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537 W. Compton Boulevard COMPTON, CA 90220 2 3

537 W. Compton Boulevard, Compton, CA 90220

Executive Summary The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale The Children’ Institute, a brand new 10 year lease, located in Compton, . The Children’s Institute is strategically located at 537 W. Compton Avenue, just east of the northeast signalized corner of W. Compton Boulevard and S. Wilmington Avenue. The Children’s Institute Inc. (CII) is a nonprofit organization that provides services to children and families healing from the effects of family and community violence within ’s most challenged neighborhoods. Founded in 1906 by Minnie Barton, the organization was first designed to help troubled young women who found themselves adrift in Los Angeles. The organization has since expanded its services to at-risk youth in Los Angeles who are affected by child abuse, neglect domestic and gang violence as well as poverty. CII cur- rently serves more than 22,000 children and families a year throughout Los Angeles , and trains more than 9,000 PROPERTY INFORMATION TENANT INFORMATION FINANCIAL INFORMATION professionals in the realm of child development, mental health, and welfare. The Edna McConnell Clark Foundation has 537 W. Compton Blvd Company Children’s Institute, Inc Sales Price $1,340,000 Address invested $10 million in Children’s Institute Inc. to date. In 2011, CII received a $5 million, three-year Social Innovation Fund Compton, CA 90220 Lease Start 2/28/2017 award to expand its presence in the Watts and communities. The organization also has received a Current CAP Rate 6.00% Bldg SF 4,425 SF grant from the Foundation’s True North Fund. The Children’s Institute generated over $66 million in revenue and support Lease Expire 2/28/2027 in the fiscal year 2016-2017. Price/SF (bldg) $303 Lot SF 12,500 SF Lease Type Modified Gross Price/SF (land) $107 Children’s Institute just executed a brand new 10-year lease with 3% annual increases. The lease offers a strong cor- Property Type Retail porate guarantee with The Children’s Institute. The Children’s Institute offers a stable and secure income stream with Rent $8,300 Occupancy 100% no management responsibility. The property has excellent parking; 30 spaces available for a ratio of 6.78: 1,000 SF. The Zoning COC2 Rent/SF $1.88 Children’s Institute is located within close proximity to the Compton Towne Shopping Center, which is home to major retailers such as dd’s Discounts, Smart & Final, Superior Grocers, and the Compton Courthouse. The subject property is Year Built 1948 Increases 3% annually half a mile from the Compton Blue line metro station, which connects Los Angeles to Long Beach. Type of Fee Simple Sales Generated $66,000,000 The City of Compton is a neighborhood in Los Angeles that is strategically located along the Alameda Corridor, a pas- 6151-010-058 No. of Locations 33 sageway of 25% of all .S. waterborne international trade. Compton is a multicultural community of over 100,000 resi- APN 6151-010-059 dents and is desirable for its easy accessibility to and from five freeways and affordability of its housing. 6151-010-060 Guarantor Corporate Guarantee 4 5 Property Overview 537 W. Compton Boulevard, Compton, CA 90220 LO AT I O N APN’S 537 W. Compton Boulevard, Compton, CA 90220 The APN is 6151-010-058, 6151-010-059, 6151-010-060

SITE TRAFFIC COUNTS Investment Highlights The subject property is located just east of the Compton Boulevard: 19,227 vehicles per day northeast corner of N. Mathisien Avenue and W. • 10 year Modified Gross Lease with The Children's Institute PLAT MAP Compton Boulevard. • Corporate Guarantee PARKING • 3% Annual Increases 30 spaces are available - Ratio of 6.78/1,000 SF • Stable and Secure Income Stream SQUARE FOOTAGES The building square footage is 4,425 SF on a • Children’s Institute generated over $66 million in revenue in 12,500 SF lot. 2016-2017 • Corporate Guaranteed Lease FRONTAGE AND ACCESS • A 4,425 SF daycare facility situated on 12,500 SF of land Approximately 90 feet of frontage on W. • Zero management responsibility Compton Boulevard. • Excellent parking:: 30 spaces available for a ratio of 6.78 • Close proximity to Compton Towne Center Shopping Y E A R B U I LT Center which is home to major retailers such as dd’s The property was built in 1948. Discounts, Smart & Final Extra!, Superior Grocers, Burlington Coat Factory, and more. • Compton is a multicultural community of over 100,000 ZONING residents and is desirable for its easy accessibility to and The zoning is COC2. from five freeways and the affordability of its housing COMPTON TOWNE CENTER 6 SHOPPING CENTER 7

COMPTON BLUE LINE Tenant Overview STATION

CII is one of the oldest and largest COMPTON LIBRARY social sector agencies in . This past year they served more than 27,000 children and families. Their organization’s service include: evidence-based and COMPTON HIGH trauma-informed clinical services, early childhood services including COMPTON SCHOOL Early Head Start and Head Start, youth development programs, and COURTHOUSE family support services including Project FatherhoodSM.

Founded in 1906 by Minnie Barton, the city’s first female probation officer, the original organization (then named The Big Sister League) was designed to help troubled young women who found themselves adrift in Los Angeles. Minnie Barton established the Minnie Barton Home for these young women, and later, the Bide-A-Wee Home for unmarried pregnant women.

Over the past fifteen years, CII has expanded its scope and services— branching out to serve children and families affected by family and community violence, and implementing new model programs. In 2006, marking the organization’s 100th year, the agency’s name was

W. COMPTON BOULEVARD changed to Children’s Institute, Inc. And in spring 2011, CII opened its new headquarters and third all-inclusive facility, the award-winning Otis Booth Campus. The Otis Booth Campus—a 48,000-square-foot LEED-Silver facility located just west of downtown Los Angeles— enables CII to reach over 5,000 children and family members each year with the agency’s unique blend of services, which includes 537 W. Compton evidence-based clinical services, youth development programs, Boulevard early childhood programs, and family support. COMPTON, CA 90220 8 9 537 W. Compton Boulevard, FINANCIAL ANALYSIS Compton, CA 90220

RentTENANT Roll SF % LEASE START LEASE EXPIRE INCREASES RENT RENT/SF Children’s Institute, Inc. 4,425 100% 3/1/2017 2/28/2027 3% annual $8,300.00 $1.88

AnnualizedINCOME AND EXPENSE OperatingCURRENT DataEXPENSES ANNUAL PER SF Scheduled Lease Income $99,600 Taxes: 1.25% $16,750 $3.79 Effective Gross Income: $99,600 Insurance $5,000 $1.13 Expenses* $19,250 Total Expenses $21,750 $4.92 / $0.41 Net Operating Income $80,350

*Landlord is responsible for 100% of property taxes and 50% of Insurance. Tenant is responsible for all other expenses.

Pricing Price $1,340,000 CAP Rate 6.00% Price per SqFt (Bldg) $303 Price per SqFt (Land) $107 10 11 LOS ANGELES Los Angeles County covers 4,752 square miles and includes the islands Area Overview of San Clemente and Santa Catalina. It is bordered on the east by San $60,630 52.9% $612,979 Bernardino and Riverside counties, on the north by Kern and Ventura Average HH income Owner Occupied Daytime Population counties, on the west by the Pacific Ocean and on the south by Orange COMPTON, CA ECONOMY 5-m radius Housing 3-m radius 5-m radius County. Nearly every type of climate is represented in Los Angeles, ranging Compton is a city in southern Los Angeles County, south of Compton is rapidly emerging as a large industrial center in Los from desert and mountain to coastal. The Los Angeles coastline stretches downtown Los Angeles. Compton is one of the oldest cities in the Angeles County for transit and distribution,business services, along 81 miles of world-famous beaches. The Santa Monica and San Gabriel county. Compton is home to almost 100,000 citizens and known high technology, home and lifestyle products, metals, financial DEMOGRAPHICS 1 MILE 3 MILES 5 MILES mountains are located in the county, with the highest point at Mount San as the “Hub City” because of its unique position in almost the services, and textile manufacturing. The City is developing a exact geographical center of Los Angeles County. Compton is wide range of economic and cultural opportunities that will 2018 Population 43,951 267,576 802,370 strategically located along the Alameda Corridor, a passageway help to make Compton a prime destination for residents and 2018 Households 10,549 63,610 207,532 of 25 percent of all U.S. waterborne international trade, in addition businesses. to being a large industrial center for transit and distribution, 2018 Average Household Size 4.04 4.00 3.73 business services, high technology, home and lifestyle products, DEMOGRAPHICS Compton was recently designated as an "Entrepreneurial Hot 2018 Daytime Population 30,361 239,479 672,979 Los Angeles County is one of the most populated metropolitan areas in the metals, financial services, and textile manufacturing. The Hub Spot" by Cognetics, Inc., an independent economic research 2018 Owner Occupied Housing Units 50.2% 52.9% 47.3% nation, containing more than 13 million inhabitants. Population gains in Los City is part of the Gateway region and has a 77-acre Compton / firm. Compton made the national list for best places to start and Woodley Airport that is home to 275 based aircraft and experiences grow a business, and ranked #2 in Los Angeles County out of a 2018 Renter Occupied Housing Units 49.9% 47.1% 52.7% Angeles preceded and created economic expansion, rather than followed it, which was the case in most other U.S. metros. Since 2010, the local over 66,000 flight operations each year. This air transportation field of 88 cities. The city's Planning and Economic Development 2018 Vacant 4.1% 3.7% 3.0% asset is complimented by the Hub City’s four major freeways department provides a business assistance program consisting population expanded by more than 452,500 residents. Most of the growth $ 0 - $14,999 15.8% 15.0% 14.8% adjacent to the City’s boundaries. Interstate 710 runs from the of a comprehensive mix of resources to small business owners came from foreign immigration, rather than natural increases or domestic seaports through the eastern boundary; the State Route 91 and entrepreneurs. The grocery chains and Food 4 Less, $ 15,000 - $24,999 13.6% 13.0% 12.9% migration. A population gain of 0.5 percent annually is expected during freeway extends through the southern boundary; Interstate 105 subsidiaries of Kroger, are headquartered in Compton. Gelson's $ 25,000 - $34,999 11.6% 11.6% 11.8% the next five years. Diminished growth will stem from smaller household runs slightly along the north of the City; and Interstate 110 along Market, a subsidiary of Arden Group, Inc., a holding company, to the west. Additionally, the Interstates 405 and 605 freeways is also based there $ 35,000 - $49,999 14.5% 15.5% 15.1% sizes and declining affordability, trends that already have pushed housing development outward into surrounding counties. are within two miles of Compton’s southern and eastern edges, $ 50,000 - $74,999 20.0% 19.3% 19.1% respectively. The population of Los Angeles County is younger than the nation, with a $ 75,000 - $99,999 10.8% 11.1% 11.2% median age of 35.8 years compared with the U.S. median of 37.5 years. The $100,000 - $124,999 7.6% 7.0% 6.8% cohort ages 25 to 44 is much larger than that of the country, as many people $125,000 - $149,999 2.7% 3.4% 3.4% come to the area seeking employment. $150,000 - $199,999 2.5% 2.7% 2.9% More metro residents are going to college. The number of people age 25 $200,000 - $249,999 0.4% 0.6% 0.8% and older who have obtained a bachelor’s degree or higher has risen to $250,000 + 0.6% 0.9% 1.1% 31.3 percent. Educational achievement contributed to the local median 2018 Median Household Income $45,485 $46,221 $46,52 household income rising considerably since 2000, reaching $57,900 last 2018 Per Capita Income $13,368 $14,060 $15,708 year. Even though incomes are rising, Los Angeles is still a renter’s market 2018 Average Household Income $54,591 $58,694 $60,630 as only 49 percent of households own their homes. BRANDON MICHAELS Senior Managing Director Investments Senior Director, National Retail Group Tel: (818) 212-2794 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com