OFFERING MEMORANDUM $1,650,000 2524-2528 E SLAUSON AVE SLAUSON AVE HUNTINGTON PARK, CA 90255 NNN LEASED INVESTMENT LOCATED IN HUNTINGTON PARK EXECUTIVE SUMMARY SITE DESCRIPTION

2528 E Slauson represents an opportunity for an investor to acquire a stabilized retail asset situated in Huntington Park. BUILDING SIZE 3,800 SF Located on with high traffic counts (32,397 VPD), this property is anchored by a coin laundry long-term lease PARCEL SIZE 14,806 SF paying above market rent. The property was built in 1989 and is in excellent condition, containing three retail spaces. APN 6320-002-080 The parcel contains 14,806 SF and boasts 23 lined parking spaces. In addition, this asset has two separate ingress-egress NUMBER OF TENANTS 2 points, on Rugby Avenue as well as Slauson Avenue. Businesses within walking distance include; Bank of America, Chase Bank, Harbor Freight Tools, Huntington Park community Hospital, UPS PARKING SPACES 23 (Lined) Store, CVS Pharmacy, Curacao Market, In-N-out, El Pollo Loco, Taco Bell, Michaels, Starbucks, McDonalds, and Norms to the PARKING RATIO 6.14/1,000 SF immediate West. Further, the property is located between both desirable Alameda St and Pacific Blvd. ZONING HPCN* The gross income ($96,000 annually) as well as the stabilized leases will attract investors seeking properties which have not CONSTRUCTION Wood Frame been affected by the COVID-19 pandemic.

YEAR BUILT 1989 Coin Laundry Clients ACCESS POINT Rugby Ave & Slauson Ave • Emilia Keushkerian/Ovanes Kerian (Advance Green Laundry INC.) • Bradley Steinberg (PWS Laundry Services) TRAFFIC COUNTS/VISIBILITY 32,397 VPD • Golden State Laundry Systems • Western State Design FRONTAGE 217' on E Slauson Ave • Jerry Friedman (Coin Laundry Attorney)

2 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 3 LUGO'S LAVANDERIA

Lugo’s laundry occupies … SF of the building on a newly signed, absolute NNN lease. The lease is marked with steady increases as well as a 10 year option to renew in 2028. Lugo’s was purchased by the current operator in 2018 for $600,000 dollars from the owner of the property. Coin laundry spaces are often considered recession proof and are considered an essential business during the COVID-19 Pandemic.

Lugo’s buildout was constructed by PWS, a prolific commercial contracting firm who specializes in modernizing coin laundry facilities. The business sits close to several key indicators for success among its targeted demographics; access to transit, lower than average CPI, and low density of home ownership.

HIGHLIGHTS • Invested Operator • Long-Term Lease at Above Market Rent (…) • True NNN • Recent Buildout in Excellent Condition • Favorable Fundamentals/Demographic

4 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 5 PROPERTY OVERVIEW SLAUSON AVE

LOCATION PARKING BUILT 2524-2528 E. Slauson Ave., Provides 23 spaces, which equates to 6.14 2524-2528 E Slauson Ave was built in Huntington Park, CA 90255 spaces per 1,000 SF parking ratio. 1989.

SITE Located on the south side of Slauson Ave between Malabar St. and Pacific Blvd, in the city of Huntington Park, CA. DISTANCE TO TRANSIT ZONING Metro A Line...... 1.0 miles Per the city of Huntington Park, the prop- 108 Line...... 0.1 miles erty is currently zoned as HPCN*. LAND AREA 60 Metro Local Line...... 0.1 miles 760 Line...... 0.1 miles The property consists of 1 parcel (APN 251 Metro Local Line...... 0.1 miles #6320-002-080) totaling 14,806 SF of 751 Metro Rapid Line...... 0.1 miles land area.

BUILDING AREA PARCEL MAP The subject consists of 1 building equaling to 3,800 total square feet.

FRONTAGE & ACCESS The site features 217 linear feet of frontage along Slauson Ave.

Access points into the building include 1 entrance off Slauson Ave and 1 entrance off Rugby Ave.

6 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 7 INVESTMENTZIMAS OVERVIEW MAP INVESTOR ANALYSIS

PROPERTY INFORMATION LEASE ABSTRACT FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA

Price $1,650,000 Tenant Lugo's Laundry Hollistic Health Care DESCRIPTION SPECS INCOME CURRENT PSF PRO-FORMA PSF

Commencement 11/01/2018 09/01/2020 Price GROSS POTENTIAL RENT $96,000 $25.64 $107,250 $28.64 Building Size 3,800 SF $1,650,000 Lease Expiration 10/30/2028 08/31/2021 Price Per SF $434.21 Down Payment (30%) $495,000 Less: Vacancy (3%) ($2,880) ($0.76) ($3,217) ($0.85) Lease Type NNN NNN Gross Square Feet 3,800 SF Lot Size 14,084 SF Effective Gross Income $ 93 ,120 $24.87 $104,033 $27.78 Least Term 10 year 1 year

Price Per SF $ 117.15 Price Per Square Foot $434.21 Renewal Options 4, 5 year options 1, 1 year (2021) Less: Expenses (27%) ($25,120) ($6.70) ($25,120) ($6.70)

Cap Rate ‒ Year 1 4.21% Lot Size 14,804 SF Parcel Number 6320-002-080 NET OPERATING INCOME $68,000 $18.16 $78,913 $21.07

Cap Rate ‒ Year 3 5.16% Price Per Foot on Land $111.45 EXPENSES CURRENT PSF

ALSACE AVE EXPENSES CURRENT PSF NOI ‒ Year 1 $69,312 Cap Rate - Current 4.12% Property Tax (1.125%) $21,250 $5.59 Real Estate Taxes $21,250 $5.59 NOI ‒ Year 3 $85,236 Cap Rate - Pro-Forma 4.78% Insurance $1,684 $0.43 Base Rent $1.51/month Insurance $1,843 $0.49

Current Rate $2.10 Occupancy 100% Utilities $3,722 $1.00 Repairs & Maintenance $ 1,151 $0.31 37TH DR NNN Charges (PSF) $0.58/month Year Built 1989 Management Fee (3%) $2,880 $2.61 Misc./Reserves $155 $0.04 Next Annual Increase Date 11/01/2023 Zoning HPCN* Repairs & Maintenance $942 $0.25 Total Operating Expenses (28.5%) $24,399 $6.42 Subletting Landlord's Written Consent Type of Ownership Fee Simple Note: All expenses are passed through to Lugo's Laundry and Hollistic Health Care on Development Rights Without Tenant's Consent – Improve Building TOTAL EXPENSES $28,000 $6.67 NNN bases.

8 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 9 SNAPSHOT: HUNTINGTON PARK

Huntington Park is a suburb of with a population of 58,993. Huntington Park is in Los Angeles County. Living in Huntington Park offers residents an urban suburban HIGH DENSITY, HUNTINGTON mix feel and most residents rent their homes. In Huntington Park there are a lot of coffee PARK DEMOGRAPHICS shops and parks. Many families live in Huntington Park and residents tend to be liberal.

• Average Household Income exceeding $42,985 NEIGHBORHOOD CITY REGION COUNTY METRO within a 1-mile radius Huntington Los Los Los Los Park Angeles Angeles Angeles Angeles • More than 31,000 households with a Median Home Value of $348,600

DEMOGRAPHICS HUNTINGTON PARK UNITED STATES • More than 120,896 people with a Median Age

MEDIAN HOUSEHOLD INCOME of 30 years old $42,985

LOS ANGELES COUNTY

The County of Los Angeles holds many disticntions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame's collection of stars (numbering more than 2,614 and growing by one or two a month) to career opportuni- ties like those presented in the expanding tech industry, Los Angeles County is the place to be. It is the only city HUNTINGTON PARK LOS ANGELES COUNTY in North America to have hosted the Summer Olympics twice. Downtown L.A. is the largest government center outside of Washington, D.C. Los Angeles County has the WEATHER 285Sunny 83◦Average 50◦Average 284Sunny 71◦Average 55◦Average Days High Low Days High Low only remaining wooden lighthouse in the state (located in San Pedro's Fermin Park) and the largest historical theater district on the National Register of Historic Places (located Downtown on ).

10 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 11 Huntington Park is a city in the Gateway ABOUT THE NEIGHBORHOOD NEARBY AMENITIES Cities district of southeastern Los Angeles County, California.

As of the 2010 census, the city had a total population of 58,114, down from 61,348 at GREEN WAVE FARMS the 2000 census. In 2019, Huntington Park was ranked California's "most miserable" city, according to census data compiled by EL CORRAL Business Insider, ranking 10th on the list of ANIMAL SHOP 1,000 of America's most miserable cities. EL POLLO Housing costs in Huntington Park are LOCO TACO BELL among some of the highest in the nation, INDUSTRIAL MCDONALD'S SHOE COMPANY HARBBOR although real estate prices here don't FREIGHT TOOLS compare to real estate prices in the most expensive communities in California. GNC

88 57 62 NORM'S HAIR LOUNGE Walk Score Transit Score Bike Score CVS Very Walkable Good Transit Bikeable THE SPOT MICHAEL'S Most errands can be Many nearby public Some bike SMOKE SHOP accomplished on foot. transportation options. infrastructure. Sherman Oaks 21 mi Hollywood 12 mi DTLA 4 mi Santa Monica 18 mi

SPARKLEAN SUBJECT PROPERTY SALLY 2528 East Slauson Avenue is a 21 minute walk from the LAUNDRY BEAUTY Metro A Line (Blue) at the stop.

This location is in Huntington Park. Nearby parks include STARBUCKS Middleton Street Recreation Center, Westside Park and Miles Park.

12 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 13 14 2524-2528 E SLAUSON AVE | HUNTINGTON PARK, CA 90255 HUDSON COMMERCIAL PARTNERS, INC. 15 www.hudsonpartnersinc.com JAY MARTINEZ MICHAEL CRISWELL CONNOR MACLEOD Managing Principal Senior Associate Senior Associate c: 310.658.3375 c: 323.559.1936 c: 424.422.5848 p: 818.212.3057 p: 818.699.1604 p: 818.699.1603 f: 818.688.8140 f: 818.332.4977 f: 818.332.4977 e: [email protected] e: [email protected] e: [email protected] CalBRE: 01367663

This Memorandum (“Offering Memorandum”) has been prepared by Hudson Commercial Partners, Inc. based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Commercial Partners, Inc., and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Hudson Commercial Partners Inc. to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to © 2020 Hudson Commercial Partners, Inc. The information contained in this interested and qualified prospective purchasers. Hudson Commercial Partners, Inc. reserves the right to request the return of document has been obtained from sources believed reliable. While Hudson any or all of the information enclosed. Commercial Partners, Inc. does not doubt its accuracy, Hudson Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Hudson Commercial Partners, Inc. logo are service marks of Hudson Commercial Partners, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

4605 Lankershim Blvd, Suite 214 | Universal City, CA 91602 818.212.3057 • www.hudsonpartnersinc.com