuation Service are revised monthly and adjustment factors are provided to reflect regional and local cost variations.

Base Building Costs

The published costs include all direct costs for the base structure and tenant improvements, and the following indirect costs:

1.	Plans, specifications, and building permits, including engineer’s and architect’s fees;
2.	Interest on construction funds during the construction period;
3.	Sales taxes on materials; and
4.	Contractor’s overhead and profit, including worker’s compensation, fire and liability insurance, unemployment insurance, etc.

These base building costs, adjusted for any unique building characteristics and cost multipliers, are presented in the cost summary chart following this section.

Base Construction Costs

In referencing the Marshall Valuation Service cost manual, we have used base costs for a good quality Class D Multiple Residence – Elderly Assisted Living in Section 12/Page 16. The indicated base cost for the improvements is $69.09 per square. Based on the construction quality of the subject, we have concluded to a cost of $69.09 per square foot. Adjustments include $2.00 per square foot for sprinklers. Multiplier adjustments include 1.03 for current conditions, 1.15 for location, 1.00 for story height and .94 for perimeter.

Personal Property (Furniture, Fixtures and Equipment)

Based on the Marshall Valuation Service cost manual, the cost of furnishings, fixtures and equipment is estimated to be $5,500 per unit/bed or $676,500 for the 123 units.

VALUATION SERVICES	69	ADVISORY GROUP

COST APPROACH

Site Improvement Costs

Site improvement costs are not included in our Base Building Cost opinion. These include landscaping, asphalt paving, walkways, etc. Site improvement costs are estimated to be $264,956.

Other Indirect Costs

Other indirect costs not included in the RCN of building and site improvements are developer overhead, property taxes, permanent loan fees, legal costs, developer fees, contingencies, and lease-up and marketing costs.

Research into these costs leads to the conclusion that an average property requires an allowance for other indirect costs of between 8.00 percent and 12.00 percent of RCN of building improvements plus site improvements. We have chosen to use 10 percent in our analysis.

Pre-Marketing/Stabilization Costs

Total costs to bring the property into production to a stabilized occupancy level include marketing and pre-marketing expenses, operating losses incurred during fill-up, promotional and public relations expenses, marketing consultants, and professional advertising through the various media. Based upon our knowledge of these expenses for similar facilities, and discussions with marketing specialists and consultants, we estimated the total costs to bring the property into production at stabilized occupancy to be approximately $676,500 or $$5,500 per unit. We note that this estimate presumes a healthy market and a competent marketing/management team.

Entrepreneurial Profit

Entrepreneurial profit represents the return to the developer for taking the construction and lease-up risk. Market conditions can influence entrepreneurial profit. Based upon our discussions with developers in the local market, this figure tends to range between 10.00 percent to 20.00 percent of total direct and indirect costs. We chose to use 15.00 percent.

VALUATION SERVICES	70	ADVISORY GROUP

COST APPROACH

Accrued Depreciation

There are three sources of accrued depreciation:

Physical Deterioration:	The subject improvements were built in 1997. We have used the economic age-life method to develop an opinion of physical deterioration. In the Improvements Description section of this report, we developed an opinion that the effective age of the subject to be 5 years and the economic life to be 50 years. This results in a physical deterioration of 10.00 percent (effective age divided by economic life).
	The furniture, fixtures and equipment (FF&E). We have concluded that the effective age of the FF&E to be 5 years and the economic life to be 10 years. This results in a physical deterioration of 30.00 percent (effective age divided by economic life).
Functional Obsolescence:	Due to the fact that our RCN opinion considers the construction of the subject improvements utilizing modern materials and current standards, design and layout, functional obsolescence is not applicable. Therefore, functional obsolescence is zero percent.
External Obsolescence:	Based upon a review of the specific location of the subject as well as the local assisted living market, external obsolescence is zero percent.
Total Depreciation:	The sum of these elements of accrued depreciation is 10.00 percent for the improvements and 30.00 percent for the FF&E.

Conclusion

Please refer to the following page for our Cost Approach summary that concludes to a market value opinion as follows:

		Value
Cost Approach Conclusion		$	11,854,433
Rounded		$	11,900,000
	Per Unit	$	96,748

VALUATION SERVICES	71	ADVISORY GROUP

COST APPROACH

COST APPROACH SUMMARY

										Total
			SqFt			$/SqFt		Total		Cost
REPLACEMENT COST NEW (RCN)
	Building Base Cost			88,368		$	69.09	$	6,105,345
		Sprinklers		88,368		$	2.00		176,736
		Subtotal (GBA)		88,368		$	71.09	$	6,282,081
	Subtotal of Building Costs							$	6,282,081
	Multipliers
		Current Cost					1.030
		Local Area					1.150
		Perimeter (approximate; blended)					0.937
		Building Height					1.000
		Product of Multipliers							x 1.110
	Adjusted Base Cost							$	6,972,334
	Furnishings, Fixtures & Equipment
		FF&E	$	5,500		$/Unit		$	676,500
	Total Furnishings, Fixtures & Equipment							$	676,500
	Site Improvements		$	2.00		$/SqFt		$	264,956
	Total Direct Costs							$	7,913,790
		Plus: Indirect Costs (% of Direct Costs)		10.0	%			$	791,379
	Subtotal Replacement Cost New ( RCN )									$	8,705,169
	Pre-Marketing/Stabilization Costs		$	5,500		$/Unit		$	676,500
	Subtotal									$	9,381,669
		Plus: Entrepreneurial Profit (% of RCN)		15.0	%						1,407,250
	Total Replacement Cost New ( RCN )									$	10,788,920
		Per Square Foot								$	88,368.00
		Per Unit								$	87,715

			Improvements					FF&E
	ACCRUED DEPRECIATION
	Physical Deterioration
		Effective Age (Years):	5 Years					3 Years
		Total Expected Economic Life	50 Years					10 Years
		Total Physical Depreciation:		10.0	%	$	1,001,094		30.0	%	$	233,393
	Functional Obsolescence			0.0	%		0
	External Obsolescence			0.0	%		0
Total				10.0	%	$	1,001,094		30.0	%	$	233,393	$	1,234,487
Depreciated Value of the Improvements													$	9,554,433
	Per Square Foot GBA												$	108.12
	Per Unit												$	77,678
Plus Land Value													$	2,300,000
Indicated Value													$	11,854,433
	Rounded to nearest $100,000												$	11,900,000
	Per Unit												$	96,748
	Per Square Foot												$	134.66

Source: Marshall Valuation Service	Section: 12	Quality:	Good
	Section: 16	Class:	D
	Date: 8/02	Type:	Multiple Residences - Elderly Assisted Living

VALUATION SERVICES	72	ADVISORY GROUP

SALES COMPARISON APPROACH

Methodology

In the Sales Comparison Approach, we developed an opinion of value by comparing this property with similar, recently sold properties in the surrounding or competing area. Inherent in this approach is the principle of substitution, which states that when a property is replaceable in the market, its value tends to be set at the cost of acquiring an equally desirable substitute property, assuming that no costly delay is encountered in making the substitution.

By analyzing sales that qualify as arm’s-length transactions between willing and knowledgeable buyers and sellers, we can identify value and price trends. The basic steps of this approach are:

1.	Research recent, relevant property sales and current offerings throughout the competitive area;
2.	Select and analyze properties that are similar to the property appraised, analyzing changes in economic conditions that may have occurred between the sale date and the date of value, and other physical, functional, or locational factors;
3.	Identify sales that include favorable financing and calculate the cash equivalent price;
4.	Reduce the sale prices to a common unit of comparison such as price per square foot, price per unit or effective gross income multiplier ;
5.	Make appropriate comparative adjustments to the prices of the comparable properties to relate them to the property being appraised; and
6.	Interpret the adjusted sales data and draw a logical value conclusion.

The most widely used and market-oriented unit of comparison for properties such as the subject is the sales price per unit basis. All comparable sales were analyzed on this basis.

On the following pages we present a summary of the improved properties that we compared to the subject property, a map showing their locations, and an adjustment grid. Detail sheets describing these sales can be found in the Addenda.

Due to the nature of the subject property and the level of detail available for the comparable data, we have elected to analyze the comparables through application of:

• A cash flow multiplier (CFM) analysis

• An effective gross income multiplier (EGIM) analysis

• A traditional adjustment grid utilizing percentage adjustments

VALUATION SERVICES	73	ADVISORY GROUP

SALES COMPARISON APPROACH

SENIOR HOUSING SALES

																									Units of Comparison
							No. of
			Sale		Year		Units					Size		Sale				Net		Expense			Price		Price
No.		Facility Name/Location	Date		Built		(SF/Unit)		Occ.			(SF)		Price		Revenues		Income		Ratio			Per Unit		Per SF		EGIM		CFM
	1	Carmel Village		01/03		1986		189		97	%		117,666	$	23,125,000	$	5,450,000	$	2,575,000		52.8	%	$	122,354	$	196.53		4.24		8.98
		17077 San Mateo Street						623								$	28,836	$	13,624
		Fountain Valley, CA
	2	Emerald Hills		09/02		1999		89		100	%		61,677	$	8,800,000	$	2,475,000	$	985,000		60.2	%	$	98,876	$	142.68		3.56		8.93
		11550 Education Street						693								$	27,809	$	11,067
		Auburn, CA
	3	Woodmark at Summit		02/02		1998		92		60	%		77,445	$	9,500,000	$	3,300,000	$	1,200,000		63.6	%	$	103,261	$	122.67		2.88		7.92
		5165 Summit Ridge Court						842								$	35,870	$	13,043
		Reno, NV
	4	Mapleridge of Laguna Creek		01/02		1999		84		76	%		50,476	$	8,055,600	$	2,550,000	$	850,000		66.7	%	$	95,900	$	159.59		3.16		9.48
		6727 Laguna Park Drive						601								$	30,357	$	10,119
		Elk Grove, CA
	5	Atria Redding		07/01		1997		60		95	%		44,328	$	5,000,000	$	1,950,000	$	625,000		67.9	%	$	83,333	$	112.80		2.56		8.00
		101 Quartz Hill Road						739								$	32,500	$	10,417
		Redding, CA
	6	Aegis of Napa		06/01		1999		43		N/A			34,030	$	7,200,000	$	2,100,000	$	775,000		63.1	%	$	167,442	$	211.58		3.43		9.29
		2100 Redwood Road						791								$	48,837	$	18,023
		Napa, CA
Subj		Villa Las Posas				1997		123		95	%		88,368			$	4,317,665	$	1,566,881		63.7	%
		24 Las Posas Road						718								$	36,950	$	13,409
		Camarillo
Data Range		Low				1997		43		60	%		44,328	$	5,000,000	$	14,789	$	10,417		63.6	%	$	83,333	$	112.80		2.56		7.92
		High				1999		96		100	%		77,445	$	9,500,000	$	48,547	$	20,390		67.9	%	$	103,261	$	159.59		3.56		9.48
		Mean				1998		82		83	%		58,482	$	7,838,900	$	503,420	$	162,278		62.8	%	$	95,343	$	134.43		3.04		8.58

VALUATION SERVICES	74	ADVISORY GROUP

SALES COMPARISON APPROACH

IMPROVED SALES COMPARABLE MAP

VALUATION SERVICES	75	ADVISORY GROUP

SALES COMPARISON APPROACH

Cash Flow Multiplier

The cash flow multiple (CFM) is considered a reliable indicator of value. This is because the CFM considers both the income and the expenses of a facility, whereas the EGIM and the price per unit do not. The CFMs of the comparables range from 7.92x to 9.48x cash flow, with an average of 8.66x. The properties are newer facilities in good condition. The financial indicators are all based on stabilized operating levels.

The subject is an assisted living facility of good quality that is located in a good senior demographic market area in California. We note that the forecast subject expense ratio, inclusive of management fees and replacement reserves, is 63.71 percent, which falls at the lower portion of the range of the comparables. In addition, the subject’s cash flow is high relative to the comparables. We have utilized a cash flow multiplier in the upper portion of the range of 9.00x, which when applied to the subject’s projected stabilized cash flow (net operating income) arrives at a market value for the subject as follows:

			Subject		Indicated
Range	CFM		NOI		Value			$/Unit
Low		7.92	$	1,566,881	$	12,404,477	=	$	100,849
High		9.48	$	1,566,881	$	14,849,610	=	$	120,729
Median		8.93	$	1,566,881	$	13,998,533	=	$	113,809
Average		8.66	$	1,566,881	$	13,571,835	=	$	110,340

CONCLUSIONS

Indicated CFM			9.00
Net Operating Income		x $	1,566,881
Indicated Stabilized Value		$	14,101,931
Rounded to nearest $100,000		$	14,100,000
	Per Unit	$	114,634
	Per Square Foot	$	159.56

Therefore, the indicated value for the subject the CFM analysis is $14,100,000.

Effective Gross Income Multiplier

The effective gross income multiplier serves as an indicator of market value as expressed by the relationship between the sales price of a property and its effective gross income. This unit of comparison is commonly utilized by participants active in the real estate market. A significant strength of this analytical technique is that it represents a direct factor of income as reflected by the market and, therefore, requires no adjustment. Furthermore, the effective gross income is more easily verified and more reliable than net operating income since the figure is not distorted by management fees, capital costs or accounting conventions.

The effective gross income multipliers for the comparable sales indicate a range of 2.56x to 4.24x effective gross income with an average of 3.28x. In The Senior Care Acquisition Report, 2003, published by Irving Levin Associates, EGIMs for 2002 were analyzed. In general, the average EGIM for assisted living facilities in 2002 was 2.4x. This represented a strong decline over the EGIM of 3.2x reported in 2001. The decline was reported as being reflective of the excessive development in the 1990s, as well as several corporate bankruptcies during 2001.

VALUATION SERVICES	76	ADVISORY GROUP

SALES COMPARISON APPROACH

Furthermore, our findings are that multipliers decline as the age of the facility increases. We have utilized an EGIM of 3.25x for the subject, which falls at the upper portion of the range for the comparables. This rate is considered reasonable for the subject given the subject’s projected expense ratio. This is applied to the subject’s projected effective gross income as follows:

			Subject		Indicated
Range	EGIM		EGI		Value		$/Unit
Low		2.56	$	4,317,665	$	11,070,935	$	90,008
High		4.24	$	4,317,665	$	18,320,365	$	148,946
Median		3.16	$	4,317,665	$	13,639,756	$	110,892
Average		3.28	$	4,317,665	$	14,162,478	$	115,142

CONCLUSIONS

Indicated EGIM			3.25
Effective Gross Income		x $	4,317,665
Indicated Stabilized Value		$	14,032,410
Rounded to nearest $100,000		$	14,000,000
	Per Unit	$	113,821
	Per Square Foot	$	158.43

Therefore, the indicated value for the subject by the EGIM analysis is $14,000,000.

Price Per Unit

The price per unit is the most frequently quoted unit of comparison. This is despite the fact he fact that the calculation ignores variations in rates or operating margins and, therefore, is indifferent to the income generating potential of an investment property. Nonetheless, the price per unit provides some indication of prices. Although our income estimates maybe based on a per resident basis due to the possible inclusion of shared units, the basis of the comparables has been analyzed on a per unit situation. We believe that comparing the subject on a per unit basis is the most reasonable method and would not provide a misleading value estimate for the property.

The following is a discussion of the sales that have been compared with the subject. Again, the sales have been analyzed on a price per unit basis with all necessary adjustments. Reference is made to sales summary shown previously.

Percentage Adjustment Method

Adjustment Process

The sales that we have utilized represent the best available information that could be compared to the subject property. The major elements of comparison for an analysis of this type include the property rights conveyed, the financial terms incorporated into a particular transaction, the conditions or motivations surrounding the sale, changes in market conditions since the sale, the location of the real estate, its physical traits and the economic characteristics of the property.

The first adjustment made to the market data takes into account differences between the subject property and the comparable property sales with regard to the legal interest transferred.

VALUATION SERVICES	77	ADVISORY GROUP

SALES COMPARISON APPROACH

Advantageous financing terms or peculiar conditions of sale are then adjusted to reflect a normal market transaction. Next, changes in market condition must be accounted for, thereby creating a time adjusted normal unit of comparison. Lastly, adjustments for location, the physical traits and the economic characteristics of the market data are made in order to generate the final adjusted unit rate, which is appropriate for the subject property.

Property Rights Conveyed

All of the sales utilized in this analysis involved the transfer of the fee simple interest. Since we are appraising the fee simple interest of the subject property, no adjustments were required.

Financial Terms

To the best of our knowledge, all of the sales utilized in this analysis were accomplished with cash and/or cash and market-oriented financing. Therefore, no adjustment for financial terms is required for the comparables.

Conditions of Sale

Adjustments for conditions of sale usually reflect the motivations of the buyer and the seller. In many situations the conditions of sale may significantly affect transaction prices. However, all sales used in this analysis are considered to be “arms-length” market transactions between both knowledgeable buyers and sellers on the open market. Therefore, no adjustments for conditions of sale are required for the comparables.

Market Conditions

The sales included in this analysis date between January 1, 2002 and January 1, 2003. The market has not changed over this time period. The appropriate adjustment was made to each comparable.

Location

An adjustment for location is required when the locational characteristics of a comparable property are different from those of the subject property. The subject property is considered to exhibit good location and has good access and visibility. We have made a negative adjustment to those comparables considered superior in location versus the subject. Conversely, a positive adjustment was made to those comparables considered inferior. Each comparable was adjusted accordingly.

Physical Traits

Various physical factors were analyzed including size, age, condition, quality, amenities, unit mix, utility, etc. When an item was determined to be inferior to the subject, a positive adjustment was applied. When an item was determined to be superior to the subject, a negative adjustment was applied.

Economic Characteristics

This adjustment is used to reflect differences in rent levels, operating expense ratios, occupancy levels, and other items that would have an economic impact on the transaction. Each comparable was adjusted accordingly.

VALUATION SERVICES	78	ADVISORY GROUP

SALES COMPARISON APPROACH

Discussion of Comparable Sales

In our analysis of the market for comparable assisted living properties, we have compared the subject to assisted living properties from throughout the regional area. These are discussed below.

Comparable Sale No. 1

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is inferior in age and condition to the subject. Revenue characteristics were superior to the subject. Negative adjustments were made to revenue characteristics.

Comparable Sale No. 2

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is of similar age and condition to the subject. Revenue characteristics were inferior to the subject. Positive adjustments were made to revenue characteristics.

Comparable Sale No. 3

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is of similar age and condition to the subject. Revenue characteristics were inferior to the subject. Positive adjustments were made to revenue characteristics.

Comparable Sale No. 4

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is of similar age and condition to the subject. Revenue characteristics were inferior to the subject. Positive adjustments were made to revenue characteristics.

Comparable Sale No. 5

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is of similar age and condition to the subject. Revenue characteristics were inferior. Positive adjustments were made to revenue characteristics.

Comparable Sale No. 6

At the time of sale, this comparable was considered superior to the subject. No adjustments for property rights conveyed, financing or conditions of sale were necessary. Market conditions have not changed in the period since the sale. The comparable is of a similar age and condition to the subject. Revenue characteristics were superior. Negative adjustments were made to revenue characteristics.

VALUATION SERVICES	79	ADVISORY GROUP

SALES COMPARISON APPROACH

A summary of our adjustments is shown in the following table.

IMPROVED COMPARABLE SALE ADJUSTMENT GRID

																				Building
Comp.			Sale		Year		No. of							Price/				Time		Unit Size/			Income									Total			Adjusted
No.		Facility/Location	Date		Built		Units		Occup.			SF/Unit		Unit		Time		Adjusted		Age/Design			Character			Occ.			Loc.			Adjust.			Price / Unit
	1	Carmel Village		01/03		1986		189		97	%		623	$	122,354		1.00	$	122,354		0	%		-2	%		0	%		0	%		-2	%	$	120,424
		Fountain Valley, CA
	2	Emerald Hills		09/02		1999		89		0.6			693	$	98,876		1.00	$	98,876		0	%		21	%		0	%		0	%		21	%	$	119,799
		Auburn, CA
	3	Woodmark at Summit		02/02		1998		92		0.76			842	$	103,261		1.00	$	103,261		0	%		3	%		0	%		0	%		3	%	$	106,157
		Reno, NV
	4	Mapleridge of Laguna Creek		01/02		1999		84		76	%		601	$	95,900		1.00	$	95,900		0	%		33	%		0	%		0	%		33	%	$	127,083
		Elk Grove, CA
	5	Atria Redding		07/01		1997		60		95	%		739	$	83,333		1.00	$	83,333		0	%		29	%		0	%		0	%		29	%	$	107,275
		Redding, CA
	6	Aegis of Napa		06/01		1999		43		N/A			791	$	167,442		1.00	$	167,442		0	%		-26	%		0	%		0	%		-26	%	$	124,577
		Napa, CA
Subj.		Villa Las Posas				1997		123		95	%		718
		Camarillo
		Averages				1996		93		81	%		715	$	111,861																				$	117,552

Summary of Price Per Unit Analysis

After adjusting each comparable sale for differences with the subject property, the adjusted sale price range is $106,157 to $127,083 per unit. Based on the data, we believe that due to the subject’s level of construction quality, resident targeting and location, a price per unit towards the middle portion of the adjusted range is warranted. From this, we have correlated to a price of $115,000 per unit.

Price Per Unit Conclusion
Number of Units		Price Per Unit			Indicated Value
123	X		$115,000	=	$	14,145,000
			Rounded To:		$	14,100,000

The Sales Comparison Approach results in a range of values for the subject property of to $14,000,000 to $14,100,000. This value range equates to a price per square foot of building area of $158.43 to $159.56, which is at the middle portion of the range of the unadjusted comparables, yet is considered reasonable based on the economic and physical characteristics of the subject.

Based on our analysis of competitive transactions, we conclude that the indicated value by the Sales Comparison Approach on October 21, 2003 was:

Units	Indicated Value
123		$14,100,000

VALUATION SERVICES	80	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Methodology

The Income Capitalization Approach is a method of converting the anticipated economic benefits of owning property into a value through the capitalization process. The principle of “anticipation” underlies this approach in that investors recognize the relationship between an asset’s income and its value. In order to value the anticipated economic benefits of a particular property, potential income and expenses must be projected, and the most appropriate capitalization method must be selected.

The two most common methods of converting net income into value are Direct Capitalization and Discounted Cash Flow. In direct capitalization, net operating income is divided by an overall capitalization rate to indicate an opinion of market value. In the discounted cash flow method, anticipated future cash flows and a reversionary value are discounted to an opinion of net present value at a chosen yield rate (internal rate of return).

In our opinion, the discounted cash flow analysis method is most the direct capitalization analysis method is most both the discounted cash flow and direct cap methods are appropriate to value the subject property.

Historical Financial Performance of the Subject Property

The subject is an existing assisted living facility. We were provided with financial statements for 2000, 2001, 2002, and year-to-date 2003. The financial statements have been summarized on a following chart.

Potential Gross Income

There is only one type of payment source at the subject for assisted living services; private pay residents. This type of payor is generally considered the most desirable since private pay rates allow for greater profitability than any fixed government rate plans. Therefore, revenue for the subject is received from the monthly rentals of the living units, as well as from other sources such as second person (double occupancy) fees, move-in or processing fees, as well as other miscellaneous revenue.

VALUATION SERVICES	81	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Villa Las Posas
INCOME AND OPERATING EXPENSE SUMMARY

		2000										2001
		(January - December)										(January - December)
		Amount			$/Resident		PRD		% of EGI			Amount			$/Resident		PRD		% of EGI
REVENUES
Rental Income		$	3,276,358		$	27,161	$	74.41		86.45	%	$	3,458,322		$	29,721	$	81.43		86.91	%
Additional Personal Care		$	468,809		$	3,886	$	10.65		12.37	%	$	478,106		$	4,109	$	11.26		12.01	%
New Resident Fees		$	—		$	—	$	—		0.00	%	$	—		$	—	$	—		0.00	%
Other Income		$	44,875		$	372	$	1.02		1.18	%	$	42,846		$	368	$	1.01		1.08	%
GROSS POTENTIAL REV.		$	3,790,042		$	31,420	$	86.08		100.00	%	$	3,979,274		$	34,199	$	93.69		100.00	%
Vacancy/Collection Loss		Inc. Above										Inc. Above
TOTAL NET REVENUE		$	3,790,042		$	31,420	$	86.08		100.00	%	$	3,979,274		$	34,199	$	93.69		100.00	%
OPERATING EXPENSES
Departmental
	General/Administrative	$	84,488		$	700	$	1.92		2.23	%	$	95,636		$	822	$	2.25		2.40	%
	Payroll (Wages)	$	944,680		$	7,831	$	21.46		24.93	%	$	913,211		$	7,848	$	21.50		22.95	%
	Payroll Taxes & Benefits	$	197,095		$	1,634	$	4.48		5.20	%	$	281,556		$	2,420	$	6.63		7.08	%
	Resident Care	$	3,296		$	27	$	0.07		0.09	%	$	5,010		$	43	$	0.12		0.13	%
	Food Services	$	297,915		$	2,470	$	6.77		7.86	%	$	256,542		$	2,205	$	6.04		6.45	%
	Activities	$	17,420		$	144	$	0.40		0.46	%	$	14,563		$	125	$	0.34		0.37	%
	Housekeeping/Laundry	$	35,008		$	290	$	0.80		0.92	%	$	22,573		$	194	$	0.53		0.57	%
	Plant Operations	$	113,542		$	941	$	2.58		3.00	%	$	112,103		$	963	$	2.64		2.82	%
	Utilities	$	127,932		$	1,061	$	2.91		3.38	%	$	142,843		$	1,228	$	3.36		3.59	%
	Marketing/Promotions	$	44,373		$	368	$	1.01		1.17	%	$	45,779		$	393	$	1.08		1.15	%
Non-Departmental
	Real Estate Taxes	$	109,062		$	904	$	2.48		2.88	%	$	118,103		$	1,015	$	2.78		2.97	%
	Insurance	$	23,570		$	195	$	0.54		0.62	%	$	42,965		$	369	$	1.01		1.08	%
	Management Fees (5% of EGI)	$	189,502		$	1,571	$	4.30		5.00	%	$	198,964		$	1,710	$	4.68		5.00	%
	Replacement Reserves ($/Unit)	$	36,900		$	306	$	0.84		0.97	%	$	36,900		$	317	$	0.87		0.93	%
TOTAL ALL EXPENSES		$	2,224,783		$	18,444	$	50.53		58.70	%	$	2,286,748		$	19,653	$	53.84		57.47	%
EXPENSE RATIO			58.7	%									57.5	%
NET OPERATING INCOME		$	1,565,259		$	12,976	$	35.55		41.30	%	$	1,692,526		$	14,546	$	39.85		42.53	%
OCCUPANCY			98.1	%									94.6	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

		2002										Annualized 2003
		(January - December)										(January - August)
		Amount			$/Resident		PRD		% of EGI			Amount			$/Resident		PRD		% of EGI
REVENUES
Rental Income		$	3,312,875		$	32,102	$	87.95		86.30	%	$	3,510,986		$	31,646	$	86.70		85.77	%
Additional Personal Care		$	450,789		$	4,368	$	11.97		11.74	%	$	433,040		$	3,903	$	10.69		10.58	%
New Resident Fees		$	—		$	—	$	—		0.00	%	$	—		$	—	$	—		0.00	%
Other Income		$	75,172		$	728	$	2.00		1.96	%	$	149,549		$	1,348	$	3.69		3.65	%
GROSS POTENTIAL REV.		$	3,838,836		$	37,199	$	101.92		100.00	%	$	4,093,574		$	36,897	$	101.09		100.00	%
Vacancy/Collection Loss		Inc. Above										Inc. Above
TOTAL NET REVENUE		$	3,838,836		$	37,199	$	101.92		100.00	%	$	4,093,574		$	36,897	$	101.09		100.00	%
OPERATING EXPENSES
Departmental
	General/Administrative	$	91,103		$	883	$	2.42		2.37	%	$	88,005		$	793	$	2.17		2.15	%
	Payroll (Wages)	$	873,071		$	8,460	$	23.18		22.74	%	$	923,682		$	8,326	$	22.81		22.56	%
	Payroll Taxes & Benefits	$	292,155		$	2,831	$	7.76		7.61	%	$	332,759		$	2,999	$	8.22		8.13	%
	Resident Care	$	3,735		$	36	$	0.10		0.10	%	$	3,911		$	35	$	0.10		0.10	%
	Food Services	$	229,215		$	2,221	$	6.09		5.97	%	$	229,311		$	2,067	$	5.66		5.60	%
	Activities	$	12,146		$	118	$	0.32		0.32	%	$	10,424		$	94	$	0.26		0.25	%
	Housekeeping/Laundry	$	20,950		$	203	$	0.56		0.55	%	$	25,139		$	227	$	0.62		0.61	%
	Plant Operations	$	111,733		$	1,083	$	2.97		2.91	%	$	122,072		$	1,100	$	3.01		2.98	%
	Utilities	$	149,773		$	1,451	$	3.98		3.90	%	$	157,188		$	1,417	$	3.88		3.84	%
	Marketing/Promotions	$	46,640		$	452	$	1.24		1.21	%	$	54,207		$	489	$	1.34		1.32	%
Non-Departmental
	Real Estate Taxes	$	117,902		$	1,142	$	3.13		3.07	%	$	120,683		$	1,088	$	2.98		2.95	%
	Insurance	$	78,627		$	762	$	2.09		2.05	%	$	77,682		$	700	$	1.92		1.90	%
	Management Fees (5% of EGI)	$	191,942		$	1,860	$	5.10		5.00	%	$	204,679		$	1,845	$	5.05		5.00	%
	Replacement Reserves ($/Unit)	$	36,900		$	358	$	0.98		0.96	%	$	36,900		$	333	$	0.91		0.90	%
TOTAL ALL EXPENSES		$	2,255,892		$	21,860	$	59.89		58.76	%	$	2,386,639		$	21,512	$	58.94		58.30	%
EXPENSE RATIO			58.8	%									58.3	%
NET OPERATING INCOME		$	1,582,944		$	15,339	$	42.02		41.24	%	$	1,706,934		$	15,385	$	42.15		41.70	%
OCCUPANCY			83.9	%									90.2	%

[Additional columns below]

[Continued from above table, first column(s) repeated]

		C&W Forecast
		Stabilized Year
		Amount			$/Resident		PRD
REVENUES
Rental Income		$	4,059,600		$	33,005	$	93.43
Additional Personal Care		$	479,700		$	3,900	$	11.04
New Resident Fees		$	55,350		$	450	$	1.27
Other Income		$	—		$	—	$	—
GROSS POTENTIAL REV.		$	4,642,650		$	37,745	$	114.65
Vacancy/Collection Loss		$	(324,986	)
TOTAL NET REVENUE		$	4,317,665		$	36,271	$	99.37
OPERATING EXPENSES
Departmental
	General/Administrative	$	110,000		$	924	$	2.53
	Payroll (Wages)	$	1,100,000		$	9,241	$	25.32
	Payroll Taxes & Benefits	$	360,000		$	3,024	$	8.29
	Resident Care	$	15,000		$	126	$	0.35
	Food Services	$	260,000		$	2,184	$	5.98
	Activities	$	20,000		$	168	$	0.46
	Housekeeping/Laundry	$	25,000		$	210	$	0.58
	Plant Operations	$	125,000		$	1,050	$	2.88
	Utilities	$	170,000		$	1,428	$	3.91
	Marketing/Promotions	$	60,000		$	504	$	1.38
Non-Departmental
	Real Estate Taxes	$	130,000		$	1,092	$	2.99
	Insurance	$	123,000		$	1,033	$	2.83
	Management Fees (5% of EGI)	$	215,883		$	1,814	$	4.97
	Replacement Reserves ($/Unit)	$	36,900		$	310	$	0.85
TOTAL ALL EXPENSES		$	2,750,783		$	23,108	$	63.31
EXPENSE RATIO			63.7	%
NET OPERATING INCOME		$	1,566,881		$	13,163	$	36.06
OCCUPANCY			93.0	%

VALUATION SERVICES	82	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Assisted Living Rate Analysis

The subject contains 79 studio and 44 one-bedroom units for a total of 123 apartments. The facility is of good quality construction with a modern layout and design. The following is a description of the types of accommodations that are available at the subject.

All of the units reflect good design/layout and feature private bathrooms, kitchenettes and adequate closet areas. All of the residents are provided with three daily meals, weekly housekeeping, utilities (except telephone), activities, and scheduled transportation included in their monthly rent.

The subject’s actual rental rates (rent roll) were tested for reasonableness against similar facilities in the subject’s market area. In the Competitive Market Analysis section, we identified several existing facilities considered to provide competition for the subject. Data sheets were provided in the Competitive Market Analysis section presented previously. The complexes we surveyed are all considered comparable given that they all provide assisted living units. We note that the facilities are all adequately maintained and they all have a similar amenity package. All of the competing facilities have been discussed in detail in the Competitive Market Analysis section of the report.

The table below summarizes the subject’s unit types and the actual and asking monthly rents.

Villa Las Posas

						In House Rents				Asking Rents
		No.		Occ.		Monthly		$/Unit		Monthly		$/Unit
Unit		Units		Units		Revenue		Per Mo.		Revenue		Per Mo.
Assisted Living
Studio			79		76.002	$	186,668	$	2,456	$	199,475	$	2,525
One-Bedroom			44		43	$	138,085	$	3,201	$	143,000	$	3,250
	Total - Studio		123		119	$	324,753	$	2,726	$	342,475	$	2,784

The current in-house average rates falls slightly below the asking rates at the subject. This is because the rents of the existing tenants have not increased as rapidly as the asking rates. Overall, the average actual rate is $2,726 per month, which is approximately two percent below the average asking rate of $2,784. In the Market Analysis section of this report, we concluded on a market rate of $2,500 per month for the subject studio units and $3,200 per month for one-bedroom units. This is in line with both actual and asking rental rates.

VALUATION SERVICES	83	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Base Rental Rates

The following chart details our reconciled base rental rates for all unit types at the subject. These rates were concluded to in the Competitive Market Analysis section of the report.

Villa Las Posas
Reconciled Market Rental Rates

	Resident	No.		No.		Market
Unit Type	Type	Units		Beds		Rent
Studio	AL		79		79	$	2,500
One-Bedroom	AL		44		44	$	3,200
Totals			123		123

Other Revenues

In addition to room revenues, the subject receives additional income from additional personal care, new resident fees (entrance fees), second person fees, as well as miscellaneous revenue from such items as barber/beauty income, laundry services, cable TV revenue, meal and guest fees, food catering, health supplies, parking, etc.

Additional Personal Care

This relates to the additional costs for personal care to those residents who require additional care. The historical, current and forecast revenue from this source is shown below.

Year	Total		$/Resident		PRD
2000	$	468,809	$	3,886	$	10.65
2001	$	478,106	$	4,109	$	11.26
2002	$	450,789	$	4,368	$	11.97
Annualized 2003	$	433,040	$	3,903	$	10.69
C&W Forecast	$	479,700	$	3,900	$	11.04

The base monthly rates at the subject do not include any personal care. All personal care at the subject is charged in addition to the base monthly rental rate. Specifically, there are eight base levels or tiers of care services available (based on a point system) that are determined from a monthly need assessment basis. The levels of personal care range from $225 per month (Level A) up to an additional $1,425 per month for Level 7 services. If a resident requires services above Level 7, there is an additional charge of $5.00 per point.

Review of the rent roll showed that of the existing residents, 74 residents (62 percent of existing total) were paying for personal care services. The average charge equated to $656 per month, which would indicate an average Level 3 care level. Based on the current and historical revenue, we have forecast that 50 percent of the resident mix will pay an average of $650 per month for personal care. While the percentage falls below the current average, we believe this

VALUATION SERVICES	84	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

is reasonable as acuity levels can vary year-to-year. This equates to Year 1 revenue at $479,700.

New Resident Fees

The historical revenue data for the subject did not include any line item breakdown for this category. New resident fees at the subject are $1,800 per resident, which is at the upper end of the range indicated by the comparables ($1,000 to $1,800). The current new resident fees at the subject are considered high in relationship to market rates.

The typical turnover in an assisted living facility is between 20 and 28 months with a midrange of two years. This is equivalent to 35 to 50 percent of the census turning over each year. For the subject, we are estimating that 30 percent of the residents will pay entry or new resident fees of $1,500. Based on the data, we have forecast Year 1 new resident fees at $55,350.

Second Person Fees

The subject charges a fee of $800 per month for a double occupant in the same unit. This would be applicable to a spouse or sibling. The historical revenue data for the subject did not include any line item breakdown for this category. At the time of inspection, there were six double occupancies at the subject. We have forecast Year 1 second person occupancy of five (5) residents at $800 per month. This equates to $48,000 on an annual basis.

Other Income

The historical revenue for Other Income includes Second Person Fees and New Resident Fees as well as revenue received from the subject’s barber/beauty income, cable TV revenue, meal and guest fees. No revenue has been attributed to this category as the revenue was considered in the categories above.

Concessions/Rental Allowances

At the time of inspection, the subject was not offering any rent concessions other than a reduction in the new resident fee if necessary. Concessions are believed to be a negligible part of the market used only to stimulate lease-up of any unforeseen vacancies and should not have be of any major significance to a property like the subject. Therefore, no allowance for rent concessions will be applied to the subject.

Vacancy and Collection Loss

Both the investor and the appraiser are primarily interested in the annual revenue an income property is likely to produce over a specified period of time, rather than the income it could produce if it were always 100 percent occupied and all tenants were paying their rent in full and on time. A normally prudent practice is to expect some income loss as tenants vacate, fail to pay rent, or pay their rent late. Model units or other rent loss, if necessary, is addressed separately.

The subject, as of the most current rent roll provided, was 97 percent occupied. This is slightly higher than than current average occupancy levels for the market area overall. Rent comparable occupancies range from 91 to 95 percent with an average of 94 percent. Historical occupancy at the subject is presented below:

VALUATION SERVICES	85	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Historical Occupancy

													Current
										Annualized			Rent Roll
Year	2000			2001			2002			2003			Annualized
Occupancy		98.1	%		94.6	%		83.9	%		90.2	%		97.0	%

Historical occupancy at the subject was 98 percent in 2000, 95 percent in 2001, 84 percent in 2002, while YTD 2003 equated to 90 percent. The lower occupancy in 2002 and into 2003 was due to additional competition. The subject has been successful in increasing occupancy as of recent through aggressive marketing. Based on the subject’s occupancy pattern, we have forecasted a stabilized vacancy and collection loss of 7.0 percent for the subject.

Effective Gross Income

The following table summarizes the projected estimate of stabilized income based on the above findings. The stabilized revenues reflect what we believe would be anticipated by a purchaser of the subject and are based on current market rents and trends.

Villa Las Posas
STABILIZED OPERATING INCOME

												PER
	RESIDENT	NO.		NO.			MONTHLY					ACTUAL
UNIT TYPE	TYPE	UNITS		BEDS			RATE		INCOME			RESIDENT
Studio	AL		79		79		$	2,500	$	2,370,000
One-Bedroom	AL		44		44		$	3,200	$	1,689,600
Total			123		123				$	4,059,600		$	33,005
Additional Personal Care					50	%	$	650	$	479,700		$	3,900
Second Person					5.0		$	800	$	48,000		$	390
New Resident Fees					30	%	$	1,500	$	55,350		$	450
Other									$	—		$	—
TOTAL POTENTIAL GROSS INCOME									$	4,642,650		$	37,745
LESS: VACANCY @					7.0	%			$	(324,986	)
EFFECTIVE GROSS INCOME									$	4,317,665		$	37,745

Opinion of Expenses

We have developed an opinion of the property’s annual operating expenses after reviewing its historical performance and reviewing the operating statements of similar senior living properties. We were provided with operating statements for 2000, 2001, 2002, and the year-to-date 2003. This information was previously summarized.

VALUATION SERVICES	86	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

We were not also provided with the staffing requirements for the facility and we were not able to analyze the expenses on this basis. Furthermore, we have supported our estimate of projected expenses with other senior living facilities in the region, as well as from overall industry statistics. We also note that the reader is cautioned when reviewing the comparable expenses for individual facilities, in that the reporting of expenses varies by property and that different congregate living facilities offer different services. All comparisons will be made on an actual resident basis.

Expense Comparables

The expense comparables have been summarized on the following page.

VALUATION SERVICES	87	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

SUMMARY OF COMPARABLE OPERATING EXPENSES
ASSISTED LIVING FACILITIES

																													ASHA						ASHA
																													Lower			ASHA			Upper
Facility					Confidential									Confidential									Confidential						Quartile			Median			Quartile
Reporting Period						2002									2002									2002						2002			2002			2002
Year Built						1999									2001									1990						N/A			N/A			N/A
No. of IL Units						0									42									176						N/A			N/A			N/A
No. of AL Units						89									72									11						N/A			N/A			N/A
No. of ALZ Units						13									0									0						N/A			N/A			N/A
Total Units						102									114									187						N/A			N/A			N/A
Occupancy						83	%								85	%								98	%					N/A			N/A			N/A
Resident Days						30,901									35,493									66,890
		Per						% of			Per						% of			Per						% of
		Resident			$/RD			EGI			Resident			$/RD			EGI			Resident			$/RD			EGI
TOTAL NET REVENUES		$	37,505		$	102.75					$	25,443		$	69.71					$	34,768		$	95.26					$	29,046		$	34,264		$	38,878
EXPENSES
	General & Administrative	$	756		$	2.07			2.02	%	$	1,110		$	3.04			3.25	%	$	1,129		$	3.09			3.25	%	$	1,115		$	1,433		$	1,889
	Payroll (Wages/Salaries)	$	11,593		$	31.76			30.91	%	$	8,553		$	23.43			23.52	%	$	8,179		$	22.41			23.52	%		N/A			N/A			N/A
	Payroll Taxes & Benefits	$	3,815		$	10.45			10.17	%	$	2,144		$	5.88			8.62	%	$	2,996		$	8.21			8.62	%	$	1,575		$	2,068		$	3,003
	Resident Care	$	219		$	0.60			0.59	%	$	609		$	1.67			0.82	%	$	286		$	0.78			0.82	%	$	4,253		$	6,123		$	7,259
	Food Services	$	1,786		$	4.89			4.76	%	$	1,207		$	3.31			6.32	%	$	2,196		$	6.02			6.32	%	$	2,704		$	3,529		$	4,892
	Activities	$	58		$	0.16			0.16	%	$	58		$	0.16			0.53	%	$	184		$	0.50			0.53	%		N/A			N/A			N/A
	Housekeeping	$	119		$	0.32			0.32	%	$	101		$	0.28			0.86	%	$	299		$	0.82			0.86	%	$	532		$	815		$	1,130
	Plant Operations	$	644		$	1.77			1.72	%	$	510		$	1.40			4.05	%	$	1,409		$	3.86			4.05	%	$	580		$	916		$	1,356
	Utilities	$	1,536		$	4.21			4.09	%	$	1,180		$	3.23			5.19	%	$	1,805		$	4.94			5.19	%	$	1,086		$	1,306		$	1,526
	Marketing/Promotions	$	527		$	1.44			1.41	%	$	439		$	1.20			1.57	%	$	546		$	1.49			1.57	%	$	858		$	1,349		$	2,008
	Real Estate Taxes	$	705		$	1.93			1.88	%	$	520		$	1.43			3.62	%	$	1,257		$	3.45			3.62	%	$	648		$	1,011		$	1,597
	Insurance	$	611		$	1.67			1.63	%	$	400		$	1.10			3.32	%	$	1,154		$	3.16			3.32	%	$	278		$	463		$	726
ADJUSTED OPERATING EXPENSES		$	22,369		$	73.84			59.64	%	$	16,832		$	55.56			61.66	%	$	21,439		$	70.77			61.66	%	$	20,959		$	24,058		$	29,438
Management Fee		$	1,875		$	5.14			5.00	%	$	1,272		$	3.49			5.00	%	$	1,738		$	0.00			5.00	%	$	1,249		$	1,713		$	2,082
Expense Ratio Before																														76	%		75	%		81	%
	Reserves		65	%								71	%								67	%
Reserves			—			—			—			—			—			—			—			—			—		$	181		$	326		$	525

Source: The State of Seniors Housing, 2002, ASHA. (Data is for Assisted Living Facilities)

Note: Each line expense for ASHA derived from seperately sorted data columns and may not add up under totals.

*     All comparable categories based on Actual Unit (Per Resident)

VALUATION SERVICES	88	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

General & Administrative

These costs, for the basis of the subject analysis, include office supplies, licenses/permits, dues/subscriptions, travel/meals, communications/telephone, resident activities, transportation, as well as the payroll costs for the administrative staff. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	84,488	$	700	$	1.92		2.23	%
2001	$	95,636	$	822	$	2.25		2.40	%
2002	$	91,103	$	883	$	2.42		2.37	%
Annualized 2003	$	88,005	$	793	$	2.17		2.15	%
C&W Forecast	$	110,000	$	924	$	2.53		2.55	%

The expense comparables showed expenses for this category from $ 756 to $1,129 per resident (average of $ 999 per resident), while the industry data showed a range from $1,115 to $1,889 per resident (median of $1,433 per resident). The subject’s actual expenses are less than that of the comparable properties. This is because the subject’s accounting format posts payroll and benefits in a separate expense category. Our projection is consistent with historical trends. We have forecast Year 1 general and administrative costs at $110,000 or $ 924 per resident.

Payroll (Wages and Salaries)

These costs, for the basis of the subject analysis, include all wage and salary costs for the employees. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	944,680	$	7,831	$	21.46		24.93	%
2001	$	913,211	$	7,848	$	21.50		22.95	%
2002	$	873,071	$	8,460	$	23.18		22.74	%
Annualized 2003	$	923,682	$	8,326	$	22.81		22.56	%
C&W Forecast	$	1,100,000	$	9,241	$	25.32		25.48	%

The expense comparables showed expenses for this category from $8,179 to $11,593 per resident (average of $9,442 per resident), while the industry data showed a range from $1,575 to $3,003 per resident (median of $2,289 per resident). The subject’s actual expenses are greater than that of the comparable properties. This is because the subject’s accounting format posts payroll and benefits in a separate expense category. Our projection is consistent with historical trends. We have forecast Year 1 wages and salary costs at $1,100,000 or $9,241 per resident.

VALUATION SERVICES	89	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Payroll Taxes and Benefits

These costs, for the basis of the subject analysis, include cost for the employee pension plan, employee incentives, vacation pay, employee benefits and payroll taxes. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	197,095	$	1,634	$	4.48		5.20	%
2001	$	281,556	$	2,420	$	6.63		7.08	%
2002	$	292,155	$	2,831	$	7.76		7.61	%
Annualized 2003	$	332,759	$	2,999	$	8.22		8.13	%
C&W Forecast	$	360,000	$	3,024	$	8.29		8.34	%

The expense comparables showed expenses for this category from $2,144 to $3,815 per resident (average of $2,985 per resident), while the industry data showed a range from N/A to N/A per resident (median of N/A per resident). The subject’s actual expenses fall slightly above the range by the comparable properties, but are considered reasonable. We have forecast Year 1 payroll taxes and benefits costs at $360,000 or $3,024 per resident.

Resident Care

This expense is for the costs associated with the personal or assisted living services for the assisted living residents. These include all health care and special needs supplies and related activities, as well as payroll. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	3,296	$	27	$	0.07		0.09	%
2001	$	5,010	$	43	$	0.12		0.13	%
2002	$	3,735	$	36	$	0.10		0.10	%
Annualized 2003	$	3,911	$	35	$	0.10		0.10	%
C&W Forecast	$	15,000	$	126	$	0.35		0.35	%

The expense comparables showed expenses for this category from $ 219 to $ 609 per resident (average of $ 371 per resident), while the industry data showed a range from $1,575 to $3,003 per resident (median of $2,068 per resident). The subject’s actual expenses are seen as falling well below the average costs by the comparable properties. As such, we believe a prudent operator would allocate a higher allowance, especially as over 50 percent of the subject’s

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INCOME CAPITALIZATION APPROACH

residents are paying for additional resident or personal care. We have forecast Year 1 resident care costs at $15,000 or $ 126 per resident.

Food Services

These costs include raw food costs, as well as kitchen supplies and all payroll costs for the food service staff. The residents at the subject are provided with three complete meals per day. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	297,915	$	2,470	$	6.77		7.86	%
2001	$	256,542	$	2,205	$	6.04		6.45	%
2002	$	229,215	$	2,221	$	6.09		5.97	%
Annualized 2003	$	229,311	$	2,067	$	5.66		5.60	%
C&W Forecast	$	260,000	$	2,184	$	5.98		6.02	%

The expense comparables showed expenses for this category from $1,207 to $2,196 per resident (average of $1,729 per resident), while the industry data showed a range from $4,253 to $7,259 per resident (median of $6,123 per resident). Our projection is consistent with historical trends. We have forecast Year 1 food services costs at $260,000 or $2,184 per resident.

Activities

This category is for the activities and recreation costs, as well as transportation costs and the payroll costs for the activities staff. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	17,420	$	144	$	0.40		0.46	%
2001	$	14,563	$	125	$	0.34		0.37	%
2002	$	12,146	$	203	$	0.56		0.55	%
Annualized 2003	$	10,424	$	94	$	0.26		0.25	%
C&W Forecast	$	20,000	$	168	$	0.46		0.46	%

The expense comparables showed expenses for this category from $ 58 to $ 184 per resident (average of $ 100 per resident), while no data was provided by the ASHA industry data. Our projection is consistent with historical trends. We have forecast Year 1 activities costs at $20,000 or $ 168 per resident.

VALUATION SERVICES	91	ADVISORY GROUP

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INCOME CAPITALIZATION APPROACH

Housekeeping/Laundry

This category is for all housekeeping costs, including all supplies requisite to housekeeping and laundry services, as well as the payroll costs for the housekeeping/laundry staff. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	35,008	$	290	$	0.80		0.92	%
2001	$	22,573	$	194	$	0.53		0.57	%
2002	$	20,950	$	203	$	0.56		0.55	%
Annualized 2003	$	25,139	$	227	$	0.62		0.61	%
C&W Forecast	$	25,000	$	210	$	0.58		0.58	%

The expense comparables showed expenses for this category from $ 101 to $ 299 per resident (average of $ 173 per resident), while the industry data showed a range from N/A to N/A per resident (median of N/A per resident). Our projection is consistent with historical trends. We have forecast Year 1 housekeeping costs at $25,000 or $ 210 per resident.

Plant Operations

These costs include general repairs and maintenance, elevator contracts, supplies and equipment purchases for the facility, as well as the payroll costs for the maintenance staff. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	113,542	$	941	$	2.58		3.00	%
2001	$	112,103	$	963	$	2.64		2.82	%
2002	$	111,733	$	1,083	$	2.97		2.91	%
Annualized 2003	$	122,072	$	1,100	$	3.01		2.98	%
C&W Forecast	$	125,000	$	1,050	$	2.88		2.90	%

The expense comparables showed expenses for this category from $ 510 to $1,409 per resident (average of $ 854 per resident), while the industry data showed a range from $ 532 to $1,130 per resident (median of $ 815 per resident). The subject’s actual expenses are supported by the comparable properties. We have forecast Year 1 plant operations costs at $125,000 or $1,050 per resident.

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INCOME CAPITALIZATION APPROACH

Utilities

This expense is for the annual cost for natural gas, electricity, water/sewer, cable TV and trash removal. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	127,932	$	1,061	$	2.91		3.38	%
2001	$	142,843	$	1,228	$	3.36		3.59	%
2002	$	149,773	$	1,451	$	3.98		3.90	%
Annualized 2003	$	157,188	$	1,417	$	3.88		3.84	%
C&W Forecast	$	170,000	$	1,428	$	3.91		3.94	%

The expense comparables showed expenses for this category from $1,180 to $1,805 per resident (average of $1,507 per resident), while the industry data showed a range from $ 580 to $1,356 per resident (median of $ 916 per resident). Our projection is consistent with historical trends. We have forecast Year 1 utility costs at $170,000 or $1,428 per resident.

Marketing/Promotions

This expense is directly connected to the advertising and marketing of the complex for such things as newspapers and brochures, resident retention, etc. These costs also include the payroll costs of the marketing staff. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	44,373	$	368	$	1.01		1.17	%
2001	$	45,779	$	393	$	1.08		1.15	%
2002	$	46,640	$	452	$	1.24		1.21	%
Annualized 2003	$	54,207	$	489	$	1.34		1.32	%
C&W Forecast	$	60,000	$	504	$	1.38		1.39	%

The expense comparables showed expenses for this category from $ 101 to $ 546 per resident (average of $ 504 per resident), while the industry data showed a range from $1,086 to $1,526 per resident (median of $1,306 per resident). Our projection is consistent with historical trends. We have forecast Year 1 marketing costs at $60,000 or $ 504 per resident.

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INCOME CAPITALIZATION APPROACH

Real Estate Taxes

This cost is for the annual real and personal property tax liability for the subject. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	109,062	$	904	$	2.48		2.88	%
2001	$	118,103	$	1,015	$	2.78		2.97	%
2002	$	117,902	$	1,142	$	3.13		3.07	%
Annualized 2003	$	120,683	$	1,088	$	2.98		2.95	%
C&W Forecast	$	130,000	$	1,092	$	2.99		3.01	%

The expense comparables showed expenses for this category from $ 520 to $1,257 per resident (average of $ 828 per resident), while the industry data showed a range from $ 858 to $2,008 per resident (median of $1,349 per resident). Please refer to the Real Estate Taxes and Assessments section of the report for a discussion on how the Year 1 taxes were estimated. We have forecast the Year 1 real estate tax expense at $130,000 or $1,092 per resident.

Insurance

This cost is for the annual liability insurance for the property. The historical costs, as well as our forecast for this category are shown below.

Year	Total		$/Resident		PRD		% of EGI
2000	$	23,570	$	195	$	0.54		0.62	%
2001	$	42,965	$	369	$	1.01		1.08	%
2002	$	78,627	$	762	$	2.09		2.05	%
Annualized 2003	$	77,682	$	700	$	1.92		1.90	%
C&W Forecast	$	123,000	$	1,033	$	2.83		2.85	%

The expense comparables showed expenses for this category from $ 400 to $1,154 per resident (average of $ 722 per resident), while the industry data showed a range from $ 648 to $1,597 per resident (median of $1,011 per resident). Insurance costs for senior living properties have increased significantly over the last one to two years. The subject’s actual expenses are supported by the comparable properties. We have forecast Year 1 insurance costs at $123,000 or $1,033 per resident.

Management Fee

The subject is managed by ARV at a rate equal to 5.0 percent of effective gross income. According to data by The 2002 State of Senior Housing Report, the median management fee for

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INCOME CAPITALIZATION APPROACH

congregate living facilities is 5.0 percent, with a general range from 5.0 to 7.0 percent. We have concluded to a 5.0 percent management fee.

Replacement Reserves

Replacement reserves are necessary for replacement of roof covering, mechanical systems, furnishings, appliances, etc. For a facility such as the subject, it is reasonable to deduct one to two percent of net resident revenues for replacement reserves. The ASHA industry data shows a range of reserve unit allowances from $ 181 to $ 525 per unit with a median of EMPTY per unit. In the case of the subject and its date of construction, we have deducted an amount equal to $300 per unit and which equates to a total cost of $36,900 or $ 310 per resident, which is well supported by the industry data.

Expense Summary

Overall, the first year expenses for the subject (including management fees and reserves) are projected at $2,750,783 ($23,108 per resident) and 63.71 percent of effective gross income. The sale comparables indicated expense ratios from 67.00 to 77.00 percent (average of 70.00 percent), while the industry data showed a range from 76 to 81 percent (median of 75 percent).

We note that, according to The Senior Care Acquisition Report 2003, that the average expense ratio for assisted living facilities was 75.8 percent in 2002 and which represented an approximately eight percent increase from 70.4 percent in 2001. The survey noted, however, that many of the properties used in the sampling were troubled which resulted in a higher reported operating expense basis.

Furthermore, operating margins for assisted living facilities were reported at 30.8 percent for the median, 18.4 percent for the lower quartile and 34.7 percent for the upper quartile according to the State of Senior Housing Report 2002.

VALUATION SERVICES	95	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

Although our net operating income estimate is lower than the historical amounts, our estimate equates to a net operating income per resident of $13,163 which is above the most recent operating year of $15,339 per resident. The difference, however, is directly related to our stabilized market occupancy that is lower than that recently witnessed, as well as having increased some expense levels to market levels. As such, our expense and resultant net operating income estimate is considered reasonable in light of the historical data. A summary of our Year 1 proforma is presented below.

Villa Las Posas
STABILIZED OPERATING STATEMENT

							Total		PR		PRD		% of EGI
EFFECTIVE GROSS INCOME							$	4,317,665	$	37,745	$	99.37
EXPENSES
	General/Administrative						$	110,000	$	924	$	2.53		2.55	%
	Payroll (Wages)						$	1,100,000	$	9,241	$	25.32		25.48	%
	Payroll Taxes & Benefits						$	360,000	$	3,024	$	8.29		8.34	%
	Resident Care						$	15,000	$	126	$	0.35		0.35	%
	Food Services						$	260,000	$	2,184	$	5.98		6.02	%
	Activities						$	20,000	$	168	$	0.46		0.46	%
	Housekeeping/Laundry						$	25,000	$	210	$	0.58		0.58	%
	Plant Operations						$	125,000	$	1,050	$	2.88		2.90	%
	Utilities						$	170,000	$	1,428	$	3.91		3.94	%
	Marketing/Promotions						$	60,000	$	504	$	1.38		1.39	%
	Real Estate Taxes						$	130,000	$	1,092	$	2.99		3.01	%
	Insurance						$	123,000	$	1,033	$	2.83		2.85	%
TOTAL OPERATING EXPENSES					57.9	%	$	2,498,000	$	20,985	$	57.49		57.86	%
Management Fees			5.0	%			$	215,883	$	1,814	$	4.97		5.00	%
Replacement Reserves		$	300				$	36,900	$	310	$	0.85		0.85	%
TOTAL EXPENSES							$	2,750,783	$	23,108	$	63.31		63.71	%
NET OPERATING INCOME							$	1,566,881	$	13,163	$	36.06		36.29	%

(*) Per Actual Resident

Direct Capitalization Rate Analysis

In determining an appropriate capitalization rate, the rates of return have been derived by applying three different methods: market extraction from the sales comparables, our findings reported in The Senior Care Acquisition Report, 2003, published by Irving Levin Associates, Inc., findings from the Senior Care Participants Survey completed by Cushman & Wakefield, Inc., and from Band-of-Investment.

The capitalization rate was determined by analyzing investment rates of return acceptable to buyers. The rate of return on an investment is determined by analyzing several aspects of that investment and then assigning a risk associated with those aspects. Elements usually considered are:

• Reliability of the gross income prediction. How certain is it that the income will be forthcoming? Income is more dependable when the property is leased on a long-term basis

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INCOME CAPITALIZATION APPROACH

	to financially responsible tenants than when rented on a month-to-month basis to less reliable tenants.
•	Reliability of the expense prediction. Is there great danger of having expenses increase materially, or is there a fair chance that they will remain about the same or even decrease?
•	Expense ratio. If the expenses are low in relation to gross income, the quality of the net income may be better, because a moderate reduction in gross income or a moderate increase in expenses does not affect the net income substantially.
•	Burden of management. Even when real estate management is employed, a property that requires constant attention, because of either maintenance or rent collection problems, is less desirable than one that needs minimal management. A long-term lease that requires a tenant to take care of all repairs and to pay taxes and insurance presents a situation that is relatively free from this burden of management.
•	Marketability of the property. An investment that has marketability and liquidity appeals to a wider group of investors than one lacking those attributes.
•	Stability of value. The value or market price of a piece of real property tends to remain within a narrower range for longer periods of time than do most other commodities.

As described previously, the gross income projected for the property is subject to such uncertainties as competition from other facilities and fluctuations in demand for the subject’s services. Moreover, the subject property has limited marketability and liquidity because a purchaser must have the appropriate operating license from the applicable state regulatory agencies, which limit the number of potential investors and would, in any potential sale of the property, create impediments and delays.

Going-In Capitalization Rate

The first method used to derive the capitalization rate was a review of comparable sales that have occurred in the subject’s regional area. The overall capitalization rates derived from the assisted living facility sales used in the Sales Comparison Approach are summarized below:

CAPITALIZATION RATE SUMMARY

			Date		Year					Capitalization
No.		Property Name	of Sale		Built		Occupancy			Rate
	1	Carmel Village		01/03		1986		97	%		11.14	%
	2	Emerald Hills		09/02		1999		100	%		11.19	%
	3	Woodmark at Summit		02/02		1998		60	%		12.63	%
	4	Mapleridge of Laguna Creek		01/02		1999		76	%		10.55	%
	5	Atria Redding		07/01		1997		95	%		12.50	%
	6	Aegis of Napa		06/01		1999		N/A			10.76	%
Low						1986		60	%		10.55	%
High						1999		100	%		12.63	%
Median						1999		95	%		11.16	%
Average						1996		86	%		11.46	%

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INCOME CAPITALIZATION APPROACH

The overall capitalization rates of the comparable sales range from 10.55 to 12.63 percent, with an average indicated of 11.46 percent. These rates are reported to be after management fee and reserves. The capitalization rates reflect actual buyer expectations of existing facilities and are directly applicable to the subject and the spread in the capitalization rates is 208 basis points. As such, the sales are felt to provide a good comparison of estimating a market capitalization rate.

Industry Findings

To further test the capitalization rates, data on assisted living acquisition trends in The Senior Care Acquisition Report, Eighth Edition, 2003, was consulted. The report indicated that after two years of declining capitalization rates for assisted living properties, 2002 saw an increase in rates to a reported average of 12.20 percent. This information is summarized in the graph below.

VALUATION SERVICES	98	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

In addition, Cushman & Wakefield, Inc. has surveyed senior care participants regarding their investment parameters for senior housing properties. This recent information has been summarized in the following table.

2003 Participants Survey

							Change From 2002					Change From 2001
				Survey
Property Type	Survey Range			Average			Basis Point		%			Basis Point		%
Capitalization Rates
55+ Senior Apartments		7.00% - 10.25	%		8.15	%		-7		0.9	%		-68		-7.6	%
Independent Living		9.00% - 10.50	%		9.55	%		-5		0.5	%		-30		-3.0	%
Assisted Living		10.00% - 12.25	%		10.85	%		-17		1.6	%		-8		-7.2	%
Skilled Nursing		11.50% - 18.00	%		14.15	%		16		-1.1	%		-61		-4.2	%
Continuing Care Retirement Community		9.00% - 11.50	%		10.40	%		-35		3.4	%		-15		-1.4	%
Internal Rates of Return
55+ Senior Apartments		9.50% - 15.00	%		10.60	%		-15		1.4	%		-20		-1.8	%
Independent Living		10.00% - 15.00	%		11.90	%		-25		2.1	%		-65		-5.7	%
Assisted Living		12.00% - 17.00	%		15.30	%		42		-2.7	%		-22		-1.5	%
Skilled Nursing		13.00% - 20.00	%		16.30	%		-25		1.5	%		-165		-9.1	%
Continuing Care Retirement Community		9.00% - 17.00	%		13.00	%		-25		1.9	%		-135		-9.2	%

Source: Senior Care Participants Survey, 2003 by Cushman & Wakefield, Inc.

In reviewing the 2003 survey, capitalization rates for assisted living facilities ranged from 10.00 to 12.25 percent with an average indication of 10.85 percent. This data is seen as being nearly 135 basis points below that reported previously in The Senior Care Acquisition Report, Eighth Edition, 2003. The 2003 C&W survey also shows that capitalization rates have declined slightly over those reported in 2002 and 2001.

In choosing the appropriate capitalization rate for the subject, we have considered its location, occupancy, as well as the overall condition and utility of the property. The subject is a mid-sized assisted living facility located in a favorable demographic area in California. The market area is considered to be at an equilibrium basis at this time. Based on the data and characteristics of the subject and marketplace, we believe a capitalization rate of between 11.0 to 12.0 percent to be appropriate for the property.

Band of Investment

The Band of Investment technique accounts for the combination of equity and prevailing financing which are banded together to finance this type of real estate. The rate developed is a weighted average, the weights being percentages of the total value, which are occupied by the mortgage and equity positions.

After surveying several commercial mortgage lenders and consulting the most recent Senior Care Participants Survey, published by Cushman & Wakefield, Inc. and the Senior Care Acquisition Report, published by Irving Levin Associates, it is our opinion that a typical creditworthy owner could obtain financing from a lending source in an amount equal to 75 percent of value at an annual interest rate of 8.50 percent. A typical loan period for this type of real estate ranges from 20 to 30 years. Utilizing a 25-year amortization period at an 8.50 percent interest rate (payable monthly) yields a mortgage constant of 0.0966273.

For a review of investor rates of return, reference is made to the previous table, which showed investment parameters for assisted living properties.

VALUATION SERVICES	99	ADVISORY GROUP

INCOME CAPITALIZATION APPROACH

As shown in the table, internal rates of return or equity dividend rates for senior housing properties ranged from 9.50 to 20.00 percent. Independent living facilities fall within the lower to middle portion of the range from 10.00 to 15.0 percent with an average indicated rate of 11.90 percent. Assisted living facilities fall within the middle portion at 12.00 to 17.0 percent with an average indicated rate of 15.30 percent.

Based on the data, we believe a prudent investor in a senior housing property like the subject would accept an initial annual return of between 10 percent and 15 percent of an equity investment in anticipation of a stable income flow and property appreciation over time. From this, and based on the subject’s physical, locational and competitive structure, a rate from within the middle portion of the latter range, or 14.0 percent would be reasonable.

It should be emphasized that the equity dividend rate is not necessarily the same as an equity yield rate or true rate of return on equity capital. The equity dividend rate is an equity capitalization that reflects all benefits that can be recognized by the equity investor as of the date of purchase. The overall capitalization rate is developed as follows:

Band of Investment Technique

75.0%	MORTGAGE	X	0.0966273 Mortgage Constant	=	0.0724
25.0%	Equity	X	0.1400 Equity Dividend	=	0.0350
100.0%	Total				0.1074
			OAR = 10.74%

Direct Capitalization Method Conclusion

We estimated a capitalization rate of 10.55 to 12.63 percent through our direct comparison analysis, while the band-of-investment technique correlated to 10.74 percent. Utilizing both methods to develop a capitalization rate, tempered with investor criteria and the specific attributes of the subject, we feel a rate of 11.00 percent is warranted for the property based on the subject age and condition. We note that this rate is applied after reserves. Our conclusion via the Direct Capitalization Method is as follows:

DIRECT CAPITALIZATION METHOD

Net Operating Income	$	1,566,881
Sensitivity Analysis (0.25% OAR Spread)	Value		$/Unit
Based on Low-Range of 10.75%	$	14,575,640	$	118,501
Based on Most Probable Range of 11.00%	$	14,244,375	$	115,808
Based on High-Range of 11.25%	$	13,927,834	$	113,234
Reconciled Value	$	14,244,375	$	115,808
Rounded to nearest $100,000	$	14,200,000	$	115,447

VALUATION SERVICES	100	ADVISORY GROUP

RECONCILIATION AND FINAL VALUE OPINION

Valuation Methodology Review and Reconciliation

This appraisal employs all three typical approaches to value: the Cost Approach, the Sales Comparison Approach and the Income Capitalization Approach. Based on our analysis and knowledge of the subject property type and relevant investor profiles, it is our opinion that all approaches would be considered meaningful and applicable in developing a credible value conclusion.

The approaches indicated the following values:

Cost Approach:	$	11,900,000
Sales Comparison Approach:	$	14,100,000
Income Capitalization Approach:	$	14,200,000

Due to the fact that the subject is an income producing property, investors are primarily concerned with their return on equity. Therefore, the Income Capitalization Approach was given most weight in our final value conclusion. The Sales Comparison and Cost Approaches provide a reasonable check on the value derived via the Income Capitalization Approach.

The Cost Approach provides a reliable estimate of value for proposed or newly constructed improvements. However, as the property ages and obsolescence occurs, it is increasingly difficult to quantify the resultant depreciation. Nonetheless, as the subject represents newer construction, the degree of depreciation was minimal and is considered reasonable based on the market data. This approach, however, falls above the indications provided by the Sales Comparison and Income Capitalization Approaches which indicates that the subject is not currently an economically feasible operation. As such, this approach has been given only limited support for our findings via the other two approaches to value.

The Sales Comparison Approach reflects an estimate of value as indicated by the actual sales of assisted living facilities. In this approach, we searched the state for transactions of similar property types. Given that these types of properties are typically purchased based on their income producing capabilities, this approach was useful in providing support for our findings in the Income Capitalization Approach.

The Income Capitalization Approach is typically considered the most appropriate approach to utilize when valuing going concerns such as nursing homes and assisted living facilities. This approach considers the income potential of the property. In our Income Capitalization Approach to value, the anticipated monetary benefits of ownership were converted into a value estimate. Within the Income Capitalization Approach, direct capitalization was used as it is the most common method used by investors and purchasers in acquiring existing and stabilized properties of this nature.

Based on our Complete Appraisal as defined by the Uniform Standards of Professional Appraisal Practice, we have developed an opinion that the “as-is” going concern market value of the fee simple estate of the referenced property, subject to the assumptions, limiting conditions, certifications, and definitions, on October 21, 2003 was:

FOURTEEN MILLION TWO HUNDRED THOUSAND DOLLARS

$14,200,000

VALUATION SERVICES	101	ADVISORY GROUP

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RECONCILIATION AND FINAL VALUE OPINION

Personal Property Allocation

Included in the above estimate of market value is the contributing value of the personal property at the subject property, or the furnishings, fixtures and equipment (FF&E). FF&E is generally considered to be part of the assisted living facility and is typically sold with the building. It is therefore considered to be a part of the property’s total value. FF&E includes the unit and public area furnishings, kitchen equipment, service/maintenance equipment and other machinery. Based on previous analysis of the subject, we estimated the value of the FF&E as new to be $777,975, including a 15 percent factor for entrepreneurial profit.

Physical deterioration (depreciation) must be deducted for the FF&E. The subject opened in 1997. Based on our physical inspection of the property, we are of the opinion that the property is currently in good physical condition. We have estimated that the subject’s FF&E has a useful life of 10 years and we have estimated the current effective age at 3 years. This equates to a 30 percent depreciation factor, as summarized in the following table.

Furniture, Fixtures and Equipment

Total Value of FF&E As New	$	777,975
Physical Life (Yrs)		10
Effective Age (Yrs)		3
Percent Depreciated (%)		30
Percent Value Remaining (%)		70
Depreciated Value	$	544,583
Rounded	$	540,000

The contributing value of the FF&E is believed to be the cost of the FF&E less its accrued depreciation. This equates to $540,000 rounded.

Business Value (Going Concern)

Assisted living facilities are undisputedly a combination of business and real estate; the day-to-date operation of an assisted living facility represents a business over and above the real estate value. Numerous theories have been developed over time in an attempt to isolate the business component of a senior housing facility.

In our analysis, we have determined the value of the real estate in the Cost Approach to be $11,900,000. As the value of the going concern (Income Capitalization and Sales Comparison Approaches) was determined to be $14,200,000 (which includes the $540,000 in FF&E), this indicates that there is $1,780,000 in business value.

VALUATION SERVICES	102	ADVISORY GROUP

ASSUMPTIONS AND LIMITING CONDITIONS

“Report” means the appraisal or consulting report and conclusions stated therein, or a letter opinion, to which these Assumptions and Limiting Conditions are annexed.

“Property” means the subject of the Report

“C&W” means Cushman & Wakefield, Inc. or its subsidiary that issued the Report.

“Appraiser(s)” means the employee(s) of C&W who prepared and signed the Report.

The Report has been made subject to the following assumptions and limiting conditions:

1.	No opinion is intended to be expressed and no responsibility is assumed for the legal description or for any matters that are legal in nature or require legal expertise or specialized knowledge beyond that of a real estate appraiser. Title to the Property is assumed to be good and marketable and the Property is assumed to be free and clear of all liens unless otherwise stated. No survey of the Property was undertaken.
2.	The information contained in the Report or upon which the Report is based has been gathered from sources the Appraiser assumes to be reliable and accurate. The owner of the Property may have provided some of such information. Neither the Appraiser nor C&W shall be responsible for the accuracy or completeness of such information, including the correctness of estimates, opinions, dimensions, sketches, exhibits and factual matters. Any authorized user of the Report is obligated to bring to the attention of C&W any inaccuracies or errors that it believes are contained in the Report.
3.	The opinions are only as of the date stated in the Report. Changes since that date in external and market factors or in the Property itself can significantly affect the conclusions.
4.	The Report is to be used in whole and not in part. No part of the Report shall be used in conjunction with any other analyses. Publication of the Report or any portion thereof without the prior written consent of C&W is prohibited. Reference to the Appraisal Institute or to the MAI designation is prohibited. Except as may be otherwise stated in the letter of engagement, the Report may not be used by any person other than the party to whom it is addressed or for purposes other than that for which it was prepared. No part of the Report shall be conveyed to the public through advertising, or used in any sales or promotional or offering or SEC material without C&W’s prior written consent.
	Any authorized user of this Report who provides a copy to, or permits reliance thereon by, any person or entity not authorized by C&W in writing to use or rely thereon, hereby agrees to indemnify and hold C&W, its affiliates and their respective shareholders, directors, officers and employees, harmless from and against all damages, expenses, claims and costs, including attorneys’ fees, incurred in investigating and defending any claim arising from or in any way connected to the use of, or reliance upon, the Report by any such unauthorized person or entity.
5.	Except as may be otherwise stated in the letter of engagement, the Appraiser shall not be required to give testimony in any court or administrative proceeding relating to the Property or the Appraisal.
6.	The Report assumes (a) responsible ownership and competent management of the Property; (b) there are no hidden or unapparent conditions of the Property, subsoil or structures that render the Property more or less valuable (no responsibility is assumed for such conditions or for arranging for engineering studies that may be required to

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ASSUMPTIONS AND LIMITING CONDITIONS

	discover them); (c) full compliance with all applicable federal, state and local zoning and environmental regulations and laws, unless noncompliance is stated, defined and considered in the Report; and (d) all required licenses, certificates of occupancy and other governmental consents have been or can be obtained and renewed for any use on which the value estimate contained in the Report is based.
7.	The physical condition of the improvements considered by the Report is based on visual inspection by the Appraiser or other person identified in the Report. C&W assumes no responsibility for the soundness of structural members nor for the condition of mechanical equipment, plumbing or electrical components.
8.	The forecasted potential gross income referred to in the Report may be based on lease summaries provided by the owner or third parties. The Report assumes no responsibility for the authenticity or completeness of lease information provided by others. C&W recommends that legal advice be obtained regarding the interpretation of lease provisions and the contractual rights of parties.
9.	The forecasts of income and expenses are not predictions of the future. Rather, they are the Appraiser’s best estimates of current market thinking on future income and expenses. The Appraiser and C&W make no warranty or representation that these forecasts will materialize. The real estate market is constantly fluctuating and changing. It is not the Appraiser’s task to predict or in any way warrant the conditions of a future real estate market; the Appraiser can only reflect what the investment community, as of the date of the Report, envisages for the future in terms of rental rates, expenses, and supply and demand.
10.	Unless otherwise stated in the Report, the existence of potentially hazardous or toxic materials that may have been used in the construction or maintenance of the improvements or may be located at or about the Property was not considered in arriving at the opinion of value. These materials (such as formaldehyde foam insulation, asbestos insulation and other potentially hazardous materials) may adversely affect the value of the Property. The Appraisers are not qualified to detect such substances. C&W recommends that an environmental expert be employed to determine the impact of these matters on the opinion of value.
11.	Unless otherwise stated in the Report, compliance with the requirements of the Americans with Disabilities Act of 1990 (ADA) has not been considered in arriving at the opinion of value. Failure to comply with the requirements of the ADA may adversely affect the value of the Property. C&W recommends that an expert in this field be employed.
12.	If the Report is submitted to a lender or investor with the prior approval of C&W, such party should consider this Report as only one factor together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Extraordinary Assumptions and Hypothetical Conditions and the Assumptions and Limiting Conditions incorporated in this Report.
13.	In the event of a claim against C&W or its affiliates or their respective officers or employees or the Appraisers in connection with or in any way relating to this Report or this engagement, the maximum damages recoverable shall be the amount of the monies

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	actually collected by C&W or its affiliates for this Report and under no circumstances shall any claim for consequential damages be made.
14.	If the Report is referred to or included in any offering material or prospectus, the Report shall be deemed referred to or included for informational purposes only and C&W, its employees and the Appraiser have no liability to such recipients. C&W disclaims any and all liability to any party other than the party which retained C&W to prepare the Report. 15. By use of this Report each party that uses this Report agrees to be bound by all of the Assumptions and Limiting Conditions stated herein.
15.	By use of this Report each party that uses this Report agrees to be bound by all of the Assumptions and Limiting Conditions stated herein.

Extraordinary Assumptions

An extraordinary assumption is defined as “an assumption, directly related to a specific assignment, which, if found to be false, could alter the appraiser’s opinions or conclusions. Extraordinary assumptions presume as fact otherwise uncertain information about physical, legal or economic characteristics of the subject property or about conditions external to the property, such as market conditions or trends, or the integrity of data used in an analysis.” (USPAP 2001 Edition, ASB of The Appraisal Foundation, 1/1/2001, page 2).

This appraisal assumes that the property meets the licensing requirements of the State of California as a residential care facility for the elderly and continues to remain in compliance with applicable life safety codes.

This Appraisal employs no other Extraordinary Assumptions.

Hypothetical Conditions

A hypothetical condition is defined as “that which is contrary to what exists, but is supposed for the purpose of analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or economic characteristics of the subject property or about conditions external to the property, such as market conditions or trends, or the integrity of data used in an analysis.” (USPAP 2001 Edition, ASB of The Appraisal Foundation, 1/1/2001, page 3).

This Appraisal employs no Hypothetical Conditions.

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CERTIFICATION OF APPRAISAL

We certify that, to the best of our knowledge and belief:

1.	The statements of fact contained in this report are true and correct.
2.	The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and is our personal, impartial, and unbiased professional analyses, opinions, and conclusions.
3.	We have no present or prospective interest in the property that is the subject of this report, and no personal interest with respect to the parties involved.
4.	We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment.
5.	Our engagement in this assignment was not contingent upon developing or reporting predetermined results.
6.	Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal.
7.	Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation and the Code of Professional Ethics and the Standards of Professional Appraisal Practice of the Appraisal Institute.
8.	Sally U. Haft, MAI made a personal inspection of the property that is the subject of this report.
9.	No one provided significant real property appraisal assistance to the persons signing this report.
10.	The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives.
11.	As of the date of this report, Appraisal Institute continuing education for Sally U. Haft, MAI is current.

Sally U. Haft, MAI
Director
Senior Housing/Healthcare Industry Group
California Certified General Appraiser
License No. AG003905

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ADDENDA

Addenda Contents
ADDENDUM A:	Letter of Engagement/Legal Description
ADDENDUM B:	Demographics
ADDENDUM C:	Property Exhibits
ADDENDUM D:	Financial Data
ADDENDUM E:	Comparable Land Sale Data Sheets
ADDENDUM F:	Comparable Improved Sale Data Sheets
ADDENDUM G:	Qualifications of the Appraiser

VALUATION SERVICES	103	ADVISORY GROUP

ADDENDUM A: Letter of Engagement/Legal Description

Cushman & Wakefield of Georgia, Inc.
3300 One Atlantic Center
1201 West Peachtree Street
Atlanta. GA 30309
404-853-5351 Tel
404-874-8046 Fax
Norman_LeZotte@Cushwake.com

September 30, 2003

Mr. Douglas Armstrong

General Counsel

ARV Assisted Living, Inc.

245 Fischer Avenue, D-1

Costa Mesa, CA 92626

Re: 12 Assisted Living Facilities

       In California and Arizona

Dear Mr. Armstrong:

Thank you for requesting our proposal for appraisal services, This proposal letter, with its attachments, will become, upon your acceptance, our letter of engagement to provide the services outlined herein.

THE PARTIES TO THIS AGREEMENT: Cushman &. Wakefield of Georgia, Inc. Cushman & Wakefield of California, Inc. and Cushman & Wakefield of Arizona, Inc. will prepare the appraisals. We understand that ARV Assisted Living, Inc. (“ARV”) and its affiliates are the clients in this assignment and will be referred to herein, collectively, at times as the “Client” and the report will be addressed to ARV and/or one or more of its affiliates as requested by ARV.

The appraisal will be prepared and submitted to the Client for use only in connection with the proxy solicitation/tender offers filed with the SEC and distributed to the holders of limited partnership interests in American Retirement Villas Properties II and American Retirement Villas Properties III, L.P. (the “Partnerships”). Unless we otherwise consent in writing, the appraisal cannot be used (other than in the material related to the proxy solicitation/tender offer referred to above) for any purpose. If the Appraisal is submitted to a lender or Investor with the prior approval of C&W, such party should consider this Appraisal as only one factor together with its independent investment considerations and underwriting criteria, in its overall investment decision. Such lender or investor is specifically cautioned to understand all Extraordinary Assumptions and Hypothetical Conditions and the Assumptions and Limiting Conditions incorporated in the Appraisal.

REPORTING REQUIREMENTS: We have agreed to prepare a Complete Appraisal In a Self-Contained format. The market value of the Fee Simple or Leasehold Interest will be presented As Is You have also requested that we include the Going Concern Value as of the specified date of value. The valuation methods utilized in these reports will include the income Approach, Sale Comparison Approach, and Cost Approach If all deemed applicable in producing a credible value estimate. The appraisal reports will be signed by an Appraisal Institute member holding the title of MAI (Member Appraisal Institute). Any appraisal report will

VALUATION SERVICES	ADVISORY GROUP

Mr. Douglas Armstrong

ARV Assisted Living, Inc.

September 30, 2003

Page 2

contain reliance language to the effect that the report is for the use and benefit of ARV, any of its affiliates, agents, and advisors and that the report and references to the report may be included and quoted in any tender offer or solicitation document (whether electronic or hard copy format) in connection with the transactions involving the Partnership referred to above.

PROPERTY INFORMATION: The twelve subject properties are:

ARV PORTFOLIO

Property	Units		City	State	YR Built		Appraisal fee
Covina Villa		63	Covina	CA		1977	$	5,500
Montego Heights Lodge		163	Walnut Creek	CA		1978	$	4,500
R.I. Of Burlingame		67	Burlingame	CA		1977	$	4,500
R.I. Of Campbell		71	Campbell	CA		1977	$	4,500
R.I. Of Daly City		95	Daly City	CA		1975	$	4,500
R.I. Of Fremont		68	Fremont	CA		1977	$	4,500
R.I. Of Fullerton		68	Fullerton	CA		1974	$	4,500
R.I. Of Sunnyvale	120		Sunnyvale	CA		1977	$	4,500
Valley View Lodge		125	Walnut Creek	CA		1986	$	4,500
Inn @ Willow Glen		83	San Jose	CA		1977	$	5,000
Chandler Villas		164	Chandler	AZ		1988	$	5,500
Villa Las Posas		123	Camarillo	CA		1997	$	5,500
		1,210					$	57,500

The entire fee is inclusive of any travel expenses and is a net fee to ARV or its Designated Affiliates

REGULATIONS OF FEDERAL AGENCIES: Federal banking regulations require banks and savings and loan associations to employ appraisers where a FIRREA compliant appraisal must be used in connection with mortgage loans or other transactions involving federally regulated lending institutions, including mortgage bankers/brokers, The appraisal being prepared would comply with the requirements of FIRREA if it were being delivered for use by a federally regulated institution. This appraisal will be prepared in accordance with the Uniform Standards of Professional Appraisal Practice of The Appraisal Foundation, the Standards of Professional Practice and the Code of Ethics of the Appraisal Institute.

STANDARD ASSUMPTIONS AND LIMITING CONDITIONS: Our report will be subject to our standard Assumptions and Limiting Conditions, which will be incorporated into the appraisal. The appraisal report may also be subject to any Extraordinary Assumptions and Hypothetical Conditions.

CONSENT: We understand that you intend to include, in the tender offer/proxy solicitation materials referred to above, a copy of our appraisal report, a description of the report and a summary of the procedures we followed in preparing our report, and our basis for, and the

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Mr. Douglas Armstrong

ARV Assisted Living, Inc.

September 30, 2003

Page 3

methods we used in arriving at, the conclusions reflected in our report. We agree to assist in the preparation of such description and summary and consent to your inclusion in the tender officer/proxy solicitation material of a copy of the appraisal report and a description and summary reasonably acceptable to us. Furthermore, you agree to pay the reasonable fees of our legal counsel for the review of any such description and summary to be included in such material which is the subject of the requested consent.

In the event the Client provides a copy of this appraisal to, or permits reliance thereon by, any person or entity not authorized by C&W in writing to use or rely thereon, ARV hereby agrees to indemnify and hold C&W, its affiliates and their respective shareholders, directors, officers and employees, harmless from and against all damages, expenses, claims and costs, including reasonable attorneys’ fees, incurred in investigating and defending any claim arising from the use of, or reliance upon, the appraisal by any such unauthorized person or entity. ARV also hereby agrees to indemnify and hold C&W, its affiliates and their respective shareholders, directors, officers, and employees harmless from and against all damages, expenses, claims, costs, including reasonable attorneys’ fees, incurred in investigating and defending any claim arising from the reliance upon the appraisal by any limited partner of the Partnerships or in connection with the tender offer/proxy solicitation material described herein, Notwithstanding the foregoing, neither ARV nor any of its affiliates shall be required to indemnify or hold harmless C&W, its affiliates or any of their respective shareholders, directors, officers or employees for or against any losses, damages, expenses, claims or costs resulting from the gross negligence, willful misconduct or bad faith of C&W, its affiliates or any of their respective shareholders, directors, officers, or employees. This indemnification shall be binding on ARV, its successors and assigns.

If the Appraisal is referred to or included in any offering material or prospectus, (other than the proxy solicitation/tender offer material referred to above), the Appraisal shall be deemed referred to or included for informational purposes only and C&W, its employees and the Appraiser have no liability to such recipients. C&W disclaims any and all liability to any party other than the party which retained C&W to prepare the Appraisal.

INFORMATION NEEDED TO COMPLETE THE ASSIGNMENT: We understand that you will provide the following information for our review, If available.

• Plot Plan/Survey and Legal Description

• Building plans

• Original construction and site acquisition costs

• Cost of any major expansions, modifications or repairs incurred over the past three years/Capital Expense Budget

• Operating Statements for three previous years plus year-to-date

• Most recent real estate tax bill or statement

• Operating Budgets

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Mr. Douglas Armstrong

ARV Assisted Living, Inc.

September 30, 2003

Page 4

• Sales history of the subject property over the past three years at a minimum

• Rent roll

• On Site Contact Name and Phone #

When appropriate, we will include graphics such as maps, photographs and charts to assist in visualizing our findings. The final reports will be delivered electronically. We will provide hard copies upon request.

Fee and Schedule of Payment: The fee for this assignment shall be $57,500 in total (please see previous chart for individual fees), payable at the time of transmission of the report electronically or in three (3) bound copies. A retainer equal to fifty percent ($26,750) of the fee shall be paid when you return this engagement letter signed by you below authorizing the assignment to us. The balance of the fee will be due upon delivery of the report. Payment of the fee is not contingent on the appraised value, outcome of the consultation report, a loan closing, or any other prearranged condition.

Additional fees will be charged on an hourly basis for any work which exceeds the scope of this proposal, including performing additional valuation scenarios, additional research and conference calls or meetings with any party which exceed the time allotted for an assignment of this nature. If we are requested to stop working on this assignment, for any reason, prior to our completion of the appraisal, we will be entitled to bill you for the time put in to date at our hourly rates.

Response to Review: We agree to respond to your review of our report within five (5) business days of your communication to us. Correspondingly, you will have twenty-one (21) days from receipt of our report to communicate your review. We reserve the right to bill you for responding to your review beyond this time period.

Authorizing the Assignment and Report Delivery: We agree to complete the assignment within (21) days of receipt of your written authorization to proceed. You may authorize the assignment by signing this letter and returning it to us with the requested retainer.

Responding to Subpoena or Other Judicial Command to Produce Documents: If we receive a subpoena or other judicial command to produce documents or to provide testimony involving this assignment in connection with a lawsuit or proceeding, we will use reasonable efforts to notify you of our receipt of same. However, if we are not a party to these proceedings, you agree to reimburse us for the reasonable out-of-pocket expenses that we incur in responding to any subpoena or judicial command, including reasonable attorneys’ fees, if any, as they are incurred. We will be compensated at the then prevailing hourly rates of the personnel responding to the subpoena or command for testimony.

Limitation on Liability: By signing this agreement, except as may be prohibited by applicable law, Client expressly agrees that its sole and exclusive remedy for any and all losses or damages relating to this agreement shall be limited to the amount of the appraisal fee paid by the Client. In the event that the Client, or any other party entitled to do so, makes a claim against C&W or any of its affiliates or any of their respective officers or employees in connection with or in any way relating to this engagement or the appraisal, the maximum damages recoverable from C&W or any of its affiliates or their respective officers or employees shall be

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Mr, Douglas Armstrong
ARV Assisted Living, Inc,
September 30, 2003
Page 5

the amount of the monies actually collected by us for this assignment and under no circumstances shall any claim for consequential damages be made.

You acknowledge that any opinions and conclusions expressed by the Cushman & Wakefield professionals during this assignment are representations made as employees and not as individuals. C&W’s responsibility is limited to the client.

Thank you for calling on us to render these services and we look forward to working with you.

Sincerely.

VALUATION SERVICES ADVISORY GROUP

ASSUMPTIONS AND LIMITING CONDITIONS

“Appraisal” means the appraisal report and opinion of value stated therein, to which these Assumptions and Limiting Conditions are annexed.

“Property” means the subject of the Appraisal.

“C&W” means Cushman & Wakefield, Inc. or its subsidiary which issued the Appraisal.

“Appraiser” or “Appraisers” means the employee(s) of C&W who prepared and signed the Appraisal.

General Assumptions

This appraisal is made subject to the following assumptions and limiting conditions:

1.	No opinion is intended to be expressed and no responsibility is assumed for the legal description or for any matters which are legal in nature or require legal expertise or specialized knowledge beyond that of a real estate appraiser. Title to the Property is assumed to be good and marketable and the Property is assumed to be free and clear of all liens unless otherwise stated. No survey of the Property was undertaken.
2.	The information contained in the Appraisal or upon which the Appraisal is based has been gathered from sources the Appraiser assumes to be reliable and accurate. Some of such information may have been provided by the owner of the Property. Neither the Appraiser nor C&W shall be responsible for the accuracy or completeness of such information, including the correctness of opinions, dimensions, sketches, exhibits and factual matters.
3.	The opinion of value is only as of the date stated in the Appraisal. Changes since that date in external and market factors or in the Property itself can significantly affect property value.
4.	The Appraisal is to be used in whole and not in part. No part of the Appraisal shall be used in conjunction with any other appraisal. Publication of the Appraisal or any portion thereof without the prior written consent of C&W is prohibited. Except as may be otherwise stated in the letter of engagement, the Appraisal may not be used by any person other than the party to whom it is addressed or for purposes other than that for which it was prepared. No part of the Appraisal shall be conveyed to the public through advertising, or used in any sales or promotional material without C&W’s prior written consent. Reference to the Appraisal Institute or to the MAI designation is prohibited, except as it relates to the collaboration between C&W and the Appraisal Institute relative to the Real Estate Outlook publication.
5.	Except as may be otherwise stated in the letter of engagement, the Appraiser shall not be required to give testimony in any court or administrative proceeding relating to the Property or the Appraisal.
6.	The Appraisal assumes (a) responsible ownership and competent management of the Property; (b) there are no hidden or unapparent conditions of the Property, subsoil or Structures that render the Property more or less valuable (no responsibility is assumed for such conditions or for arranging for engineering studies that may be required to discover them); (c) full compliance with all applicable federal, state and local zoning and environmental regulations and laws, unless noncompliance is stated, defined and analyzed in the Appraisal; and (d) all required licenses, certificates of occupancy and other governmental consents have been or can be obtained and renewed for any use on which the value opinion contained in the Appraisal is based.
7.	The physical condition of the improvements analyzed within the Appraisal is based on visual inspection by the Appraiser or other person identified in the Appraisal. C&W assumes no

VALUATION ADVISORY SERVICES

ASSUMPTIONS AND LIMITING CONDITIONS

	responsibility for the soundness of structural members nor for the condition of mechanical equipment, plumbing or electrical components.
8.	The projected potential gross income referred to in the Appraisal may be based on lease summaries provided by the owner or third parties. The Appraiser has not reviewed lease documents and assumes no responsibility for the authenticity or completeness of lease information provided by others. C&W recommends that legal advice be obtained regarding the interpretation of lease provisions and the contractual rights of parties.
9.	The projections of income and expenses are not predictions of the future. Rather, they are the Appraiser’s opinion of current market thinking on future Income and expenses. The Appraiser and C&W make no warranty or representation that these projections will materialize. The real estate market is constantly fluctuating and changing, It is not the Appraiser’s task to predict or in any way warrant the conditions of a future real estate market; the Appraiser can only reflect what the investment community, as of the date of the Appraisal, envisages for the future In terms of rental rates, expenses, supply and demand.
10.	Unless otherwise stated in the Appraisal, the existence of potentially hazardous or toxic materials which may have been used in the construction or maintenance of the improvements or may be located at or about the Property was not analyzed in arriving at the opinion of value. These materials (such as formaldehyde foam Insulation, asbestos insulation and other potentially hazardous materials) may adversely affect the value of the Property. The Appraisers are not qualified to detect such substances. C&W recommends that an environmental expert be employed to determine the impact of these matters on the opinion of value.
11.	Unless otherwise stated in the Appraisal, compliance with the requirements of the Americans With Disabilities Act of 1990 (ADA) has not been analyzed in arriving at the opinion of value. Failure to comply with the requirements of the ADA may adversely affect the value of the property. C&W recommends that an expert in this field be employed.
12.	Additional work requested by the client beyond the scope of this assignment will be billed at our prevailing hourly rate, Preparation for court testimony, update valuations, additional research, depositions, travel or other proceedings will be billed at our prevailling hourly rate, plus reimbursement of expenses.
13.	The reader acknowledges that Cushman & Wakefield of California, Inc, has been retained hereunder as an independent contractor to perform the services described herein and nothing in this agreement shall be deemed to create any other relationship between us. This assignment shall be deemed concluded and the services hereunder completed upon delivery to you of the appraisal report discussed herein.
14.	This study has not been prepared for use in connection with litigation and this document is not suitable for use in a litigation action, Accordingly, no rights to expert testimony, pretrial or other conferences, deposition, or related services are Included with this appraisal. If, as a result of this undertaking, C&W or any of its principals, its appraisers or consultants are requested or required to provide any litigation services, such shall be subject to the provisions of the C&W engagement letter or, if not specified therein, subject to the reasonable availability of C&W and/or said principals or appraisers at the time and shall further be subject to the party or parties requesting or requiring such services paying the then-applicable professional fees and expenses of C&W either in accordance with the provisions of the engagement letter or arrangements at the time, as the case may be.

VALUATION ADVISORY SERVICES

LEGAL DESCRIPTION
EXHIBIT “A”

THAT PORTION OF LOT 2, SECTION 27, TOWNSHIP 2 NORTH, RANGE 21 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF CAMARILLO, COUNTY OF VENTURA, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT OF SAID LAND FILED JULY 10, 1873 IN THE DISTRICT LAND OFFICE, DESCRIBED AS FOLLOWS:

BEGINNING AT A POINT IN THE EASTERLY LINE OF LAS POSAS ROAD, 60 FEET WIDE, DISTANT ALONG SAID EASTERLY LINE NORTH 0° 13’ 35” WEST 666.12 FEET FROM THE NORTHWESTERLY CORNER OF LAS POSAS PARK, ACCORDING TO THE MAP RECORDED IN BOOK 24 PAGE 10 OF MAPS, AT THE NORTHWESTERLY CORNER OF THE LAND DESCRIBED IN THE DEED TO PLEASANT VALLEY SCHOOL DISTRICT RECORDED AUGUST 29, 1958 IN BOOK 1649 PAGE 522, OFFICIAL RECORDS, THENCE, CONTINUING ALONG SAID EASTERLY LINE,

1^ST: NORTH 0° 13’ 35” WEST 364.30 FEET TO THE SOUTHWESTERLY CORNER OF THE LAND DESCRIBED IN THE DEED TO VILLAGE WATER COMPANY, RECORDED DECEMBER 18, 1961 IN BOOK 2085 PAGE 172, OFFICIAL RECORDS, THENCE ALONG THE BOUNDARY OF SAID LAST MENTIONED LAND BY THE FOLLOWING TWO COURSES,

2^ND: NORTH 89° 46’ 25” EAST 50 FEET TO THE SOUTHEASTERLY CORNER THEREOF THENCE,

3^RD: NORTH 0° 13’ 35” WEST 64.25 FEET TO THE NORTHERLY LINE OF SAID LOT 2; THENCE, ALONG SAID NORTHERLY LINE,

4^TH: NORTH 73° 52’ EAST 532.39 FEET, MORE OR LESS TO A POINT ON THE NORTH LINE OF SAID LOT 2, WHICH IS NORTH 73° 52’ EAST 584.38 FEET MEASURED ALONG SAID NORTH LINE FROM THE EAST LINE OF LAS POSAS ROAD, ALSO BEING THE NORTHWEST CORNER OF SAID LAND DESCRIBED IN DEED TO UNITED STATES OF AMERICA, RECORDED APRIL 30, 1958 IN BOOK 1612 PAGE 22 OF OFFICIAL RECORDS, THENCE, ALONG THE WESTERLY LINE OF LAND DESCRIBED IN SAID DEED,

5^TH: SOUTH 0° 13’ 35” EAST 271.12 FEET, MORE OR LESS, TO THE NORTHEASTERLY CORNER OF SAID LAND OF PLEASANT VALLEY SCHOOL DISTRICT, THENCE,

6^TH: SOUTH 89° 46’ 25” WEST 241.50 FEET TO AN ANGLE POINT, THENCE,

7^TH: SOUTH 46° 20’ 57” WEST 441.26 FEET TO THE POINT OF BEGINNING.

EXCEPT ALL THE OIL, GAS, MINERALS AND OTHER HYDROCARBON SUBSTANCES IN, ON, OR UNDER SAID LAND BUT WITHOUT THE RIGHT, HOWEVER, OF SURFACE ENTRY AND WITHOUT THE RIGHT OF ENTRY IN AND TO THE SUBSURFACE THEREOF AT A DEPTH OF LESS THAN 500 FEET BENEATH THE SURFACE.

ADDENDUM B: Demographics

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		2000					2002					2007
Population by Age		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Population			67,498					68,780					71,955
	Age 45-54		9,039		13.39	%		9,515		13.83	%		10,443		14.51	%
	Age 55 - 59		3,403		5.04	%		3,777		5.49	%		4,499		6.25	%
	Age 60 - 64		2,649		3.92	%		2,795		4.06	%		3,502		4.87	%
	Age 65 - 69		2,409		3.57	%		2,412		3.51	%		2,718		3.78	%
	Age 70 - 74		2,215		3.28	%		2,153		3.13	%		2,115		2.94	%
	Age 75 - 79		2,323		3.44	%		2,295		3.34	%		2,246		3.12	%
	Age 80 - 84		1,800		2.67	%		1,920		2.79	%		1,986		2.76	%
	Age 85 and over		1,429		2.12	%		1,530		2.23	%		1,710		2.38	%
Age 55 and over			16,228		24.04	%		16,881		24.54	%		18,777		26.10	%
Age 65 and over			10,176		15.08	%		10,309		14.99	%		10,777		14.98	%
Total Population, Male			33,082					33,716					35,268
	Age 45 - 54		4,424		13.37	%		4,645		13.78	%		5,107		14.48	%
	Age 55 - 59		1,672		5.05	%		1,861		5.52	%		2,203		6.25	%
	Age 60 - 64		1,247		3.77	%		1,319		3.91	%		1,652		4.68	%
	Age 65 - 69		1,136		3.43	%		1,138		3.37	%		1,282		3.63	%
	Age 70 - 74		953		2.88	%		930		2.76	%		921		2.61	%
	Age 75 - 79		937		2.83	%		927		2.75	%		913		2.59	%
	Age 80 - 84		721		2.18	%		764		2.27	%		794		2.25	%
	Age 85 and over		482		1.46	%		506		1.50	%		567		1.61	%
Age 55 and over			7,147		21.60	%		7,444		22.08	%		8,331		23.62	%
Age 65 and over			4,229		12.78	%		4,264		12.65	%		4,477		12.69	%
Total Population, female			34,416					35,064					36,688
	Age 45 - 54		4,615		13.41	%		4,871		13.89	%		5,337		14.55	%
	Age 55 - 59		1,731		5.03	%		1,916		5.46	%		2,296		6.26	%
	Age 60 - 64		1,402		4.07	%		1,476		4.21	%		1,850		5.04	%
	Age 65 - 69		1,273		3.70	%		1,274		3.63	%		1,437		3.92	%
	Age 70 - 74		1,262		3.67	%		1,223		3.49	%		1,194		3.26	%
	Age 75 - 79		1,386		4.03	%		1,368		3.90	%		1,333		3.63	%
	Age 80 - 84		1,079		3.13	%		1,155		3.30	%		1,193		3.25	%
	Age 85 and over		947		2.75	%		1,025		2.92	%		1,143		3.12	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 1 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		2000					2002					2007
Population by Age		Census		Pct.			Estimate		Pct.			Projection		Pct.
	Age 55 and Over		9,081		26.38	%		9,437		26.91	%		10,446		28.47	%
	Age 65 and over		5,947		17.28	%		6,046		17.24	%		1,724		17.17	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 2 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		2000					2002					2007
Population by Single Race Classification		Census		Pct.			Estimate		Pct.			Projection		Pct.
White Alone			51,793					52,262					53,416
	Age 65 and over		9,195		17.75	%		9,292		17.78	%		9,6l5		18.00	%
Black or African American Alone			1,127					1,154					1,222
	Age 65 and over		61		5.42	%		65		5.63	%		75		6.10	%
American Indian and Alaska Native Alone			473					508					596
	Age 65 and over		28		5.99	%		28		5.55	%		34		5.73	%
Asian Alone			4,282					4,518					5,064
	Age 65 and over		495		11.57	%		506		11.21	%		575		11.35	%
Native Hawaiian and Other Pacific Islander Alone			135					140					149
	Age 65 and over		9		6.99	%		9		6.77	%		10		7.04	%
Some Other Race Alone			7,269					7,671					8,595
	Age 65 and over		273		3.76	%		293		3.82	%		339		3.94	%
Two or More Races			2,419					2,527					2,914
	Age 65 and over		114		4.69	%		116		4.57	%		129		4.42	%

		2000					2002					2007
Population by Hispanic or Latino		Census		Pct.			Estimate		Pct.			Projection		Pct.
Hispanic or Latino			15,582					16,463					18,594
	Age 65 and over		776		4.98	%		803		4.88	%		887		4.77	%
Not Hispanic or Latino			51,916					52,317					53,362
	Age 65 and over		9,400		18.11	%		9,507		18.17	%		9,890		18.53	%

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 55 - 64			2,843					3,677					4,508
	Income less than $15,000		229		8.06	%		205		5.58	%		203		4.50	%
	Income $15,000 - $24,999		190		6.70	%		167		4.55	%		181		4.02	%
	Income $25,000 - $34,999		325		11.42	%		277		7.53	%		240		5.33	%
	Income $35,000 - $49,999		520		18.30	%		452		12.28	%		548		12.16	%
	Income $50,000 - $74,999		733		25.77	%		732		19.92	%		785		17.40	%
	Income $75,000 - $99,999		475		16.71	%		569		15.48	%		674		14.95	%
	Income $100,000 - $149,999		320		11.26	%		752		20.45	%		905		20.08	%
	Income $150,000 - $249,999		88		3.09	%		372		10.11	%		634		14.06	%
	Income $250,000 - $499,999		30		1.04	%		113		3.07	%		256		5.67	%
	Income $500,000 and more		6		0.23	%		39		1.05	%		83		1.83	%
Median Household Income			56,583					75,241					86,035

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 3 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 4 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 65 - 69			1,488					1,465					1,661
	Income less than $15,000		251		16.88	%		168		11.50	%		154		9.29	%
	Income $15,000 - $24,999		246		16.51	%		139		9.49	%		135		8.11	%
	Income $25,000 - $34,999		278		18.70	%		164		11.21	%		155		9.31	%
	Income $35,000 - $49,999		291		19.57	%		273		18.66	%		280		16.84	%
	Income $50,000 - $74,999		238		16.01	%		313		21.38	%		335		20.19	%
	Income $75,000 - $99,999		110		7.36	%		158		10.80	%		224		13.51	%
	Income $100,000 - $149,999		86		5.77	%		145		9.91	%		195		11.73	%
	Income $150,000 - $249,999		31		2.05	%		70		4.81	%		119		7.14	%
	Income $250,000 - $499,999		8		0.54	%		22		1.49	%		48		2.89	%
	Income $500,000 and more		2		0.14	%		11		0.75	%		17		1.00	%
Median Household Income			34,785					49,288					57,961
Householder Age 70 - 74			1,373					1,313					1,298
	Income less than $15,000		247		18.02	%		144		10.97	%		107		8.26	%
	Income $15,000 - $24,999		279		20.31	%		122		9.30	%		103		7.94	%
	Income $25,000 - $34,999		288		20.97	%		137		10.47	%		116		8.94	%
	Income $35,000 - $49,999		279		20.32	%		243		18.50	%		212		16.37	%
	Income $50,000 - $74,999		235		17.09	%		279		21.24	%		266		20.50	%
	Income $75,000 - $99,999		108		7.89	%		146		11.12	%		180		13.86	%
	Income $100,000 - $149,999		69		4.99	%		138		10.52	%		159		12.22	%
	Income $150,000 - $249,999		24		1.73	%		74		5.65	%		99		7.64	%
	Income $250,000 - $499,999		8		0.59	%		20		1.52	%		41		3.20	%
	Income $500,000 and more		1		0.07	%		9		0.70	%		14		1.09	%
Median Household Income			33,403					50,851					60,385
Householder Age 75 - 79			1,250					1,506					1,494
	Income less than $15,000		341		27.26	%		154		10.26	%		108		7.26	%
	Income $15,000 - $24,999		226		18.09	%		249		16.54	%		197		13.17	%
	Income $25,000 - $34,999		207		16.54	%		210		13.96	%		200		13.37	%
	Income $35,000 - $49,999		215		17.19	%		243		16.16	%		244		16.30	%
	Income $50,000 - $74,999		156		12.51	%		296		19.65	%		269		18.03	%
	Income $75,000 - $99,999		52		4.16	%		151		10.02	%		185		12.40	%
	Income $100,000 - $149,999		42		3.33	%		104		6.90	%		145		9.69	%
	Income $150,000 - $249,999		8		0.67	%		82		5.47	%		100		6.66	%
	Income $250,000 - $499,999		1		0.08	%		10		0.69	%		37		2.47	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 5 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
	Income $500,000 and more		2		0.16	%		6		0.37	%		10		0.64	%
Median Household Income			27,754					43,514					49,846

Prepared on: October 15, 2003     01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 6 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 80 - 84			661					1,263					1,334
	Income less then $15,000		195		29.54	%		132		10.48	%		98		7.34	%
	Income $15,000 - $24,999		124		18.69	%		216		17.14	%		184		13.79	%
	Income $25,000 - $34,999		115		17.39	%		167		13.21	%		161		12.06	%
	Income $35,000 - $49,999		106		16.02	%		206		16.27	%		215		16.09	%
	Income $50,000 - $74,999		86		13.06	%		247		19.56	%		249		18.69	%
	Income $75,000 - $99,999		30		4.50	%		126		10.01	%		167		12.48	%
	Income $100,000 - $149,999		22		3.28	%		96		7.60	%		140		10.51	%
	Income $150,000 - $249,999		4		0.67	%		50		3.99	%		79		5.89	%
	Income $250,000 - $499,999		0		0.00	%		17		1.35	%		33		2.46	%
	Income $500,000 and more		2		0.30	%		5		0.40	%		9		0.67	%
Median Household Income			26,913					43,483					51,050
Householder Age 85 and over			339					967					1,107
	Income less than $15,000		111		32.69	%		99		10.25	%		71		6.38	%
	Income $15,000 - $24,999		50		14.80	%		196		20.26	%		189		17.06	%
	Income $25,000 - $34,999		55		16.10	%		127		13.18	%		138		12.47	%
	Income $35,000 - $49,999		46		13.65	%		131		13.52	%		158		14.24	%
	Income $50,000 - $74,999		30		8.95	%		198		20.50	%		197		17.83	%
	Income $75,000 - $99,999		8		2.40	%		86		8.84	%		136		12.30	%
	Income $100,000 - $149,999		11		3.15	%		76		7.84	%		112		10.10	%
	Income $150,000 - $249,999		2		0.61	%		44		4.56	%		74		6.69	%
	Income $250,000 - $499,999		0		0.00	%		4		0.45	%		24		2.20	%
	Income $500,000 and more		1		0.30	%		6		0.62	%		8		0.72	%
Median Household Income			24,020					41,927					49,810

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 7 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Households by Household Income		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Households			20,704					24,387					25,978
	Income less than $15,000		2,078		10.03	%		1,396		5.73	%		1,137		4.38	%
	Income $15,000 - $24,999		2,349		11.35	%		1,818		7.45	%		1,618		6.23	%
	Income $25,000 - $34,999		2,867		13.85	%		2,285		9.37	%		1,987		7.65	%
	Income $35,000 - $49,999		3,955		19.10	%		3,419		14.02	%		3,531		13.59	%
	Income $50,000 - $74,999		5,017		24.23	%		4,865		19.95	%		4,577		17.62	%
	Income $75,000 - $99,999		2,569		12.41	%		3,736		15.32	%		3,890		14.97	%
	Income $100,000 - $149,999		1,649		7.96	%		4,135		16.96	%		4,600		17.71	%
	Income $150,000 - $249,999		437		2.11	%		1,988		8.15	%		3,053		11.75	%
	Income $250,000 - $499,999		163		0.79	%		528		2.17	%		1,185		4.56	%
	Income $500,000 and more		62		0.30	%		217		0.89	%		400		1.54	%
Average Household Income		$	58,166				$	90,169				$	104,581
Median Household Income		$	47,431				$	66,835				$	75,890
Per Capita Income		$	19,000				$	33,480				$	39,864

		1990*					2002					2007
Specified Owner-Occupied Housing Unit Values		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Specified Owner-Occupied Housing Unit Values			12,590					14,803					15,699
	Value less than $25,000		14		0.11	%		10		0.07	%		10		0.06	%
	Value $25,000 - $49,999		33		0.26	%		28		0.19	%		25		0.16	%
	Value $50,000 - $74,999		41		0.33	%		28		0.19	%		29		0.19	%
	Value $75,000 - $99,999		74		0.59	%		41		0.28	%		36		0.23	%
	Value $100,000- $149,999		498		3.96	%		189		1.27	%		143		0.91	%
	Value $150,000 - $199,999		1,663		13.21	%		408		2.76	%		313		1.99	%
	Value $200,000 - $299,999		6,556		52.08	%		3,616		24.43	%		2,330		14.84	%
	Value $300,000 - $399,999		2,350		18.67	%		5,267		35.58	%		4,480		28.54	%
	Value $400,000 - $499,999		543		4.31	%		2,613		17.65	%		3,636		23.16	%
	Value $500,000 Or More		819		6.50	%		2,602		17.58	%		4,697		29.92	%
Median Specified Owner-Occupied Housing Unit Value			260,607					358,523					413,311

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 8 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

			2000					2002					2007
Group Quarters by Population Type			Census		Pct.			Estimate		Pct.			Projection		Pct.
Institutionalized:				890					891					894
	Correctional Institutions			660		74.14	%		661		74.16	%		664		71.24	%
	Nursing Homes			230		25.84	%		230		25.82	%		230		25.74	%
	Other Institutions			0		0.02	%		0		0.02	%		0		0.02	%
Noninstitutionalized				503					505					507
			2000					2002					2007
Tenure of Occupied Housing Units			Census					Estimate					Projection
Owner Occupied				17,030					17,472					18,543
Renter Occupied				6,701					6,915					7,435
			Pop 65
1990* Census Household Type and Relationship			and Over		Pct.
Total				9,205
In Family Households				6,987		75.90	%
	Householder			3,495		37.97	%
	Spouse			2,812		30.54	%
	Other relative			645		7.01	%
	Non-Relative			35		0.38	%
In Group Quarters				328		3.56	%
	Institutionalized			324		3.52	%
	Other			3		0.03	%
In Non-Family Households				1,891		20.54	%
	Male Householder			374		4.07	%
		Living Alone		366		3.98	%
		Not Living Alone		8		0.09	%
	Female Householder			1,459		15.85	%
		Living Alone		1,404		15.25	%
		Not Living Alone		55		0.60	%
	Non-Relative			58		0.62	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 9 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Household Income - Monthly Owner								65 Yrs
Costs is a Percent of 1989 Household Income		Total Units		Pct.				and Over		Pct.
Total Specified Owner-Occupied Housing Units			12,749						3,488
	Less than 20%		5,975		4.687	%			2,389		68.50	%
	20 to 24%		1,522		11.94	%			302		8.66	%
	25 to 29%		1,450		11.38	%			158		4.53	%
	30 to 34%		1,093		8.57	%			116		3.32	%
	35% or more		2,676		20.99	%			507		14.54	%
	Not Computed		32		0.25	%			16		0.45	%
1990* Census Household Income								65 Yrs
Gross Rent as a Percent of 1989 Household Income		Total Units		Pct.				and Over		Pct.
Total Specified Owner-Occupied Housing Units			6,096						719
	Less than 20%		1,400		22.97	%			115		16.00	%
	20 to 24%		800		13.13	%			23		3.23	%
	25 to 29%		802		13.16	%			84		11.62	%
	30 to 34%		732		12.01	%			88		12.30	%
	35% or more		1,998		32.78	%			341		47.41	%
	Not Computed		363		5.96	%			68		9.44	%
							65 Yrs
1990* Census Occupied Housing Units		Total Units		Pct.				and Over		Pct.
Owner Occupied Units			14,540		70.08	%			4,502		85.64	%
Renter Occupied Units			6,208		29.92	%			755		14.36	%
Complete Plumbing Facilities			20,686		99.70	%			5,255		99.96	%
Lacking Plumbing Facilities			62		0.30	%			0		0.00	%
With Telephone			20,519		98.89	%			5,237		99.62	%
No Telephone			227		1.09	%			22		0.42	%
One or more Vehicles			20,082		96.79	%			4,877		92.77	%
No Vehicles Available			666		3.21	%			379		7.22	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 10 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Poverty Status													75 Yrs
By Household Type By Age of Householder			Total		Pct.			Age 65 - 74		Pct.			and Over		Pct.
Total Households				21,147					3,079					2,245
Married Couple Family				14,222		67.25	%		2,042		66.33	%		1,173		52.25	%
Other Family				2,116		10.00	%		161		5.23	%		115		5.12	%
	Male Householder			639		3.02	%		8		0.26	%		22		0.98	%
	Female Householder			1,476		6.98	%		153		4.97	%		93		4.14	%
Non-Family				4,809		22.74	%		876		28.45	%		957		42.62	%
	Householder Living Alone			3,720		17.59	%		851		27.63	%		921		41.02	%
	Householder not Living Alone			1,090		5.15	%		25		0.82	%		36		1.60	%
Above Poverty				20,197		95.51	%		2,964		96.24	%		2,125		94.68	%
	Married Couple Family			13,895		65.71	%		1,994		64.74	%		1,140		50.78	%
	Other Family			1,868		8.83	%		161		5.23	%		107		4.77	%
		Male Householder		618		2.92	%		8		0.26	%		22		0.98	%
		Female Householder		1,250		5.91	%		153		4.97	%		85		3.79	%
	Non-Family			4,434		20.97	%		809		26.27	%		879		39.14	%
		Householder Living Alone		3,433		16.24	%		786		25.54	%		843		37.54	%
		Householder not Living Alone		1,000		4.73	%		23		0.73	%		36		1.60	%
Below Poverty				950		4.49	%		116		3.76	%		119		5.32	%
	Married Couple Family			327		1.55	%		49		1.59	%		33		1.48	%
	Other Family			247		1.17	%		0		0.00	%		8		0.35	%
		Male Householder		21		0.10	%		0		0.00	%		0		0.00	%
		Female Householder		226		1.07	%		0		0.00	%		8		10.18	%
	Non-Family			376		1.78	%		67		2.18	%		78		3.49	%
		Householder Living Alone		286		1.35	%		64		2.09	%		78		3.48	%
		Householder not Living Alone		90		0.42	%		3		0.09	%		0		0.01	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 11 of 36

Senior Life Report
Area(s): Radius 5.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Mobility and Disability								65 Yrs					75 Yrs
Civilian Noninstitutionalized Persons Ace 16 and Over			Total		Pct.			and Over		Pct.			and Over		Pct.
Persons				46,439					8,543					3,395
With Mblty or Care Lmts				2,241		4.82	%		1,142		13.37	%		630		l8.56	%
	Mobility Limits Only			827		1.78	%		429		5.02	%		269		7.92	%
	Self Care Limit: Only			649		1.40	%		176		2.06	%		29		0.85	%
	Both Limits			764		1.64	%		536		6.28	%		333		9.79	%
No Mblty or Care Limits				44,199		95.18	%		7,401		86.63	%		2,765		8l.44	%
With a Work Disability				4,843		10.43	%		2,357		27.58	%
	In Labor Force			1,394		3.00	%		172		2.01	%
		Employed		1,301		2.80	%		158		1.85	%
		Unemployed		93		0.20	%		14		0.16	%
	Not in Labor Force			3,449		7.43	%		2,l85		25.57	%
		Prevented from Working		2,786		6.00	%		1,822		21.33	%
		Not Prevented from Wrk		663		1.43	%		363		4.24	%
No Work Disability				41,597		89.57	%		6,189		72.45	%
	In Labor Force			29,907		64.40	%		1,054		12.34	%
		Employed		28,626		61.64	%		1,009		11.81	%
		Unemployed		1,281		2.76	%		45		0.53	%
Not in Labor Force				11,690		25.17	%		5,135		60.11	%

* Census 2000 SF3 (long form) data is not yet available. Data Items resented 1990 Census figures converted to Census 2000 geographies.

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 12 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		2000					2002					2007
Population by Age		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Population			185,873					191,108					203,885
	Age 45 - 54		22,222		11.96	%		23,652		12.38	%		26,573		13.03	%
	Age 55 -59		7,753		4.17	%		8,701		4.55	%		10,607		5.20	%
	Age 60 - 64		6,191		3.33	%		6,621		3.46	%		8,458		4.15	%
	Age 65 - 69		5,517		2.97	%		5,600		2.93	%		6,416		3.15	%
	Age 70 - 74		5,020		2.70	%		4.956		2.59	%		4,935		2.42	%
	Age 75 - 79		4,769		2.57	%		4,751		2.49	%		4,739		2.32	%
	Age 80 - 84		3,308		1.78	%		3,552		1.86	%		3,741		1.84	%
	Age 85 and over		2,597		1.40	%		2,807		1.47	%		3,195		1.57	%
Age 55 and over			35,155		18.91	%		36,988		19.35	%		42,092		20.64	%
Age 65 and over			21,211		11.41	%		21,666		11.34	%		23,027		11.29	%
Total Population, Male			93,324					95,931					102,363
	Age 45 - 54		11,059		11.85	%		11,777		12,28	%		13,240		12.93	%
	Age 55 - 59		3,761		4.03	%		4,249		4.43	%		5,151		5.03	%
	Age 60 - 64		2,955		3.17	%		3,150		3.28	%		4,036		3.94	%
	Age 65 - 69		2,547		2.73	%		2,585		2.69	%		2,964		2.90	%
	Age 70 - 74		2,185		2.34	%		2,170		2.26	%		2,161		2.11	%
	Age 75 - 79		1,959		2.10	%		1,949		2.03	%		1,955		1.91	%
	Age 80 - 84		1,319		1.41	%		1,402		1.46	%		1,477		1.44	%
	Age 85 and over		911		0.98	%		969		1.01	%		1,096		1.07	%
Age 55 and over			15,637		16.76	%		16,474		17.17	%		18,839		18.40	%
Age 65 and over			8,921		9.56	%		9,074		9.46	%		9,653		9.43	%
Total Population, Female			92,550					95,176					101,523
	Age 45 - 54		11,163		12.06	%		11,875		12.46	%		13,333		13.13	%
	Age 55 - 59		3,992		4.31	%		4,452		4.68	%		5,456		5.37	%
	Age 60 -64		3,236		3.50	%		3,471		3.65	%		4,423		4.36	%
	Age 65 - 69		2,970		3.21	%		3,015		3.17	%		3,453		3.40	%
	Age 70 - 74		2,835		3.06	%		2,786		2.93	%		2,774		2.73	%
	Age 75 -79		2,811		3.04	%		2,802		2.94	%		2,784		2.74	%
	Age 80 - 84		1,989		2.15	%		2,150		2.26	%		2,265		2.23	%
	Age 85 and over		1,636		1.82	%		1,839		1.93	%		2,099		2.07	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 13 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

	2002					2002					2007
Population by Age	Census		Pct.			Estimate		Pct.			Projection		Pct.
Age 55 and over		19,518		21.09	%		20,515		21.55	%		23,252		22.90	%
Age 65 and over		12,290		13.28	%		12,592		13.23	%		1,323		13.17	%

Prepared on: October 15, 2003      01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 14 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		2000					2002					2007
Population by Single Race Classification		Census		Pct.			Estimate		Pct.			Projection		Pct.
White Alone			108,167					108,730					110,379
	Age 65 and over		17,077		15.74	%		17,315		15.92	%		17,933		16.25	%
Black or African American Alone			4,426					4,464					4,603
	Aga 65 and over		337		7.62	%		344		7.71	%		379		8.24	%
American Indian and Alaska Native Alone			1,994					2,194					2,651
	Age 65 and over		125		6.28	%		137		6.25	%		168		6.33	%
Asian Alone			11,628					12,146					13,266
	Age 65 and over		1,339		11.51	%		1,381		11.37	%		1,544		11.64	%
Native Hawaiian and Other Pacific Islander Alone			515					524					556
	Age 65 and over		29		5.61	%		29		5.52	%		32		5.69	%
Some Other Race Alone			51,018					54,895					63,230
	Age 65 and over		1,908		3.74	%		2,041		3.72	%		2,496		3.95	%
Two or More Races			7,826					8,155					9,200
	Age 65 and over		396		5.06	%		419		5.14	%		476		5.18	%
		2000					2002					2007
Population by Hispanic or Latino		Census		Pct.			Estimate		Pct.			Projection		Pct.
Hispanic or Latino			88,051					93,211					105,132
	Age 65 and over		4,366		4.96	%		4,589		4.92	%		5,465		5.20	%
Not Hispanic or Latino			97,822					97,897					98,754
	Age 65 and over		16,845		17.22	%		17,077		17.44	%		17,562		17.78	%
		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 55 - 64			6,744					8,162					10,036
	Income less than $15,000		732		10.86	%		477		5.85	%		455		4.53	%
	Income $15,000 - $24,999		688		10.20	%		545		6.67	%		591		5.88	%
	Income $25,000 - $34,999		945		14.01	%		640		7.84	%		726		7.24	%
	Income $35,000 - $49,999		1,247		18.49	%		1,101		13.49	%		1,279		12.74	%
	Income $50,000 - $74,999		1,762		26.13	%		1,642		20.12	%		1,839		18.32	%
	Income $75,000 - $99,999		820		12.15	%		1,324		16.22	%		1,508		15.03	%
	Income $100,000 - $149,999		481		7.13	%		1,519		18.62	%		1,935		19.28	%
	Income $150,000 - $249,999		135		2.01	%		673		8.25	%		1,139		11.34	%
	Income $250,000 - $499,999		43		0.64	%		166		2.03	%		426		4.24	%
	Income $500,000 and more		28		0.41	%		74		0.91	%		139		1.39	%
Median Household Income			47,925					70,062					77,137

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 15 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 16 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 65 - 69			3,403					3,215					3,643
	Income less than $15,000		748		21.98	%		399		12.40	%		348		9.54	%
	Income $15,000 - $24,999		708		20.81	%		381		11.86	%		384		10.54	%
	Income $25,000 - $34,999		554		16.27	%		471		14.64	%		467		12.82	%
	Income $35,000 - $49,999		607		17.85	%		564		17.53	%		633		17.36	%
	Income $50,000 - $74,999		439		12.90	%		644		20.04	%		708		19.42	%
	Income $75,000 - $99,999		181		5.33	%		331		10.30	%		447		12.27	%
	Income $100,000 - $149,999		123		3.60	%		252		7.85	%		362		9.95	%
	Income $150,000 - $249,999		42		1.22	%		124		3.85	%		191		5.23	%
	Income $250,000 - $499,999		10		0.28	%		36		1.10	%		80		2.19	%
	Income $500,000 and more		3		0.08	%		14		0.43	%		24		0.66	%
Median Household Income			29,504					44,481					49,739
Householder Age 70 - 74			2,839					2,868					2,828
	Income less than $15,000		672		23.66	%		348		12.14	%		263		9.29	%
	Income $15,000 - $24,999		665		23.43	%		316		11.00	%		274		9.70	%
	Income $25,000 - $34,999		522		18.37	%		392		13.65	%		344		12.18	%
	Income $35,000 - $49,999		564		19.88	%		511		17.81	%		485		17.15	%
	Income $50,000 - $74,999		403		14.18	%		590		20.57	%		571		20.21	%
	Income $75,000 - $99,999		172		6.07	%		304		10.60	%		356		12.58	%
	Income $100,000 - $149,999		97		3.43	%		243		8.48	%		297		10.50	%
	Income $150,000 - $249,999		29		1.01	%		122		4.26	%		155		5.48	%
	Income $250,000 - $499,999		11		0.37	%		28		0.97	%		61		2.17	%
	Income $500,000 and more		2		0.08	%		15		0.54	%		22		0.76	%
Median Household Income			29,416					46,096					52,076
Householder Age 75 - 79			2,407					3,002					2,977
	Income less than $15,000		810		33.66	%		426		14.20	%		322		10.80	%
	Income $15,000 - $24,999		445		18.51	%		517		17.23	%		421		14.14	%
	Income $25,000 - $34,999		386		16.05	%		448		14.93	%		438		14.70	%
	Income $35,000 - $49,999		356		14.79	%		482		16.07	%		489		16.41	%
	Income $50,000 - $74,999		225		9.33	%		572		19.06	%		537		18.05	%
	Income $75,000 - $99,999		74		3.07	%		253		8.42	%		338		11.34	%
	Income $100,000 - $149,999		63		2.61	%		158		5.26	%		230		7.74	%
	Income $150,000 - $249,999		12		0.50	%		124		4.14	%		138		4.64	%
	Income $250,000 - $499,999		1		0.04	%		15		0.50	%		54		1.81	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 17 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
	Income $500,000 and more		2		0.08	%		6		0.20	%		11		0.36	%
Median Household Income			23,430					38,370					44,448

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 18 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Household Income by Age of Householder		Census		Pct.			Estimate		Pct.			Projection		Pct.
Householder Age 80 - 84			1,374					2,258					2,385
	Income less than $15,000		510		37.10	%		307		13.60	%		240		10.06	%
	Income $15,000 - $24,999		266		19.37	%		388		17.19	%		338		14.16	%
	Income $25,000 - $34,999		228		16.59	%		321		14.20	%		325		13.61	%
	Income $35,000 - $49,999		195		14.21	%		377		16.68	%		396		16.61	%
	Income $50,000 - $74,999		124		9.04	%		436		19.31	%		445		18.66	%
	Income $75,000 - $99,999		42		3.08	%		200		8.85	%		280		11.74	%
	Income $100,000 - $149,999		33		2.41	%		136		6.04	%		207		8.68	%
	Income $150,000 - $249,999		5		0.36	%		71		3.15	%		105		4.39	%
	Income $250,000 - $499,999		0		0.00	%		17		0.75	%		41		1.72	%
	Income $500,000 and more		2		0.15	%		5		0.22	%		9		0.38	%
Median Household Income			22,247					39,496					45,976
Householder Age 85 and over			763					1,692					1,935
	Income less than $15,000		301		39.45	%		240		14.21	%		192		9.90	%
	Income $15,000 - $24,999		126		16.56	%		326		19.28	%		310		16.00	%
	Income $25,000 - $34,999		103		13.47	%		222		13.13	%		261		13.48	%
	Income $35,000 - $49,999		102		13.36	%		242		14.28	%		281		14.55	%
	Income $50,000 - $74,999		50		6.55	%		329		19.43	%		342		17.67	%
	Income $75,000 - $99,999		15		2.02	%		139		8.20	%		223		11.53	%
	Income $100,000 - $149,999		19		2.49	%		110		6.49	%		169		8.73	%
	Income $150,000 - $249,999		3		0.35	%		73		4.29	%		111		5.73	%
	Income $250,000 - $499,999		0		0.00	%		6		0.33	%		39		2.00	%
	Income $500,000 and more		1		0.13	%		6		0.35	%		8		0.41	%
Median Household Income			19,567					38,471					45,904

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 19 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

		1990*					2002					2007
Households by Household Income		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Households			49,210					57,195					60,889
	Income less than $15,000		6,642		13.50	%		3,944		6.90	%		3,253		5.34	%
	Income $15,000 - $24,999		6,723		13.66	%		5,032		8.80	%		4,536		7.45	%
	Income $25,000 - $34,999		7,337		14.91	%		5,837		10.21	%		5,694		9.35	%
	Income $35,000 - $49,999		9,518		19.34	%		8,312		14.53	%		8,539		14.02	%
	Income $50,000 - $74,999		11,375		23.11	%		12,235		21.39	%		11,707		19.23	%
	Income $75,000 - $99,999		4,624		9.40	%		8,840		15.46	%		9,199		15.11	%
	Income $100,000 - $149,999		2,552		5.19	%		8,424		14.73	%		10,053		16.51	%
	Income $150,000 - $249,999		655		1.33	%		3,514		6.14	%		5,450		8.95	%
	Income $250,000 - $499,999		227		0.46	%		752		1.31	%		1,899		3.12	%
	Income $500,000 and more		98		0.20	%		307		0.54	%		560		0.92	%
Average Household Income		$	49,760				$	77,609				$	90,052
Median Household Income		$	41,576				$	61,181				$	67,985
Per Capita Income		$	15,094				$	23,616				$	27,383
		1990*					2002					2007
Specified Owner-Occupied Housing Unit Values		Census		Pct.			Estimate		Pct.			Projection		Pct.
Total Specified Owner-Occupied Housing Unit Values			25,302					30,197					32,113
	Value less than $25,000		76		0.30	%		120		0.40	%		118		0.37	%
	Value $25,000 - $49,999		82		0.33	%		115		0.38	%		107		0.33	%
	Value $50,000 - $74,999		170		0.67	%		69		0.23	%		78		0.24	%
	Value $75,000 - $99,999		348		1.37	%		207		0.69	%		162		0.51	%
	Value $100,000- $149,999		1,448		5.72	%		774		2.56	%		682		2.12	%
	Value $150,000 - $199,999		5,436		21.49	%		1,238		4.10	%		1,024		3.19	%
	Value $200,000 - $299,999		12,504		49.42	%		9,308		30.83	%		6,618		20.61	%
	Value $300,000 - $399,999		3,341		13.20	%		10,180		33.71	%		9,604		29.91	%
	Value $400,000 - $499,999		722		2.85	%		4,262		14.11	%		6,651		20.71	%
	Value $500,000 Or More		1,175		4.65	%		3,923		12.99	%		7,068		22.01	%
Median Specified Owner-Occupied Housing Unit Value			240,719					332,112					375,669

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 20 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

			2000					2002					2007
Group Quarters by Population Type			Census		Pct.			Estimate		Pct.			Projection		Pct.
Institutionalized:				1,502					1,528					1,612
	Correctional Institutions			1,051		69.92	%		1,061		69.39	%		l,090		67.63	%
	Nursing Homes			422		28.06	%		430		28.11	%		458		28.40	%
	Other Institutions			30		2.02	%		38		2.51	%		64		3.96	%
Noninstitutionalized				2,209					2,328					2,587
			2000					2002					2007
Tenure of Occupied Housing Units			Census					Estimate					Projection
Owner Occupied				36,955					37,898					40,297
Renter Occupied				18,804					19,297					20,593
			Pop 65
1990* Census Household Type and Relationship			and Over		Pct.
Total				18,610
In Family Households				13,759		73.93	%
	Householder			6,997		37.60	%
	Spouse			5,124		27.53	%
	Other relative			1,526		8.20	%
	Non-Relative			112		0.60	%
In Group Quarters				659		3.54	%
	Institutionalized			565		3.04	%
	Other			94		0.51	%
In Non-Family Households				4,192		22.53	%
	Male Householder			760		4.08	%
		Living Alone		717		3.85	%
		Not Living Alone		43		0.23	%
	Female Householder			3,293		17.70	%
		Living Alone		3,129		16.81	%
		Not Living Alone		164		0.88	%
	Non-Relative			139		0.75	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 21 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Household Income - Monthly Owner							65 Yrs
Costs as a Percent of 1989 Household Income		Total Units		Pct.			and Over		Pct.
Total Specified Owner-Occupied Housing Units			25,717					6,178
	Less than 20%		11,987		46.61	%		4,356		70.51	%
	20 to 24%		2,864		11.14	%		490		7.92	%
	25 to 29%		2,889		11.23	%		274		4.43	%
	30 to 34%		2,189		8.51	%		199		3.21	%
	35% or more		5,681		22.09	%		813		13.16	%
	Not Computed		107		0,42	%		47		0.76	%
1990* Census Household Income							65 Yrs
Gross Rent as a Percent of 1989 Household Income		Total Units		Pct.			and Over		Pct.
Total Specified Owner-Occupied Housing Units			17,437					2,007
	Less than 20%		4,392		25.19	%		315		15.71	%
	20 to 24%		2,474		14.19	%		82		4.07	%
	25 to 29%		2,357		13.52	%		245		12.20	%
	30 to 34%		1,703		9.76	%		255		12.68	%
	35% or more		5,364		33.63	%		943		46.97	%
	Not Computed		647		3.71	%		168		8.37	%
							65 Yrs
1990* Census Occupied Housing Units		Total Units		Pct.			and Over		Pct.
	Owner Occupied Units		31,449		63.97	%		9,003		81.42	%
	Renter Occupied Units		17,715		36.03	%		2,055		18.58	%
	Complete Plumbing facilities		48,933		99.53	%		11,039		99.83	%
	Lacking Plumbing Facilities		231		0.47	%		14		0.12	%
	With Telephone		48,273		98.19	%		10,999		99.47	%
	No Telephone		889		1.81	%		62		0.56	%
	One or more Vehicles		46,654		94.89	%		9,785		88.49	%
	No Vehicles Available		2,511		5.11	%		1,279		11.56	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 22 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Poverty Status													75 Yrs
By Household Type By Age of Householder			Total		Pct.			Age 65 - 74		Pct.			and Over		Pct.
Total Households				49,750					6,548					4,489
Married Couple Family				32,192		64.71	%		4,040		61.69	%		2,100		46.85	%
Other Family				6,791		13.65	%		551		8.41	%		293		6.53	%
	Male Householder			1,908		3.84	%		72		1.11	%		65		1.45	%
	Female Householder			4,883		9.82	%		478		7.30	%		228		5.08	%
Non-Family				10,766		21.64	%		1,958		29.90	%		2,093		46.62	%
	Householder Living Alone			8,401		16.89	%		1,863		28.45	%		1,982		44.16	%
	Householder not Living Alone			2,366		4.75	%		95		1.45	%		111		2.46	%
Above Poverty				46,152		92.77	%		6,226		95.09	%		4,124		91.88	%
	Married Couple Family			30,730		61.77	%		3,907		59.66	%		2,004		44.64	%
	Other Family			5,611		11.28	%		513		7.83	%		271		6.04	%
		Male Householder		1,723		3.46	%		72		1.11	%		65		1.45	%
		Female Householder		3,888		7.82	%		440		6.72	%		206		4.59	%
	Non-Family			9,811		19.72	%		1,807		27.60	%		1,850		41.20	%
		Householder Living Alone		7,643		15.36	%		1,727		26.38	%		1,747		38.92	%
		Householder not Living Alone		2,168		4.36	%		80		1.22	%		103		2.29	%
Below Poverty				3,598		7.23	%		322		4.91	%		365		8.12	%
	Married Couple Family			1,462		2.94	%		133		2.03	%		99		2.22	%
	Other Family			1,180		2.37	%		38		0.58	%		22		0.49	%
		Male Householder		185		0.37	%		0		0.00	%		0		0.00	%
		Female Householder		995		2.00	%		38		0.58	%		22		9.04	%
	Non-Family			955		1.92	%		151		2.30	%		243		5.42	%
		Householder Living Alone		758		1.52	%		136		2.07	%		235		5.24	%
		Householder not Living Alone		198		0.40	%		15		0.23	%		8		0.18	%

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 23 of 36

Senior Life Report
Area(s): Radius 7.0

24 LAS POSAS RD	Latitude:	34.221663
CAMARILLO, CA 93010-2780	Longitude:	-119.069533

1990* Census Mobility and Disability								65 Yrs					75 Yrs
Civilian Noninstitutionalized Persons Age 16 and Over			Total		Pct.			and Over		Pct.			and Over		Pct.
Persons				118,601					17,713					6,757
With Mblty or Care Lmts				6,826		5.76	%		2,780		15.70	%		1,524		22.55	%
	Mobility Limits Only			2,240		1.89	%		1,121		6.33	%		656		9.71	%
	Self Care Limits Only			2,582		2.18	%		574		3.24	%		194		2.87	%
	Both Limits			2,004		1.69	%		1,085		6.12	%		673		9.97	%
No Mblty or Care Limits				111,775		94.24	%		14,935		84.30	%		5,234		77.45	%
With a Work Disability				12,610		10.63	%		5,308		29.97	%
	In Labor Force			3,396		2.86	%		343		1.94	%
		Employed		2,965		2.50	%		293		1.66	%
		Unemployed		431		0.36	%		50		0.28	%
	Not in Labor Force			9,214		7.77	%		4,965		28.03	%
		Prevented from Working		7,808		6.58	%		4,265		24.08	%
		Not Prevented from Wrk		1,406		1.19	%		700		3.95	%
No Work Disability				105,991		89.37	%		12,411		70.07	%
	In Labor Force			77,729		65.54	%		2,105		11.88	%
		Employed		73,370		61.86	%		1,990		11.23	%
		Unemployed		4,359		3.68	%		116		0.65	%
	Not in Labor Force			28,262		23.83	%		10,306		58.18	%

* Census 2000 SF3 (long form) data is not yet available. Data Items resented 1990 Census figures converted to Census 2000 geographies.

Prepared on: October 15, 2003   01:16 PM

© 2002 Claritas. All rights reserved. (800) 866-6511 Page 24 of 36

DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
Population
2000 Population		9873		40827		67499		57077		753197		33871648
2002 Population		10098		41374		68781		57901		771922		34876614
2007 Population		10651		42739		71957		59979		817801		37286835
% Change 2000 to 2002		0.0113		0.0067		0.0095		0.0072		0.0124		0.0147
% Change 2002 to 2007		0.0107		0.0065		0.0091		0.0071		0.0116		0.0135
Per Capita Personal Income
1990 Per Capita Personal Income		19560		20503		19000		20097		17789		16357
2002 Per Capita Personal Income		32060		34259		33479		35235		27463		25649
2007 Per Capita Personal Income		37342		40348		39863		42350		31814		30026
% Change 1990 to 2002		0.042		0.0437		0.0483		0.0479		0.0368		0.0382
% Change 2002 to 2007		0.031		0.0333		0.0355		0.0375		0.0299		0.032
Households
2000 No. Households		3689		14512		23731		21438		243234		11502870
2002 No. Households		3821		14884		24387		21991		249058		11803522
2007 No. Households		4138		15769		25978		23316		263439		12511538
% Change 2000 to 2002		0.0179		0.0127		0.0137		0.0128		0.0119		0.013
% Change 2002 to 2007		0.016		0.0116		0.0127		0.0118		0.0113		0.0117
Persons Per Household
2000 Persons Per Household		2.61		2.74		2.79		2.62		3.04		2.87
2002 Persons Per Household		2.58		2.71		2.76		2.59		3.04		2.88
2007 Persons Per Household		2.51		2.64		2.72		2.53		3.05		2.91
% Change 2000 to 2002		-0.0062		-0.0058		-0.004		-0.0055		0.0003		0.0019
% Change 2002 to 2007		-0.005		-0.0049		-0.0034		-0.0045		0.0003		0.0019
Average Household Income
1990 Avg Household Income		53918		61801		58165		57504		54314		46330
2002 Avg Household Income		76980		88731		90169		89132		84232		75364
2007 Avg Household Income		86534		100598		104580		104023		97707		89264
% Change 1990 to 2002		0.0301		0.0306		0.0372		0.0372		0.0372		0.0414
% Change 2002 to 2007		0.0237		0.0254		0.0301		0.0314		0.0301		0.0344
Income Ranges
Median Income		48214		62951		66835		69012		67299		55014
$150,000 or more		0.0964		0.1095		0.1121		0.1029		0.1013		0.0907
$100,000 to $149,000		0.0695		0.1447		0.1696		0.1833		0.1665		0.1199
$75,000 to $99,999		0.103		0.1452		0.1532		0.1646		0.1676		0.1298
$50,000 to $74,999		0.2065		0.2086		0.1995		0.2054		0.21		0.1996
$35,000 to $49,999		0.2087		0.158		0.1402		0.1339		0.1327		0.1453
$25,000 to $34,999		0.1166		0.0968		0.0937		0.0885		0.0836		0.1056
$15,000 to $24,999		0.1172		0.079		0.0745		0.071		0.077		0.1064
Under $15,000		0.0819		0.0582		0.0573		0.0504		0.0615		0.1028
1990 Median Income		37972		48667		47431		48696		45904		35984
2007 Median Income		54532		70206		75890		79451		75530		62618
Occupancy
2000 Occupied Housing Units		3812		14876		24344		21946		251712		12214549
Owner Occupied		0.4629		0.6634		0.6995		0.7182		0.653		0.5359
Renter Occupied		0.5048		0.3122		0.2753		0.2586		0.3133		0.4058
2000 Population 25+ by Education Level		5524		25337		41616		36240		414205		18597039
Bachelors Degree Only		0.1506		0.183		0.1645		0.1769		0.1518		0.1537
Graduate Degree		0.0948		0.1065		0.0967		0.1017		0.079		0.0811
Retail Trade Potential 2002
Total Retail Sales		131487511		516088919		847166604		761519872		8720004096		3.79151E+11
Apparel Accessory		4022579		16082981		26455713		23771984		274542688		18580928512
Automotive Dealers		37772839		148942525		244674763		220064256		2519915520		79652814848
Automotive & Home Supply Stores		2229506		8373760		13668773		12210734		141675904		5980832256
Drug & Proprietary Stores		6604205		26326445		43272173		39057324		437031104		19018477568
Eating & Drinking Places		11639533		45824660		75203342		67540520		778754688		42541719552
Food Stores		20362645		79655418		130660782		117559496		1333944704		60387766272
Furniture Home Furnishing Stores		2536365		10173318		16751069		15111401		171511568		9850973184
Home Appliance, Radio, & T.V. Stores		3684535		14431944		23723024		21263512		247906080		13048965120
Gasoline Service Stations		8287788		31887159		52178733		46821368		535980032		24035018752
General Merchandise		16710371		65146823		106994756		96138128		1102830464		48299347968
Department Store		12514214		48812586		80165165		72079384		824374720		34945974272
Hardware, Lumber & Garden Stores		7861997		30451416		49974656		44957956		509967168		20193169408

     Source: Claritas Inc.

FULL DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
Population
2007 Projection		10651		42739		71957		59979		817801		37286835
2002 Estimate		10098		41374		68781		57901		771922		34876614
2000 Census		9873		40827		67499		57077		753197		33871648
1990 Census		8676		39260		63950		53694		669016		29760021
Growth 2002 - 2007		0.0107		0.0065		0.0091		0.0071		0.0116		0.0135
Growth 2000 - 2002		0.0113		0.0067		0.0095		0.0072		0.0124		0.0147
Growth 1990 - 2000		0.013		0.0039		0.0054		0.0061		0.0119		0.013
2002 Est. Population by Sex		10098		41374		68781		57901		771922		34876614
Male		0.4861		0.4893		0.4902		0.4849		0.499		0.4976
Female		0.5139		0.5107		0.5098		0.5151		0.501		0.5024
2002 Est. Population by Age		10098		41374		68781		57901		771922		34876614
Age 0 - 4		0.0833		0.0642		0.067		0.0645		0.0736		0.0726
Age 5 - 9		0.0774		0.0721		0.0738		0.0702		0.0815		0.0782
Age 10 - 14		0.0696		0.0724		0.0764		0.0744		0.0813		0.0775
Age 15 - 19		0.0508		0.07		0.0726		0.0632		0.074		0.0726
Age 20 - 24		0.0663		0.0525		0.0522		0.0448		0.0638		0.0727
Age 25 - 34		0.1674		0.1197		0.1183		0.1157		0.1341		0.1495
Age 35 - 44		0.1554		0.1558		0.156		0.1599		0.163		0.1565
Age 45 - 54		0.1207		0.1427		0.1383		0.142		0.1413		0.1326
Age 55 - 59		0.0521		0.0639		0.0549		0.0555		0.0504		0.0472
Age 60 - 64		0.0356		0.0476		0.0406		0.0406		0.0358		0.0353
Age 65 - 74		0.0504		0.0684		0.0664		0.0699		0.052		0.0542
Age 75 - 84		0.0478		0.0511		0.0613		0.0727		0.0361		0.0377
Age 85 and older		0.0233		0.0196		0.0223		0.0265		0.0131		0.0133
Age 16 and older		0.7584		0.7773		0.7679		0.7768		0.7484		0.7573
Age 18 and older		0.7377		0.7485		0.7381		0.7498		0.7174		0.728
Age 21 and older		0.707		0.7098		0.6989		0.7181		0.6763		0.6846
Age 65 and older		0.1214		0.1392		0.1499		0.1691		0.1011		0.1053
Age 18 and Under		0.2623		0.2515		0.2619		0.2502		0.2826		0.272
2002 Est. Median Age		34.11		38.15		37.55		39.2		34.38		33.46
2002 Est. Average Age		35.93		38.25		38.06		39.52		34.96		34.91
2002 Est. Male Population by Age		4909		20243		33716		28074		385217		17354346
Age 0 - 4		0.085		0.0652		0.069		0.0673		0.0756		0.0747
Age 5 - 9		0.0804		0.0773		0.0777		0.075		0.0837		0.0805
Age 10 - 14		0.074		0.0755		0.0803		0.079		0.0833		0.0799
Age 15 - 19		0.0503		0.0738		0.0776		0.0687		0.0777		0.0756
Age 20 - 24		0.0626		0.0555		0.0568		0.0478		0.0688		0.0764
Age 25 - 34		0.1778		0.1242		0.1208		0.1196		0.138		0.1548
Age 35 - 44		0.1678		0.1609		0.1593		0.165		0.1632		0.1589
Age 45 - 54		0.1197		0.1394		0.1378		0.1416		0.1401		0.131
Age 55 - 59		0.0521		0.0639		0.0552		0.0566		0.0498		0.046
Age 60 - 64		0.037		0.0465		0.0391		0.0392		0.0348		0.0337
Age 65 - 74		0.0469		0.0649		0.0613		0.0631		0.048		0.0494
Age 75 - 84		0.0375		0.0427		0.0501		0.0586		0.029		0.0309
Age 85 and older		0.0088		0.0102		0.015		0.0186		0.008		0.0083
2002 Est. Median Age, Male		33.29		36.77		36.12		37.58		33.03		32.3
2002 Est. Average Age, Male		34.4		36.8		36.55		37.74		33.85		33.76

     Source: Claritas Inc.

FULL DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
2002 Est. Female Population by Age		5189		21131		35065		29827		386705		17522268
Age 0 - 4		0.0816		0.0632		0.0651		0.0618		0.0717		0.0705
Age 5 - 9		0.0746		0.0672		0.0701		0.0657		0.0794		0.0759
Age 10 -14		0.0655		0.0695		0.0727		0.0701		0.0793		0.0752
Age 15 - 19		0.0513		0.0665		0.0678		0.0581		0.0703		0.0696
Age 20 - 24		0.0698		0.0496		0.0477		0.042		0.0588		0.069
Age 25 - 34		0.1575		0.1153		0.1159		0.112		0.1302		0.1443
Age 35 - 44		0.1436		0.1508		0.1529		0.1551		0.1628		0.1542
Age 45 - 54		0.1217		0.1459		0.1389		0.1425		0.1424		0.1341
Age 55 - 59		0.052		0.0639		0.0546		0.0545		0.0511		0.0484
Age 60 - 64		0.0343		0.0487		0.0421		0.042		0.0368		0.0369
Age 65 - 74		0.0537		0.0718		0.0712		0.0763		0.056		0.059
Age 75 - 84		0.0575		0.0592		0.072		0.0859		0.0431		0.0445
Age 85 and older		0.0369		0.0286		0.0292		0.0339		0.0182		0.0184
2002 Est. Median Age, Female		34.97		39.57		38.98		40.81		35.64		34.69
2002 Est. Average Age, Female		37.38		39.64		39,52		41.19		36.07		36.05
2002 Est. Population Age 15+ by Marital Status		7773		32739		53842		45793		589392		26914969
Male, Never Married		0.132		0.138		0.1305		0.1191		0.1523		0.1683
Female, Never Married		0.105		0.1048		0.0972		0.0861		0.11		0.1258
Total Married		0.5947		0.595		0.6143		0.6267		0.577		0.5265
Male, Previously Married		0.0604		0.053		0.0501		0.0512		0.0536		0.0598
Female, Previously Married		0.1079		0.1093		0.1079		0.1169		0.1071		0.1196
2002 Est. Pop. Age 25+ by Educational Attainment		6590		27670		45263		39537		483019		21849071
Less than 9th grade		0.0468		0.0561		0.0837		0.0455		0.1007		0.1108
Some High School, no diploma		0.0676		0.0707		0.0798		0.0757		0.1082		0.1258
High School Graduate (or GED)		0.2553		0.2165		0.2201		0.23		0.2193		0.2231
Some College, no degree		0.2609		0.2749		0.2677		0.2804		0.2552		0.2273
Associate Degree		0.1108		0.0944		0.0885		0.0959		0.0864		0.08
Bachelor Degree		0.1586		0.1792		0.1622		0.1723		0.1515		0.1532
Graduate or Professional Degree		0.1		0.1082		0.098		0.1003		0.0788		0.0797
Households
2007 Projection		4138		15769		25978		23316		263439		12511538
2002 Estimate		3821		14884		24387		21991		249058		11803522
2000 Census		3689		14512		23731		21438		243234		11502870
1990 Census		3130		12886		20704		18597		217298		10381206
Growth 2002 - 2007		0.016		0.0116		0.0127		0.0118		0.0113		0.0117
Growth 2000 - 2002		0.0179		0.0127		0.0137		0.0128		0.0119		0.013
Growth 1990 - 2000		0.0166		0.012		0.0137		0.0143		0.0113		0.0103
2002 Est. Average Household Size		2.58		2.71		2.76		2.59		3.04		2.88
2002 Est. Households by Household Type		3821		14884		24387		21991		249058		11803522
Family Households		0.6903		0.735		0.7309		0.7053		0.7471		0.6839
Nonfamily Households		0.3097		0.265		0.2691		0.2947		0.2529		0.3161
2002 Est. Group Quarters Population		250		1086		1396		941		13799		328811
2002 Est. Households by Household Income		3821		14884		24387		21991		249058		11803522
Income Less than $15,000		0.0819		0.0582		0.0573		0.0504		0.0615		0.1028
Income $15,000 - $24,999		0.1172		0.079		0.0745		0.071		0.077		0.1064
Income $25,000 - $34,999		0.1166		0.0968		0.0937		0.0885		0.0836		0.1056
Income $35,000 - $49,999		0.2087		0.158		0.1402		0.1339		0.1327		0.1453
Income $50,000 - $74,999		0.2065		0.2086		0.1995		0.2054		0.21		0.1996
Income $75,000 - $99,999		0.103		0.1452		0.1532		0.1646		0.1676		0.1298
Income $100,000 - $149,999		0.0695		0.1447		0.1696		0.1833		0.1665		0.1199
Income $150,000 - $249,999		0.056		0.0734		0.0815		0.0813		0.0764		0.0652
Income $250,000 - $499,999		0.0246		0.0235		0.0217		0.0159		0.0179		0.018
Income $500,000 and over		0.0159		0.0125		0.0089		0.0057		0.007		0.0075

     Source: Claritas Inc.

FULL DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
2002 Est. Average Household Income		76980		88731		90169		89132		84232		75364
2002 Est. Median Household Income		48214		62951		66835		69012		67299		55014
2002 Est. Per Capita Income		32060		34259		33479		35235		27463		25649
2002 Est. Household Type, Presence of Own Children		3821		14884		24387		21991		249058		11803522
Single Male Householder		0.1171		0.083		0.0807		0.0846		0.0794		0.1057
Single Female Householder		0.1307		0.1322		0.143		0.1642		0.1116		0.1305
Married-Couple Family, own children		0.2773		0.2651		0.2779		0.2641		0.3085		0.2587
Married-Couple Family, no own children		0.2851		0.3421		0.3303		0.3281		0.2834		0.2495
Male Householder, own children		0.022		0.0188		0.0195		0.0171		0.025		0.0251
Male Householder, no own children		0.0167		0.0182		0.0178		0.015		0.0223		0.0259
Female Householder, own children		0.06		0.0512		0.0486		0.0463		0.0615		0.0719
Female Householder, no own children		0.0293		0.0395		0.0368		0.0347		0.0465		0.0528
Nonfamily, Male Householder		0.0349		0.0267		0.0245		0.0247		0.0356		0.0464
Nonfamily, Female Householder		0.0269		0.0231		0.0209		0.0212		0.0262		0.0336
2002 Est. Households by Household Size		3821		14884		24387		21991		249058		11803522
1-person household		0.2479		0.2152		0.2237		0.2487		0.1911		0.2361
2-person household		0.3313		0.3419		0.3297		0.3386		0.2975		0.294
3-person household		0.1737		0.171		0.1625		0.1578		0.1716		0.1607
4-person household		0.1468		0.1521		0.1532		0.1504		0.1663		0.1472
5-person household		0.0639		0.0711		0.0719		0.0658		0.0874		0.0811
6-person household		0.0245		0.0292		0.0313		0.0242		0.0403		0.0401
7 or more person household		0.012		0.0194		0.0277		0.0144		0.0458		0.0408
2002 Est. Households by Presence of Children		3821		14884		24387		21991		249058		11803522
Households With Children Less Than Age 18:
Married-Couple Family		0.2879		0.2825		0.2945		0.2769		0.327		0.2751
Other Family, Male Householder		0.0246		0.0226		0.0236		0.0203		0.0301		0.0306
Other Family, Female Householder		0.0664		0.0591		0.0559		0.0527		0.0725		0.0851
Nonfamily, Male Householder		0.0024		0.0021		0.002		0.002		0.0029		0.0028
Nonfamily, Female Householder		0.001		0.0013		0.0011		0.001		0.0011		0.0011
Households With No Children Less Than Age 18:
Married-Couple Family		0.2745		0.3248		0.3137		0.3153		0.2649		0.2331
Other Family, Male Householder		0.0141		0.0145		0.0137		0.0118		0.0171		0.0203
Other Family, Female Householder		0.0229		0.0316		0.0295		0.0283		0.0355		0.0397
Nonfamily, Male Householder		0.1496		0.1076		0.1032		0.1073		0.1121		0.1493
Nonfamily, Female Householder		0.1565		0.154		0.1628		0.1843		0.1367		0.1629
2002 Est. Households by Number of Vehicles		3821		14884		24387		21991		249058		11803522
No Vehicles		0.0346		0.0325		0.0332		0.0309		0.0423		0.0859
1 Vehicle		0.3331		0.2327		0.267		0.2781		0.253		0.3246
2 Vehicles		0.4168		0.431		0.4332		0.4514		0.4294		0.3831
3 Vehicles		0.1534		0.1987		0.1743		0.1587		0.1857		0.1436
4 Vehicles		0.0503		0.0734		0.0637		0.0581		0.0632		0.0445
5 or more Vehicles		0.0119		0.0317		0.0287		0.0228		0.0264		0.0183
Family Households
2007 Projection		2788		11363		18647		16122		193342		8411217
2002 Estimate		2638		10940		17823		15511		186076		8072254
2000 Census		2571		10749		17467		15240		182959		7920049
1990 Census		2207		10002		15978		14227		164773		7139394
Growth 2002 - 2007		0.0111		0.0076		0.0091		0.0078		0.0077		0.0083
Growth 2000 -2002		0.0129		0.0088		0.0101		0.0089		0.0085		0.0096
Growth 1990 - 2000		0.0154		0.0072		0.009		0.0069		0.0105		0.0104

     Source: Claritas Inc.

FULL DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
2002 Est. Family Households by Household Income		2638		10940		17823		15511		186076		8072254
Income Less than $15,000		0.0367		0.0228		0.027		0.0194		0.0309		0.0614
Income $15,000 - $24,999		0.1326		0.0692		0.0622		0.053		0.0636		0.0945
Income $25,000 - $34,999		0.1011		0.0743		0.0743		0.0625		0.072		0.0986
Income $35,000 - $49,999		0.1833		0.1449		0.1315		0.1244		0.1233		0.1414
Income $50,000 - $74,999		0.2194		0.2193		0.2103		0.2162		0.2138		0.2099
Income $75,000 - $99,999		0.1084		0.1626		0.1679		0.1811		0.1845		0.1439
Income $100,000 - $149,999		0.0918		0.1713		0.1921		0.2153		0.1907		0.1392
Income $150,000 - $249,999		0.0722		0.0902		0.0981		0.1017		0.0917		0.0798
Income $250,000 - $499,999		0.033		0.0297		0.0254		0.0186		0.0211		0.022
Income $500,000 and over		0.0215		0.0158		0.0113		0.0077		0.0083		0.0093
2002 Est. Average Family Household Income		88302		99020		98293		97888		93086		85223
2002 Est. Median Family Household Income		55311		71530		74373		78381		74565		62398
2002 Est. Families by Poverty Status		2638		10940		17823		15511		186076		8072254
Income Above Poverty Level:
Married-Couple Family, own children		0.4252		0.3995		0.4017		0.3982		0.4139		0.3559
Married-Couple Family, no own children		0.3642		0.4103		0.4078		0.4255		0.3543		0.3463
Male Householder, own children		0.0246		0.0266		0.0273		0.0242		0.0303		0.0325
Male Householder, no own children		0.0307		0.0227		0.021		0.021		0.0264		0.0303
Female Householder, own children		0.0621		0.061		0.054		0.0572		0.0695		0.0786
Female Householder, no own children		0.046		0.0454		0.0455		0.0445		0.0498		0.0574
Income Below Poverty Level:
Married-Couple Family, own children		0.0214		0.0107		0.0165		0.011		0.0187		0.0311
Married-Couple Family, no own children		0.0038		0.0058		0.0061		0.0048		0.0053		0.0099
Male Householder, own children		0.0006		0.0008		0.0017		0.0002		0.0049		0.0089
Male Householder, no own children		0.0001		0.0002		0.0011		0.0001		0.0016		0.0029
Female Householder, own children		0.0202		0.0151		0.0158		0.0118		0.0231		0.0419
Female Householder, no own children		0.0011		0.0019		0.0015		0.0014		0.0022		0.0045
2002 Est. Families by Number of Workers		2638		10940		17823		15511		186076		8072254
No Workers		0.0794		0.0846		0.1237		0.1387		0.0869		0.1204
1 Worker		0.2826		0.2689		0.2575		0.2528		0.2515		0.2839
2 Workers		0.5112		0.4672		0.4474		0.4606		0.4838		0.4526
3 or more Workers		0.1268		0.1792		0.1714		0.1479		0.1779		0.1431
2002 Est. Population Age 16+ by Employment		7658		32158		52814		44976		577681		26412232
In Armed Forces		0.0454		0.0133		0.0096		0.0113		0.0107		0.0094
Civilian - Employed		0.6563		0.6489		0.6192		0.6153		0.6702		0.6185
Civilian - Unemployed		0.0206		0.0265		0.0283		0.023		0.0339		0.0442
Not in Labor Force		0.2777		0.3112		0.3429		0.3504		0.2852		0.3279
2002 Est. Employed Pop. Age 16+ by Occupation		5026		20868		32702		27673		387135		16334705
Managerial and Professional Specialty		0.3247		0.3484		0.3242		0.349		0.2909		0.2846
Technical, Sales and Administrative Support		0.3508		0.3259		0.3184		0.3334		0.3181		0.3243
Service		0.1194		0.1077		0.1006		0.1041		0.1112		0.1228
Farming, Forestry and Fishing		0.0364		0.0319		0.0556		0.0287		0.0489		0.0288
Precision, Production, Craft and Repair		0.0908		0.0999		0.1015		0.1032		0.1172		0.1118
Operators, Fabricators arid Laborers		0.0779		0.0862		0.0996		0.0816		0.1138		0.1278
2002 Est. Employed Pop. Age 16+ by Class of Workers		5026		20868		32702		27673		387135		16334705
For-Profit Private Wage or Salary Workers		0.721		0.6753		0.6877		0.6733		0.7198		0.715
Not-For-Profit Private Wage or Salary Workers		0.0314		0.0405		0.0445		0.0493		0.0437		0.0515
Local Government Workers		0.0439		0.0697		0.071		0.0756		0.0781		0.0771
State Government Workers		0.0338		0.0419		0.035		0.0361		0.0254		0.0363
Federal Government Workers		0.0754		0.0669		0.0568		0.0611		0.0421		0.0322
Self-Employed Workers		0.077		0.0936		0.0969		0.0981		0.0864		0.0835
Unpaid Family Workers		0.0175		0.0121		0.0082		0.0065		0.0044		0.0045

Source: Claritas Inc.

FULL DEMOGRAPHIC PROFILE
24 LAS POSAS ROAD
CAMARILLO, CALIFORNIA

	1.0 MILE		3.0 MILES		5.0 MILES		CAMARILLO		VENTURA COUNTY, CA		CALIFORNIA
2002 Est. Workers Age 16+, Transportation To Work		5305		20995		32706		27781		384771		16177632
Drove Alone		0.8379		0.8136		0.7992		0.8212		0.7586		0.7214
Car Pooled		0.0908		0.1144		0.133		0.1137		0.1573		0.1474
Public Transportation		0.0023		0.0014		0.0021		0.0022		0.0067		0.0467
Walked		0.0318		0.0242		0.0204		0.0205		0.0248		0.0318
Motorcycle		0.0056		0.0051		0.004		0.0039		0.0049		0.0052
Bicycle		0.0079		0.0097		0.0087		0.0091		0.0107		0.0088
Other Means		0.0004		0.0024		0.0033		0.0026		0.0067		0.0077
Worked at Home		0.0234		0.0292		0.0292		0.0267		0.0302		0.0309
2002 Est. Workers Age 16+ by Travel Time to Work		5181		20383		31751		27038		373161		15678213
Less than 15 Minutes		0.3721		0.3697		0.3426		0.3478		0.3093		0.2775
15 - 29 Minutes		0.4712		0.4359		0.4273		0.4226		0.3491		0.3622
30 - 44 Minutes		0.0939		0.1124		0.1341		0.1294		0.1813		0.2023
45 - 59 Minutes		0.0189		0.0274		0.0335		0.0344		0.0663		0.0761
60 or more Minutes		0.0439		0.0547		0.0624		0.0658		0.094		0.082
2002 Est. Average Travel Time to Work in Minutes		18.86		19.88		21.01		21.06		24.89		24.83
2002 Est. Tenure of Occupied Housing Units		3821		14884		24387		21991		249058		11803522
Owner Occupied		0.4751		0.6783		0.7165		0.7341		0.676		0.5698
Renter Occupied		0.5249		0.3217		0.2835		0.2659		0.324		0.4302
2002 Est. Owner Occupied Housing Values		1527		8930		14803		13556		141612		5454151
Value Less than $25,000		0.0007		0.0004		0.0007		0.0003		0.0016		0.004
Value $25,000 - $49,999		0.0021		0.002		0.0019		0.0014		0.0027		0.0102
Value $50,000 - $74,999		0.0005		0.0019		0.0019		0.0017		0.0025		0.0286
value $75,000 - $99,999		0.0006		0.0029		0.0028		0.002		0.0036		0.0536
Value $100,000 - $149,999		0.0118		0.0125		0.0127		0.0089		0.0168		0.129
Value $150,000 - $199,999		0.027		0.0275		0.0276		0.0227		0.0354		0.1404
Value $200,000 - $299,999		0.306		0.2548		0.2443		0.2406		0.2658		0.2319
Value $300,000 - $399,999		0.2026		0.3466		0.3558		0.3922		0.3086		0.1487
Value $400,000 - $499,999		0.1225		0.149		0.1765		0.1848		0.153		0.0945
Value $500,000 or more		0.3263		0.2025		0.1758		0.1455		0.2101		0.159
2002 Est. Median Owner Occupied Housing Value		375161		357189		358523		356722		355638		257843
2002 Est. Housing Units by Units in Structure		3950		15256		25020		22512		257726		12533948
1 Unit Attached		0.0856		0.1055		0.1952		0.2364		0.1089		0.0728
1 Unit Detached		0.4077		0.6585		0.594		0.5492		0.6296		0.555
2 Units		0.0103		0.0136		0.0124		0.0114		0.0167		0.0276
3 to 19 Units		0.2911		0.1023		0.076		0.0748		0.1295		0.177
20 to 49 Units		0.062		0.0385		0.0249		0.0261		0.028		0.0552
50 or More Units		0.1126		0.0451		0.0275		0.0306		0.0242		0.0486
Mobile Home or Trailer		0.024		0.0294		0.0624		0.0652		0.0528		0.0527
Other		0.0069		0.0072		0.0075		0.0064		0.0103		0.0112
2002 Est. Housing Units by Year Built		3950		15256		25020		22512		257726		12533948
Housing Unit Built 1989 to present		0.1732		0.1454		0.1748		0.1766		0.1503		0.151
Housing Unit Built 1985 to 1988		0.0636		0.0421		0.0643		0.0812		0.0938		0.0935
Housing Unit Built 1980 to 1984		0.1211		0.0886		0.1115		0.1297		0.0924		0.0795
Housing Unit Built 1970 to 1979		0.2936		0.3009		0.3192		0.3555		0.2621		0.1893
Housing Unit Built 1960 to 1969		0.2446		0.3148		0.2281		0.1984		0.2263		0.1611
Housing Unit Built 1950 to 1959		0.08		0.0798		0.0677		0.0438		0.1011		0.1518
Housing Unit Built 1940 to 1949		0.0214		0.019		0.0224		0.0108		0.0373		0.0799
Housing Unit Built 1939 or Earlier		0.0024		0.0094		0.012		0.004		0.0366		0.0939

     Source: Claritas Inc.

ADDENDUM C: Property Exhibits

Lawrence L. Matheney
Treasurer - Tax Collector
Phone (805) 654-3744

2003 - 2004 Tax Year	Tax Information	Last Update: 10/27/2003
Assessments are subject to change
Property Address:		Viewable Tax Years:
		==>2003-2004 Statement Number: 1920240<=        2002-2003 Statement Number: 1906080

Tax Year	Tax Type	Statement Number		Parcel Number
2003-2004	Secured		1920240	164-0-111-065

	1st Installment	2nd Installment
Tax Payments are due on	11/1/2003	2/1/2004
If you pay on time your payment is	$62,330.52	$62,330.52
Tax payments are delinquent after	12/10/2003	4/10/2004
If you pay after the delinquent date
(but before June 30, 2004)	$68,563.57	$68,573,57
Amount Paid	$0.00	$0.00
Your property taxes are currently	Unpaid	Unpaid
Total Amount Now Due:	$62,330.52 Add to Cart	$62,330.52 Add to Cart

Instructions and Information for paying Online

Add Items     *A Convenience Fee will be added

You may pay this obligation by mailing a payment in full along with a printed copy
of the payment form. To print the payment form for this property, select Print
Payment Form below and then print the form using your Internet browser Print
function:

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Lawrence L. Matheney
Ventura County Tax Collector
800 South Victoria Avenue
Ventura, California 93009

http://prop-tax.countyofventura.org/se-ttc.asp?apn=1640111065&statement=1920240&tax_ 10/28/2003

Flood Insights test results for:

24 LAS POSAS RD, CAMARILLO, CA 93010
Geocoding Accuracy: S5 • Exact Point Match

Flood Zone Determinations                  What’s This?

SFHA (Flood Zone)    Within 250 feet of multiple flood zones?

Out                              No

Community    Community Name    Zone Panel    Panel Date

065020       CAMARILLO, CITY OF B      0001B September 29, 1986

FIPS Code         Census Tract

06111                      0055.02

Copyright 2000, First American Flood Data Services. All rights reserved.

http://www.floodinsights.com/XsiteScripts/hsrun.hse/FloodInsights/FloodLookups/StateId/... 12/3/2003

POST IN A PROMINENT PLACE

ADDENDUM D: Financial Data

Schedule of Fees

One Affordable Monthly Fee Includes:

• Freshly prepared meals & snacks daily

• Weekly housekeeping

• Laundry and linen service

• Scheduled transportation to shopping centers and doctors appointments

• Full activity and social program

• 24-hour responsive staff

• Emergency call system in every apartment

• In-room temperature control

• Basic utilities (including Cable TV)

Assisted Living Services Available:

• Three freshly prepared meals & snacks daily

• Assistance with incontinence

• Assistance with special diets

• Escorting to and from meals and activities program

• Assistance with medications

• Assistance with bathing, grooming and dressing

• Laundry and linen service

• Additional services as needed

Independent Living

Studio	starting at	$	1,900
Deluxe Studio	starting at	$	2,350
One Bedroom	starting at	$	2,750
Second Person Fee		$	800

Oasis Short-term Resident Stay Program

Independent Living starting at $100/day
Assisted Living services additional as needed

Assisted Living

Assisted Living fees are based on individual
needs and start at $225

Community Fee

One-time community processing fee of $1800
(except Oasis program)

	24 Las Posas Road
	Camarillo, California 93010
	805.987.9872
	License #565800476

Rates effective October 1, 2003 and are subject to change.
www.arvi.com

10126-35

PIII - ITEM A-6

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2003
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL			AUG			Aug YTD
40005 Revenue-Rental		284,890			297,301			288,003			221,417			381,235			308,326			310,041			330,312			2,421,525
40010 Revenue-Rent Refunds/Proration		—			(3,503	)		(2,114	)		—			(5,188	)		(2,343	)		(1,330	)		(927	)		(15,405	)
Total Rental Revenue		284,890			293,798			285,889			221,417			376,047			305,983			308,711			329,385			2,406,119
40110 Revenue-AL Level 1		8,832			12,028			11,008			8,070			13,322			10,767			12,141			11,700			87,867
40115 Revenue-AL Level 2		4,398			3,070			4,297			3,661			5,664			2,600			2,930			3,900			30,520
40120 Revenue-AL Level 3		5,100			5,750			7,169			3,606			4,497			4,845			4,038			3,911			38,916
40125 Revenue-AL Level 4		1,610			4,950			3,749			3,822			8,508			5,808			3,150			3,150			34,747
40130 Revenue-AL Level 5		5,072			4,125			3,992			3,003			6,289			5,167			5,000			6,083			38,731
40135 Revenue-AL Level 6		7,395			7,383			5,853			3,987			5,563			2,900			2,900			3,174			39,155
40140 Revenue-AL Level 7		1,540			1,540			1,540			1,181			2,664			2,743			3,180			4,371			18,759
Total AL Services Revenue		33,947			38,846			37,607			27,329			46,508			34,830			33,338			36,289			288,693
40515 Revenue-Other		1,121			1,368			2,385			1,225			2,860			2,598			1,796			1,846			15,199
40525 Revenue- Processing/App Fees		8,400			10,400			14,400			1,380			23,820			3,600			11,700			10,800			84,500
Total Other Revenue		9,521			11,768			16,785			2,605			26,680			6,198			13,496			12,646			99,699
40575 Rev-Process Fee Concessions		(1,800	)		—			(5,400	)		(690	)		(11,910	)		(900	)		(2,700	)		—			(23,400	)
40015 Rev-Rent Concessions		(1,408	)		(1,650	)		(887	)		(2,712	)		(13,095	)		(11,331	)		(8,377	)		(2,602	)		(42,062	)
Total Concessions		(3,208	)		(1,650	)		(6,287	)		(3,402	)		(25,005	)		(12,231	)		(11,077	)		(2,602	)		(65,462	)
Total Revenue		325,150			342,762			333,993			247,949			424,230			334,780			344,468			375,718			2,729,049
50005 Payroll Expense-Regular		66,853			61,825			64,134			55,096			84,846			67,651			72,180			65,793			538,379
50405 Payroll Expense-Overtime		4,797			4,187			3,242			4,537			5,004			4,682			4,275			4,200			34,924
50705 Payroll Expense-Doubletime		170			8			217			279			68			163			293			339			1,537
51005 Bonuses		3,282			4,663			6,282			4,865			4,799			4,235			7,135			5,690			40,949
51505 Vacation, Sick, Holiday		3,386			4,430			4,569			4,748			6,654			4,370			5,416			5,511			39,083
51805 Employee Recognition		20			183			—			—			115			153			132			—			603
52005 Payroll Taxes		8,610			7,525			6,917			6,359			9,495			6,601			6,985			6,277			58,768
52505 401K/401A		139			217			111			146			184			141			126			212			1,275
52805 Group Insurance		3,810			3,774			3,842			4,523			4,871			4,976			5,620			5,924			37,339
53005 Worker’s Comp Insurance		4,670			4,670			4,705			42,618			4,921			5,675			8,005			6,933			82,196
Total Payroll Expenses		95,735			91,480			94,018			123,171			120,957			98,647			110,165			100,878			835,052
54005 Payroll Service		284			665			287			9			399			371			246			314			2,575
Total Purchase Services		284			665			287			9			399			371			246			314			2,575
Total Payroll Related		96,020			92,145			94,305			123,179			121,356			99,019			110,411			101,192			837,627
Total Payroll Related % Total Revenue		30	%		27	%		28	%		50	%		29	%		30	%		32	%		27	%		31	%
56505 Food		16,064			13,705			15,979			13,945			20,318			16,991			18,777			20,321			136,101
57005 Housekeeping		587			672			345			130			978			715			700			789			4,916
57505 Kitchen Supplies		1,785			1,309			1,534			1,702			2,034			1,653			1,593			1,963			13,573
58005 Assisted Living Supplies		368			214			227			366			311			654			314			152			2,607
59005 Laundry & Linen/Uniforms		—			—			681			1,409			—			(290	)		—			—			1,800
59010 Laun/Lin/Unif Kitchen		889			820			2,091			(89	)		1,420			1,215			1,041			1,078			8,465
59015 Laund/Lin/Unif Housekeeping		1			300			1,373			(749	)		102			375			53			121			1,578
59505 Activities - Asst Lving		515			940			1,008			263			1,284			976			999			964			6,949
59510 Banquet Expense		400			400			400			307			493			400			400			400			3,200
Total Variable Expense		20,609			18,361			23,637			17,284			26,940			22,690			23,879			25,788			179,188
60005 Office Supplies		938			540			570			817			643			977			393			521			5,399
61015 Repairs - Electrical		—			49			1			—			—			—			—			298			348
61020 Repairs - Plumbing		507			150			150			150			150			185			150			434			1,875
61025 Repairs - Fire Systems		—			139			—			173			—			—			313			270			895
61030 Repairs - HVAC		211			302			—			768			22			369			285			2,117			4,074
61035 Repairs - Gen. Supplies		487			886			464			353			204			465			436			456			3,751
61040 Repairs - Equipment		904			191			794			80			587			152			75			936			3,719
61045 Repairs - Other Interior		291			(140	)		38			348			144			365			352			557			1,955
61055 Repairs - Other Exterior		—			—			133			(109	)		—			—			433			(298	)		159
61100 Loss on Early Retirement Asset		—			357			—			253			571			—			(12	)		(4	)		1,166
Total Repair & Maintenance		2,400			1,933			1,579			2,017			1,678			1,535			2,031			4,766			17,942
61505 Contracts - Elevator		333			333			333			255			410			333			333			333			2,663
61510 Contracts - Floor Maint		593			543			543			416			670			543			543			543			4,394
61515 Contracts - Alarm/Fire		55			55			55			42			68			55			55			55			440
61525 Contracts - Pest Control		541			541			557			410			745			556			577			577			4,502
61535 Contracts - Other		494			44			44			73			261			96			96			96			1,202
Total Service Contracts		2,015			1,515			1,531			1,197			2,153			1,582			1,604			1,604			13,201
62005 Land Maintenance		2,387			3,727			1,401			2,161			1,316			1,445			1,691			2,923			17,051
Total Land Maintenance		2,387			3,727			1,401			2,161			1,316			1,445			1,691			2,923			17,051
62505 Rental/Lease - Cable		1,681			1,681			1,681			1,289			2,074			1,681			1,681			1,681			13,452
62510 Rental/Lease - Security		285			—			357			329			457			357			357			357			2,499
62535 Rental/Lease - Equipment		751			567			567			580			939			560			560			632			5,156
62540 Rental/Lease - Auto		1,158			1,291			1,158			1,739			1,664			2,297			1,134			1,134			11,576
62555 Rental/Lease - Other		70			72			72			72			72			72			72			—			504
Total Rental and Leases		3,946			3,612			3,835			4,010			5,206			4,968			3,805			3,805			33,187
63010 Utilities - Electricity		7,873			7,292			7,753			5,625			9,861			7,926			11,527			10,175			68,032
63015 Utilities - Water		1,476			1,384			1,723			1,193			2,111			1,700			1,533			1,908			13,028
63020 Utilities - Gas		973			845			1,136			591			1,033			856			796			647			6,875
63025 Utilities - Telephone		1,446			1,266			1,223			1,154			1,386			1,277			1,210			1,270			10,233
63030 Utilities - Trash		767			854			842			721			976			842			854			767			6,624
Total Utilities		12,535			11,640			12,676			9,284			15,368			12,602			15,919			14,767			104,792
63505 Marketing and Advertising		587			462			272			512			388			301			237			91			2,850

PIII - ITEM A-6

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2003
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL			AUG			Aug YTD
63510 Printed Materials		467			147			130			66			311			—			547			1,780			3,447
63515 Special Events		1,016			1,134			863			1,468			2,144			767			2,999			2,182			12,574
63520 Yellow Pages		635			542			728			482			774			649			649			649			5,109
63525 Newspaper and Magazine		728			1,411			126			—			210			105			105			105			2,790
63530 Advertising		27			—			—			—			—			(27	)		—			—			—
64005 Referral Fees - Residents		—			—			1,750			1,193			2,450			—			3,975			—			9,368
Total Marketing and Advertising		3,459			3,697			3,869			3,721			6,278			1,795			8,512			4,807			36,138
64505 Computers/Peripherals/Software		117			—			—			1,210			—			—			—			—			1,327
65005 Gas		169			284			387			373			305			406			307			356			2,586
65010 Auto Service And Repair		477			83			—			300			(290	)		—			134			—			704
65015 Other Automobile		230			—			—			—			69			—			300			—			599
65505 Travel & Lodging		—			275			—			79			(0)			14			—			—			368
66005 Mileage		140			218			118			—			243			304			187			358			1,568
66505 Meals & Entertainment		25			331			109			77			194			103			98			146			1,083
67005 License and Fingerprints		1,153			1,593			1,481			907			519			3,884			1,174			1,115			11,827
68005 Dues and Subscriptions		82			238			79			—			127			79			79			83			767
68505 Seminars and Training		57			—			—			77			253			44			333			—			763
69005 Employee Recruiting		(315	)		371			—			—			—			—			247			524			827
69505 Other		313			452			183			611			(204	)		45			(283	)		169			1,287
69605 Discounts Lost		24			87			39			1			28			—			0			—			180
69610 Discounts Taken		(107	)		(115	)		(135	)		(93	)		(104	)		(110	)		(88	)		(104	)		(857	)
Total Misc. Expenses		2,366			3,816			2,262			3,542			1,139			4,769			2,487			2,648			23,030
Total Operating Expense		146,674			140,987			145,665			167,212			182,076			151,384			170,733			162,822			1,267,553
Gross Margin		178,476			201,775			188,328			80,737			242,154			183,396			173,735			212,896			1,461,497
Gross Margin Percent		55	%		59	%		56	%		33	%		57	%		55	%		50	%		57	%		54	%
72305 Property Taxes		9,950			9,899			10,055			7,629			12,273			9,951			10,349			10,349			80,455
72405 Insurance-Liability & Hazard		8,162			6,827			6,703			5,710			7,722			1,908			7,803			6,953			51,788
Total Other Fees		18,113			16,726			16,758			13,339			19,995			11,859			18,152			17,301			132,243
72505 Accounting		2,063			2,063			2,063			2,619			1,844			6,122			3,610			3,437			23,819
73005 Legal		511			443			521			343			433			507			664			753			4,174
73510 Donations & Contributions		—			—			—			—			1,089			—			—			—			1,089
74005 Consulting Fees		—			—			—			—			251			130			—			—			381
74015 Professional Fees - Other		—			—			—			—			500			—			128			151			778
75005 Property Management Fees		16,258			17,138			16,700			12,397			21,211			16,739			17,223			18,786			136,452
75105 Partnership Admin Fees		4,749			7,590			6,358			2,575			7,596			6,243			4,679			14,294			54,084
75510 Other Penalties/Fin. Fee		8			43			—			—			20			—			20			—			91
75515 Licenses & Fees Legal		—			446			—			—			—			—			—			—			446
75520 Franchise Tax Filing Fee		—			—			—			800			—			—			—			—			800
Total Professional Fees		23,588			27,723			25,641			18,734			32,944			29,741			26,324			37,420			222,115
EBITDAR		136,776			157,326			145,929			48,664			189,214			141,796			129,259			158,174			1,107,138
EBITDAR Percent		0			0			0			0			0			0			0			0			0
80005 Interest Income		(1,370	)		(18	)		(1,661	)		(1,503	)		(95	)		(133	)		(256	)		(189	)		(5,224	)
80505 Other Non-Operating Income		—			—			—			—			—			(15	)		—			—			(15	)
Total Non-Operating Income/Expense		(1,370	)		(18	)		(1,661	)		(1,503	)		(95	)		(148	)		(256	)		(189	)		(5,239	)
83005 Interest Expense		83,994			83,906			83,994			52,225			77,605			61,667			61,624			61,581			566,596
83025 Int Exp MIP		—			—			—			—			—			5,100			32,175			(37,275	)		0
Total Interest Expense		83,994			83,906			83,994			52,225			77,605			66,767			93,799			24,306			566,596
EBTDA		54,152			73,438			63,595			(2,058	)		111,705			75,176			35,715			134,058			545,781
EBTDA Percent		0			0			0			0			0			0			0			0			0
77505 Depreciation		33,615			31,397			30,403			23,358			37,617			30,508			29,974			29,235			246,107
78005 Amortization		8,330			(10,998	)		27,654			15,096			2,331			433			—			881			43,727
Total Depreciation & Amortization		41,945			20,399			58,057			38,454			39,948			30,941			29,974			30,116			289,834
Net Income (Loss)		12,207			53,039			5,538			(40,512	)		71,757			44,235			5,741			103,942			255,947

PIII-ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2002
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN
40005 Revenue-Rental		286,949			290,183			280,794			288,837			277,078			279,184
40010 Revenue-Rent Refunds/Proration		—			—			(313	)		—			(6,415	)		—
Total Rental Revenue		286,949			290,183			280,482			288,837			270,663			279,184
40110 Revenue-AL Level 1		3,541			5,626			5,460			6,055			5,885			6,225
40115 Revenue-AL Level 2		11,738			11,796			12,600			12,129			11,346			12,075
40120 Revenue-AL Level 3		4,035			4,750			4,125			4,125			5,297			4,172
40125 Revenue-AL Level 4		12,400			8,221			7,232			8,657			7,125			6,125
40130 Revenue-AL Level 5		2,350			3,648			3,575			3,575			4,242			4,800
40135 Revenue-AL Level 6		4,275			4,275			2,850			2,850			2,850			4,263
40140 Revenue-AL Level 7		1,600			1,600			1,600			1,600			—			—
Total AL Services Revenue		39,939			39,915			37,442			38,991			36,745			37,660
40515 Revenue-Other		1,321			1,325			642			1,844			1,683			1,490
40525 Revenue-Processing/App Fees		—			1,770			770			3,270			1,770			3,770
Total Other Revenue		1,321			3,095			1,412			5,114			3,453			5,260
40575 Rev-Process Fee Concessions		—			—			—			—			—			—
40015 Rev-Rent Concessions		(2,208	)		(600	)		(600	)		(100	)		(1,510	)		(1,000	)
Total Concessions		(2,208	)		(600	)		(600	)		(100	)		(1,510	)		(1,000	)
Total Revenue		326,000			332,593			318,736			332,842			309,351			321,104
50005 Payroll Expense-Regular		71,112			64,658			72,618			68,535			71,169			69,996
50405 Payroll Expense-Overtime		2,881			3,953			2,322			4,572			2,610			2,910
50705 Payroll Expense-Doubletime		421			395			251			975			37			224
51005 Bonuses		3,824			3,724			3,974			2,999			2,974			2,774
51505 Vacation, Sick, Holiday		5,082			4,876			5,894			5,510			4,967			5,716
51805 Employee Recognition		—			—			25			50			30			—
52005 Payroll Taxes		9,451			8,119			7,362			8,215			7,123			6,837
52505 401K/401A		261			345			198			212			374			129
52805 Group Insurance		3,257			3,655			3,790			3,792			3,825			3,294
53005 Worker’s Comp Insurance		6,340			6,744			11,095			9,664			8,796			9,342
Total Payroll Expenses		102,628			95,469			107,531			104,525			101,904			101,223
53305 Outside Service-Medical		—			—			242			1,002			280			113
54005 Payroll Service		291			250			640			322			133			169
55005 Outside Service Other		—			—			350			—			—			—
Total Purchase Services		291			250			1,231			1,324			413			282
Total Payroll Related		102,919			96,718			108,762			105,849			102,318			101,505
Total Payroll Related % Total Revenue		32	%		29	%		34	%		32	%		33	%		32	%
56505 Food		19,129			16,399			17,624			17,659			17,275			16,679
57005 Housekeeping		989			468			658			1,062			1,135			231
57505 Kitchen Supplies		1,697			2,062			2,125			1,956			1,821			1,612
58005 Assisted Living Supplies		390			532			1,043			—			92			203
59005 Laundry & Linen/Uniforms		258			604			323			86			42			60
59010 Laun/Lin/Unif Kitchen		661			853			903			830			993			950
59015 Laund/Lin/Unif Housekeeping		—			—			78			—			—			—
59505 Activities-Asst Living		770			1,039			948			797			1,588			336
59510 Banquet Expense		400			400			400			400			400			400
Total Variable Expense		24,294			22,358			24,101			22,793			23,344			20,473
60005 Office Supplies		413			810			1,034			783			1,765			315
61015 Repairs-Electrical		—			603			201			—			—			—
61020 Repairs-Plumbing		550			550			(500	)		364			—			386
61025 Repairs-Fire Systems		—			327			—			—			—			—
61030 Repairs-HVAC		294			424			—			255			147			1,889
61035 Repairs-Gen. Supplies		304			422			56			546			94			563
61040 Repairs-Equipment		883			1,196			358			399			413			757
61045 Repairs-Other Interior		—			456			1,566			126			210			129
61055 Repairs-Other Exterior		—			—			200			—			—			—
61100 Loss on Early Retirement Asset		—			—			—			—			—			—
Total Repair & Maintenance		2,031			3,977			1,881			1,690			993			3,594
61505 Contracts-Elevator		309			312			312			312			312			312
61510 Contracts-Floor Maint		468			713			493			493			493			493
61515 Contracts-Alarm/Fire		382			(272	)		55			55			55			55
61525 Contracts-Pest Control		516			516			516			516			534			534
61535 Contracts-Other		—			—			93			44			219			144
Total Service Contracts		1,674			1,269			1,469			1,419			1,612			1,537
62005 Land Maintenance		1,530			1,430			1,430			1,430			1,250			1,955
Total Land Maintenance		1,530			1,430			1,430			1,430			1,250			1,955
62505 Rental/Lease-Cable		1,681			1,681			1,681			1,681			1,681			1,681
62510 Rental/Lease-Security		285			285			285			285			285			285
62535 Rental/Lease-Equipment		1,165			786			878			657			685			751
62540 Rental/Lease-Auto		1,182			1,182			1,208			1,155			1,155			1,155
62555 Rental/Lease-Other		53			53			53			53			53			53
Total Rental and Leases		4,366			3,987			4,106			3,832			3,859			3,926
63010 Utilities-Electricity		7,997			7,707			7,779			7,112			7,046			8,496
63015 Utilities-Water		1,063			1,772			1,483			1,759			1,730			1,687
63020 Utilities-Gas		699			739			692			807			719			605
63025 Utilities-Telephone		1,401			1,166			1,016			1,348			1,247			1,415
63030 Utilities-Trash		823			831			767			767			1,043			843
Total Utilities		11,982			12,214			11,738			11,794			11,784			13,046
63505 Marketing and Advertising		481			1,591			(278	)		233			246			685
63510 Printed Materials		874			224			895			2,893			532			387
63515 Special Events		733			467			950			262			1,579			1,677
63520 Yellow Pages		478			544			600			813			995			1,702
63525 Newspaper and Magazine		1,558			690			634			583			1,327			158
63530 Advertising		—			—			—			—			—			—
64005 Referral Fees-Residents		500			2,388			500			—			—			—
Total Marketing and Advertising		4,625			5,904			3,300			4,764			4,679			4,609
64505 Computers/Peripherals/Software		—			—			—			—			—			—
65005 Gas		264			252			265			142			296			339
65010 Auto Service And Repair		55			155			1,214			—			—			638
65015 Other Automobile		15			742			269			515			—			9
65505 Travel & Lodging		—			—			—			25			171			—
66005 Mileage		116			318			14			280			—			137
66505 Meals & Entertainment		—			—			25			—			139			—
67005 License and Fingerprints		1,680			1,326			986			2,031			1,193			1,543
68005 Dues and Subscriptions		(73	)		544			88			91			234			132
68505 Seminars and Training		378			268			381			515			151			282
69005 Employee Recruiting		—			—			372			—			790			—
69505 Other		158			414			73			537			960			434
69605 Discounts Lost		52			25			—			18			26			24
69610 Discounts Taken		(179	)		(51	)		(101	)		(144	)		(122	)		(50	)
Total Misc. Expenses		2,467			3,991			3,587			4,011			3,839			3,488
Total Operating Expense		156,301			152,659			161,409			158,364			155,442			154,449
Gross Margin		169,699			179,935			157,326			174,478			153,909			166,654
Gross Margin Percent		52	%		54	%		49	%		52	%		50	%		52	%
69805 Bad Debt Expense		(1	)		—			205			—			1,065			—
72305 Property Taxes		9,699			9,699			9,699			9,699			9,699			9,699

OLAPTable	JUL			AUG			SEP			OCT			NOV
40005 Revenue-Rental		279,237			279,570			276,979			261,077			271,185
40010 Revenue-Rent Refunds/Proration		—			—			—			—			(1,567	)
Total Rental Revenue		279,237			279,570			276,979			261,077			269,618
40110 Revenue-AL Level 1		6,225			6,467			7,500			7,500			7,975
40115 Revenue-AL Level 2		8,183			4,782			6,091			5,575			4,975
40120 Revenue-AL Level 3		6,025			6,633			4,975			3,300			4,150
40125 Revenue-AL Level 4		6,100			6,313			3,450			8,240			6,250
40130 Revenue-AL Level 5		4,800			4,531			4,980			3,115			4,850
40135 Revenue-AL Level 6		5,983			7,783			8,387			8,600			7,150
40140 Revenue-AL Level 7		—			—			—			90			1,540
Total AL Services Revenue		38,316			36,508			35,383			36,420			36,890
40515 Revenue-Other		706			1,112			1,610			1,268			496
40525 Revenue-Processing/App Fees		8,570			7,670			9,370			6,370			6,370
Total Other Revenue		9,276			8,782			10,980			7,638			6,866
40575 Rev-Process Fee Concessions		—			—			—			—			—
40015 Rev-Rent Concessions		—			—			—			—			—
Total Concessions		—			—			—			—			—
Total Revenue		326,828			324,860			323,342			305,135			313,374
50005 Payroll Expense-Regular		70,447			66,264			67,947			63,656			65,860
50405 Payroll Expense-Overtime		2,437			3,843			3,648			4,275			3,637
50705 Payroll Expense-Doubletime		56			113			61			151			266
51005 Bonuses		3,424			(3,177	)		(3,577	)		(3,127	)		(2,364	)
51505 Vacation, Sick, Holiday		4,567			2,288			4,873			4,620			4,891
51805 Employee Recognition		47			59			225			294			65
52005 Payroll Taxes		6,961			6,254			6,664			6,180			5,982
52505 401K/401A		130			113			181			111			118
52805 Group Insurance		3,260			3,841			4,512			1,870			3,440
53005 Worker’s Comp Insurance		9,455			9,035			3,292			7,125			7,240
Total Payroll Expenses		100,784			88,631			87,826			85,154			89,136
53305 Outside Service-Medical		—			889			399			—			—
54005 Payroll Service		468			294			200			335			326
55005 Outside Service Other		43			32			—			35			—
Total Purchase Services		511			1,215			598			370			326
Total Payroll Related		101,295			89,847			88,425			85,524			89,462
Total Payroll Related % Total Revenue		31	%		28	%		27	%		28	%		29	%
56505 Food		17,705			16,245			15,550			17,577			16,660
57005 Housekeeping		963			546			564			649			404
57505 Kitchen Supplies		1,871			1,905			2,577			2,233			2,393
58005 Assisted Living Supplies		191			316			222			280			180
59005 Laundry & Linen/Uniforms		—			—			31			41			10
59010 Laun/Lin/Unif Kitchen		877			915			708			1,051			1,058
59015 Laund/Lin/Unif Housekeeping		—			—			219			3			—
59505 Activities-Asst Living		1,252			566			977			1,260			1,112
59510 Banquet Expense		400			400			400			400			400
Total Variable Expense		23,260			20,893			21,248			23,493			22,217
60005 Office Supplies		722			734			765			503			1,688
61015 Repairs-Electrical		90			—			—			—			400
61020 Repairs-Plumbing		10			—			150			—			310
61025 Repairs-Fire Systems		—			—			—			—			—
61030 Repairs-HVAC		167			—			—			78			1,010
61035 Repairs-Gen. Supplies		1,141			572			129			683			576
61040 Repairs-Equipment		2,020			161			144			—			729
61045 Repairs-Other Interior		—			278			523			532			1,262
61055 Repairs-Other Exterior		—			60			—			475			405
61100 Loss on Early Retirement Asset		—			—			—			—			—
Total Repair & Maintenance		3,427			1,070			947			1,768			4,692
61505 Contracts-Elevator		312			312			312			312			312
61510 Contracts-Floor Maint		493			493			493			493			493
61515 Contracts-Alarm/Fire		55			55			55			55			55
61525 Contracts-Pest Control		534			534			903			642			541
61535 Contracts-Other		819			44			44			44			263
Total Service Contracts		2,213			1,437			1,806			1,545			1,664
62005 Land Maintenance		1,886			1,250			1,250			1,250			(960	)
Total Land Maintenance		1,886			1,250			1,250			1,250			(960	)
62505 Rental/Lease-Cable		1,681			1,681			1,681			1,681			1,681
62510 Rental/Lease-Security		285			285			285			285			285
62535 Rental/Lease-Equipment		763			577			560			560			1,796
62540 Rental/Lease-Auto		1,155			1,158			1,158			1,354			1,318
62555 Rental/Lease-Other		99			70			70			70			70
Total Rental and Leases		3,983			3,771			3,754			3,950			5,150
63010 Utilities-Electricity		9,293			9,240			8,839			7,318			7,690
63015 Utilities-Water		1,916			1,757			1,704			1,746			2,013
63020 Utilities-Gas		618			581			526			649			738
63025 Utilities-Telephone		1,228			1,268			1,125			1,237			1,299
63030 Utilities-Trash		843			767			767			918			833
Total Utilities		13,899			13,614			12,961			11,868			12,572
63505 Marketing and Advertising		233			213			641			317			407
63510 Printed Materials		105			370			36			187			626
63515 Special Events		1,414			1,901			1,345			877			754
63520 Yellow Pages		1,384			(2,702	)		1,977			461			487
63525 Newspaper and Magazine		210			450			1,535			105			116
63530 Advertising		—			—			—			—			—
64005 Referral Fees-Residents		500			—			—			—			1,225
Total Marketing and Advertising		3,846			232			5,534			1,948			3,615
64505 Computers/Peripherals/Software		—			—			—			108			—
65005 Gas		273			326			237			247			342
65010 Auto Service And Repair		205			120			—			277			101
65015 Other Automobile		—			—			154			—			—
65505 Travel & Lodging		—			—			493			536			—
66005 Mileage		162			191			208			232			339
66505 Meals & Entertainment		30			54			(92	)		—			—
67005 License and Fingerprints		1,016			1,550			1,055			2,245			1,140
68005 Dues and Subscriptions		109			79			145			524			256
68505 Seminars and Training		287			307			126			453			240
69005 Employee Recruiting		—			98			339			194			448
69505 Other		535			152			236			694			176
69605 Discounts Lost		54			5			25			66			42
69610 Discounts Taken		(156	)		(118	)		(72	)		(120	)		(80	)
Total Misc. Expenses		2,515			2,764			2,854			5,454			3,005
Total Operating Expense		157,046			135,612			139,542			137,302			143,103
Gross Margin		169,782			189,248			183,800			167,833			170,271
Gross Margin Percent		52	%		58	%		57	%		55	%		54	%
69805 Bad Debt Expense		5,975			(5,550	)		(425	)		—			333
72305 Property Taxes		9,990			9,990			9,931			9,931			9,931

OLAPTable	DEC			DEC YTD
40005 Revenue-Rental		267,398			3,338,471
40010 Revenue-Rent Refunds/Proration		(1,305	)		(9,599	)
Total Rental Revenue		266,093			3,328,871
40110 Revenue-AL Level 1		9,137			77,596
40115 Revenue-AL Level 2		3,403			104,692
40120 Revenue-AL Level 3		5,165			58,752
40125 Revenue-AL Level 4		4,527			84,639
40130 Revenue-AL Level 5		5,258			49,724
40135 Revenue-AL Level 6		7,461			67,727
40140 Revenue-AL Level 7		1,630			9,660
Total AL Services Revenue		36,581			450,789
40515 Revenue-Other		1,176			14,672
40525 Revenue-Processing/App Fees		10,800			60,500
Total Other Revenue		11,976			75,172
40575 Rev-Process Fee Concessions		(400	)		(400	)
40015 Rev-Rent Concessions		(280	)		(6,298	)
Total Concessions		(680	)		(6,698	)
Total Revenue		313,970			3,848,134
50005 Payroll Expense-Regular		66,232			818,494
50405 Payroll Expense-Overtime		5,074			42,164
50705 Payroll Expense-Doubletime		29			2,979
51005 Bonuses		(2,014	)		9,434
51505 Vacation, Sick, Holiday		4,962			58,246
51805 Employee Recognition		138			932
52005 Payroll Taxes		6,733			85,881
52505 401K/401A		129			2,302
52805 Group Insurance		3,468			42,004
53005 Worker’s Comp Insurance		7,809			95,937
Total Payroll Expenses		92,560			1,158,372
53305 Outside Service-Medical		—			2,924
54005 Payroll Service		42			3,469
55005 Outside Service Other		—			460
Total Purchase Services		42			6,853
Total Payroll Related		92,602			4,165,226
Total Payroll Related % Total Revenue		29	%		30	%
56505 Food		13,872			202,377
57005 Housekeeping		830			8,500
57505 Kitchen Supplies		2,049			24,302
58005 Assisted Living Supplies		285			3,735
59005 Laundry & Linen/Uniforms		13			1,466
59010 Laun/Lin/Unif Kitchen		809			10,609
59015 Laund/Lin/Unif Housekeeping		76			375
59505 Activities-Asst Living		1,502			12,146
59510 Banquet Expense		(1,864	)		2,536
Total Variable Expense		17,572			266,045
60005 Office Supplies		872			10,403
61015 Repairs-Electrical		—			1,293
61020 Repairs-Plumbing		150			1,970
61025 Repairs-Fire Systems		637			964
61030 Repairs-HVAC		286			4,548
61035 Repairs-Gen. Supplies		525			5,611
61040 Repairs-Equipment		—			7,060
61045 Repairs-Other Interior		—			5,081
61055 Repairs-Other Exterior		—			1,140
61100 Loss on Early Retirement Asset		—			-
Total Repair & Maintenance		1,598			27,668
61505 Contracts-Elevator		312			3,735
61510 Contracts-Floor Maint		493			6,111
61515 Contracts-Alarm/Fire		55			660
61525 Contracts-Pest Control		541			6,828
61535 Contracts-Other		504			2,215
Total Service Contracts		1,904			19,550
62005 Land Maintenance		2,368			16,069
Total Land Maintenance		2,368			16,069
62505 Rental/Lease-Cable		1,681			20,178
62510 Rental/Lease-Security		285			3,420
62535 Rental/Lease-Equipment		567			9,744
62540 Rental/Lease-Auto		1,158			14,337
62555 Rental/Lease-Other		70			767
Total Rental and Leases		3,761			48,446
63010 Utilities-Electricity		8,085			96,602
63015 Utilities-Water		1,304			19,935
63020 Utilities-Gas		807			8,180
63025 Utilities-Telephone		1,337			15,087
63030 Utilities- Trash		767			9,969
Total Utilities		12,301			149,773
63505 Marketing and Advertising		112			4,882
63510 Printed Materials		742			7,871
63515 Special Events		2,205			14,163
63520 Yellow Pages		1,228			7,966
63525 Newspaper and Magazine		(1,201	)		6,145
63530 Advertising		—			—
64005 Referral Fees-Residents		500			5,613
Total Marketing and Advertising		3,585			46,640
64505 Computers/Peripherals/Software		241			349
65005 Gas		377			3,361
65010 Auto Service And Repair		—			2,767
65015 Other Automobile		—			1,705
65505 Travel & Lodging		470			1,695
66005 Mileage		198			2,197
66505 Meals & Entertainment		—			157
67005 License and Fingerprints		654			16,418
68005 Dues and Subscriptions		33			2,163
68505 Seminars and Training		(236	)		3,151
69005 Employee Recruiting		348			2,590
69505 Other		301			4,667
69605 Discounts Lost		25			361
69610 Discounts Taken		(117	)		(1,310	)
Total Misc. Expenses		2,295			40,269
Total Operating Expense		138,857			1,790,086
Gross Margin		175,113			2,058,048
Gross Margin Percent		56	%		53	%
69805 Bad Debt Expense		(333	)		1,269
72305 Property Taxes		9,931			117,902

PIII - ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2002
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN
72405 Insurance-Liability & Hazard		4,108			4,108			4,108			6,850			6,850			6,850
Total Other Fees		13,807			13,808			14,013			16,549			17,614			16,549
72505 Accounting		2,500			2,500			2,500			2,500			4,100			2,500
73005 Legal		568			358			478			2,035			400			442
73510 Donations & Contributions		—			—			—			—			—			—
74005 Consulting Fees		—			—			—			—			—			—
74015 Professional Fees-Other		—			—			—			37			—			—
75005 Property Management Fees		16,175			16,766			15,925			16,642			15,468			16,055
75105 Partnership Admin Fees		6,696			6,285			2,489			6,366			2,561			3,651
75510 Other Penalties/Fin. Fee		25			—			—			—			—			—
75515 Licenses & Fees Legal		—			—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—			—
Total Professional Fees		25,964			25,910			21,393			27,580			22,529			22,648
EBITDAR		129,929			140,218			121,921			130,349			113,766			127,457
EBITDAR Percent		40	%		42	%		38	%		39	%		37	%		40	%
80005 Interest Income		(58	)		(61	)		(1,081	)		(1,695	)		(1,641	)		(1,829	)
80505 Other Non-Operating Income		—			—			—			(82,000	)		—			82,000
Total Non-Operating Income/Expense		(58	)		(61	)		(1,081	)		(83,695	)		(1,641	)		80,171
83005 Interest Expense		60,841			70,407			96,289			70,200			84,591			84,508
83025 Int Exp MIP		—			—			—			—			—			—
Total Interest Expense		60,841			70,407			96,289			70,200			84,591			84,508
EBTDA		69,147			69,872			26,714			143,843			30,816			(37,222	)
EBTDA Percent		21	%		21	%		8	%		43	%		10	%		-12	%
77505 Depreciation		42,443			42,569			42,676			42,705			42,802			42,741
78005 Amortization		—			—			—			16,580			8,290			8,371
Total Depreciation & Amortization		42,443			42,569			42,676			59,286			51,092			51,112
Net Income (Loss)		26,705			27,303			(15,963	)		84,558			(20,277	)		(88,334	)

OLAPTable	JUL			AUG			SEP			OCT			NOV			DEC			DEC YTD
72405 Insurance-Liability & Hazard		6,850			10,247			6,540			8,051			8,112			5,954			78,627
Total Other Fees		22,815			14,687			16,046			17,982			18,376			15,552			197,797
72505 Accounting		2,743			2,500			4,100			2,500			3,852			—			32,295
73005 Legal		426			350			475			1,123			429			392			7,478
73510 Donations & Contributions		—			—			408			—			—			—			408
74005 Consulting Fees		—			—			—			250			—			—			250
74015 Professional Fees-Other		—			—			—			—			—			—			37
75005 Property Management Fees		16,341			16,243			16,167			15,141			15,784			15,699			192,407
75105 Partnership Admin Fees		4,100			6,509			5,133			4,547			4,200			5,395			57,932
75510 Other Penalties/Fin. Fee		—			—			—			—			—			—			25
75515 Licenses & Fees Legal		—			—			—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—			—			—
Total Professional Fees		23,610			25,602			26,284			23,562			24,265			21,486			290,832
EBITDAR		123,357			148,959			141,470			126,289			127,629			138,075			1,569,419
EBITDAR Percent		38	%		46	%		44	%		41	%		41	%		44	%		41	%
80005 Interest Income		(1,565	)		(1,728	)		(1,841	)		(1,563	)		(1,732	)		(1,733	)		(16,527	)
80505 Other Non-Operating Income		—			—			59			59			(391	)		—			(273	)
Total Non-Operating Income/Expense		(1,565	)		(1,728	)		(1,782	)		(1,504	)		(2,123	)		(1,733	)		(16,801	)
83005 Interest Expense		84,424			84,339			84,254			84,168			84,168			83,907			972,094
83025 Int Exp MIP		—			—			—			—			—			—			—
Total Interest Expense		84,424			84,339			84,254			84,168			84,168			83,907			972,094
EBTDA		40,498			66,347			58,999			43,625			45,585			55,901			614,125
EBTDA Percent		12	%		20	%		18	%		14	%		15	%		18	%		16	%
77505 Depreciation		42,931			42,978			43,001			43,046			42,821			43,063			513,776
78005 Amortization		8,330			8,330			8,330			8,330			8,330			8,330			83,223
Total Depreciation & Amortization		51,261			51,309			51,331			51,376			51,152			51,393			596,999
Net Income (Loss)		(10,763	)		15,039			7,668			(7,751	)		(5,567	)		4,508			17,126

PIII - ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2001
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL
40005 Revenue-Rental		298,512			294,877			292,871			294,518			286,856			283,003			284,392
40010 Revenue-Rent Refunds/Proration		—			(1,940	)		(2,503	)		—			(719	)		(342	)		(652	)
Total Rental Revenue		298,512			292,937			290,368			294,518			286,137			282,661			283,740
40110 Revenue-AL Level 1		3,377			5,825			8,220			7,280			8,452			8,123			9,426
40115 Revenue-AL Level 2		4,252			5,883			6,950			6,794			7,624			7,653			5,595
40120 Revenue-AL Level 3		2,605			6,386			5,227			5,052			2,225			4,605			4,295
40125 Revenue-AL Level 4		4,202			10,725			11,083			7,156			8,394			7,854			9,196
40130 Revenue-AL Level 5		9,357			10,858			11,008			9,400			6,119			6,065			7,478
40135 Revenue-AL Level 6		7,870			(1,375	)		3,575			1,588			6,048			3,750			2,850
40140 Revenue-AL Level 7		1,167			1,525			(717	)		3,300			3,160			4,815			2,988
Total AL Services Revenue		32,830			39,827			47,121			38,795			42,022			42,864			41,828
40515 Revenue-Other		2,394			2,470			1,386			1,801			3,207			786			1,993
40525 Revenue-Processing/App Fees		2,000			5,000			595			—			2,500			1,000			4,000
Total Other Revenue		4,394			7,470			1,981			1,801			5,707			1,786			5,993
40575 Rev-Process Fee Concessions		—			—			—			—			—			—			—
40015 Rev-Rent Concessions		—			—			—			—			—			—			—
Total Concessions		—			—			—			—			—			—			—
Total Revenue		335,737			340,234			339,470			335,114			333,866			327,311			331,562
50005 Payroll Expense-Regular		73,211			68,364			69,426			60,551			78,602			67,658			72,419
50405 Payroll Expense-Overtime		4,185			1,926			1,269			2,362			1,989			3,150			2,539
50705 Payroll Expense-Doubletime		131			—			131			33			29			37			71
51005 Bonuses		4,015			5,055			9,157			467			5,803			6,060			5,115
51505 Vacation, Sick, Holiday		9,299			8,293			3,209			2,266			2,795			7,163			4,749
51805 Employee Recognition		—			134			500			—			—			63			28
52005 Payroll Taxes		10,866			11,952			7,116			7,236			8,739			5,357			7,195
52505 401K/401A		240			597			276			235			247			297			272
52805 Group Insurance		4,168			5,058			4,694			3,833			4,088			764			1,863
53005 Worker’s Comp Insurance		5,606			8,073			4,712			4,546			5,417			5,739			5,216
Total Payroll Expenses		111,721			109,453			100,489			81,529			107,709			96,288			99,469
53305 Outside Services-Medical		440			98			703			88			(112	)		(226	)		—
53505 Temporary Services		—			—			—			—			—			—			—
54005 Payroll Service		226			228			231			276			231			235			235
55005 Outside Service Other		65			—			317			—			317			318			349
Total Purchase Services		730			326			1,251			364			435			327			584
Total Payroll Related		112,451			109,778			101,740			81,893			108,144			96,615			100,053
Total Payroll Related % Total Revenue		33	%		32	%		30	%		24	%		32	%		30	%		30	%
56505 Food		19,616			17,683			22,235			19,177			25,021			19,871			18,570
57005 Housekeeping		1,742			774			351			650			1,415			915			876
57505 Kitchen Supplies		3,357			1,582			1,566			1,506			2,976			2,133			2,088
58005 Assisted Living Supplies		1,874			561			—			374			255			112			459
59005 Laundry & Linen/Uniforms		461			917			1,260			952			847			1,288			889
59010 Laun/Lin/Unit Kitchen		—			—			—			—			—			—			—
59015 Laund/Lin/Unit Housekeeping		—			—			—			—			—			—			—
59505 Activities-Asst Lving		2,313			840			2,072			1,502			889			1,240			904
59510 Banquet Expense		400			400			400			400			400			400			400
Total Variable Expense		29,764			22,757			27,883			24,579			31,785			25,958			24,186
60005 Office Supplies		1,298			693			850			243			1,628			272			1,663
61015 Repairs-Electrical		—			—			—			—			—			—			—
61020 Repairs-Plumbing		—			—			—			—			—			—			—
61025 Repairs-Fire Systems		—			—			—			225			—			326			240
61030 Repairs-HVAC		—			132			—			434			395			456			419
61035 Repairs-Gen. Supplies		764			1,070			456			1,565			145			566			313
61040 Repairs-Equipment		106			1,210			250			723			50			390			203
61045 Repairs-Other Interior		400			210			1,387			1,164			1,365			703			(118	)
61055 Repairs-Other Exterior		—			—			112			—			267			48			37
61100 Loss on Early Retirement Asset		—			—			—			—			—			—			—
Total Repair & Maintenance		1,270			2,622			2,206			4,111			2,222			2,490			1,094
61505 Contracts-Elevator		306			306			306			—			306			611			306
61510 Contracts-Floor Maint		425			43			468			468			468			643			468
61515 Contracts-Alarm/Fire		55			55			55			55			55			55			55
61525 Contracts-Pest Control		276			276			276			276			276			276			277
61535 Contracts-Other		—			—			298			4			216			—			—
Total Service Contracts		1,062			680			1,403			804			1,321			1,586			1,105
62005 Land Maintenance		1,250			1,250			1,250			1,250			1,250			1,250			1,250
Total Land Maintenance		1,250			1,250			1,250			1,250			1,250			1,250			1,250
62505 Rental/Lease-Cable		1,681			1,677			1,681			1,681			1,687			1,681			1,681
62510 Rental/Lease-Security		285			285			285			—			285			—			—
62535 Rental/Lease-Equipment		882			690			767			576			694			793			504
62540 Rental/Lease-Auto		1,184			1,182			1,182			1,182			1,182			1,184			1,182
62555 Rental/Lease-Other		199			50			171			—			—			—			53
Total Rental and Leases		4,232			3,883			4,086			3,439			3,847			3,659			3,420
63010 Utilities-Electricity		5,907			6,556			5,927			4,956			5,569			8,388			10,238
63015 Utilities-Water		1,528			1,172			1,346			1,207			1,483			1,766			1,793
63020 Utilities-Gas		1,471			1,035			1,345			1,135			1,281			889			517
63025 Utilities-Telephone		1,706			1,506			2,122			1,091			1,060			882			1,475
63030 Utilities-Trash		820			605			767			1,035			811			851			818
Total Utilities		11,431			10,874			11,508			9,424			10,204			12,776			14,841
63505 Marketing and Advertising		291			448			1,556			353			368			304			318
63510 Printed Materials		83			—			15			98			540			185			1
63515 Special Events		507			784			882			(4	)		691			1,064			614
63520 Yellow Pages		695			1,344			865			100			1,206			(1,216	)		919
63525 Newspaper and Magazine		105			136			470			114			136			136			41
63530 Advertising		—			—			—			180			—			—			—
64005 Referral Fees-Residents		—			100			600			—			—			—			1,325
Total Marketing and Advertising		1,680			2,812			4,387			841			2,941			473			3,218
64505 Computers/ Peripherals/ Software		—			—			—			—			—			460			—
65005 Gas		407			—			501			112			196			292			253
65010 Auto Service And Repair		111			75			255			1,087			4,090			(2,000	)		—
65015 Other Automobile		821			821			—			—			1,642			—			—
65505 Travel & Lodging		423			414			427			—			305			(305	)		110
66005 Mileage		599			—			291			—			24			40			330
66505 Meals & Entertainment		47			428			507			260			107			305			111
67005 License and Fingerprints		282			239			101			1,494			3,231			3,029			2,443
68005 Dues and Subscriptions		305			—			119			—			211			211			20
68505 Seminars and Training		413			108			283			50			623			75			217
69005 Employee Recruiting		—			198			198			—			198			—			283
69505 Other		858			391			475			183			117			418			312
69605 Discounts Lost		53			—			39			—			138			54			89
69610 Discounts Taken		(131	)		(79	)		(193	)		(190	)		(138	)		(84	)		(129	)
Total Misc. Expenses		4,188			2,596			3,004			2,994			10,744			2,493			4,038
Total Operating Expense		168,626			157,946			158,317			129,579			174,087			147,572			154,867
Gross Margin		167,111			182,288			181,153			205,535			159,779			179,739			176,695
Gross Margin Percent		50	%		54	%		53	%		61	%		48	%		55	%		53	%
69705 Casualty Loss		—			—			—			—			—			1,000			—

																DEC
OLAPTable	AUG			SEP			OCT			NOV			DEC			YTD
40005 Revenue-Rental		294,492			296,901			286,837			272,866			283,742			3,469,866
40010 Revenue-Rent Refunds/Proration		(2,311	)		(500	)		—			—			(77	)		(9,044	)
Total Rental Revenue		292,181			296,401			286,837			272,866			283,665			3,460,822
40110 Revenue-AL Level 1		7,851			6,350			6,895			5,284			4,763			81,844
40115 Revenue-AL Level 2		6,675			9,425			8,480			9,047			8,850			87,227
40120 Revenue-AL Level 3		2,101			1,650			1,650			1,650			3,181			40,627
40125 Revenue-AL Level 4		12,576			11,184			11,375			9,474			13,372			116,591
40130 Revenue-AL Level 5		7,663			4,460			3,575			3,575			2,350			81,908
40135 Revenue-AL Level 6		5,907			4,485			4,275			4,275			4,275			47,523
40140 Revenue-AL Level 7		(253	)		1,600			1,600			1,600			1,600			22,385
Total AL Services Revenue		42,520			39,154			37,850			34,904			38,390			478,106
40515 Revenue-Other		1,405			993			1,538			1,452			1,125			20,551
40525 Revenue-Processing/App Fees		2,200			4,000			500			1,000			(500	)		22,295
Total Other Revenue		3,605			4,993			2,038			2,452			625			42,846
40575 Rev-Process Fee Concessions		—			—			—			—			—			—
40015 Rev-Rent Concessions		—			—			(2,200	)		—			(300	)		(2,500	)
Total Concessions		—			—			(2,200	)		—			(300	)		(2,500	)
Total Revenue		338,306			340,548			324,525			310,222			322,380			3,979,273
50005 Payroll Expense-Regular		69,047			67,809			73,933			68,994			64,917			834,930
50405 Payroll Expense-Overtime		2,850			2,022			1,849			2,204			3,071			29,417
50705 Payroll Expense-Doubletime		103			347			218			206			158			1,464
51005 Bonuses		1,964			3,041			1,796			2,706			2,221			47,400
51505 Vacation, Sick, Holiday		3,641			6,329			5,069			4,877			7,681			65,372
51805 Employee Recognition		—			—			—			—			—			725
52005 Payroll Taxes		6,123			6,357			6,747			5,020			6,119			88,825
52505 401K/401A		235			231			190			276			227			3,323
52805 Group Insurance		3,066			4,065			2,156			3,026			2,630			39,412
53005 Worker’s Comp Insurance		5,150			10,566			7,936			7,936			8,462			79,359
Total Payroll Expenses		92,181			100,766			99,894			95,243			95,485			1,190,227
53305 Outside Services-Medical		78			123			—			—			—			1,192
53505 Temporary Services		—			—			—			—			2			2
54005 Payroll Service		235			235			235			217			212			2,797
55005 Outside Service Other		(877	)		35			27			—			—			549
Total Purchase Services		(564	)		393			262			217			215			4,540
Total Payroll Related		91,617			101,160			100,156			95,461			95,700			1,194,767
Total Payroll Related % Total Revenue		27	%		30	%		31	%		31	%		30	%		30	%
56505 Food		15,492			17,182			18,549			17,277			17,231			227,904
57005 Housekeeping		1,288			494			659			436			667			10,267
57505 Kitchen Supplies		1,865			1,826			2,312			2,154			1,996			25,360
58005 Assisted Living Supplies		267			413			187			312			196			5,010
59005 Laundry & Linen/Uniforms		873			1,500			1,088			1,198			1,032			12,306
59010 Laun/Lin/Unit Kitchen		—			—			—			—			—			—
59015 Laund/Lin/Unit Housekeeping		—			—			—			—			—			—
59505 Activities-Asst Lving		1,690			411			895			1,692			115			14,563
59510 Banquet Expense		400			400			400			436			(1,158	)		3,278
Total Variable Expense		21,875			22,227			24,091			23,504			20,079			298,688
60005 Office Supplies		682			629			1,542			652			921			11,072
61015 Repairs-Electrical		—			—			—			—			111			111
61020 Repairs-Plumbing		300			150			150			537			395			1,532
61025 Repairs-Fire Systems		—			—			—			125			352			1,269
61030 Repairs-HVAC		408			(192	)		—			462			876			3,391
61035 Repairs — Gen. Supplies		4,135			207			395			103			578			10,297
61040 Repairs — Equipment		1,266			626			73			899			502			6,297
61045 Repairs — Other Interior		77			138			185			77			289			5,879
61055 Repairs — Other Exterior		—			—			35			—			—			499
61100 Loss on Early Retirement Asset		—			—			—			—			—			—
Total Repair & Maintenance		6,186			929			838			2,203			3,103			29,274
61505 Contracts-Elevator		306			306			306			306			309			3,672
61510 Contracts-Floor Maint		180			936			468			468			468			5,503
61515 Contracts-Alarm/Fire		55			55			55			55			55			660
61525 Contracts-Pest Control		1,244			516			1,269			535			1,955			7,453
61535 Contracts-Other		—			—			422			174			450			1,565
Total Service Contracts		1,785			1,813			2,520			1,538			3,237			18,852
62005 Land Maintenance		1,250			1,387			1,250			1,250			1,430			15,317
Total Land Maintenance		1,250			1,387			1,250			1,250			1,430			15,317
62505 Rental/Lease-Cable		1,681			1,681			1,681			1,681			1,681			20,178
62510 Rental/Lease-Security		1,140			258			285			312			285			3,420
62535 Rental/Lease-Equipment		1,305			1,288			1,272			581			786			10,138
62540 Rental/Lease-Auto		1,182			1,182			1,182			1,182			1,182			14,186
62555 Rental/Lease-Other		53			53			53			53			53			738
Total Rental and Leases		5,362			4,462			4,473			3,809			3,988			48,660
63010 Utilities-Electricity		9,889			7,252			8,633			7,690			8,209			89,214
63015 Utilities-Water		1,773			1,985			1,618			1,651			1,660			18,983
63020 Utilities-Gas		500			336			472			468			845			10,294
63025 Utilities-Telephone		751			714			828			1,027			1,302			14,463
63030 Utilities-Trash		823			108			1,590			831			831			9,889
Total Utilities		13,736			10,394			13,142			11,666			12,847			142,843
63505 Marketing and Advertising		1,465			275			455			189			208			6,228
63510 Printed Materials		636			2,122			215			204			690			4,788
63515 Special Events		844			951			289			135			1,043			7,800
63520 Yellow Pages		1,191			869			478			478			637			7,566
63525 Newspaper and Magazine		515			2,656			2,718			1,512			6,533			15,071
63530 Advertising		—			—			62			31			27			300
64005 Referral Fees-Residents		500			500			—			500			500			4,025
Total Marketing and Advertising		5,150			7,372			4,218			3,048			9,638			45,779
64505 Computers/ Peripherals/ Software		—			—			—			—			—			460
65005 Gas		332			316			243			261			163			3,076
65010 Auto Service And Repair		2			301			—			—			419			4,340
65015 Other Automobile		78			7			4			4			(786	)		2,591
65505 Travel & Lodging		587			787			174			351			66			3,338
66005 Mileage		327			89			204			198			20			2,122
66505 Meals & Entertainment		110			102			124			67			—			2,167
67005 License and Fingerprints		1,780			770			1,572			1,052			1,152			17,142
68005 Dues and Subscriptions		36			211			12			447			380			1,950
68505 Seminars and Training		871			676			488			313			—			4,116
69005 Employee Recruiting		920			159			—			61			—			2,016
69505 Other		236			258			615			272			42			4,179
69605 Discounts Lost		26			25			30			(0	)		—			454
69610 Discounts Taken		(144	)		(69	)		(147	)		(110	)		(80	)		(1,495	)
Total Misc. Expenses		5,160			3,632			3,318			2,915			1,376			46,457
Total Operating Expense		152,801			154,003			155,548			146,045			152,318			1,851,709
Gross Margin		185,505			186,544			168,977			164,177			170,062			2,127,564
Gross Margin Percent		55	%		55	%		52	%		53	%		53	%		53	%
69705 Casualty Loss		—			—			—			—			—			1,000

3

PIII - ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2001
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL
69805 Bad Debt Expense		8,502			730			2,003			1,505			10			(3,856	)		—
72305 Property Taxes		9,830			10,138			9,984
72405 Insurance-Liability & Hazard		1,998			1,998			1,997			4,108			4,108			4,108			3,884
Total Other Fees		20,329			12,865			13,983			15,597			14,104			11,238			13,868
72505 Accounting		1,101			4,251			1,023			1,750			2,309			2,310			2,585
73005 Legal		18,676			472			(17,684	)		426			471			355			451
73510 Donations & Contributions		—			—			—			—			—			—			—
74005 Consulting Fees		—			—			157			—			—			—			—
74015 Professional Fees-Other		—			—			—			—			—			—			28
75005 Property Management Fees		16,787			17,012			16,974			16,753			16,693			16,368			16,578
75105 Partnership Admin Fees		4,860			5,862			13,912			10,327			6,514			5,140			7,590
75510 Other Penalties/Fin. Fee		—			—			—			—			—			—			—
75515 Licenses & Fees Legal		—			—			—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—			—			—
Total Professional Fees		41,424			27,597			14,381			29,257			25,987			24,173			27,232
EBITDAR		105,357			141,825			152,788			160,681			119,688			144,329			135,595
EBITDAR Percent		31	%		42	%		45	%		48	%		36	%		44	%		41	%
80005 Interest Income		—			(73	)		—			(72	)		(39	)		(43	)		(44	)
80505 Other Non-Operating Income		—			—			—			—			—			—			—
Total Non-Operating Income/Expense		—			(73	)		—			(72	)		(39	)		(43	)		(44	)
83005 Interest Expense		61,616			61,554			61,492			61,429			61,365			61,302			61,237
83025 Int Exp MIP		—			—			—			—			—			—			—
Total Interest Expense		61,616			61,554			61,492			61,429			61,365			61,302			61,237
EBTDA		43,741			80,344			91,296			99,324			58,362			83,070			74,402
EBTDA Percent		13	%		24	%		27	%		30	%		17	%		25	%		22	%
77505 Depreciation		42,113			42,113			42,157			42,157			42,157			42,456			42,269
78005 Amortization		12,937			12,937			12,937			12,937			12,937			12,937			—
Total Depreciation & Amortization		55,050			55,051			55,095			55,094			55,094			55,394			42,269
Net Income (Loss)		(11,309	)		25,293			36,202			44,230			3,268			27,677			32,133

																DEC
OLAPTable	AUG			SEP			OCT			NOV			DEC			YTD
69805 Bad Debt Expense		6			14			10			1,550			—			10,474
72305 Property Taxes		9,984			9,984			9,984			9,984			8,276			118,103
72405 Insurance-Liability & Hazard		4,333			4,108			4,108			4,108			4,108			42,965
Total Other Fees		14,323			14,106			14,102			15,642			12,385			172,543
72505 Accounting		2,668			2,626			2,626			2,626			6,526			32,400
73005 Legal		568			389			483			378			373			5,360
73510 Donations & Contributions		—			—			—			—			—			—
74005 Consulting Fees		—			250			—			—			—			407
74015 Professional Fees-Other		—			—			—			—			—			28
75005 Property Management Fees		16,915			17,027			16,226			15,516			16,239			199,089
75105 Partnership Admin Fees		8,351			7,662			7,682			6,316			6,955			91,172
75510 Other Penalties/Fin. Fee		—			—			4			8			130			143
75515 Licenses & Fees Legal		—			—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—			—
Total Professional Fees		28,795			27,954			27,022			24,845			30,224			328,892
EBITDAR		142,387			144,484			127,852			123,690			127,453			1,626,130
EBITDAR Percent		42	%		42	%		39	%		40	%		40	%		41	%
80005 Interest Income		(48	)		(59	)		(50	)		(54	)		(59	)		(541	)
80505 Other Non-Operating Income		—			—			—			—			—			—
Total Non-Operating Income/Expense		(48	)		(59	)		(50	)		(54	)		(59	)		(541	)
83005 Interest Expense		61,172			61,107			61,041			60,975			60,908			735,198
83025 Int Exp MIP		—			—			—			—			—			—
Total Interest Expense		61,172			61,107			61,041			60,975			60,908			735,198
EBTDA		81,263			83,436			66,861			62,769			66,604			891,473
EBTDA Percent		24	%		25	%		21	%		20	%		21	%		22	%
77505 Depreciation		42,374			42,355			42,355			42,383			42,424			507,312
78005 Amortization		—			—			—			—			—			77,625
Total Depreciation & Amortization		42,374			42,355			42,355			42,383			42,424			584,937
Net Income (Loss)		38,890			41,081			24,506			20,386			24,180			306,536

PIII - ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2000
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GLAccount	Along Rows

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL
40005 Revenue- Rental		267,035			261,390			272,735			265,697			262,365			271,508			261,905
40010 Revenue-Rent Refunds/Proration		—			—			—			—			(3,428	)		—			—
Total Rental Revenue		267,035			261,390			272,735			265,697			258,937			271,508			261,905
40110 Revenue-AL Level 1		4,551			5,040			3,750			3,850			4,738			4,555			5,848
40115 Revenue-AL Level 2		5,527			7,200			5,519			3,425			6,529			6,325			6,088
40120 Revenue-AL Level 3		3,675			4,642			5,065			4,650			4,557			3,875			5,862
40125 Revenue-AL Level 4		6,828			3,475			6,289			10,463			5,805			10,738			8,935
40130 Revenue-AL Level 5		3,525			6,760			6,250			8,772			8,318			6,972			6,463
40135 Revenue-AL Level 6		—			—			—			—			—			2,750			2,984
40140 Revenue-AL Level 7		6,455			9,939			6,760			6,320			6,580			7,205			4,725
Total AL Services Revenue		30,561			37,056			33,633			37,480			36,527			42,420			40,905
40515 Revenue-Other		1,419			980			837			901			1,680			612			1,191
40525 Revenue- Processing/App Fees		8,000			1,000			1,000			—			4,000			3,500			500
Total Other Revenue		9,419			1,980			1,837			901			5,680			4,112			1,691
40575 Rev-Process Fee Concessions		—			—			—			—			—			—			—
40015 Rev-Rent Concessions		—			—			—			—			(100	)		—			(1,438	)
Total Concessions		—			—			—			—			(100	)		—			(1,438	)
Total Revenue		307,014			300,426			308,205			304,078			301,044			318,040			303,064
50005 Payroll Expense-Regular		65,606			65,680			72,554			65,212			70,532			65,028			62,869
50405 Payroll Expense-Overtime		5,176			3,197			2,295			2,299			1,405			2,284			3,008
50705 Payroll Expense - Doubletime		281			354			98			265			126			151			42
51005 Bonuses		1,200			1,640			1,100			700			3,400			950			6,088
51505 Vacation, Sick, Holiday		4,828			8,635			4,382			4,840			1,917			4,779			4,311
51805 Employee Recognition		—			—			—			—			—			—			—
52005 Payroll Taxes		9,492			8,523			8,923			7,319			8,017			6,752			6,892
52505 401K/401A		124			148			125			125			168			153			153
52805 Group Insurance		1,703			3,044			3,849			2,509			3,659			3,467			3,659
53005 Worker’s Comp Insurance		2,292			2,292			2,825			5,179			5,262			5,215			5,095
Total Payroll Expenses		90,702			93,514			96,152			88,448			94,485			88,778			92,116
53305 Outside Service - Medical		1,398			826			1,632			387			—			—			982
53505 Temporary Services		—			—			172			—			—			—			—
54005 Payroll Service		—			366			187			227			217			213			224
55005 Outside Service Other		—			14			3			—			—			—			—
Total Purchase Services		1,398			1,206			1,993			613			217			213			1,206
Total Payroll Related		92,100			94,721			98,145			89,061			94,701			88,991			93,322
Total Payroll Related % Total Revenue		30	%		32	%		32	%		29	%		31	%		28	%		31	%
56505 Food		34,371			24,268			24,547			18,835			22,283			20,568			16,762
57005 Housekeeping		2,536			2,592			1,737			840			772			1,324			918
57505 Kitchen Supplies		1,799			2,513			2,909			1,421			2,496			1,558			2,185
58005 Assisted Living Supplies		32			72			1,297			(864	)		491			373			431
59005 Laundry & Linen/Uniforms		1,911			968			1,687			1,653			1,144			996			1,307
59010 Laun/Lin/Unif Kitchen		—			—			—			—			—			—			—
59015 Laund/Lin/Unif Housekeeping		—			—			—			—			—			—
59505 Activities-Asst Lving		1,040			1,321			1,018			1,107			1,293			909			1,784
59510 Banquet Expense		121			743			400			400			400			400			400
Total Variable Expense		41,809			32,477			33,595			23,391			28,878			26,127			23,787

																DEC
OLAPTable	AUG			SEP			OCT			NOV			DEC			YTD
40005 Revenue- Rental		271,425			279,436			277,905			286,873			303,250			3,281,524
40010 Revenue-Rent Refunds/Proration		(100	)		(100	)		—			—			—			(3,628	)
Total Rental Revenue		271,325			279,336			277,905			286,873			303,250			3,277,896
40110 Revenue-AL Level 1		5,078			5,350			6,693			4,875			4,125			58,722
40115 Revenue-AL Level 2		6,431			5,750			6,502			4,600			4,813			68,708
40120 Revenue-AL Level 3		6,146			7,950			10,249			7,175			7,404			71,250
40125 Revenue-AL Level 4		8,039			8,546			7,725			6,950			8,081			91,875
40130 Revenue-AL Level 5		7,136			7,537			7,650			7,450			7,650			84,482
40135 Revenue-AL Level 6		5,900			4,179			4,175			4,150			8,551			32,689
40140 Revenue-AL Level 7		1,525			2,900			2,850			2,900			2,925			61,084
Total AL Services Revenue		40,255			42,212			46,113			38,100			43,549			468,809
40515 Revenue-Other		779			870			906			—			1,285			11,460
40525 Revenue- Processing/App Fees		6,000			—			2,415			1,000			6,000			33,415
Total Other Revenue		6,779			870			3,321			1,000			7,285			44,875
40575 Rev-Process Fee Concessions		—			—			—			—			—			—
40015 Rev-Rent Concessions		—			—			—			—			—			(1,538	)
Total Concessions		—			—			—			—			—			(1,538	)
Total Revenue		318,359			322,418			327,339			325,973			354,084			3,790,043
50005 Payroll Expense-Regular		65,886			66,865			75,997			71,523			72,374			820,125
50405 Payroll Expense-Overtime		2,815			2,429			4,232			2,475			2,794			34,408
50705 Payroll Expense - Doubletime		197			121			211			60			268			2,173
51005 Bonuses		1,600			1,500			4,600			3,250			3,800			29,828
51505 Vacation, Sick, Holiday		8,519			3,414			5,485			4,617			2,420			58,146
51805 Employee Recognition		—			—			—			—			—			—
52005 Payroll Taxes		4,854			6,133			7,608			6,553			6,727			87,794
52505 401K/401A		180			178			185			232			374			2,146
52805 Group Insurance		1,223			5,734			4,045			4,404			4,390			41,687
53005 Worker’s Comp Insurance		5,384			5,141			5,191			5,274			5,029			54,178
Total Payroll Expenses		90,657			91,515			107,554			98,388			98,176			1,130,486
53305 Outside Service - Medical		1,130			510			917			339			418			8,539
53505 Temporary Services		—			—			3			—			—			174
54005 Payroll Service		205			214			225			230			234			2,542
55005 Outside Service Other		122			—			(139	)		—			33			33
Total Purchase Services		1,457			724			1,006			569			686			11,289
Total Payroll Related		92,114			92,239			108,560			98,957			98,862			1,141,775
Total Payroll Related % Total Revenue		29	%		29	%		33	%		30	%		28	%		30	%
56505 Food		18,109			15,612			25,099			19,232			27,729			267,413
57005 Housekeeping		1,314			902			799			1,004			799			15,536
57505 Kitchen Supplies		1,766			3,086			2,418			1,418			3,305			26,872
58005 Assisted Living Supplies		—			526			204			452			282			3,296
59005 Laundry & Linen/Uniforms		1,427			2,611			2,949			787			2,031			19,472
59010 Laun/Lin/Unif Kitchen		—			—			—			—			—			—
59015 Laund/Lin/Unif Housekeeping		—			—			—			—			—			—
59505 Activities-Asst Lving		1,358			1,575			1,356			1,577			3,082			17,420
59510 Banquet Expense		400			400			650			400			(1,083	)		3,630
Total Variable Expense		24,374			24,712			33,475			24,871			36,144			353,638

[Table continues from previous page]

OLAPTable	JAN			FEB			MAR			APR			MAY			JUN			JUL
60005 Office Supplies		2,050			2,566			955			294			2,282			318			1,370
61015 Repairs - Electrical		—			—			—			—			—			—			185
61020 Repairs - Plumbing		400			218			—			—			400			—			172
61025 Repairs - Fire Systems		340			1,088			—			—			—			447			—
61030 Repairs - HVAC		198			317			—			—			—			111			128
61035 Repairs - Gen. Supplies		1,438			2,155			957			636			577			325			1,418
61040 Repairs - Equipment		847			1,420			134			166			219			271			—
61045 Repairs - Other Interior		651			—			300			56			—			400			225
61055 Repairs - Other Exterior		—			100			—			—			—			—			—
61100 Loss on Early Retirement Asset		—			—			—			—			—			—			—
Total Repair & Maintenance		3,874			5,296			1,391			858			1,195			1,554			2,128
61505 Contracts - Elevator		595			297			297			297			297			297			297
61510 Contracts - Floor Maint		893			425			425			425			425			425			425
61515 Contracts - Alarm/Fire		425			55			55			55			55			535			55
61520 Contracts - HVA		—			400			—			—			—			—			—
61525 Contracts - Pest Control		553			553			1,026			276			276			276
61535 Contracts - Other		—			228			49			—			—			—			—
Total Service Contracts		2,465			1,958			1,853			1,054			1,054			1,534			1,053
62005 Land Maintenance		(100	)		1,295			2,510			1,633			1,000			1,250			1,250
Total Land Maintenance		(100	)		1,295			2,510			1,633			1,000			1,250			1,250
62505 Rental/Lease -Cable		1,681			1,681			1,681			1,686			1,686			1,681			1,682
62510 Rental/Lease - Security		575			—			—			1,140			—			570			285
62535 Rental/Lease - Equipment		1,453			677			820			895			725			693			600
62540 Rental/Lease - Auto		1,158			1,158			1,158			1,158			1,158			1,158			1,158
62555 Rental/Lease - Other		100			—			63			50			122			55			50
Total Rental and Leases		4,967			3,516			3,722			4,928			3,690			4,157			3,775
63010 Utilities - Electricity		5,884			5,380			5,680			4,902			5,153			6,616			5,902
63015 Utilities - Water		1,642			1,713			1,257			1,346			2,028			2,003			1,533
63020 Utilities - Gas		325			910			846			817			845			664			726
63025 Utilities - Telephone		1,171			1,299			1,532			1,428			1,527			1,229			2,330
63030 Utilities - Trash		—			876			894			1,677			876			876			916
Total Utilities		9,022			10,178			10,208			10,169			10,429			11,388			11,408
63505 Marketing and Advertising		438			3,308			791			8,897			279			2,205			1,121
63510 Printed Materials		227			—			169			173			71			—			—
63515 Special Events		803			904			1,271			366			281			1,398			1,537
63520 Yellow Pages		—			—			—			—			—			—			—
63525 Newspaper and Magazine		—			—			—			—			—			—			—
63530 Advertising		—			—			—			—			—			—			—
64005 Referral Fees -Residents		—			1,070			—			200			—			—			—
Total Marketing and Advertising		1,456			5,281			2,231			9,637			631			3,603			2,658
64505 Computers/ Peripherals/ Software		—			—			—			—			—			—			—
65005 Gas		—			241			139			245			100			89			281
65010 Auto Service And Repair		175			75			50			672			25			—			—
65015 Other Automobile		—			—			—			—			—			—			—
65505 Travel & Lodging		681			242			280			260			72			1,155			187
66005 Mileage		166			176			219			—			—			487			193
66505 Meals & Entertainment		58			33			208			252			78			432			82
67005 License and Fingerprints		727			844			753			1,284			1,433			1,355			628
68005 Dues and Subscriptions		175			—			—			330			—			443			90
68505 Seminars and Training		35			91			485			45			685			28			1,468
69005 Employee Recruiting		863			283			21			56			—			1,200			64
69505 Other		—			165			255			132			285			246			193
69605 Discounts Lost		—			—			—			—			—			—			—
69610 Discounts Taken		(191	)		(117	)		(130	)		(72	)		(103	)		(93	)		(56	)
Total Misc. Expenses		2,689			2,034			2,280			3,204			2,576			5,343			3,132
Total Operating Expense		160,345			159,321			156,889			144,230			146,436			144,265			143,883
Gross Margin		146,670			141,105			151,316			159,848			154,608			173,775			159,181
Gross Margin Percent		48	%		47	%		49	%		53	%		51	%		55	%		53	%

[Table continues from previous page]

																DEC
OLAPTable	AUG			SEP			OCT			NOV			DEC			YTD
60005 Office Supplies		1,247			2,743			1,738			(366	)		2,149			17,347
61015 Repairs - Electrical		122			—			306			—			—			613
61020 Repairs - Plumbing		325			—			3,200			—			148			4,862
61025 Repairs - Fire Systems		—			85			—			240			440			2,639
61030 Repairs - HVAC		—			—			66			—			—			820
61035 Repairs - Gen. Supplies		536			270			1,158			398			1,236			11,104
61040 Repairs - Equipment		779			—			1,454			1,012			110			6,413
61045 Repairs - Other Interior		—			350			110			—			145			2,237
61055 Repairs - Other Exterior		—			—			—			—			—			100
61100 Loss on Early Retirement Asset		—			—			—			—			—			—
Total Repair & Maintenance		1,762			705			6,295			1,650			2,079			28,788
61505 Contracts - Elevator		297			297			297			297			306			3,875
61510 Contracts - Floor Maint		945			425			620			425			425			6,283
61515 Contracts - Alarm/Fire		55			55			180			775			55			2,355
61520 Contracts - HVA		—			—			—			—			—			400
61525 Contracts - Pest Control		277			276			276			276			276			4,618
61535 Contracts - Other		—			—			370			—			—			647
Total Service Contracts		1,574			1,054			1,744			1,774			1,062			18,178
62005 Land Maintenance		1,250			1,250			1,250			1,250			4,324			18,162
Total Land Maintenance		1,250			1,250			1,250			1,250			4,324			18,162
62505 Rental/Lease -Cable		1,690			1,686			1,814			1,563			1,686			20,220
62510 Rental/Lease - Security		285			285			285			285			285			3,995
62535 Rental/Lease - Equipment		1,354			434			682			551			707			9,591
62540 Rental/Lease - Auto		1,158			1,158			1,158			1,158			1,184			13,918
62555 Rental/Lease - Other		50			50			50			50			50			689
Total Rental and Leases		4,537			3,613			3,988			3,607			3,913			48,414
63010 Utilities - Electricity		8,331			6,739			5,565			4,763			5,251			70,166
63015 Utilities - Water		2,466			1,990			1,340			1,598			2,365			21,282
63020 Utilities - Gas		800			748			825			770			1,357			9,634
63025 Utilities - Telephone		1,239			1,595			1,418			1,379			495			16,641
63030 Utilities - Trash		876			724			863			813			820			10,209
Total Utilities		13,712			11,795			10,011			9,324			10,289			127,932
63505 Marketing and Advertising		337			236			1,510			(84	)		1,265			20,302
63510 Printed Materials		—			—			—			3,064			795			4,499
63515 Special Events		1,252			370			996			42			3,469			12,690
63520 Yellow Pages		—			—			—			—			1,589			1,589
63525 Newspaper and Magazine		31			283			35			35			140			524
63530 Advertising		—			800			—			—			—			800
64005 Referral Fees -Residents		—			—			—			—			2,700			3,970
Total Marketing and Advertising		1,621			1,689			2,541			3,057			9,957			44,373
64505 Computers/ Peripherals/ Software		—			—			—			—			—			—
65005 Gas		150			297			200			435			—			2,177
65010 Auto Service And Repair		—			1,135			—			100			784			3,016
65015 Other Automobile		—			—			—			—			—			—
65505 Travel & Lodging		116			—			968			213			1,189			5,363
66005 Mileage		62			235			320			598			121			2,577
66505 Meals & Entertainment		319			208			763			20			523			2,977
67005 License and Fingerprints		716			522			557			719			492			10,028
68005 Dues and Subscriptions		410			—			—			—			—			1,449
68505 Seminars and Training		136			215			1,036			630			126			4,981
69005 Employee Recruiting		—			—			—			—			—			2,488
69505 Other		523			289			845			1,182			652			4,768
69605 Discounts Lost		—			—			—			—			—			—
69610 Discounts Taken		(188	)		(93	)		(162	)		(67	)		(232	)		(1,501	)
Total Misc. Expenses		2,244			2,809			4,527			3,830			3,654			38,320
Total Operating Expense		144,435			142,610			174,128			147,953			172,432			1,836,927
Gross Margin		173,924			179,808			153,211			178,020			181,652			1,953,117
Gross Margin Percent		55	%		56	%		47	%		55	%		51	%		52	%

PII - ITEM A-5

Database:	POLAPSVR
Cube:	Financial Data
Page:	Year	2000
	Version	AA
	Community	Villa Las Posas
	Department	Total Department
	Month	Along Columns
	GL Account	Along Rows

OLAPTable
	JAN			FEB			MAR			APR			MAY			JUN			JUL			AUG
69705 Casualty Loss		—			—			—			—			—			—			—			—
69805 Bad Debt Expense		328			(1,288	)		—			(1,750	)		—			—			—			—
72305 Property Taxes		9,154			8,894			8,789			8,789			9,357			9,154			9,154			9,154
72405 Insurance - Liability & Hazard		1,758			1,758			2,102			1,985			1,985			1,998			1,998			1,998
Total Other Fees		11,239			9,364			10,891			9,023			11,342			11,152			11,152			11,152
72505 Accounting		1,226			1,226			1,226			1,226			1,226			417			417			1,519
73005 Legal		702			568			164			1,775			409			784			452			501
73510 Donations & Contributions		—			—			—			—			—			—			—			—
74005 Consulting Fees		—			—			250			—			—			—			—			—
74015 Professional Fees - Other		—			—			—			—			—			—			—			—
75005 Property Management Fees		14,588			15,021			16,173			15,204			15,052			15,902			15,158			15,913
75105 Partnership Admin Fees		5,314			5,606			6,046			7,056			6,500			8,262			10,923			8,521
75510 Other Penalties/Fin. Fee		—			—			—			—			—			—			—			—
75515 Licenses & Fees Legal		—			—			—			—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—			—			—			—
Total Professional Fees		21,830			22,421			23,859			25,261			23,187			25,616			26,951			26,454
EBITDAR		113,600			109,320			116,566			125,564			120,078			137,007			121,078			136,318
EBITDAR Percent		37	%		36	%		38	%		41	%		40	%		43	%		40	%		43	%
80005 Interest Income		—			—			—			—			—			—			(142	)		—
80505 Other Non-Operating Income		—			—			—			—			—			—			—			—
Total Non-Operating Income/Expense		—			—			—			—			—			—			(142	)		—
83005 Interest Expense		62,380			62,267			62,154			62,153			62,095			62,037			22,912			61,919
83025 Int Exp MIP		—			—			—			—			—			—			—			—
Total Interest Expense		62,380			62,267			62,154			62,153			62,095			62,037			22,912			61,919
EBTDA		51,220			47,053			54,412			63,411			57,983			74,971			98,308			74,399
EBTDA Percent		17	%		16	%		18	%		21	%		19	%		24	%		32	%		23	%
77505 Depreciation		41,528			41,599			41,599			41,705			41,705			41,797			42,000			41,970
78005 Amortization		12,937			12,937			12,937			12,937			12,937			12,937			12,937			12,937
Total Depreciation & Amortization		54,466			54,537			54,537			54,642			54,642			54,734			54,937			54,907
Net income (Loss)		(3,246	)		(7,484	)		(125	)		8,769			3,341			20,236			43,370			19,491

[Additional columns below]

[Continued from above table, first column(s) repeated]

Data Base:
Cube:
Page
OLAPTable	SEP			OCT			NOV			DEC			DEC YTD
69705 Casualty Loss		—			—			—			—			—
69805 Bad Debt Expense		—			1			—			1,246			(1,463	)
72305 Property Taxes		9,154			9,154			9,154			9,154			109,062
72405 Insurance - Liability & Hazard		1,998			1,998			1,998			1,998			23,570
Total Other Fees		11,152			11,153			11,152			12,398			131,169
72505 Accounting		968			968			968			6,241			17,631
73005 Legal		3,974			410			348			353			10,440
73510 Donations & Contributions		—			—			—			—			—
74005 Consulting Fees		—			—			—			500			750
74015 Professional Fees - Other		—			—			—			—			—
75005 Property Management Fees		16,121			16,367			16,414			17,589			189,502
75105 Partnership Admin Fees		8,350			6,272			8,726			8,293			89,867
75510 Other Penalties/Fin. Fee		—			—			—			—			—
75515 Licenses & Fees Legal		—			—			—			—			—
75520 Franchise Tax Filing Fee		—			—			—			—			—
Total Professional Fees		29,414			24,017			26,456			32,976			308,440
EBITDAR		139,242			118,042			140,412			136,278			1,513,507
EBITDAR Percent		43	%		36	%		43	%		38	%		40	%
80005 Interest Income		(54	)		(28	)		(34	)		(34	)		(292	)
80505 Other Non-Operating Income		—			—			—			—			—
Total Non-Operating Income/Expense		(54	)		(28	)		(34	)		(34	)		(292	)
83005 Interest Expense		61,859			61,799			61,739			61,678			704,993
83025 Int Exp MIP		—			—			—			—			—
Total Interest/Expense		61,859			61,799			61,739			61,678			704,993
EBITDA		77,437			56,271			78,708			74,634			808,806
EBITDA Percent		24	%		17	%		24	%		21	%		21	%
77505 Depreciation		41,970			42,020			42,015			42,022			501,930
78005 Amortization		12,937			12,937			12,937			12,937			155,250
Total Depreciation & Amortization		54,907			54,957			54,952			54,960			657,179
Net income (Loss)		22,530			1,313			23,755			19,675			151,626

ADDENDUM E: Comparable Land Sale Data Sheets

Land Sale 1

Property Identification
Location	Reino Rd./south of Kimber Dr.
Address	Newbury Park, CA 91320
Parcel No or Legal Description	666-0-110-025
Document Number	16934
Sale Date
Buyer	TY Thousand Oaks 11 Acres LLC
Seller	Kitsigianis Family Trust
Sale Date	1/17/03
Property Rights	Fee Simple
Financing	Cash to Seller
Conditions of Sale	None
Sale Price	$3,049,500
Zoning	RPD
Physical Data
Land Size
Square Feet	466,528
Acre(s)	10.71
Shape	Irregular
Topography	Level
Indicators
Sale Price/SF	$6.54
Sale Price/Acre	$284,734
Intended Use:	Intended use to construct single family residences

Land Sale 2

Property Identification
Location	195 Park Lane
Address	Moorpark, CA 93021
Parcel No or Legal Description	506-0-050-180, 506-0-050-470
	(por)
Document Number	16934
Sale Data
Buyer	Vintage Crest Senior Apartments (LP)
Seller	195 Park Lane Associates LP
Sale Date	9/24/02
Property Rights	Fee Simple
Financing	Cash to Seller
Conditions of Sale	None
Sale Price	$3,200,000
Zoning	CPD
Physical Data
Land Size
Square Feet	412,949
Acre(s)	9.48
Shape	Irregular
Topography	Level
Indicators
Sale Price/SF	$7.75
Sale Price/Acre	$337, 553
Intended Use:	Intended use to construct 190-unit senior apartment complex.

Land Sale 3

Property Identification
Location	367 E. Thousand Oaks Blvd.
Address	Thousand Oaks, CA 91360
Parcel No or Legal Description	669-0-050-165
Document Number	326033
Sale Data
Buyer	Oak Creeek Housing Investors LP
Seller	Thousand Oaks Redevelopment Agency
Sale Date	9/24/02
Property Rights	Fee Simple
Financing	Cash to Seller
Conditions of Sale	None
Sale Price	$1,200,000
Zoning	PL
Physical Data
Land Size
Square Feet	79,889
Acre(s)	1.83
Shape	Irregular
Topography	Level
Indicators
Sale Price/SF	$15.02
Sale Price/Acre	$654,308
Intended Use:	Intended use to construct 57-unit senior apartment complex.

Land Sale 4

Property Identification
Location	2851 N. Vineyard Avenue
Address	Oxnard, CA 93030
Parcel No or Legal Description	132-0-060-155
Document Number	146979
Sale Data
Buyer	FadlallahKairouz
Seller	M/M Bijan & Erika Paymard
Sale Date	6/21/02
Property Rights	Fee Simple
Financing	Cash to Seller
Conditions of Sale	None
Sale Price	$750,000
Zoning	C2PD
Physical Data
Land Size
Square Feet	67,945
Acre(s)	1.56
Shape	Irregular
Topography	Level
Indicators
Sale Price/SF	$11.04
Sale Price/Acre	$480,830
Intended Use:	Intended use to construct multi-family housing.

ADDENDUM F: Comparable Improved Sale Data Sheets

Improved Comparable 1

Property Name: Carmel Village

Property Type: Senior Housing

Property Subtype: Assisted Living 17077 San Mateo Street


Fountain Valley, CA 92708
County: Orange

IMPROVEMENTS

Class:	B
Est. Gross Building Area:	117,666
Est. Net Building Area:	117,666
Year Built:	1986
Quality:	Good
Condition:	Average
Buildings:	3
Stories:	3
Fire Sprinklers:	Yes

TRANSACTION INFO

Sale Status:	Recorded Sale
Interest:	Fee Simple
Sale Date:	01/15/2003

Sale Price

Reported Price:		$	23,125,000
Cash Equivalent:		$	23,125,000
Adj. Sale Price:		$	23,125,000
	$ Per SqFt:	$	196.53
	$ Per Unit:	$	122,354
	Cap Rate:		11.14	%
	EGIM:		4.24

OCCUPANCY

Occupancy at Sale:	97.00 %
Seniors

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	5,450,000
Effective Gross	$	5,450,000
Operating Expenses:	$	2,875,000		0.53	%
Net Operating Income:	$	2,575,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		139,828			3.21
Net Usable Area:		139,828			3.21
Percent Usable:		100	%
Ground Leased:		No

SENIOR HOUSING INFO

Number of AL Units:		94
Number of IL Units:		95
Number of Cottage Units:		0
Number of ALZ Units:		0
Total Number of Units:		189
Average Unit Size:		623
No. of Licensed Beds:		200
Subsidized:	No

VERIFICATION

Grantor: Carmel Village Retirement Residence, Inc.
Grantee: 625 Management Company LLC
Verification Contact:
  Michelle Butts, 714.962.6667

REMARKS

This facility is licensed for 200 beds, but is operated at 189 units. Approximately one-half of the units are for independent living with the other half for assisted living. Assisted living residents pay from $350 to $1,400 per month in additional care fees. It was reported that over 70 percent of the residents are paying first level charges ($350 per month). It was reported that several of the buyer’s parties were stockholders of the selling entity, however, this was reported to be an arm’s length sale.

Improved Comparable 2

Property Name: Emerald Hills

Property Type: Senior Housing

Property Subtype: Assisted Living 11550 Education Street


Auburn, CA
County: Placer

IMPROVEMENTS

Class:	B
Est. Gross Building Area:	61,677
Est. Net Building Area:	61,677
Exterior Walls:	Wood siding
Year Built:	1999
Quality:	Average
Condition:	Average
Buildings:	1
Stories:	3

TRANSACTION INFO

Sale Status:	Recorded Sale
Interest:	Fee Simple
Financing:	Cash To Seller
Sale Date:	09/06/2002

Sale Price

Reported Price:		$	8,800,000
Cash Equivalent:		$	8,800,000
Adj. Sale Price:		$	8,800,000
	$ Per SqFt:	$	142.68
	$ Per Unit:	$	98,876
	$ Per Eff Bed:	$	94,624
	Cap Rate:		11.00	%
	EGIM:		4.00

OCCUPANCY

Occupancy at Sale:	100.00 %
Seniors

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	2,475,000
Effective Gross	$	2,475,000
Operating Expenses:	$	1,490,000		0.60	%
Net Operating Income:	$	985,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		108,900			2.50
Net Usable Area:		108,900			2.50
Percent Usable:		100	%
Ground Leased:		No

SENIOR HOUSING INFO

Number of AL Units:			53
Number of IL Units:			20
Number of Cottage Units:			0
Number of ALZ Units:			16
Total Number of Units:			89
Average Unit Size:			693
No. of Licensed Beds:			97
No. of Effective Beds:			93
Subsidized:		No
Amenities:
	Common areas, dining room

VERIFICATION

Grantor: ALCO IV, LLC
Grantee: Healthcare Property Investors, Inc.
Verification Contact:
   Seller

REMARKS

This property is located 60 miles east of Sacramento in Auburn. Facility offers studio alcove units (346-568 SF), one-bedroom units (483 SF) and two-bedroom units (728 SF). This was a sale lease-back transaction where the buyer will lease the facility to Emeritus for 15 years with a 10-year option. Emeritus has managed the facility since it was completed. The lease rate is based on 11.50 percent of the purchase price with 3.0 percent annual escalations. Expense amount shown includes a 5.0 percent management fee and reserves allowance.

Improved Comparable 3

Property Name: Woodmark at Summit

Property Type: Senior Housing

Property Subtype: Assisted Living 5165 Summit Ridge Court


Reno, NV 89523
County: Washoe

Parcels and/or Legal:
66563

IMPROVEMENTS

Class:	B
Est. Gross Building Area:	77,445
Est. Net Building Area:	77,445
Exterior Walls:	Stucco
Year Built:	1998
Quality:	Good
Condition:	Good
Buildings:	1
Stories:	3
Fire Sprinklers:	Yes

TRANSACTION INFO

Sale Status: Interest: Financing:	Recorded Sale Fee Simple Cash To Seller
Sale Date:	02/21/2002

Sale Price

Reported Price:		$	9,500,000
Cash Equivalent:		$	8,500,000
Capital Costs:		$	1,000,000
Adj. Sale Price:		$	9,500,000
	$ Per SqFt:	$	122.67
	$ Per Unit:	$	103,261
	Cap Rate:		12.63	%
	EGIM:		3.00

OCCUPANCY

Occupancy at Sale:	60.00 %
Seniors

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	3,300,000
Effective Gross	$	3,300,000
Operating Expenses:	$	2,100,000		0.64	%
Net Operating Income:	$	1,200,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		182,299			4.19
Net Usable Area:		182,299			4.19
Percent Usable:		100	%
Ground Leased:		No

SENIOR HOUSING INFO

Number of AL Units:		92
Number of IL Units:		0
Number of Cottage Units:		0
Number of ALZ Units:		0
Total Number of Units:		92
Average Unit Size:		842
Subsidized:	No

VERIFICATION

Recording Reference: 11662-0240
Grantor: Woodmark At Summit Ridge LLC
Grantee: Emeritus
Verification Contact:
   Buyer

REMARKS

Sale is an assisted living facility located in the northwest part of Reno, Nevada. The improvements are of good quality construction. Original developer was unable to attain stablized operation. Buyer is an experienced operator.

Improved Comparable 4

Property Name: Mapleridge of Laguna

Property Type: Senior Housing

Property Subtype: Assisted Living 6727 Laguna Park Drive


Elk Grove, CA
County: Sacramento

IMPROVEMENTS

Class:	B
Est. Gross Building Area:	50,476
Est. Net Building Area:	50,476
Exterior Walls:	Wood siding
Year Built:	1999
Quality:	Good
Condition:	Good
Buildings:	1
Stories:	2
Fire Sprinklers:	Yes

TRANSACTION INFO

Sale Status:	Recorded Sale
Interest:	Fee Simple
Financing:	Cash To Seller
Sale Date:	01/24/2002

Sale Price

Reported Price:		$	8,055,600
Cash Equivalent:		$	8,055,600
Adj. Sale Price:		$	8,055,600
	$ Per SqFt:	$	159.59
	$ Per Unit:	$	95,900
	Cap Rate:		10.55	%
	EGIM:		3.16

OCCUPANCY

Occupancy at Sale:	76.00 %
Seniors

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	2,550,000
Effective Gross	$	2,550,000
Operating Expenses:	$	1,700,000		0.67	%
Net Operating Income:	$	850,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		186,437			4.28
Net Usable Area:		186,437			4.28
Percent Usable:		100	%
Ground Leased:		No

SENIOR HOUSING INFO

Number of AL Units:		84
Number of IL Units:		0
Number of Cottage Units:		0
Number of ALZ Units:		0
Total Number of Units:		84
Average Unit Size:		601
Subsidized:	No

VERIFICATION

Grantor: Marriott Senior Living Services
Grantee: CNL Retirement Properties
Verification Contact:
  Buyer, CNL

REMARKS

This is a newer assisted living facility located in the south part of the Sacramento MSA in Elk Grove. Property was part of a five-facility joint venture transaction between CNL and Marriott. Marriott was to continue operating the property. Facility was in lease-up at time of sale. Income and expense data based on stabilized operating conditions.

Improved Comparable 5

Property Name: Atria Redding

Property Type: Senior Housing

Property Subtype: Assisted Living 101 Quartz Hill Road


Redding, CA 96003
County: Shasta
Parcels and/or Legal:
112-090-18-00

IMPROVEMENTS

Est. Gross Building Area:	44,328
Est. Net Building Area:	44,328
Year Built:	1997
Quality:	Poor
Condition:	Good
Stories:	2

TRANSACTION INFO

Sale Status: Interest: Financing:	Recorded Sale Fee Simple Cash To Seller
Sale Date:	07/01/2001

Sale Price

Reported Price:		$	5,000,000
Cash Equivalent:		$	5,000,000
Adj. Sale Price:		$	5,000,000
	$ Per SqFt:	$	112.80
	$ Per Unit:	$	83,333
	Cap Rate:		12.50	%
	EGIM:		3.00

OCCUPANCY

Occupancy at Sale: 95.00 %

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	1,950,000
Effective Gross	$	1,950,000
Operating Expenses:	$	1,325,000		0.68	%
Net Operating Income:	$	625,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		133,294			3.06
Net Usable Area:		133,294			3.06
Percent Usable:		100	%

SENIOR HOUSING INFO

Number of AL Units:	60
Total Number of Units:	60
Average Unit Size:	739

VERIFICATION

Recording Reference:  N/A
Grantor: Atria Communities
Grantee: AMI Senior Living

REMARKS

This is the sale of a smaller assisted living facility located in northern California in Redding. The improvements are of above average quality construction. There are a total of 60 living units, consisting of 36 studio units, 20 one-bedroom units and four two-bedroom units. The property was not actively marketed and was purchased by a local senior housing provider. The income and expense data based on actuals at time of sale. The seller was motivated to sell and the price paid is considered below actual market value.

Improved Comparable 6

Property Name: Aegis of Napa

Property Type: Senior Housing

Property Subtype: Assisted Living 2100 Redwood Road


Napa, CA 94558
County: Napa

Parcels and/or Legal:
007-321-009

IMPROVEMENTS

Class:	A
Est. Gross Building Area:	34,030
Est. Net Building Area:	34,030
Exterior Walls:	Composite siding
Year Built:	1999
Quality:	Good
Condition:	Good
Parking Spaces:	15
Fire Sprinklers:	Yes

TRANSACTION INFO

Sale Status:	Recorded Sale
Interest:	Fee Simple
Sale Date:	06/01/2001

Sale Price

Reported Price:		$	7,200,000
Cash Equivalent:		$	7,200,000
Adj. Sale Price:		$	7,200,000
	$ Per SqFt:	$	211.58
	$ Per Unit:	$	167,442
	$ Per Eff Bed:	$	150,000
	Cap Rate:		10.76	%
	EGIM:		3.43

OCCUPANCY

Seniors

FINANCIAL ANALYSIS

	Amount		Percent
Potential Gross Income:	$	2,100,000
Effective Gross	$	2,100,000
Operating Expenses:	$	1,325,000		63.10	%
Net Operating Income:	$	775,000

SITE ATTRIBUTES

	Sq Ft			Acres
Total Land Area:		48,590			1.12
Net Usable Area:		48,590			1.12
Percent Usable:		100	%
Ground Leased:	No

SENIOR HOUSING INFO

Number of AL Units:		34
Number of IL Units:		0
Number of Cottage Units:		0
Number of ALZ Units:		9
Total Number of Units:		43
Average Unit Size:		791
No. of Licensed Beds:		48
No. of Effective Beds:		48
Subsidized:	No

VERIFICATION

Grantor: Aegis Assisted Living Properties LLC
Grantee: Francis & Shannon Connelly
Verification Contact:
  Jeff Owen, Aegis Assisted Living

REMARKS

This is a smaller assisted living facility located in Napa. Contains 34 assisted living units and nine dementia units. Unit mix includes 20 studio units with 386 SF, 5 companion suites with 640 SF and 18 One-bedroom units with 640 SF. Facility opened in 9/1999 and acheived stabilized occupancy in 13 months. Aegis will continue to manage the property. Income and expense data based on actuals at time of sale.

ADDENDUM H: Qualifications of the Appraiser

QUALIFICATIONS OF SALLY U. HAFT, MAI

EMPLOYMENT

Cushman & Wakefield – 2002 To Present
Los Angeles, California (Healthcare Valuation Advisory Services – Senior Housing/Healthcare Industry Group)
Director

PricewaterhouseCoopers LLP – 1999 to 2002
Los Angeles, California (Healthcare & Retirement Valuation, Market Studies, and Feasibility Reports)
Senior Valuation Consultant

Valuation Counselors – 1991 To 1999
Century City, California (National multi-disciplined appraisal company specializing in the valuation of health care facilities)
Vice President and Manager of the Real Estate Appraisal Department

First Nationwide Bank – 1987 To 1991
Los Angeles, California (National lending institution)
District Appraisal Manager of the Major Commercial Loan Division

Marshall & Stevens, Inc. – 1981 to 1986
Los Angeles, California (National multi-disciplined appraisal company)
Income Property Staff Appraiser

EDUCATION

McMaster University, Ontario, Canada, Bachelor of Social Work/Sociology Appraisal courses:

Standards of Professional Practice
Ad Valorem Tax Assessment Appeal
Appraising Single Family Residences
Applied Residential Property Valuation
Income Property Appraisals
Appraising Income Property Valuations
Techniques in Capitalization
Market Extractions
Developments in Income Property Valuation
Analyzing Cash Flows
Report Writing

QUALIFICATIONS OF SALLY U. HAFT, MAI

SPECIAL QUALIFICATIONS & AFFILIATIONS

Member Appraisal Institute: MAI Certificate #10267

Certified General Real Estate Appraiser, License 30995 (AZ)
Certified General Real Estate Appraiser, License AG003509 (CA)
Certified General Real Estate Appraiser, License CG01327505 (CO)
Certified General Real Estate Appraiser, License 03532 (NV)
Certified General Real Estate Appraiser, License 523 (WY)

SPECIALIZED EXPERTISE & EXPERIENCE

Ms. Haft is a real estate valuation appraiser with 18 years of experience, specializing in the appraisal of health care facilities for the last ten years. A diversified background has enabled Ms. Haft to serve both public and private sector clients. She has appraised most property interests and property types and has performed appraisal assignments in over 30 states. Ms. Haft’s appraisals have been performed for audit, development, financing, insurance, liquidation, sale/purchase, ad valorem tax, and leasing purposes. Complex property types she has valued include numerous assisted living and congregate care facilities, acute-care and psychiatric hospitals, hotels/motels, medical and commercial office buildings, retail centers, industrial development and unique properties such as the Great Western Forum sports complex and the Santa Anita Race Track.

QUALIFICATIONS OF SALLY U. HAFT, MAI

SENIOR HOUSING/HEALTHCARE VALUATION ASSIGNMENTS

Senior Housing/Assisted Living Facilities/Alzheimer Facilities

The Regency on Morganton, Southern Pines, NC
Port City Plantation, Wilmington, NC
Sunrise of La Jolla, La Jolla, CA
Alterra Wynwood of Pueblo, Pueblo, CO
Clare Bridge of Oro Valley, AZ
Sunrise of Hermosa Beach, Hermosa Beach, CA
Sunrise of Pacific Palisades, Pacific Palisades, CA
Sunrise of La Palma, La Palma, CA
Sunrise of Huntington Beach, Huntington Beach, CA
Sunrise of Seal Beach, Seal Beach, CA
Sunrise of Studio City, Studio City, CA
Sunrise of Newtown Square, Newtown, PA
Sunrise of Wilmington, Wilmington, DE
Sunrise of Dix Hills, Huntington, NY
Sterling House & Clare Bridge Cottage, Bakersfield, CA
Brighton Gardens of Carlsbad, Carlsbad, CA
Brighton Gardens, San Juan Capistrano, CA
Brighton Gardens of San Dimas, San Dimas, CA
Brighton Gardens of Carmel Valley, Carmel Valley, CA
Orchard Park ALF, Clovis, CA
Alterra Wynwood and Clare Bridge Cottage, Fresno, CA
Plaza at Mill Pond, Park Ridge, NJ
Plaza at the Windrows, Princeton, NJ
The Heritage, Las Cruces, NM
Alterra Clare Bridge at Lake Park, Oceanside, CA
11 Alterra facilities in Michigan/1 Alterra facility in Ohio
Silverado Senior Living, Costa Mesa, CA
Alterra Wynwood and Clare Bridge, Greensboro, NC
Alterra Wynwood and Clare Bridge, Charlotte, NC
Clare Bridge, Mt. Pleasant, SC
Golden Creek Inn, Irvine, CA
Hillcrest Inn, Thousand Oaks, CA
Pomona Vista ALZ, Pomona, CA
Redwood Town Court, Escondido, CA
Windsor Assisted Living, Santa Rosa, CA
Sherwood Place, Odessa, TX
Alhambra Lodge, El Paso, TX
Sheltering Pines, Millbrae, CA
Rosewood Retirement, Bakersfield, CA
Margaret Rose Residential Care, Las Vegas, NV
La Casa Grande, New Porte Richey, FL
River Oaks, Englewood, FL
Golden Creek Inn, Irvine, CA
West Hills Retirement Center, West Hills, CA
Hoyt House, Sweetwater, TX
Potter House, Amarillo, TX
The Hearthstone, Moses Lake, WA
Mathis Ferry Plantation, Mt. Pleasant, SC
Cypress Pointe, Virginia Beach, VA
Alterra Wynwood of Colorado Springs, CO
Clare Bridge of Tempe, Tempe, AZ
Sunrise of Claremont, Claremont, CA
Sterling House & Clare Bridge Cottage, Bakersfield, CA
Alterra Wynwood and Clare Bridge Cottage, Fresno, CA
Chatfield Place, Denver, CO
Sunrise of Sunnyvale, Sunnyvale, CA
Atria San Marcos, San Marcos, CA
Sunrise of Boulder, Boulder, CO
Grandview Terrace, Sun City West, AZ
Brighton Gardens, Colorado Springs, CO
Sunrise of Bonita, San Diego, CA
Garden Villas of Escondido, Escondido, CA
Sabine House, Orange, TX
Lucas House, Beaumont, TX
Wheeler House, Gainesville, TX
Hickory House, Levelland, TX
Conner House, Canyon, TX
Millican House, Bryan, TX
Austin House, Nacogdoches, TX
Country Villa, Los Angeles, CA
Atria San Marcos, San Marcos, CA
Grandview Terrace, Sun City West, AZ
Aegis of Fremont, Fremont, CA
Aegis of Napa, Napa Valley, CA
Evergreen Valley Retirement Center, Spokane, CA
Seashell Communities, Morro Bay, CA
Huntington Terrace, Huntington Beach, CA
Montego Heights Lodge, Walnut Creek, CA
Retirement Inn of Fullerton, Fullerton, CA
Valley View Lodge, Walnut Creek, Ca
Retirement Inn of Daly City, Daly City, CA
Rosewood Court, Fullerton, CA
North Bay Retirement, Fairfield, CA
Oak Knoll, Paradise, CA
Country Villa, Los Angeles, CA
San Joaquin Gardens, Fresno, CA
Country Villa West, Culver City, CA
Stanford Center, Altamonte Springs, Fl
Juniper Meadows, Lewiston, ID
Woodbridge Health Care, Evansville, IN
Mesa Senior Village, Mesa, AZ
Sunrise of Alta Loma, Alta Loma, CA
Brighton Gardens of Lakewood, Lakewood, CO
Polo Ridge, Winston-Salem, NC

QUALIFICATIONS OF SALLY U. HAFT, MAI

Gardens of Kentlands, Kentlands, MD

Skilled Nursing Facilities

Plaza Regency at Mill Pond, Park Ridge, NJ
Plaza Regency at the Windrows, Princeton, NJ
Mercy Retirement & Care Center, Oakland, CA
Our Lady of Fatima Villa, Saratoga, CA
Siena Care Center, Auburn, CA
Westlake Village Healthcare Center, Thousand Oaks, CA
Canoga Care Center, Canoga Park, CA
Harbor Care Center, Torrance, CA
Mountain Shadows, Las Cruces, NM
Rose Convalescent Hospital, Baldwin Park, CA
Glendale Care Center, Glendale, AZ
Grancare, 28 SNF’s, USA
Mission de la Casa, Santa Cruz, CA
Coast Care Convalescent Center, Baldwin Park, CA
7 SNF’s, MA & FL
South Coast Senior Villa, Houston, TX
Port Bay Convalescent. Hospital, Costa Mesa, CA
Country Villa Wilshire, Los Angeles, CA
HCPI - 8 SNF’s, MO
Highland HCC, Highland, IL
Pine Lane HCC, Mountain Home, AK
Huntington Beach Convalescent., Huntington Beach, CA
Paramount Chateau, Paramount, CA
Emmanuel Convalescent Hospital, Bakersfield, CA
Riverside Nursing Home, Oconto, WI
Chilton Health & Rehab, Chilton, WI
Arbor East, Columbus, OH
West Valley Convalescent Hospital, West Hills, CA
Oceanview Convalescent Center, Santa Monica, CA
Lakewood Manor, Hendersonville, NC
Willowbrook Manor, Flint, MI
Frontier Extended Healthcare, Longview, WA
American Health & Rehab. Longview, WA
Silverbrook Manor, Niles, MI
Life Care Center of San Gabriel, San Gabriel, CA
Willow Wood, Salt Lake City, UT
Glenwood Care Center, Oxnard, CA
Citrus Nursing & Rehab. Ctr., Fontana, CA
Nationwide Properties - 23 SNF’s, USA
Franklin Care Center, Detroit, MI
Lincoln Care Center, Detroit, MI
Life Care Center, San Gabriel, CA
Rio Rancho Nursing Ctr., Rio Rancho, NM
Las Palomas Healthcare Center, Albuquerque, NM
Ladera Nursing & Rehab, Albuquerque, NM
Omega HC -32 Nursing Homes, USA
Ogden Care Center, Ogden, UT
Rosewood Terrace, Salt Lake City, UT
Foothill HCC & Rehab., Sylmar, CA
Westlake Convalescent Center., Los Angeles, CA
Glenoaks Convalescent Center., Glendale, CA
San Joaquin CC, Bakersfield, CA
Crestwood Manor, Stockton, CA
Crestwood Manor, Sacramento, CA
Crestwood Rehab Center, Sacramento, CA
West Mesa HCC, Albuquerque, NM
Belen Healthcare Ctr., Belen, NM
Community Care of America, Saratoga, WY
Western Village, Green Bay, WI
Highland Health Care, Green Bay, WI
Glendale Health & Rehab., Sheboygan, WI
Auburn Manor, Washington Ct., OH
Driftwood Healthcare, Hayward, CA
Almaden Health & Rehab, San Jose, CA
Driftwood Healthcare, Santa Cruz, CA
Centralia Convalescent Center, Centralia, WA
Evergreen Manor, Longview, WA
Fay Case, Salt Lake City, UT

Hospitals

Parkview Community Hospital, Riverside, CA
Queen Of Angels Hospital, Los Angeles, CA
Long Beach Doctors Hospital, Long Beach, CA
Malvern Institute, Malvern, PA
NW Institute Psychiatric Hospital, Ft. Washington, PA
Community Psychiatric Hospitals, 24 facilities
Washington Medical Center, Culver City, CA
Good Samaritan Medical Center, Phoenix, AZ
Warrack Medical Center, Santa Rosa, CA
Davis Hospital & MC, Layton, UT
Pioneer Valley Hosp., West Valley, UT
Pacifica Hospital, Huntington Beach, CA
Woodland Memorial Hospital, Woodland, CA
Parkview Regional Hospital, Mexia, TX
North Star Hospital, Anchorage, AK
Fountain Valley Hospital, Fountain Valley, CA
Central Calif. Rehab. Hosp., Modesto, Ca
Oak Crest Hospital, Shawnee, OK

QUALIFICATIONS OF SALLY U. HAFT, MAI

General Hospital, Eureka, CA
St. Luke’s Medical Center, Phoenix, AZ
Temple Hospital, Los Angeles, CA
Central Valley Gen. Hospital, Hanford, CA
Tenet Healthcare - 37 Hospitals, USA
Straub Hospital, Honolulu, HI
Sunrise Hospital & Medical Center, Bullhead City, AZ
Covina Valley Hospital, West Covina, CA
Newhall Community Hospital, Newhall, CA
French Hospital, San Luis Obispo, CA
Bay View Medical Center, San Diego, CA
Queen of Angeles, Los Angles, CA
Pacifica Hospital of Valley, Sun Valley, CA
Willow Crest Hospital, Miami, OK
Southwind Hospital, Oklahoma City, OK
Charter Hospital, Mission Viejo, CA
Lakeside Hospital, Perris, CA
Jo Ellen Smith Medical Center, New Orleans, LA
Hawthorne Hospital, Hawthorne, CA
Halstead Hospital, Halstead, KS
Baldwin Park Hospital, Baldwin Park, CA
Washington Medical Center, Culver City, CA
Pacifica Hospital of Long Beach, Long Beach, CA

Medical Office Buildings

Vista Community Clinic, Vista, CA
Mesquite Medical Office Building, Lake Havasu, AZ
Friendly Hills Medical Building, Los Angeles, CA
Westchester Medical Plaza, Los Angeles, CA
Sharp Mission Park, Vista, CA
St. John’s Medical Plaza, Santa Monica, CA
Wilshire Metro Medical Building, Los Angeles, CA