451 Foothill Blvd, Azusa CA 91702

451 W. Foothill Blvd ™ Azusa, CA 91702

OFFERING MEMORANDUM exclusively LISTED By

DANIEL WITHERS MATT ZIEGLER JEFFREY LOUKS Senior Vice President - Multifamily Senior Vice President Investments Executive Managing Director Investments Direct +1 818 923 6107 Marcus & Millichap Marcus & Millichap Mobile +1 310 365 5054 Direct +1 818 212 2738 Direct +1 818 212 2780 [email protected] [email protected] [email protected] License No. 01325901 (CA) License No. 01280909 (CA) License No. 00908473 (CA)

2 | 451 W. Foothill Blvd Property Overview

Built in 1947, the Foothills Apartments is a 26-unit, two-story garden-style apartment community located in Azusa, CA. The property consists of one L-shaped building constructed of wood-frame and stucco exteriors and a pitched roof. The unit mix features 25 one-bedroom, one-bathroom junior units and 1 two-bedroom, one-bathroom. Each unit is individually metered for gas and electricity.

This property is conveniently located on W Foothills Boulevard and offers a walk score of 73. Tenants benefit from easy access to shopping, restaurants, freeways, and employment. Public transportation options including the Azusa Downtown Station (Metro Gold Line), which sits less than a mile from the property and provides access to Los Angeles and surrounding neighborhoods.

PROPERTY HIGHLIGHTS: • 26 Units, Built in 1947 • Unit Mix: (25) 1+1 junior, (1) 2+1 • Over 38% Rental Upside Potential • 12,892 Rentable Sqft on a 25,545 Sqft Lot with AZCBD Zoning • On-Site Laundry Facility • Individually metered for gas and electric • Walking distance to the Azusa Downtown Station: Metro Gold Line • Walk Score of 73 – Very Walkable

Azusa, CA I 91702 | 3 AREA Overview AZUSA, CALIFORNIA Azusa is a city in the San Gabriel Valley, at the foot of the San Gabriel Mountains in Los Angeles County, California. The A on the San Gabriel Mountains represents the city of Azusa, and can be seen within a 30-mile radius. The city of Azusa is supported by top employers such as Azusa Pacific University, Azusa Unified School District, Northrop Grumman, City of Azusa, Costco Wholesale Corporation, S&S Foods LLC, Hanson Distributing Company, Buena Vista Food Products, Target Corporation, and Artisan Screen.

The city is located at the entrance to the San Gabriel Canyon, giving the city its nickname “The Canyon City.” It is on the east side of the San Gabriel River. Azusa lies along the Foothill Freeway between the San Gabriel River Freeway and the Orange Freeway. Metro Gold Line light rail service stops at Azusa Downtown station and stops at Azusa Pacific University/Citrus College Station.

4 | 451 W. Foothill Blvd LOS ANGELES MSA TOP EMPLOYERS

ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

Azusa, CA I 91702 | 5 POPULATION AT A GLANCE

18.7 Million $55,509 4.4% POPULATION MEDIAN UNEMPLOYMENT HOUSEHOLD INCOME RATE

Subject Property DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE 2010 Census 22,707 120,987 316,260 2019 Estimate 24,110 128,502 330,706 2024 Projection 24,814 132,492 339,911

POPULATION GROWTH 1-MILE 3-MILE 5-MILE Growth: 2010 to 2019 6.18% 6.21% 4.57% Growth: 2019 to 2024 2.92% 3.10% 2.78%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2010 Census 6,438 34,981 93,645 2019 Estimate 6,883 37,304 98,148 2024 Projection 7,091 38,508 100,982

INCOME 1-MILE 3-MILE 5-MILE 2018 Avg. HH Income 87,068 $92,239 95,910

6 | 451 W. Foothill Blvd Azusa, CA I 91702 | 6 FINANCIAL Overview

451 W. FOOTHILL BLVD. INVESTMENT SUMMARY AZUSA, CA 91702 Number of Units: 26 CURRENT MARKET Year Built: 1947 Sale Price Price/Unit Price/Foot Cap Rate GRM Cap Rate GRM APN: 8605-001-033 $3,600,000 $138,462 $279.24 3.69% 14.44 6.14% 10.46 Gross Sq. Ft.: 12,892 Average S.F. Per Unit: 496 Lot Size (Acres): 0.59 Density: 44

UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 25 1+1 96% $793 $19,825 $1,095 $27,375 1 2+1 4% $950 $950 $1,295 $1,295 Scheduled Monthly Rent: $20,775 $28,670 Scheduled Yearly Rent: $249,300 $344,040

Azusa, CA I 91702 | 7 ANNUALIZED OPERATING DATA Current Market

Scheduled Gross Income: $249,300 $344,040 38% Upside

Less Vacancy Reserve: 3.0% $7,479 $10,321 3.0%

Gross Operating Income: $241,821 $333,719

Expenses: 43.8% $109,080 $112,756 32.77% *

Net Operating Income: $132,741 $220,963

Loan Payments: $115,430 $115,430

Pre-Tax Cash Flow: 1.0% $17,311 $105,533 6.01% **

Plus Principal Reduction: $28,454 $28,454

Total Return Before Taxes: 2.61% $45,765 $133,987 7.63% **

* As a percent of Scheduled Gross Income

** As a percent of Down Payment

8 | 451 W. Foothill Blvd PRO FORMA ANNUAL OPERATING EXPENSES % of SGI Current Per Unit Market Per Unit % of SGI Property Taxes 1.150% x Sale Price 17.13% $41,416 $1,593 $41,416 $1,593 12.0% Management 4.0% GOI 4.00% $9,673 $372 $13,349 $513 3.9% Insurance Actual 2018 2.31% $5,578 $215 $5,578 $215 1.6% Repairs & Maintenance $600 x Units 6.45% $15,600 $600 $15,600 $600 4.5% Landscaping $69 x Units 0.74% $1,800 $69 $1,800 $69 0.5% Pest Control $25 x Units 0.27% $650 $25 $650 $25 0.2% Utilities Actual 2018 4.98% $12,043 $463 $12,043 $463 3.5% Trash $170 x Units 1.83% $4,420 $170 $4,420 $170 1.3% On-Site Management $438 x Units 4.71% $11,400 $438 $11,400 $438 3.3% Reserves $250 x Units 2.69% $6,500 $250 $6,500 $250 1.9% Total Expenses 45.11% $109,080 $4,195 $112,756 $4,337 32.8% Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $46,994 $1,807 18.9% Total Expense with out Taxes $67,664 $2,602 27.14%

RENT ROLL RENT ROLL Unit Mix Rent Market Rent Unit Mix Rent Market Rent 1 2+1 $950 $1,295 14 1+1 $850 $1,095 2 1+1 $850 $1,095 15 1+1 $725 $1,095 3 1+1 $750 $1,095 16 1+1 $800 $1,095 4 1+1 $750 $1,095 17 1+1 $850 $1,095 5 1+1 $850 $1,095 18 1+1 $750 $1,095 6 1+1 $850 $1,095 19 1+1 $800 $1,095 7 1+1 $750 $1,095 20 1+1 $750 $1,095 8 1+1 $750 $1,095 21 1+1 $850 $1,095 9 1+1 $750 $1,095 22 1+1 $800 $1,095 10 1+1 $750 $1,095 23 1+1 $750 $1,095 11 1+1 $850 $1,095 24 1+1 $750 $1,095 12 1+1 $750 $1,095 25 1+1 $850 $1,095 13 1+1 $850 $1,095 26 1+1 $800 $1,095 TOTALS $20,775 $28,670 AVERAGES $799 $1,103

Azusa, CA I 91702 | 9 Sales Comparables

ADDRESS Property City Sale Price Year Built Bldg SF Number Of Units Price Per Unit Price Per SF Actual Cap Rate GRM Sale Date

451 W. Foothill Blvd Azusa $3,600,000 1947 12,892 26 $138,462 $279.24 3.69% 14.44 -

320 W Bennett Ave Glendora $10,940,000 1963 31,796 27 $405,185 $344.07 3.72% 16.65 10/19/18

1240-1280 N San Gabriel Ave Azusa $8,600,000 1962 33,102 33 $260,606 $259.80 8/31/18

621 N Cerritos Ave Azusa $7,059,519 1962 23,270 26 $271,519 $303.37 8/8/18

1127 E Garvey Ave N West Covina $6,500,000 1958 18,382 28 $232,143 $353.61 4.50% 15.11 7/13/18

14521 Clark St Baldwin Park $6,260,000 1964 19,384 26 $240,769 $322.95 5.43% 12.35 10/20/18

14425-14431 Adoue Pl Baldwin Park $4,200,000 1963 16,054 23 $182,609 $261.62 3.33% 9/27/18

453 Barranca Ave Covina $2,975,000 1963 11,446 10 $297,500 $259.92 3.71% 6.49 5/15/18

AVERAGES $270,047 $300.76 4.14% 12.65

10 | 451 W. Foothill Blvd ADDRESS Property City Sale Price Year Built Bldg SF Number Of Units Price Per Unit Price Per SF Actual Cap Rate GRM Sale Date