Vermont Avenue Mixed-Use Development 600-612-622 N Vermont Avenue & 605 N Juanita Avenue, Los Angeles, Ca 90004

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MIXED-USE DEVELOPMENT PURCHASE OPPORTUNITY Prime Vermont Avenue East Hollywood Location VERMONT AVENUE MIXED-USE DEVELOPMENT 600-612-622 N VERMONT AVENUE & 605 N JUANITA AVENUE, LOS ANGELES, CA 90004

INVESTMENT OVERVIEW EXISTING STRUCTURES • Entitlements near completion: • Total building sq.ft.: 28,020 102 units 18,000 sq.ft. ground floor commercial space • Total land sq.ft.: 47,779 Parking plan includes one level subterranean + ground floor • Signalized northeast corner of Vermont Avenue & Clinton Street • Zoned LA R3 & LA C2 • Frontage: 250' on Vermont; 280' on Clinton; 100' on Juanita • Nearby schools and colleges include: • Assessor’s parcel number 5539-022-011,012,024,034 Los Angeles City College; Braille Institute; American Career College; West Coast University; Dayton Heights Elementary • 2017 traffic count at Vermont Avenue and Clinton Street: School; University of Southern California 52,315 vehicles per day Kaiser Permanente Children's Hospital • One block north of the Hollywood (101) Freeway • Currently there are 2 tenants plus billboard income • Close to Metro Red Line subway stations at Vermont/Beverly and Vermont/Santa Monica • Current annual gross income: $246,000 • Easy access to Koreatown, Hollywood, Downtown Los Angeles • Council District 13: Mitch O'Farrell • In place income while finalizing plans • Permits still need to be pulled • Neighborhood Council: East Hollywood • Final construction plans not included • Located in Opportunity Zone* (tax benefits) • Business Improvement District: East Hollywood

* Major Properties makes no representations as to the benefit of buying a property in an Opportunity Zone. You are advised to seek tax advice from a qualified professional in • Recent clean environmental report (see conclusion pages) regard to these matters.

Asking Price: $16,000,000

ANTHONY S BEHAR MARTIN S BECK FOR MORE INFORMATION, 213.747.8426 213.222.1202 PLEASE CONTACT: [email protected] [email protected] REAL ESTATE BRE #01368565 BRE #01778125 Commercial • Industrial • Residential VERMONT AVENUE MIXED-USE DEVELOPMENT 600-612-622 N VERMONT AVENUE & 605 N JUANITA AVENUE, LOS ANGELES, CA 90004

PROJECT SPECIFICATIONS UNIT MIX

Units 102 3-Bedroom/3-Bath 17

Affordable Units 10 2-Bedroom/2-Bath 57

TOC 3 1-Bedroom/1-Bath 28

Building Area 91,205 SF TOC Incentives:

Land Area 47,779 SF Residential Density 70% FAR 45% Parking 1/2 Space Per Unit Residential Parking 0.5 Spaces Per Unit Commercial Area 18,196 SF Non-Residential Parking Up to 30%

605 N Juanita Ave, Los Angeles, CA 90004 612 N Vermont Ave, Los Angeles, CA 90004 Land Use...... Club Land Use...... Gymnasium/Health Spa Building Area...... 9,546± Sq.Ft. Building Area...... 5,712± Sq.Ft. Stories:...... 2 Year Built...... 1935/1936 Construction:...... Frame & Stucco Land Area...... 13,081± Sq.Ft. Year Built...... 1927/1935 Zoning...... LA C2 Land Area...... 15,079± Sq.Ft. Assessor’s Parcel #...... 5539-022-034 Zoning...... LA R3 Assessor’s Parcel #...... 5539-022-011 622 N Vermont Ave, Los Angeles, CA 90004 600 N Vermont Ave, Los Angeles, CA 9004 Land Use...... Auto Repair Land Use...... Parking Lot Building Area...... 2,262± Sq.Ft. Building Area...... None Year Built...... 1982 Land Area...... 13,078± Sq.Ft. Land Area...... 6,542± Sq.Ft. Zoning...... LA C2 Zoning...... LA C2 Assessor’s Parcel #...... 5539-022-012 Assessor’s Parcel #...... 5539-022-024

TENANT MONTHLY RENT TERM USE NOTES

Winc LLC $15,000 2/1/15-1/31/2018 Nightclub 90 day notice to terminate

Charles Choi $4,500 1/1/2015-12/31/2019 Auto Shop 3% increase each year Pays 50% of property tax

Thompson Media $1,000 8/20/1999-8/20/2019 Billboard

612 N Vermont Ave Vacant Commercial

Total Monthly Income: $20,500

Total Annual Income: $246,000

ANTHONY S BEHAR MARTIN S BECK FOR MORE INFORMATION, 213.747.8426 213.222.1202 PLEASE CONTACT: [email protected] [email protected] REAL ESTATE BRE #01368565 BRE #01778125 Commercial • Industrial • Residential 1. 244 South Mariposa Avenue: 244 S Mariposa Ave, Los Angeles, CA 90004 This 7-story project would include 121 residential units and 4,600 SF of housing. Koreatown Development Map 2. Hampton Inn: 4110 W 3rd St, Los Angeles, CA 90020 This 6-story Hampton Inn headed for 3rd Street will offer 171 guest rooms and a two-level parking structure. 3. 4+N Lofts: 411 Normandie Ave, Los Angeles, CA 90020 This 7-story structure planned for Normandie and 5th is being developed by Jami- son Services and will include 224 apartments above a parking garage. 4. 400 South Catalina Street: 400 S Catalina St, Los Angeles, CA 90020 Construction’s well underway on this 6-story structure with 61 units. 5. 500 South Oxford Avenue: 500 S Oxford Ave, Los Angeles, CA 90020 Condominium development approved late last year. 6. 635 South Western Avenue: 635 South Western Ave, Los Angeles, CA 90005 Another project proposed right on top of a parking structure, this one would include 132 apartments and 900 SF of retail space. 7. 3800 West Sixth Street: 3800 W 6th St, Los Angeles, CA 90020 Initially proposed as a 16-story development, this project has since grown to 20 floors, with 192 hotel rooms and 122 condos plus 15,200 SF of commercial space. 8. 3751 West Sixth Street: 3751 W 6th St, Los Angeles, CA 90020 This mixed use project would replace an old post office with 200 hotel rooms, 44 apartments, and 18,000 SF of commercial space. 9. Wilshire Boulevard Temple expansion: 3663 Wilshire Blvd, Los Angeles, CA 90010 The Wilshire Boulevard Temple project is set to include a ballroom, meeting rooms, and landscaping by local firm Studio-MLA. 10. Pio Pico Pocket Park: 694 S Oxford Ave, Los Angeles, CA 90005 This project would provide green space, topping a parking lot in front of the neighborhood's library with grass, landscaped grounds, a dog park and play structures. 11. 679 South Harvard Boulevard: 679 S Harvard Blvd, Los Angeles, CA 90005 Jamison plans a 110-room hotel with a restaurant and street-level retail set to rise from a surface level parking lot. 12. 3545 Wilshire Boulevard: 3545 Wilshire Blvd, Los Angeles, CA 90010 This project would include a 510,000 SF mixed-use structure between two towers (32 and 14 stories) with 428 condo units and 32,000 SF of commercial space. 13. 3540 Wilshire Boulevard: 3540 Wilshire Blvd, Los Angeles, CA 90010 This adaptive reuse project would add a total of 338 new units to the area, includ- ing 122 that will be built atop the building's parking structure.

ANTHONY S BEHAR MARTIN S BECK FOR MORE INFORMATION, 213.747.8426 213.222.1202 PLEASE CONTACT: [email protected] [email protected] REAL ESTATE BRE #01368565 BRE #01778125 Commercial • Industrial • Residential 14. 3470 Wilshire Boulevard: 3470 Wilshire Blvd, Los Angeles, CA 90010 Two mixed-use buildings will include 641 apartments and 18,454 SF of retail space. 15. 3440 Wilshire Boulevard: 3440 Wilshire Blvd, Los Angeles, CA 90010 Koreatown Development Map See 14. Part of the same project by Jamison. 16. Willard H. George building: 3330 Wilshire Blvd, Los Angeles, CA 90010 Architect Jingbo Lou is spearheading the restoration of this historic Art Deco building to hold a restaurant, bar, and apartments. 17. 689 South Catalina Street: 689 S Catalina St, Los Angeles, CA 90005 This 8-story structure would include 61 new units of housing. 18. Vermont Corridor project: 532 S Vermont Ave, Los Angeles, CA 90020 The project will include a mix of housing, government offices, retail space, and a community center. 19. Soul Tower: 550 Shatto Pl, Los Angeles, CA 90020 A 32-story tower could soon sprout from this parking lot alongside a church at Sixth Street and Shatto Place and would include 256 residential units. 20. Korean American National Museum: 605 S Vermont Ave, Los Angeles, CA 90005 The forthcoming Korean American National Museum will occupy what's currently a city-owned parking lot on Sixth and Vermont. 21. 631 Vermont Avenue: 631 S Vermont Ave, Los Angeles, CA 90005 This 33-story building will have 200 hotel rooms, 250 condos, 49,227 SF of office space, and 28,490 SF of retail and restaurant space. 22. 616 South Westmoreland Avenue: 616 S Westmoreland Ave, Los Angeles, CA 90005 Plans call for 77 live-work units above 3,105 SF of retail space. 23. Grand Spa Hotel: 2999 W 6th St, Los Angeles, CA 90020 This project will add a 6-story hotel to a parking lot behind an existing spa building. 24. 2908 Wilshire Boulevard: 2908 Wilshire Blvd, Los Angeles, CA 90010 Located directly across from Lafayette Park, this project would bring a 31-story tower with up to 644 apartments to the neighborhood. 25. Wilshire Galleria project: 3240 Wilshire Blvd, Los Angeles, CA 90010 Planned around the historic Wilshire Galleria, this project has a 35-story tower and a 7-story condo structure. It's set to include more than 500 condos and a hotel. 26. 682 S Vermont Ave: 682 S Vermont Ave, Los Angeles, CA 90005 This city-owned parking lot could be developed with senior housing. 27. 3700 Wilshire Boulevard: 3700 Wilshire Blvd, Los Angeles, CA 90010 Jamison planned to build 506 residential units and 62,000 SF of commercial space on the site, but the company will now have to run plans by the Cultural Heritage Commission to move forward with the development.

View From Vermont Avenue View From Clinton Street

View From Vermont Avenue and Clinton Street View From Clinton Street and Juanita Avenue

600-622 N Vermont Ave/605 N Juanita Ave, Los Angeles, CA 90004 Comparable Land Properties Sold During the Past 24 Months

ADDRESS CITY ZIP CODE LAND USE BLDG SF LAND SF SALE DATE SALE PRICE PER SF LAND

4117 Beverly Blvd Los Angeles 90004 Store Building 5,427 9,602 10/15/2018 $1,636,000 $170.38

126 N Larchmont Blvd Los Angeles 90004 Stores & Residential 17,131 30,039 10/02/2018 $23,500,000 $782.32

3615 Beverly Blvd Los Angeles 90004 Office Building 2,373 6,442 09/28/2018 $1,600,000 $248.37

3660 Beverly Blvd Los Angeles 90004 Restaurant Building 1,250 7,973 05/09/2018 $1,300,000 $163.05

606 N Western Ave Los Angeles 90004 Store Building 7,158 14,863 10/02/2017 $2,100,000 $141.29

311-315 N Juanita Ave Los Angeles 90004 Parking Lot 15,000 04/10/2017 $2,700,000 $180.00

3967 Beverly Blvd Los Angeles 90004 Medical Building 10,448 22,764 02/07/2017 $5,200,000 $228.43

Average Price Per Sq.Ft. Land Value: $273.41

600-624 N Vermont Ave Comparable Sale Land Value: $13,063,256 (Based Upon 47,779 SF of Land)

7.0 CONCLUSIONS

ENCON Solutions, Inc. (ENCON) performed a Phase I Environmental Site Assessment of the Property in conformance with the scope and limitations of ASTM Standard Practice E1527-13. The ASTM Standard Practice E1527-13 defines a Recognized Environmental Condition (REC) as the presence or likely presence of any hazardous substances or petroleum products in, on, or at a Property: (1) due to release to the environment; (2) under conditions indicative of a release to the environment; or (3) under conditions that pose a material threat of a future release to the environment. Conditions determined to be de minimis generally do not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies. Conditions determined to be de minimis conditions are not Recognized Environmental Conditions.

A Historical Recognized Environmental Condition (HREC) is a past release of any hazardous substances or petroleum products that has occurred in connection with the Property and has been addressed to the satisfaction of the applicable regulatory authority or meeting unrestricted use criteria established by a regulatory authority, without subjecting the Property to any required controls (for example, Property use restrictions, activity and use limitations, institutional controls, or engineering controls).

A Controlled Recognized Environmental Condition (CREC) is a Recognized Environmental Condition resulting from a past release of hazardous substances or petroleum products that has been addressed to the satisfaction of the applicable regulatory authority (for example, as evidenced by the issuance of a no further action letter or equivalent, or meeting risk-based criteria established by regulatory authority), with hazardous substances or petroleum products allowed to remain in place subject to the implementation of required controls (for example, Property use restrictions, activity and use limitations, institutional controls, or engineering controls).

Conclusions and Findings

ENCON performed a Phase I Environmental Site Assessment in conformance with the scope and limitations of ASTM Standard Practice E1527-13 of the Property. This environmental assessment has revealed the following in connection with the Property:

REC identified: Yes No HREC identified Yes No CREC identified: Yes No Significant data gap identified: Yes No

A former service station had reportedly operated at the Property between 1931 and the late 1940s, and JMK Environmental conducted a limited subsurface investigation consisting of a total of three soil borings that were drilled in the asphalt-paved parking lot of the western portion of the Property along North Vermont Avenue. These borings were drilled to a maximum depth of around 20’ below ground surface (bgs) with the 10’ and 20’ deep soil samples, being chosen for analyses from each boring for benzene, toluene, ethylbenzene, and xylenes (BTEX) by EPA Method 8020 and total petroleum hydrocarbons as gasoline (TPH-g) by modified EPA Method 8015.

Laboratory results of these samples found that there were no detectable levels of BTEX and TPH-g in all collected/analyzed soil samples. The non-detect levels of TPH-g and BTEX identified in the 10’ bgs and 20’ bgs soil samples from the three separate boring locations indicated no apparent evidence of significant subsurface contamination from the former UST operations. Furthermore, the former consultant reasoned that due to an identified dense clay layer encountered during the subsurface investigation at 15’ bgs, this clay layer was likely to act as a buffer and prevent any downward migration of pollutants, if present. Therefore, it was concluded that “no additional subsurface investigation or site cleanup was deemed necessary based on results of this study.”

ENCON Solutions, Inc. Phase I Environmental Site Assessment Report 1501100ESAI - 40 –

Subsurface investigations conducted at the Property in 2000 by JMK Environmental did not find any evidence of significant soil contamination in the areas investigated.

It should be noted that a complete copy of previous subsurface investigation report is not available for our review.

ENCON Solutions, Inc. Phase I Environmental Site Assessment Report 1501100ESAI - 41 –

8.0 RECOMMENDATIONS AND OPINIONS

ENCON performed a Phase I Environmental Site Assessment of the Property in conformance with the scope and limitations of ASTM Standard Practice E1527-13.

The Property was initially developed with multiple residences in the early 1900s. By the 1930s, the southwestern portion of the Property was occupied with a gas station (600 North Vermont Avenue) and the eastern portion of the property along North Juanita Avenue was developed with a theatre complex consisting of two separate buildings (605 North Juanita Avenue). The gas station operated onsite until the late 1940s when it was removed by 1950 and the western portion of the site remained vacant, while the theatre buildings remained unchanged until the 1960s. During the 1960s, the Property (605 N. Juanita Ave.) became known as the Greater Los Angeles Press Club and a building addition was added connecting the two original structures into one large building that is the current building onsite and the vacant lot along the western portion of the Property was converted into a parking lot. The Property remained structurally unchanged until the present and the business changed from the Greater Los Angeles Press Club to Garam Inc. in the 1990s.

The northwestern portion of the site was developed with a commercial structure (612 North Vermont Avenue) similar to the current configuration and layout by the mid-1930s. It was occupied by a clinical laboratory or medical facility by the 1950s and then eventually was converted and occupied by a moose lodge in 1986. By 2000, the building had been occupied by a church and was further converted into the current commercial sauna & spa facility.

Subsurface investigations conducted at the Property in 2000 by JMK Environmental did not find any evidence of significant soil contamination in the areas investigated.

It should be noted that Geophysical Survey Investigation was not conducted as part of previous subsurface investigations conducted for the Property. Geophysical Survey is typically employed using Ground Penetrating Radar to determine if there was evidence of any USTs or subsurface anomalies resembling that of USTs. For higher level of comfort in confirming the absence of UST(s) or former fueling system in the subsurface beneath the Property, Geophysical Survey can be conducted to identify any metallic anomalies resembling underground storage tanks and steel pipes.

In the event that the site is redeveloped, soil is excavated at the Property or use and configuration of the Property changes, Geophysical Survey should be conducted to ensure absence of any abandoned UST or fueling system at the Property. If an UST is identified in the future, it should be properly removed and closed in compliance with the local regulatory requirements.

ENCON Solutions, Inc. Phase I Environmental Site Assessment Report 1501100ESAI - 42 –

ENCON cannot completely rule out a potential risk of contamination in the entire areas of the Property, as a complete copy of previous subsurface investigation report is not available for our review.

However, a potential exposure to residues in the subsurface, should they exist, is further reduced by the presence of a building structure, concrete slab-on-grade and hardscape pavement surfaces at the site. In the event that the site is redeveloped and/or soil is excavated at the Property, a soil management plan should be prepared and implemented to address the handling of soil that may contain contaminants of concern. Additional subsurface investigation and special disposal considerations may be required if the impacted soil is excavated from the site as part of redevelopment or maintenance of the site.

The Property is paved by concrete and asphalt (cap), thus transport pathway for chemicals in subsurface soil volatilizing to soil gas and reaching atmosphere is incomplete and direct contact with chemicals in surface soil is unlikely. The potential for vapor migration through the planters is minimal due to surface irrigation water infiltration.

As the soil barrier cap on the subject property is maintained, ENCON opines that a significant threat to the current and expected continued commercial use of the Property is not expected. No significant contamination with fuel VOCs and petroleum hydrocarbons were identified in the previous subsurface investigations.

Based on the foregoing, ENCON concludes that a significant environmental risk from historical use of the Property as a gas station is not expected, and recommends no further action at this time, as the present site configuration and use is expected to remain unchanged. ENCON is unaware of any future plans for subsurface development or disturbance to underlying subsurface.

ENCON Solutions, Inc. Phase I Environmental Site Assessment Report 1501100ESAI - 43 –

9.0 REFERENCES

During the preparation of this Report, a number of sources were contacted, individuals were interviewed, and various federal, state, county or local municipal agencies were consulted. Documentation applicable to the Property in those departments and agencies was requested and reviewed when and where reasonably ascertainable, as detailed in ASTM Standard Practice E1527-13. Individuals listed without phone numbers were contacted in person or by e-mail. Reference sources for site-specific information, hydrogeologic setting, technical data, historical research data, environmental reports and other records used are identified throughout this Report in corresponding sections. Any additional reference sources not cited in each applicable section of this report, if applicable, are disclosed in this section.

ASTM Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process, ASTM Designation E1527-13 Current USGS 7.5 Minute Topographic Map EDR Radius Map Report EDR Historical City Directories EDR Historical Sanborn Fire Insurance Maps Historical Topographic Map Series(USGS 7.5 minute) Historical Aerial Photos: http://www.historicaerials.com/ Google Earth - http://earth.google.com/ Microsoft Research Maps - http://msrmaps.com/ USGS Professional Paper 1401-C, Geology of the Fresh Ground Water Basin, California (1986) Federal Emergency Management Agency, Federal Insurance Administration, National Flood Insurance Program, Flood Insurance Map, Community Number 06037C-1337F, dated September 26, 2008 United States Department of Agriculture, Natural Resources Conservation Service, Report and General Soil Map, Los Angeles County, California United States Environmental Protection Agency, EPA Map of Radon Zones (Document EPA-402- R-93-071), accessed via the Internet California Department of Conservation, Division of Mines and Geology - http://gmw.consrv.ca.gov California Department of Conservation, California Geologic Survey - http://www.consrv.ca.gov/CGS California Department of Conservation, Division of Mines and Geology - http://gmw.consrv.ca.gov California Department of Conservation, California Geologic Survey - http://www.consrv.ca.gov/CGS California Department of Water Resources, Individual Basin Descriptions - http://www.groundwater.water.ca.gov/bulletin118 California Water Resources Control Board Geotracker online database http://geotracker.waterboards.ca.gov/default.asp Navigate LA - http://navigatela.lacity.org/ Los Angeles County Office of the Assessor - http://maps.assessor.lacounty.gov/ Los Angeles Building and Safety Division 2007 Phase I Environmental Site Assessment, prepared by ENCON http://geotracker.waterboards.ca.gov/esi/uploads/geo_report/3077795743/T0603716046.PDF https://sites.google.com/site/losangelesmoviepalaces/theatre-mart

ENCON Solutions, Inc. Proposed Mixed-Use Development Plans