6450000 5.76% Cap Rate on Existing Income Near Downtown Los

| OFFERING MEMORANDUM a Berkshire Hathaway and Jefferies Financial Group company

Price Reduced by $350,000 New Asking Price is $6,450,000

5937 Avalon Boulevard Built: 1920 | Price: $6,450,000 LOS ANGELES, CA 90003

5.76% Cap Rate on Existing Income Near Downtown Los Angeles INVESTMENT ADVISORS Brent Sprenkle Senior Managing Director

310.621.8221 [email protected] CA BRE License #01290116

MORTGAGE BANKING Allan Freedman Managing Director

310.209.3243 [email protected]

SOUTH BAY OFFICE 2321 Rosecrans Avenue Suite #3235 El Segundo, CA 90245

2 CONTENTS THE ASSET �� 4 PLANS �� 16 FINANCIAL ANALYSIS ��20 MARKET POSITIONING �� 24 ECONOMIC AND DEMOGRAPHIC OVERVIEW ��46 DEMOGRAPHICS ��62 MULTIFAMILY REPORT ��74

THE ASSET PROPERTY HIGHLIGHTS

Price Reduced by $350,000. New Asking Price is $6,450,000

Offered at a 5.76% Cap Rate and 10.72 GRM on Current Income with Remaining Upside

All Commercial Tenants are Current on Rents

Two-Story, Mixed-Use Property-Apartments Over Retail

High-Demand Rental Market Near Downtown Los Angeles

Located in a Federal Qualified Opportunity Zone

Great Cash Flow with Upside of Close to a 7% Cap Rate

6 The Asset The Asset 7 PROPERTY SUMMARY

Units 22 (Plus 5 Retail and 2 Commercial)

Year Built 1920

Metering Separate for Gas and Electric

Total SF 28,648 ±

Commercial /Retail/ 13,000± Industrial SF Parcel Number(s) 6006-032-028

Type of Buildings 1, Two-story, Garden Style

Construction Wood-Frame and Stucco

PROPERTY DESCRIPTION Price Reduced by $350,000. New Asking Price is $6,450,000.

The Avalon is a mixed-use property consisting of 22 apartments and over 13,000 square feet of street front retail and commercial/industrial space. In addition, there is a small parking lot for approximately 13 cars that is leased from the adjacent property that is located off of East 59th Place. The property is located in a federal qualified opportunity zone.

Situated on a lot of over 16,000 square feet, the low density 1920’s construction property is the only large mixed-use property in the immediate area. The property is of wood frame and stucco construction. All units and commercial/retail tenants have separate gas and electric meters as well as individual hot water heaters. All of the commercial spaces are leased and all of the tenants in the entire property except for one apartment are current on monthly rent payments. All commercial and retail leases are gross with the tenants only paying rent and utilities. The average retail lease is $2.14 per square feet gross and the industrial spaces are leased at an average of $1.09 per square feet gross.

The apartment unit mix consists of 13 units that are studios with one-bathroom and a kitchen, and 9 units are one-bedrooms with one-bathroom. Most units as well as the hallways and common areas have been substantially upgraded. All retail spaces have very high ceilings. The property also contains a massive storage and laundry room.

8 The Asset The Asset 9 LOCATION DESCRIPTION - DOWNTOWN LOS ANGELES

Downtown - Downtown Los Angeles (DTLA) is the city’s central business district featuring a wide spectrum of companies with highly skilled workers, cultural activities, and is surrounded by popular neighborhood destinations such as Silverlake, Echo Park, and Koreatown. Downtown also serves as a hub for the Metro rapid transit system, and is known for its government buildings, parks, theaters, and public spaces. Like many cities, DTLA is continually undergoing revitalization efforts with developers investing billions of dollars into the area. The area is currently home to thousands of residents and over 1,000 new stores, restaurants, and companies. As the region’s economic engine, DTLA’s population has tripled since 1999 and is expected to double again over the next decade. The 2018 Survey by the Downtown Center Business Improvement District states “a growing population of residents, workers, and visitors - enthusiastically embracing the culture, community, and convenience that are defining Downtown Los Angeles as one of the most dynamic city centers of the 21st Century.” Some of the most popular venues and attractions in DTLA include the Staples Center, Exposition Park, The Music Center, The Broad, Downtown LA ArtWalk, LA Convention Center, MOCA Los Angeles, Walt Disney Hall, and L.A. Live sports and entertainment district.

10 The Asset LOCATION DESCRIPTION

NEIGHBORHOOD SHOPPING DEMAND DRIVER LOS ANGELES, CA FROM THE FROM THE 5.8mi PROPERTY 4.1mi PROPERTY 5937 AVALON BLVD NEIGHBORHOOD QUICK FACTS SF SHOPPING JOBS 850k DESTINATION 1.7k SUPPORTED

TOTAL HOSPITAL 95 STORES 318 BEDS

494.4k Macy’s | TJ Maxx | Albertsons | Cinemark Dignity Health - California Hospital Medical Center Population (Within Three Miles)

NEIGHBORHOOD CONVENIENCES DEMAND DRIVER

64% FROM THE PROPERTY Renter Occupied Housing Units 4.5mi (Within Three Miles) JOBS 28.9k SUPPORTED

$ STUDENTS 521.8k 48.5k ENROLLED Median Housing Unit Value Within a three-mile radius of the property University of Southern California (Within Three Miles)

$ 35.7k PRIMARY EDUCATION DEMAND DRIVER Median Household Income STUDENTS FROM THE (Within Three Miles) 674k SERVED 4.7mi PROPERTY

SCHOOLS JOBS 1.4k AND CENTERS 25.0k SUPPORTED 4.0% SF OF City Unemployment Rate JOBS COMMERCIAL SUPPORTED SPACE (December 2019) 66.5k 5.6m Aspire Slauson Academy | Los Angeles Academy MS Diego Rivera Learning Complex L.A. LIVE

The Asset 11 LOCATION MAP

12 The Asset LOCATION MAP

The Asset 13 BOUNDARY AERIAL

14 The Asset The Asset 15

PLANS FIRST FLOOR PLAN DATE 5 6 4 NO. 5937 S Avalon Blvd, DATE Los Angeles, - 1 2 3 NO. I I V S S O R N CA 90003 E SUBMITTAL DATES: OWNER: PLAN CHECK: O.T.B. VICINITY MAP 5937 S AVALON BLVD., LOS ANGELES CA, 90003 OWNER AND PROJECT ADDRESS: OHEB RAIMAN

PROJECT SITE

PROJECT DATA

LEGAL DESCRIPTION: LOT 1, 2 & 3 OF TRACT TR 3563 AS PER MAP REFERENCE M B 38 - 32 MAP SHEET 105B205, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY.

APN:6006-032-028 TITLE SHEET AND FIRST FLOOR PLAN ZONE: CM-1 OCCUPANCY GROUP: R3 TYPE OF CONSTRUCTION (HOUSE &GARAGE): V - B NUMBER OF STORIES: EXISTING 2, SHEET TITLE: DESIGNER: 22506 CRISWELL STREET WEST HILLS, CA 91307 HP: 818 912 9915 Email: [email protected] SHAHRAM GHANE

PROJECT INFORMATION

DESIGNER:

SHAHRAM GHANE 22506 CRISWELL STREET WEST HILLS, CA, 91307 CELL: 818-912-9915 EMAIL: [email protected] JOB NO: 18.501

DATE: 08/24/2018

DRAWN BY: M.S. SHEET INDEX APPROVED BY: S.G. ARCHITECTURE: SHEET NO: A-0 TITLE SHEET, 1ST FLOOR A-1 2ND FLOOR N A-0 18 Plans SECOND FLOOR PLAN DATE 5 6 4 NO. DATE - 1 2 3 NO. I I V S S O R N E SUBMITTAL DATES: OWNER: PLAN CHECK: O.T.B. 5937 S AVALON BLVD., LOS ANGELES CA, 90003 OWNER AND PROJECT ADDRESS: OHEB RAIMAN 2ND FLOOR PLAN SHEET TITLE: DESIGNER: 22506 CRISWELL STREET WEST HILLS, CA 91307 HP: 818 912 9915 Email: [email protected] SHAHRAM GHANE

JOB NO: 18.501

DATE: 08/24/2018

DRAWN BY: M.S.

APPROVED BY: S.G.

N SHEET NO: A-1 Plans 19

FINANCIAL ANALYSIS FINANCIAL ANALYSIS - RENT ROLL

Rent Roll Estimated Current Current Projected Projected Unit # Unit Description Status Terms Parking Unit SF Rate Rent Per SF Market Rate Rent Per SF 1 Studio, One Bath 371 $851.60 $2.30 $1,250.00 $3.37 2 Studio, One Bath 396 $1,150.00 $2.90 $1,250.00 $3.16 3 Studio, One Bath 396 $1,100.00 $2.78 $1,250.00 $3.16 4 Studio, One Bath 405 $749.84 $1.85 $1,250.00 $3.09 5 One Bedroom, One Bath 519 $1,110.52 $2.14 $1,475.00 $2.84 6 One Bedroom, One Bath 490 $1,350.00 $2.76 $1,475.00 $3.01 7 Studio, One Bath 361 $1,150.00 $3.19 $1,250.00 $3.46 8 Studio, One Bath 375 $1,150.00 $3.07 $1,250.00 $3.33 9 Studio, One Bath 361 $1,150.00 $3.19 $1,250.00 $3.46 10 One Bedroom, One Bath 490 $1,350.00 $2.76 $1,475.00 $3.01 11 One Bedroom, One Bath 519 $1,178.32 $2.27 $1,475.00 $2.84 12 One Bedroom, One Bath 519 $1,350.00 $2.60 $1,475.00 $2.84 13 One Bedroom, One Bath 490 $1,124.76 $2.30 $1,475.00 $3.01 14 Studio, One Bath 361 $1,150.00 $3.19 $1,250.00 $3.46 15 Studio, One Bath 361 $958.72 $2.66 $1,250.00 $3.46 16 One Bedroom, One Bath 490 $1,182.32 $2.41 $1,475.00 $3.01 17 One Bedroom, One Bath 519 $1,333.64 $2.57 $1,475.00 $2.84 18 Studio, One Bath 405 $1,200.00 $2.96 $1,250.00 $3.09 Vacant 19 Studio, One Bath 396 $1,150.00 $2.90 $1,250.00 $3.16 20 Studio, One Bath 396 $1,150.00 $2.90 $1,250.00 $3.16 21 Studio, One Bath 371 $830.18 $2.24 $1,250.00 $3.37 22 One Bedroom, One Bath 502 $1,350.00 $2.69 $1,475.00 $2.94 Vacant 5939 Retail 2,288 $3,000.00 $1.31 $4,004.00 $1.75 Gross 12/18/2020 5941/5943 Retail 2,990 $6,500.00 $2.17 $7,475.00 $2.50 Market Gross 1/1/2020 5945 Retail 702 $1,950.00 $2.78 $2,106.00 $3.00 Beauty Gross 7/1/2002 5957& 519 Retail 3,087 $7,900.00 $2.56 $8,489.25 $2.75 Restaurant Gross 10/1/2010 515 Retail 450 $1,000.00 $2.22 $1,575.00 $3.50 Clothing Gross 4/1/2019 5945 Commercial 1,901 $1,895.00 $1.00 $2,376.25 $1.25 Industrial Gross 10/1/2019 5951 Commercial 2,011 $2,362.00 $1.17 $2,513.75 $1.25 Industrial Gross 1/1/2019

Estimated Current Rent Range Projected Percent Number Number of Percentage Unit Description SF Rate Per SF Market Rate Vacant Vacant Units of Total Totals: Studio, One Bath 4,955.00 $13,740.34 $1.85 - $3.19 $16,250.00 7.69% 1 13 44.83% One Bedroom, One Bath 4,538.00 $11,329.56 $2.14 - $2.76 $13,275.00 11.11% 1 9 31.03% Retail 9,517.00 $20,350.00 $1.31 - $2.78 $23,649.25 5 17.24% Commercial 3,912.00 $4,257.00 $1.00 - $1.17 $4,890.00 2 6.90% 22,922 $49,676.90 $58,064.25 6.90% 2 29

Current Projected Projected % Estimated Rental Unit Description Estimated SF Current Rate Rent Per SF Market Rate Rent Per SF Upside Range Averages: Studio, One Bath 381.15 $1,056.95 $2.77 $1,250.00 $3.28 18.26% $750 - $1,200 One Bedroom, One Bath 504.22 $1,258.84 $2.50 $1,475.00 $2.93 17.17% $1,111 - $1,350 Retail 1,903.40 $4,070.00 $2.14 $4,729.85 $2.48 16.21% $1,000 - $7,900 Commercial 1,956.00 $2,128.50 $1.09 $2,445.00 $1.25 14.87% $1,895 - $2,362 IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2021 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

22 financial analysis FINANCIAL ANALYSIS - UNIT MIX AND INCOME AND EXPENSES

Unit Mix & Rent Schedule INVESTMENT SUMMARY Estimated Current Current Avg. Market Current Market Est. Total Units Unit Type Unit SF Rental Range Rent Rent Rent/SF Rent/SF Net SF Price $6,450,000 13 Studio / 1 Bath 381 $750 - $1,200 $1,057 $1,250 $2.77 $3.28 4,955 Price/SF $225.15 9 1 Bed / 1 Bath 504 $1,111 - $1,350 $1,259 $1,475 $2.50 $2.93 4,538 Current Cap Rate 5.76% 5 Retail 1,903 $1,000 - $7,900 $4,070 $4,730 $2.14 $2.48 9,517 2 Commercial 1,956 $1,895 - $2,362 $2,129 $2,445 $1.09 $1.25 3,912 Market Pro Forma Cap Rate 7.19% 29 790 $1,713 $2,002 $2.17 $2.53 22,922 Gross SF 28,648 ALL FINANCING

Current Market Total Loan Amount $4,193,000 Income Pro Forma Pro Forma Scheduled Market Rent $596,123 $696,771 Down Payment $2,298,930 Less: Vacancy 5.00% ($29,806) ($34,839) LTV 65% Net Rental Income $566,317 $661,932 Mo. Payment ($12,579) Plus: Parking Income $1,075 $1,075 Debt Constant 3.6% Plus: Storage Income $6,202 $7,200 Plus: Misc Income $584 $584 NEW FIRST MORTGAGE (to be originated at purchase) Plus: Laundry Income $3,770 $3,770 Total Operating Income (EGI) $577,948 $674,561 LTV for this loan 65% Expenses Percentage Per Unit Amount $4,193,000 Administrative $50 $1,450 $1,450 Interest Rate 3.60% Commercial Leasing & TI $1.00 $463 $13,429 $13,429 Amortization Interest Only Payroll-On Site Mgmt $400 $11,600 $11,600 Parking Fee $145 $4,200 $4,200 Payment ($12,579) Repairs & Maintenance $700 $20,300 $20,300 Fees 1.00% Management Fee 4.00% $822 $23,845 $27,871 I/O Term (yrs) 5 Utilities (DWP & Gas) (2019+10%) $971 $28,156 $28,156 Contracted Services $250 $7,260 $7,260 Base Property Taxes 1.174% $2,612 $75,741 $75,741 Property Tax Direct Assessments $110 $3,189 $3,189 Insurance $400 $11,600 $11,600 Replacement Reserve $200 $5,800 $5,800 Total Estimated Expenses $206,569 $210,595 % of Scheduled Rent: 34.65% 30.22% Per SF: $7.21 $7.35 Per Unit: $7,123 $7,262 IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this Net Operating Income $371,378 $463,966 model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed Less: Debt Service ($150,948) ($150,948) written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® Projected Net Cash Flow $220,430 $313,018 employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. Total Economic Loss 5.0% 5.0% © 2021 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses Cash-on-Cash Return (Based on Asking Price) 9.59% 13.62% are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Debt Service Coverage 2.46 3.07 Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state Cap Rate Cap Rate GRM GRM licensing details visit: http://www.berkadia.com/legal/licensing.aspx Cap Rate Analysis Price $/SF Current Market Current Pro Forma All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Asking Price $6,450,000 $225.15 5.76% 7.19% 10.72 9.19 Purposes Only.

financial analysis 23

MARKET POSITIONING COMPARABLE RENTAL PROPERTIES market positioning 27 COMPARABLE RENTAL PROPERTIES

CURRENT RENT / UNITS TYPE UNIT SF RENT SF 13 Studio / 1 Bath 381 $1,057 $2.77 9 1 Bed / 1 Bath 504 $1,259 $2.50 5 Retail 1,903 $4,070 $2.14 2 Commercial 1,956 $2,129 $1.09 29 Weighted Average 790 $1,713 $2.17

SUBJECT: 5937 AVALON BLVD LOS ANGELES, CA 90003

Total Units: �� 29 Built:: ��1920

MARKET RENT / UNITS TYPE UNIT SF RENT SF 16 Studio / 1 Bath 420 $1,200 $2.86

1. 3846 S GRAND AVE HUNTINGTON PARK, CA 90037

Units: �� 20 Built: ��1923

28 market positioning COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 2 1 Bed / 1 Bath 650 $1,600 $2.46

2. 108 E 47TH PL LOS ANGELES, CA 90011

Units: ��5 Built: �� 1955

MARKET RENT / UNITS TYPE UNIT SF RENT SF N/A 1 Bed / 1 Bath 707 $1,825 $2.58

3. 4800 AVALON BLVD HUNTINGTON PARK, CA 90011

Total Units: �� 33 Built:: �� 2020

market positioning 29 COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 9 1 Bed / 1 Bath 800 $1,700 $2.13

4. 639 E MARTIN LUTHER KING BLVD HUNTINGTON PARK, CA 90011

Units: �� 9 Built: ��1913

30 market positioning COMPARABLE RENTAL PROPERTIES MAP

Subject: 5937 Avalon Boulevard Los Angeles, CA 90003

1. The Grand 3846 S Grand Ave Los Angeles, CA 90037

2. 108 E 47th Pl Los Angeles, CA 90011

3. 4800 Avalon Los Angeles, CA 90011

4. 638 E Martin Luther King Jr Blvd Los Angeles, CA 90011

market positioning 31 COMPARABLE SALE PROPERTIES market positioning 33 COMPARABLE SALE PROPERTIES

SUBJECT: 5937 AVALON 1. 3002-3008 W 15TH ST 2. 1245 W 37TH DR 3. 1223 W 37TH PL BLVD LOS ANGELES, CA 90019 LOS ANGELES, CA 90007 LOS ANGELES, CA 90007 LOS ANGELES, CA 90003

Built: ...... 1920 Built: ...... 1923 Built: ...... 1907 Built: ...... 1904 Units: ...... 29 Units: ...... 12 Units: ...... 10 Units: ...... 10 Price / SF: ...... $225.15 Price / Unit: ...... $173,333 Price / Unit: ...... $203,800 Price / Unit: ...... $228,250 Rentable SF: ...... 28,648 Price / SF: ...... $248.80 Price / SF: ...... $521.23 Price / SF: ...... $574.65 Listing for: ...... $6,450,000 Rentable SF: ...... 8,360 Rentable SF: ...... 3,910 Rentable SF: ...... 3,972 Cap Rate: ...... 5.76% Sold for: ...... $2,080,000 Sold for: ...... $2,038,000 Sold for: ...... $2,282,500 GRM: ...... 10.72 Closed: ...... 11/20/2020 Closed: ...... 02/28/2020 Closed: ...... 02/28/2020 Cap Rate: ...... 4.88% Cap Rate: ...... N/A Cap Rate: ...... N/A GRM: ...... N/A GRM: ...... N/A GRM: ...... N/A

34 market positioning COMPARABLE SALE PROPERTIES

4. 2501 W 54TH ST 5. 6368 ARBUTUS AVE 6. 910 S GRAND VIEW ST 7. 312 N MATHEWS ST LOS ANGELES, CA 90043 HUNTINGTON PARK, CA 90255 LOS ANGELES, CA 90006 LOS ANGELES, CA 90033

Built: ...... 1927 Built: ...... 1939 Built: ...... 1910 Built: ...... 1925 Units: ...... 15 Units: ...... 14 Units: ...... 40 Units: ...... 10 Price / Unit: ...... $191,667 Price / Unit: ...... $214,286 Price / Unit: ...... $216,250 Price / Unit: ...... $245,000 Price / SF: ...... $191.21 Price / SF: ...... $343.64 Price / SF: ...... $301.79 Price / SF: ...... $251.90 Rentable SF: ...... 15,036 Rentable SF: ...... 8,730 Rentable SF: ...... 28,662 Rentable SF: ...... 9,726 Sold for: ...... $2,875,000 Sold for: ...... $3,000,000 Sold for: ...... $8,650,000 Sold for: ...... $2,450,000 Closed: ...... 11/10/2020 Closed: ...... 05/05/2020 Closed: ...... 11/23/2020 Closed: ...... 11/10/2020 Cap Rate: ...... N/A Cap Rate: ...... 4.88% Cap Rate: ...... 5.17% Cap Rate: ...... 6.15% GRM: ...... N/A GRM: ...... N/A GRM: ...... N/A GRM: ...... 10.92

market positioning 35 COMPARABLE SALE PROPERTIES MAP

Subject: 5937 Avalon Boulevard Los Angeles, CA 90003

1. 3002 W 15th St Los Angeles, CA 90019

2. 1245 W 37th Dr Los Angeles, CA 90007

3. 1223 W 37th Pl Los Angeles, CA 90007

4. 2501 W 54th St Los Angeles, CA 90043

5. 6368 Arbutus Ave Los Angeles, CA 90055

6. 910 South Grand View St Los Angeles, CA 90006

7. 312 N Mathews St Los Angeles, CA 90033

36 market positioning market positioning 37 RETAIL COMPARABLE PROPERTIES market positioning 39 RETAIL COMPARABLE PROPERTIES

Property Square Feet Available Rent Rent/Sq.Ft. 1115-1117 E 58th St 420 $1,155 $2.75/MG Los Angeles, CA 90011

737 E Florence Ave 19,000 $47,500 $2.50/NNN Los Angeles, CA 90001

1407-1435 E Gage Ave 2,500 $7,500 $3.00/NNN Los Angeles, CA 90001

5725 S Main St 2,100 $5,250 $2.50/NNN Los Angeles, CA 90037

40 market positioning market positioning 41 RETAIL SALE COMPARABLE PROPERTIES

1. 5138 S BROADWAY 2. 7535 S BROADWAY 3. 1432 E FLORENCE AVE 4. 5146 S MAIN ST LOS ANGELES, CA 90037 LOS ANGELES, CA 90003 LOS ANGELES, CA 90001 LOS ANGELES, CA 90037

Built: ...... 1965 Built: ...... 1964 Built: ...... 1930 Built: ...... 1922 Price / SF: ...... $291.94 Price / SF: ...... $458.33 Price / SF: ...... $225.78 Price / SF: ...... $223.16 Rentable SF: ...... 5,138 Rentable SF: ...... 2,400 Rentable SF: ...... 10,094 Rentable SF: ...... 4,638 Price: ...... $1,500,000 Sold for: ...... $1,100,000 Sold for: ...... $2,279,000 Sold for: ...... $1,035,000 Closed: ...... 02/01/2021 Closed: ...... 11/27/2020 Closed: ...... 04/19/2021 Closed: ...... 05/31/2021 Cap Rate: ...... N/A Cap Rate: ...... N/A Cap Rate: ...... 6.10% Cap Rate: ...... 5.50% GRM: ...... N/A GRM: ...... N/A GRM: ...... N/A GRM: ...... N/A

42 market positioning RETAIL SALE COMPARABLE PROPERTIES

5. 5730 S VERMONT AVE LOS ANGELES, CA 90037

Built: ...... 1995 Price / SF: ...... $1,388.89 Rentable SF: ...... 1,476 Sold for: ...... $2,050,000 Closed: ...... 07/23/2020 Cap Rate: ...... N/A GRM: ...... N/A

market positioning 43 RETAIL SALE COMPARABLE PROPERTIES MAP

Subject: 5937 Avalon Boulevard Los Angeles, CA 90003

1. 5138 S Broadway Los Angeles, CA 90037

2. 7535 S Broadway Los Angeles, CA 90003

3. 1432 East Florence Ave Los Angeles, CA 90001

4. 5146 South Main Street Los Angeles, CA 90037

5. 5730 S Vermont Ave Los Angeles, CA 90037

44 market positioning market positioning 45

ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS ANGELES | CALIFORNIA LOS ANGELES | SOUTH Best Place to Live

Los Angeles ranked among the top 40 “Best Large Cities to Live in” - NerdWallet

Best City to Launch Career

Los Angeles ranked among the “Best Cities to Launch Your Career” - Bankrate

INTRODUCTION As one of the world’s most significant economic and cultural centers, Los Angeles is the second-most-populated city in the United States and the largest city in California. Encompassing more than 480 square Manufacturing Hub miles, the city is seated in Los Angeles County and is an integral part of the Los Angeles-Long Beach-Anaheim Metropolitan Statistical Area Los Angeles ranked as the No. 1 “Manufacturing City in the Nation” (MSA). The city of Los Angeles spans over 80 different communities and - The Kyser Center for Economic Research neighborhoods, extending north to the San Fernando Valley, south to the port complex, east to the San Gabriel Valley border, and west to the dynamic LAX area.

Accounting for nearly half of the state’s economy, the region boasts a gross metropolitan product exceeded by that of only fifteen nations. The MSA’s economy is highly diversified, with leading industries including professional management, financial services, entertainment, and tourism. Entertainment Capital The region boasts the largest manufacturing industry in the country and Los Angeles County was named the “Entertainment Capital of the serves as the entertainment capital of the United States. Los Angeles United States” County is home to the headquarters of 11 Fortune 500 companies, - The Kyser Center for Economic Research including Walt Disney Company and Live Nation Entertainment Inc.

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW

48 Economic and Demographic Overview LOS ANGELESLOS ANGELES | SOUTH | CALIFORNIA

CITY OF LOS ANGELES DEMOGRAPHICS

ST ND 1 61% OF RESIDENTS WORK IN 2 LARGEST CITY WHITE-COLLAR MOST POPULATED IN CALIFORNIA CITY IN THE UNITED POSITIONS CITYWIDE STATES

4.2m 846.0k 401.5k 839.4k $68.3k

From 2020 to 2025, The city’s median 32% of city residents 29% of Los Angeles 57% of housing units in the city of Los Angeles’ household income age 25 and older hold households earn Los Angeles are renter population is forecast to is projected to reach a bachelor's degree or $100,000 or more occupied, compared to grow 4.7%, reaching $68,320 by 2025, higher, compared to 31% annually 31% nationally 4,152,504 residents up % from 2020 nationally 12.7

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW

Economic and Demographic Overview 49 LOS ANGELES | CALIFORNIA LOS ANGELES | SOUTH

INDUSTRY BREAKDOWN

AVERAGE ANNUAL WAGE BY OCCUPATION

With breakthrough technology companies and research organizations, the home of the largest Management $ entertainment industry in the world, and a strong tourism industry, Los Angeles County has one 133.7k of the most diverse, dynamic economies in the country.

Healthcare Practitioners $ The metro division added approximately 81,900 jobs during the 12-month period ending in and Technical 94.8k November 2019, 35,700 of which were in the education and health services sector.

Business and Financial $ Industry Breakdown Construction Operations 81.4k Trade, Transportation, & Utilities 4% 19% Education, Training, $ and Library 69.3k Education & Health Services 18%

Sales and Related $ 45.4k

Office and Administrative LOS ANGELES, CA, $ Financial Activities Support 42.7k Professional & Business Services METRO DIVISION 5% Transportation and $ 14% EMPLOYMENT Material Moving 39.4k BY SECTOR Government Other Services Production $ 12% 38.3k 4%

Manufacturing Personal Care and Service $ 29.7k 8% Information Leisure & Hospitality 5% Food Preparation and $ 12% Serving Related 27.8 k Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey

50 EBERKADIAconomic and Demographic Overview ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS ANGELESLOS ANGELES | SOUTH | CALIFORNIA

EMPLOYMENT TRENDS

NOVEMBER 2019 3.9% Culver City’s monthly unemployment rate was down 20 basis points Y-o-Y Employment Trends LOS ANGELES COUNTY 16% 200,000 LARGEST EMPLOYERS Los Angeles County 107,400 Los Angeles Unified School District 66,520 12% 100,000 University of California Los Angeles 65,600 City of Los Angeles 61,900

8% 0 U.S. Government 43,600 Kaiser Permanente 37,400 State of California 29,800 4% (100,000) University of Southern California 27,650 Northrop Grumman Corporation 16,600

Providence Health & Services 15,000

0% (200,000) Source: Los Angeles Almanac; LAUSD; USC 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020*

*Projected Unemployment Rate Jobs Added / Lost

NOVEMBER 2019 81,900 jobs were created in the metro division, a 1.8% annual increase

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Economic and Demographic Overview 51 LOS ANGELES | CALIFORNIA LOS ANGELES | SOUTH

TRADE & LOGISTICS

PORT OF LOS ANGELES 1.2 million $58 billion Total Jobs Supported Annual Wages by the Two Ports and Tax Revenues

$431.4 billion Worldwide Trade Value

Los Angeles is one of the world’s leading trade and logistics centers. Based on a recent report, the Los Angeles Customs District ranked first in the nation in terms of total worldwide trade handled, totaling more than $431.4 billion. The Port of Los Angeles and the Port of Long Beach provide access to major U.S. markets and the Pacific Rim and handle over 40% of all inbound containers for the entire United States. Combined, the ports support more than 1.2 million direct and indirect jobs and generate over $58 billion annually in wages and tax revenues.

MANUFACTURING

NORTHROP GRUMMAN CORP. No. 1 65 Manufacturing Center Manufacturing Firms in the Country along the 605 Corridor

344,300 Jobs Supported

Los Angeles’ unique geography, strong infrastructure, and skilled workforce make it an ideal location for manufacturing companies. With more than 344,300 jobs supported in the sector, Los Angeles serves as the top manufacturing center in the country. Approximately 65 plants are situated along the city’s I-605 Corridor, providing easy access to the growing industrial hub. Companies like Northrop Grumman Corp., Edelbrock LLC, and Belkin International Inc. help make up the industry’s strong focus on aerospace, fabricated metals, and food processing.

Economic and Demographic Overview 52 BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS ANGELESLOS ANGELES | SOUTH | CALIFORNIA

ARTS & ENTERTAINMENT

$ PARAMOUNT PICTURES 198 billion 1,500 Economic Impact Theater Productions Metrowide

792,600 Jobs Supported Metrowide

As the “Entertainment Capital of the World,” Los Angeles is home to major production studios, including Disney, Paramount, Universal, and Warner Brothers. Each year, the city boasts more than 1,500 theatrical productions throughout its 225 theaters, making arts and culture major drivers in the region. Over 792,600 jobs are supported directly and indirectly in the creative economy, helping generate an economic impact of $198 billion. There are more artists, writers, filmmakers, actors, dancers, and musicians living in Los Angeles than any other city in the world.

PROFESSIONAL & BUSINESS SERVICES

AVERY DENNISON 11 $212.2 billion Fortune 500 Combined Headquarters Annual Revenue

636,200 Jobs Supported

According to the Global Financial Centres Index, Los Angeles is home to one of the most competitive financial centers in the world, contributing to one of the most dynamic business economies. Los Angeles’ historic Financial District, referred to as the “Wall Street of the West,” is home to corporate skyscrapers, law firms, and real estate companies. Approximately 636,200 jobs are supported by major businesses including Amgen, Avery Dennison, and Mattel. Of the more than 50 Fortune 500 companies in California, 11 are headquartered in Los Angeles County.

BERKADIA EconomicECONOMIC and D ANDemographic DEMOGRAPHIC O OVERVIEWverview 53 LOSLOS ANGELES ANGELES | SOUTH | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

CROSSROADS HOLLYWOOD SOFI STADIUM AND ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK

$1 billion $2.6 billion Redevelopment Project Investment

1.4 million 1.5 million SF Mixed-Use Development SF of Commercial Space

The site of the historic Crossroads of the World complex is set to undergo The 70,240-seat SoFi Stadium and the adjacent entertainment district are a major revitalization project. Crossroads Hollywood will be an eight-acre, 1.4 currently under construction at the former site of Hollywood Park in the city of million-square-foot, mixed-use development. The project will be comprised of Inglewood, approximately 10 miles south of Hollywood. The stadium will be the nine buildings including up to 308 hotel rooms; 950 residential units, including new home of the NFL’s Rams and Chargers franchises. At three million square 84 affordable units; 185,000 square feet of commercial space; 95,000 square feet, it will be the largest stadium in professional football. The $2.6 billion, 300- feet of office space; and 2,494 underground parking spaces. The proposed acre, multipurpose facility will also include a 6,000-seat performance venue, realignment of Las Palmas Avenue and Sunset Boulevard will promote more than 1.5 million square feet of retail and office space, 2,500 homes, a 300 pedestrian safety and enhance connectivity. The $1 billion project has an room hotel, and 25 acres of parks. Combined team annual revenue is estimated estimated 48-month construction timeline, with expected completion in 2022. to generate $700 million to the region. The new stadium is expected to be completed in time for the 2020 NFL season.

Economic and Demographic Overview 54BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS LOSANGELES ANGELES | SOUTH | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

METRO PURPLE LINE VERMONT CORRIDOR

$6.3 billion $270 million Investment Office Tower

22,000 2,990 Construction Jobs Jobs Supported

Construction on the Metro’s Purple Line continues. The project’s first phase Along Vermont Avenue in Los Angeles’ Koreatown, a three-site development is is nearing completion and will open to the public in 2023. In February 2018, underway. Site one of the Vermont Corridor will include a $270 million, 21-story officials broke ground on the$2.5 billion second phase, which will run 2.5 miles tower that will house government offices and nearly 2,200 employees. The west from Wilshire Boulevard and La Cienega Avenue to Century City. The final second site will be converted into 172 units of residential housing. Additionally, section from Century City to the VA campus is expected to break ground in the building will feature street-level retail and a rooftop deck. Site three includes 2019. In total, the Purple Line extension project will cost about $6.3 billion. demolishing the existing parks and recreation office and replacing it with a six- At build-out, the nine-mile extension will add seven more stops, generating story structure with senior housing units and a 13,200-square-foot community 78,000 new daily trips. With an expected completion date in 2026, the Purple center. In total, the sites will support more than 2,990 employees and provide Line will be fully operational for the 2028 Summer Olympics. over 2,100 parking spaces. All three sites are expected to be completed by 2023.

Economic and Demographic Overview BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW 55 LOSLOS ANGELES ANGELES | SOUTH | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

BROADWAY TRADE CENTER LAX MODERNIZATION PROGRAM

1.1 million $14 billion SF Renovation Investment

1,500 121,000 Jobs Created Construction Jobs

Plans are underway to renovate the early 20th century Broadway Trade Center Known as the largest public-works program in the history of the city of Los into a 15-story multiuse property in Downtown Los Angeles. The 1.1 million- Angeles, the $14 billion LAX modernization program began in 2009 and has a square-foot renovation will feature retail space on the ground floor, restaurants, projected completion date of 2023. The Tom Bradley International Terminal was multiple bars, a spa, a private club, office space capable of accommodating up completed in September 2013 and features new aircraft gates and concourses, to 3,000 workers, more than 150 hotel rooms, and underground parking for 400 retail shops and other amenities. Other projects that were recently completed to 600 vehicles. The renovated property will showcase a rooftop activity area include new taxiways and taxi lanes, infrastructure upgrades, and renovation with a movie screen and Olympic-size swimming pool. The project is expected improvements to all terminals. The future $5.5 billion Landside Access to be completed by late 2019. Modernization Program (LAMP) will generate additional terminal renovations and provide the growing number of airport passengers convenient connections to public transportation from the airport.

56 BERKADIAEconomic and Demographic Overview ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS LOSANGELES ANGELES | SOUTH | CALIFORNIA

RENT AND OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 1,683 RATE 97.2 %

in 4Q19, up 3.1% year over year in 4Q19, down 30 bps annually

South Los Angeles has historically been a depressed part of Los Angeles, with SOUTH LOS ANGELES rents ranking near the bottom of the metro. The area’s extremely low rents APARTMENT SUBMARKET relative to other central parts of the metro should continue to drive demand 98% Occupancy & Ask Rent $1,800 given the serious housing affordability issues across metro Los Angeles. Effective monthly rent in the submarket appreciated 3.1% annually to $1,683 97% $1,600 in the four quarter of 2019. Rent growth is forecast to continue its upward trend through 2020, appreciating 3.3% to $1,738 per month by year-end. The average occupancy rate in the South Los Angeles submarket remained high 96% $1,400 throughout the postrecession cycle predominantly due to limited supply-side pressure, peaking at 97.8% in 2017. At 97.2% occupancy in the fourth quarter 95% $1,200 of 2019, the South Los Angeles apartment submarket had on of the highest average occupancy rates among Greater Los Angeles’ 20 submarkets. As developers ramp up activity in the submarket this year, occupancy is forecast 94% $1,000 to finish 2020 at 97.1%, down 10 basis points year over year. $1,253 $1,349 $1,445 $1,534 $1,633 $1,683 $1,738 The impending arrival of an NFL stadium in Inglewood is expected to reshape 93% $800 2014 2015 2016 2017 2018 2019* 2020* the southern portion of the submarket. The 70,000-seat football stadium at *PROJECTED Rent Occupancy the former Hollywood Park racetrack could generate 4,000 jobs and jump- start development in this area. A new neighborhood shopping complex is springing up on the land surrounding the stadium that may further bolster both employment and apartment demand. Transportation improvements are also in the works as LA Metro officials are discussing options for a new rail line to the area. The NBA Clippers are also relocating to a $1.2 billion arena in development in Inglewood. The stadium complex will be a centerpiece of Los Angeles’ 2028 Olympic Games, so the South Los Angeles submarket should continue to feel the positive effects of this new development for years to come.

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Economic and Demographic Overview 57 LOSLOS ANGELES ANGELES | SOUTH | CALIFORNIA

EDUCATION

HIGHER ANNUAL EDUCATION 625k GRADUATES 60k students metrowide produced by metro Los Angeles universities each year

With over 120 colleges and universities that provide jobs and drive economic growth, the region CITY OF LOS ANGELES is a hub for higher education and generates sustained demand for off-campus housing. The universities alone produce 60,000 graduates annually, the highest number of any county in the HIGHER EDUCATION nation. Los Angeles Community College District 147,630 University of Southern California 48,500 The University of California Los Angeles (UCLA) is world-renowned for its high-quality academic, research, and athletic programs. UCLA offers over 125 undergraduate majors and 150 graduate University of California Los Angeles 44,370 degree programs. The university is one of the largest employers in the region, supporting California State University Northridge 38,390 approximately 65,600 jobs countywide. With an enrollment of 44,370 students, UCLA generates $284.4 million in taxes and a $5.7 billion economic impact for Southern California. California State University Los Angeles 26,360 Loyola Marymount University 9,680 The University of Southern California (USC) has an enrollment of roughly 48,500 students and Mount Saint Mary’s University 2,970 employs more than 27,650 residents. USC has the largest private-university graduate program in the nation in science, engineering, and health. In 2019, the University of Southern California was Source: listed college websites; California Community Colleges Chancellor’s Office tied for No. 22 among the best national universities by U.S. News and World Report.

58BERKADIAEconomic and Demographic Overview ECONOMIC AND DEMOGRAPHIC OVERVIEW LOSLOS ANGELES ANGELES | SOUTH | CALIFORNIA

LIFESTYLE AND ENTERTAINMENT

LOS ANGELES HAHN BEACHES 20-min PARK 401 drive from South LA acres in the Baldwin Hills Mountains

South Los Angeles has no shortage of places for people to get outdoors KOREATOWN and enjoy the world-famous Southern California weather. One of the most popular outdoor gathering places is Kenneth Hahn State Recreation Area. At 401 acres, Hahn Park is one of the largest urban parks and open spaces in the Greater Los Angeles area featuring walking and hiking trails with some of the best scenic vistas and a lake for fishing. Some of the best beaches, surfing, and boating in the world at Venice Beach, Marina Del Rey, and the Santa Monica Pier are located within a 20-minute drive of the property.

South LA is centrally located to many of the new trendsetting neighborhoods. K-town is being driven by Millennials and younger people looking for an urban lifestyle, and the city has much to offer in terms of entertainment, restaurants, and cultural amenities. Mama Lion, The Venue, and The Walker Inn are among K-town’s most visible and cool venues.

Several projects underway will boost the entertainment quotient in the near term in the South LA area. These projects include the world’s most expensive stadium complex, the Los Angeles Stadium and Entertainment District in Inglewood, estimated to reach $2.6 billion and the $1.5 billion Middle Harbor Project at the Port of Long Beach.

Economic and Demographic Overview 59

BERKADIA ECONOMIC AND DEMOGRAPHIC OVERVIEW LOSLOS ANGELES ANGELES | SOUTH | CALIFORNIA

TRANSPORTATION

MTA LAX PASSENGERS 383.8m AIRPORT 87.5 m rail and bus passengers in 2018 passengers served in 2018

Los Angeles boasts an extensive freeway network with major routes, LOS ANGELES INTERNATIONAL AIRPORT including the Santa Ana Freeway (I-5), San Diego Freeway (I-405), Foothills Freeway (I-210), Santa Monica and San Bernardino freeways (I-10), Harbor Freeway (I-110), Long Beach Freeway (I-710), and San Gabriel River Freeway (I-605).

The Metropolitan Transportation Authority (MTA) provides local bus and rail service linking communities of Long Beach, Downtown L.A., Hollywood, Pasadena, and the San Fernando Valley. MTA offers over 1,500 square miles of service area and employs more than 9,200 residents.

The Los Angeles International Airport (LAX) supports 408,000 local jobs and has an annual economic impact of $60 billion. LAX served over 87.5 million passengers in 2018, making it the third-busiest airport in the nation and seventh-busiest airport in the world.

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Apartment Data Services; Moody’s; Core- Logic; Wikipedia; Axiometrics; California Association of Realtors; City of Los Angeles CAFR; State of California Employ- ment Development Department Forbes; California Division of Tourism; Los Angeles County Metropolitan Transportation Authority; Los Angeles County; Los Angeles Times; Los Angeles Economic Development Corporation; Los Angeles Area Chamber of Commerce; Los Angeles World Airports; Port of Los Angeles; Los Angeles Unified School District; Los Angeles Convention and Visitors Bureau; City of Los Angeles; Los Angeles Business Journal; Los Angeles Daily News; Los Angeles Downtown News; UCLA; USC; CSU-Northridge; CSU-L.A.; Los Angeles Community College District; Mt. St. Mary’s College; Occidental College; Southern California Association of Governments; Airports Council International

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60 Economic and Demographic Overview LOS LOSANGELES ANGELES | SOUTH | CALIFORNIA

BY THE NUMBERS

TOTAL POPULATION MEDIAN AGE 2010 3,792,621 2010 34.7 2020* 3,964,463 2020* 37.3 2025* 4,152,504 2024* 38.6

Growth Rate (2020 - 2025) 4.7%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 1,318,168 November - 2018 $810,500 2020* 1,387,184 November - 2019 $853,500

2025* 1,464,293 Growth Rate Y-o-Y 5.3%

Growth Rate (2020 - 2025) 5.6% City of Los Angeles

MEDIAN INCOME EMPLOYMENT GROWTH (MD) 2010 $49,419 November - 2018 4,575,000

2020* $60,637 November - 2019 4,656,900 2025* $68,320 Growth Rate Y-o-Y 1.8%

Growth Rate (2020 - 2025) 12.7%

RENT SHARE OF WALLET RENT VS. OWN National - 2020 29.0% Average Mortgage Payment** $4,022 South Los Angeles Submarket - 2020 34.4% Effective Rent*** $1,683

Difference $2,339

*Projected **30-yr fixed; 20% down; 4.0% interest rate; 0.79% CA property *Projected taxes; $1,000 annual homeowner’s insurance Annual Rent / Median Household Income ***South Los Angeles Submarket

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Economic and Demographic Overview 61

DEMOGRAPHICS Site Map 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

64 Demographics Study Area Map 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

Demographics 65 Demographic Report 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % 2000 Census 52,220 449,578 1,127,283 9,519,061 12,365,353 281,421,872 2010 Census 56,175 477,465 1,172,491 9,818,605 12,828,837 312,471,327 2019 Estimate 57,951 490,281 1,214,876 10,078,770 13,258,217 332,230,239 2024 Projection 60,622 511,328 1,277,861 10,532,649 13,945,456 352,150,978

Population Growth 2000-2010 7.6% 7.6% 7.6% 3.2% 3.8% 11.0%

POPULATION Population Growth 2019-2010 3.2% 3.2% 3.2% 2.7% 3.4% 6.3% Population Growth 2024-2019 4.6% 4.6% 4.6% 4.5% 5.2% 6.0%

2000 Census 12,237 112,176 308,287 3,133,678 4,068,951 106,741,406 2010 Census 12,548 116,107 326,272 3,241,204 4,233,985 118,092,823 2019 Estimate 12,994 119,371 343,723 3,338,252 4,392,923 125,636,242 2024 Projection 13,594 124,585 365,978 3,498,167 4,634,625 133,146,162

Household Growth 2000-2010 2.5% 3.5% 5.8% 3.4% 4.1% 10.6% Household Growth 2019-2010 3.6% 2.8% 5.4% 3.0% 3.8% 6.4% Household Growth 2024-2019 4.6% 4.4% 6.5% 4.8% 5.5% 6.0%

Owner Occupied Housing Units 13,834 126,815 366,562 3,536,141 4,647,220 140,911,802 HOUSEHOLDS Vacant Housing Units 840 6.1% 7,445 5.9% 22,839 6.2% 197,889 5.6% 254,297 5.5% 15,275,560 10.8% Occupied Housing Units 12,994 93.9% 119,371 94.1% 343,723 93.8% 3,338,252 94.4% 4,392,923 94.5% 125,636,242 89.2% Owner-Occupied 4,103 29.7% 38,116 30.1% 109,018 29.7% 1,592,748 45.0% 2,218,862 47.7% 81,937,171 58.1% Renter-Occupied 8,891 64.3% 81,255 64.1% 234,705 64.0% 1,745,504 49.4% 2,174,061 46.8% 43,699,071 31.0%

Est. Pop. 25+ by Educational Attainment 34,045 291,592 757,169 6,721,429 8,861,229 223,057,570 Less than 9th Grade 12,342 36.3% 93,162 31.9% 201,190 26.6% 884,677 13.2% 1,070,527 12.1% 12,436,374 5.6% Some High School, No Diploma 6,675 19.6% 53,869 18.5% 123,496 16.3% 613,671 9.1% 759,344 8.6% 16,244,505 7.3% High School Graduate (or GED) 8,283 24.3% 73,090 25.1% 181,526 24.0% 1,400,092 20.8% 1,769,900 20.0% 60,918,560 27.3% Some College, No Degree 4,051 11.9% 42,155 14.5% 124,587 16.5% 1,294,485 19.3% 1,731,926 19.5% 46,227,755 20.7% Associate Degree 931 2.7% 11,105 3.8% 34,918 4.6% 464,400 6.9% 631,102 7.1% 18,545,275 8.3%

EDUCATION Bachelor's Degree 1,379 4.1% 14,258 4.9% 64,644 8.5% 1,345,975 20.0% 1,883,163 21.3% 42,544,483 19.1% Graduate/Professional Degree 384 1.1% 3,953 1.4% 26,807 3.5% 718,129 10.7% 1,015,267 11.5% 26,140,618 11.7%

66 Demographics Demographic Report 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Population by Age 0 - 4 4,397 7.6% 37,930 7.4% 92,835 7.3% 713,271 6.8% 932,230 6.7% 21,449,798 6.1% 5 - 14 8,582 14.8% 63,440 12.4% 158,367 12.4% 1,286,890 12.2% 1,683,042 12.1% 38,833,869 11.0% 14 - 18 4,074 7.0% 31,546 6.2% 70,849 5.5% 502,232 4.8% 662,106 4.7% 17,285,526 4.9% 18 - 22 3,842 6.6% 38,169 7.5% 82,922 6.5% 531,357 5.0% 707,564 5.1% 20,984,634 6.0% 22 - 25 3,010 5.2% 23,809 4.7% 54,835 4.3% 399,839 3.8% 532,052 3.8% 14,341,277 4.1% 25 - 35 9,485 16.4% 80,001 15.6% 187,186 14.6% 1,368,189 13.0% 1,808,877 13.0% 44,570,552 12.7% AGE 35 - 45 8,526 14.7% 71,620 14.0% 183,250 14.3% 1,396,911 13.3% 1,817,316 13.0% 42,415,449 12.0% 45 - 55 6,867 11.9% 61,537 12.0% 158,649 12.4% 1,346,123 12.8% 1,767,344 12.7% 42,356,580 12.0% 55 - 65 5,108 8.8% 51,005 10.0% 134,729 10.5% 1,292,862 12.3% 1,740,201 12.5% 44,518,626 12.6% 65 - 75 2,667 4.6% 33,722 6.6% 94,909 7.4% 1,011,491 9.6% 1,360,910 9.8% 38,135,596 10.8% 75 - 85 1,061 1.8% 14,382 2.8% 44,803 3.5% 518,541 4.9% 707,289 5.1% 21,166,941 6.0% 85+ 331 0.6% 4,167 0.8% 14,528 1.1% 164,943 1.6% 226,525 1.6% 6,092,130 1.7% CY Estimated HH by HH Income 12,994 119,371 343,723 3,338,252 4,392,923 125,636,242 < $15,000 2,342 18.0% 23,190 19.4% 63,440 18.5% 350,472 10.5% 422,210 9.6% 13,994,162 11.1% $15,000 - $24,999 2,355 18.1% 20,090 16.8% 52,418 15.3% 309,189 9.3% 373,588 8.5% 12,018,203 9.6% $25,000 - $34,999 1,819 14.0% 16,728 14.0% 44,322 12.9% 288,380 8.6% 357,164 8.1% 11,700,753 9.3% $35,000 - $49,000 2,412 18.6% 19,316 16.2% 51,067 14.9% 393,333 11.8% 493,872 11.2% 16,039,272 12.8% $50,000 - $74,999 2,017 15.5% 18,553 15.5% 53,699 15.6% 537,633 16.1% 698,221 15.9% 22,183,411 17.7% $75,000 - $99,999 1,109 8.5% 10,435 8.7% 31,760 9.2% 403,395 12.1% 541,058 12.3% 15,728,922 12.5% $100,000 - $149,999 782 6.0% 8,395 7.0% 29,724 8.6% 508,009 15.2% 704,341 16.0% 18,103,749 14.4%

INCOME $150,000 - $199,999 141 1.1% 1,915 1.6% 10,327 3.0% 266,855 8.0% 389,934 8.9% 9,039,122 7.2% > $200,000 17 0.1% 748 0.6% 6,965 2.0% 280,986 8.4% 412,535 9.4% 6,828,648 5.4% 2019 Median Household Income $ 34,901 $ 34,805 $ 38,119 $ 64,608 $ 69,129 $ 59,496 2024 Median Household Income $ 39,518 $ 39,460 $ 43,345 $ 72,567 $ 77,728 $ 66,798 2019 Average Household Income $ 43,720 $ 46,640 $ 54,654 $ 94,119 $ 99,251 $ 83,143 2024 Average Household Income $ 49,018 $ 52,264 $ 61,937 $ 105,514 $ 111,336 $ 93,632

Pop. 16+ by Employment Status 42,937 369,840 933,268 7,955,128 10,489,117 265,928,221 Labor Force 26,277 61.2% 223,297 60.4% 572,977 61.4% 5,105,389 64.2% 6,769,899 64.5% 167,973,139 63.2% In Armed Forces 14 0.0% 20 0.0% 58 0.0% 3,479 0.0% 5,226 0.0% 1,126,419 0.4% FORCE

Civilian, Employed 24,698 57.5% 208,116 56.3% 533,203 57.1% 4,831,596 60.7% 6,436,957 61.4% 159,679,719 60.0% Civilian, Unemployed 1,565 3.6% 15,162 4.1% 39,716 4.3% 270,314 3.4% 327,716 3.1% 7,167,001 2.7% Not in Labor Force 16,660 38.8% 146,543 39.6% 360,291 38.6% 2,849,739 35.8% 3,719,218 35.5% 97,955,082 36.8% LABOUR Unemployment Rate 6.0% 6.0% 6.0% 6.0% 6.0% 6.0%

Demographics 67 Demographic Report 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Employed Population 16+ by Industry 24,698 208,116 533,203 4,831,596 6,436,957 159,679,719 Agriculture/Mining 2,088 8.5% 18,499 8.9% 43,827 8.2% 307,327 6.4% 406,645 6.3% 13,219,075 8.3% Manufacturing 4,835 19.6% 34,671 16.7% 75,144 14.1% 484,635 10.0% 692,268 10.8% 16,478,350 10.3% Wholesale & Retail Trade 4,087 16.5% 35,182 16.9% 85,233 16.0% 676,402 14.0% 904,286 14.0% 22,495,828 14.1% Transpotation/Utilities 2,076 8.4% 15,887 7.6% 39,156 7.3% 274,806 5.7% 328,826 5.1% 8,160,424 5.1% Information 189 0.8% 2,020 1.0% 9,908 1.9% 208,211 4.3% 241,493 3.8% 3,328,383 2.1% Finance/Insurance/Real Estate 584 2.4% 4,936 2.4% 18,299 3.4% 294,664 6.1% 432,856 6.7% 10,513,873 6.6% Professional/Management/Scientific 2,492 10.1% 22,254 10.7% 59,410 11.1% 613,390 12.7% 845,927 13.1% 17,979,262 11.3% Education/Health/Social Services 2,862 11.6% 32,207 15.5% 90,345 16.9% 995,213 20.6% 1,300,909 20.2% 36,912,880 23.1% Arts/Ent./Accomodation/Food Services 2,995 12.1% 23,001 11.1% 59,960 11.2% 531,762 11.0% 706,288 11.0% 15,265,112 9.6% Other Services 2,155 8.7% 15,453 7.4% 38,635 7.2% 291,240 6.0% 379,273 5.9% 7,813,494 4.9% EMPLOYMENT Public Administration 335 1.4% 4,007 1.9% 13,285 2.5% 153,946 3.2% 198,186 3.1% 7,513,038 4.7%

Employed Civilian Pop. 16+ by Occupation 24,698 208,116 533,203 4,831,596 6,436,957 159,679,719 White Collar 7,769 31.5% 72,413 34.8% 219,772 41.2% 2,904,233 60.1% 3,960,805 61.5% 97,452,767 61.0% Services 5,953 24.1% 53,525 25.7% 132,142 24.8% 922,018 19.1% 1,200,903 18.7% 28,557,177 17.9% Blue Collar 10,976 44.4% 82,177 39.5% 181,289 34.0% 1,005,345 20.8% 1,275,249 19.8% 33,669,775 21.1%

Owner-Occupied Housing Units by Value 4,103 38,116 109,018 1,592,748 2,218,862 81,937,171 Less than $50,000 51 1.2% 585 1.5% 1,668 1.5% 29,124 1.8% 39,843 1.8% 5,407,441 6.6% $50,000 - $99,999 31 0.8% 276 0.7% 962 0.9% 19,505 1.2% 28,221 1.3% 8,075,752 9.9% $100,000 - $199,999 115 2.8% 785 2.1% 1,628 1.5% 30,529 1.9% 42,919 1.9% 19,362,217 23.6% $200,000 - $299,999 339 8.3% 2,532 6.6% 5,247 4.8% 45,740 2.9% 58,815 2.7% 14,516,910 17.7% $300,000 - $399,999 576 14.0% 5,444 14.3% 11,348 10.4% 75,479 4.7% 95,265 4.3% 9,609,711 11.7% VALUE $400,000 - $499,999 897 21.9% 8,143 21.4% 17,996 16.5% 113,462 7.1% 146,274 6.6% 6,648,836 8.1% $500,000 - $749,999 1,562 38.1% 14,835 38.9% 43,530 39.9% 431,966 27.1% 568,861 25.6% 8,880,941 10.8% $750,000 $1,000,000 340 8.3% 3,517 9.2% 14,139 13.0% 268,085 16.8% 398,859 18.0% 4,093,737 5.0%

HOUSING $1,000,000 or more 191 4.7% 1,999 5.2% 12,500 11.5% 578,858 36.3% 839,805 37.8% 5,341,626 6.5%

Median Housing Unit Value $ 506,687 $ 521,796 $ 589,941 $ 797,158 $ 831,002 $ 250,602 Average Housing Unit Value $ 532,732 $ 537,700 $ 616,578 $ 933,213 $ 946,431 $ 369,830

68 Demographics Demographic Report 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Estimated Population by Ethnicity 57,951 490,281 1,214,876 10,078,770 13,258,217 332,230,239 America 180 0.3% 2,537 0.5% 7,662 0.6% 154,130 1.5% 236,023 1.8% 21,317,431 6.4% American 132 0.2% 1,846 0.4% 5,160 0.4% 111,259 1.1% 177,705 1.3% 18,364,679 5.5% Native American 39 0.1% 535 0.1% 1,825 0.2% 19,899 0.2% 26,545 0.2% 2,423,637 0.7% Hawaiian 9 0.0% 156 0.0% 677 0.1% 22,972 0.2% 31,773 0.2% 529,115 0.2% Hispanic 49,590 85.6% 383,569 78.2% 859,256 70.7% 4,828,376 47.9% 5,894,353 44.5% 58,622,851 17.6% Mexican 37,117 64.0% 277,471 56.6% 611,768 50.4% 3,632,258 36.0% 4,537,778 34.2% 34,696,189 10.4% Puerto Rican 101 0.2% 1,190 0.2% 3,718 0.3% 45,877 0.5% 58,308 0.4% 8,451,161 2.5% Cuban 17 0.0% 635 0.1% 3,139 0.3% 40,227 0.4% 49,286 0.4% 2,076,079 0.6% Dominican 21 0.0% 176 0.0% 410 0.0% 4,781 0.0% 5,583 0.0% 1,722,554 0.5% Central American 9,964 17.2% 82,838 16.9% 187,388 15.4% 710,079 7.0% 763,652 5.8% 4,624,035 1.4% South American 75 0.1% 1,703 0.3% 6,751 0.6% 120,597 1.2% 155,100 1.2% 3,224,497 1.0% Other Hispanic 2,296 4.0% 19,557 4.0% 46,082 3.8% 274,557 2.7% 324,646 2.4% 3,828,336 1.2% Asian 130 0.2% 4,927 1.0% 42,945 3.5% 1,388,016 13.8% 1,977,680 14.9% 16,305,631 4.9% Chinese 26 0.0% 1,705 0.3% 8,928 0.7% 430,426 4.3% 530,095 4.0% 3,895,676 1.2% Japanese 22 0.0% 242 0.0% 3,676 0.3% 103,712 1.0% 139,037 1.0% 821,235 0.2% Korean 30 0.1% 992 0.2% 19,510 1.6% 215,306 2.1% 307,329 2.3% 1,461,396 0.4% SC Asian 4 0.0% 655 0.1% 3,113 0.3% 102,111 1.0% 159,476 1.2% 3,976,104 1.2%

ETHNICITY SE Asian 18 0.0% 1,106 0.2% 6,537 0.5% 486,189 4.8% 774,139 5.8% 5,333,718 1.6% Other Asian 30 0.1% 227 0.0% 1,180 0.1% 50,272 0.5% 67,604 0.5% 817,502 0.2% European 16 0.0% 1,859 0.4% 12,169 1.0% 1,067,893 10.6% 1,661,557 12.5% 110,433,692 33.2% British - 0.0% 254 0.1% 1,838 0.2% 166,218 1.6% 273,540 2.1% 17,033,605 5.1% Dutch - 0.0% 21 0.0% 184 0.0% 20,514 0.2% 34,218 0.3% 2,380,363 0.7% French 2 0.0% 75 0.0% 705 0.1% 44,617 0.4% 69,314 0.5% 4,721,038 1.4% German 6 0.0% 326 0.1% 2,181 0.2% 194,518 1.9% 322,170 2.4% 29,007,808 8.7% Italian - 0.0% 269 0.1% 1,389 0.1% 111,348 1.1% 171,304 1.3% 10,615,755 3.2% Polish - 0.0% 105 0.0% 483 0.0% 50,401 0.5% 71,309 0.5% 5,556,881 1.7% Scandinavian - 0.0% 103 0.0% 930 0.1% 71,580 0.7% 119,271 0.9% 6,771,906 2.0% Scotch/Irish 7 0.0% 399 0.1% 2,361 0.2% 194,675 1.9% 314,024 2.4% 24,056,204 7.2% Other European - 0.0% 307 0.1% 2,097 0.2% 214,022 2.1% 286,407 2.2% 10,290,132 3.1% Middle Eastern 6 0.0% 153 0.0% 1,278 0.1% 211,712 2.1% 259,122 2.0% 2,091,493 0.6% Other Ethnicity 7,274 12.6% 87,066 17.8% 258,822 21.3% 1,986,911 19.7% 2,584,291 19.5% 76,605,683 23.1% Unclassified 755 1.3% 10,170 2.1% 32,745 2.7% 441,732 4.4% 645,191 4.9% 46,853,458 14.1%

Demographics 69 Median Household Income 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

70 Demographics Median Housing Value 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

Demographics 71 Population Density 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

72 Demographics % Population Change: 2010-2019 5937 S Avalon Blvd, Los Angeles, CA 90003 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.986516, -118.265345 2020-Mar-02 Legend Map

Demographics 73

MULTIFAMILY REPORT LOS ANGELES - SOUTH | MULTIFAMILY REPORT

OCCUPANCY AND RENT TRENDS

SOFI STADIUM & OTHER DEVELOPMENTS TO AID ECONOMIC RECOVERY

Even amid the pandemic, Los Angeles South remained an attractive option for many renters on a budget. First-quarter average monthly effective rent for the market averaged $1,955, about 12% lower than the countywide average. While annual leasing activity was positive in four submarkets, net negative apartment absorption in two other submarkets fueled a 70-basis-point annual reduction in Los Angeles South occupancy to 96.3% in the first quarter of 2021. A major contributor to this reduction was the pandemic-driven, 10.1% year-over-year decrease in employment through March 2021. Looking forward, new developments bode well for the economy. SoFi Stadium is expected to start filling permanent and temporary positions later this year. In the coming years, new employment drivers will include the new, $1.8 billion Inglewood Basketball and Entertainment Center for the Los Angeles Clippers that is expected to open in late 2024 and the 157-acre, District at South Bay mixed-use development in Carson, which will bring 1.6 million square feet of new commercial space. Multifamily development will help meet future housing demand in Los Angeles South as 4,325 apartment units are scheduled for delivery during the next four quarters.

99% $2,100 MARKET AT A GLANCE OCCUPANCY AND RENT TRENDS

OCCUPANCY 97% $1,900 RATE 96.3% Down 70 bps since 1Q20 95% $1,700 EFFECTIVE $ RENT 1,955 93% $1,500 Down 1.1% since 1Q20

RENT PAYMENT 91% $1,300 TRACKER 2Q16 4Q16 2Q17 4Q17 2Q18 4Q18 2Q19 4Q19 2Q20 4Q20 91.5% (APRIL 1-20) Occupancy Rate Effective Rent Down 120 bps YOY

76 multifamily forecast report LOS ANGELES - SOUTH | MULTIFAMILY REPORT

DELIVERIES AND DEMAND

5,000 DELIVERIES AND DEMAND

DELIVERIES 543 2,500 Units YTD

0 NET

ABSORPTION -560 -2,500 Units YTD 2016 2017 2018 2019 2020 2021* Deliveries Demand *Year to date

ECONOMIC TRENDS

U.S. SHARE OF WALLET 2020 UNEMPLOYMENT* 2021 5.0% 630 BPS 11.3% CHANGE

2020 EMPLOYMENT* 2021 U.S. ANNUAL RENT 4.6m -10.1% 4.1m CHANGE 24.8% share of wallet METRO SHARE OF WALLET 2020 EXISTING SFH SALES* 2021 49.3k 44.4% 71.2k CHANGE

2020 POPULATION* 2021 METRO 10.0m 0.3% 10.1m ANNUAL RENT CHANGE 39.3% share of wallet 2020 10-YEAR TREASURY* 2021 0.87% 70 BPS 1.61% CHANGE

multifamily forecast report 77 LOS ANGELES - SOUTH | MULTIFAMILY REPORT

SUBMARKET BREAKDOWN

DELIVERED OCCUPANCY EFFECTIVE RENT NET ABSORPTION UNITS Q-o-Q Y-o-Y Change Change Q-o-Q Y-o-Y SUBMARKET NAME 1Q21 (BPS) (BPS) 1Q21 Change Change 1Q21 Annual 1Q21 Annual East Los Angeles 97.0% -70 10 $1,664 0.4% -0.6% -364 74 0 0 Long Beach 95.9% -60 -10 $2,109 0.6% 1.3% -228 873 198 1,015 South Bay 95.0% -40 -110 $2,501 2.4% -4.5% -186 -277 45 420 South Los Angeles 96.6% 10 -150 $1,718 1.1% -1.6% 375 -1,418 300 410 South San Gabriel Valley 97.4% 50 80 $1,876 2.5% 3.9% 59 87 0 0 Southeast Los Angeles 96.7% -50 0 $1,909 0.5% 0.8% -215 16 0 0 TOTALS 96.3% -30 -70 $1,955 1.2% -1.1% -560 -644 543 1,845

© 2021 Berkadia Real Estate Advisors LLC Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC Document sources: Berkadia Research; RealPage; Federal Reserve Bank of St. Louis; Moody’s

78 multifamily forecast report multifamily forecast report 79 DISCLAIMER

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

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