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n\\Y/� PROPERTY Va I brA EXHIBIT 3 dge DVISORS REGIONAL ANDPUBLIC PAY MARKET AREAPARKING the Southern California environment. Coastal communities, like Orange County, benefit from ocean breezes that blow the smog further inland; however, smog has also grown as a problem in Orange County due to the continued growth in population, hence automobiles. The region has implemented measures, such as, cleaner gas, carpooling, and the metro-link rail system. Education Adding to the strong infrastructure in the region is a complete and diversified educational system. There are more than 150 public and private universities and colleges throughout Southern California. These institutions provide a highly trained and skilled work force for high-tech firms and businesses located in the area. Some of the larger institutions located in Orange County are listed below. There are also several two-year colleges and extension courses offered at various universities within the region. University of California at Irvine Chapman University California State University at Fullerton Western State Law University Hope University Concordia University Vanguard University Soka University Housing Trends Residential housing in Orange County, like most of the nation, experienced the largest drop in prices (30% to 40%) since the great depression of the 1930's during the "Great Recession" of 2008 thru 2011. The highest declines have been seen in areas where recent construction has been prevalent and in areas that are older that had a high concentration of subprime lending. Improvement beginning in 2012, has now exceeded the peak home prices of 2006. The current median price for Orange County is $645,000. This improvement has been highly dependent upon some of the lowest interest rates in history and an improving economy. Presently, apartment rental rates are at exceptionally high rates and there is a high volume of new apartment projects under construction or planned in the County. Summary The availability of a strong transportation system provides for quick access to the many business and industrial centers throughout Southern California. As a result, a diversified economic base provides stability for the region. Historically low interest rates and easy financing fueled rising home prices from 2002 thru 2006. This facilitated rapid consumer spending. However, this false sense of security resulted in plummeting home values and a ripple effect throughout the local, national, and global economy. The subsequent credit crisis on Wall Street led financial institutions and investors to be more cautious with investments. The effects of the Great Recession, have dissipated as unemployment has improved to a current rate of 3.6% for the County and 5.2% for the State and interest rates have remained at historically low rates. Despite the improvement, there is still some uncertainty as it relates to the high levels of government debt, the ups and downs of the stock market, global instability and the uproar of a presidential election year. Nonetheless, Orange County appears to be faring better than most, areas in California and the nation. © 2015 VALBRIDGE PROPERTY ADVISORS I Penner and Associates, Inc. Page 10 SA4-42