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Home , A (Los Angeles Railway), Bradbury Building, Broadway (Los Angeles), Cesar Chavez Avenue, Claud Beelman, Department store

. DTLA | CA OFFERING MEMORANDUM DATE: AUGUST 2019

Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. /AQ Corp. # 01129558 900 s. broadwayDISCLAIMER otie hri. Summaries or intended not are documents other legal any of herein. herein contained Information contained the of completeness or accuracy the as directors, and partners shareholders, employees, officers, affiliates, representatives, respective their of any or Seller or no or implied, is being made by Broker but reliable, is representation or warranty,express be to herein deemed sources and information on contained based The be responsible. shall material solely it and which fully due for own diligence the investor’s being facilitate prospective to are solely provided materials The Lessor/Seller. enclosed the of consent other written express any the without person to available made or purpose other is any for used herein be to any contained nor information materials enclosed the by the Neither herein. of review described interest of purchasers purpose solely prospective furnished the being information for are confidential and include Memorandum. materials highly contained enclosed Offering The information this in the accuracy of the representation to as no warranties or make is Broker Property and Lessor and condition where-is of as-is, an in lease for offered being Type (Seller/Lessor). Property, been Property the of by Property, owner of has lease the agent for exclusive the (Broker) as engaged Estate Real Services Commercial DAUM at rveig enclosed additional the performing interested materials, reviewing any to party obligation commitment or legal no have shall any Seller/Lessor Lessor/Seller. of behalf make on to agreements or representations authorized not is Broker notice. without market the from withdrawal or sale to respect errors, change of of price or other terms, with correction omissions, to notice. This offering is made subject without or with time, any at entity or to terminate discussions with any and/ property the regarding offers any and all reject expressions of interest or to discretion, absolute and Lessor/Seller expressly reason. reserves the right, any at its sole for and from Property being marketed of for sale at any to time Type discretion, Property, absolute and Lessor/Seller sole its as right, the reserve conclusions Broker herein. and contained and material the upon reliance without investigations, projections own their make to are parties Interested Property. of Type recipient Property, to respect the the with by made or decision taken action any or available other information transmitted or made or communication any oral or or written herein information contained the or of accuracy completeness the for whatsoever liability any have shall Lessor/Seller the nor Broker the Neither therein. contained provisions, principal the of some of outlines documents, only rather but such of terms the of statements comprehensive be to xctd dlvrd y the by recipient(s) toBroker. delivered Agreement and Confidentiality executed Registration the otherwise and/or as in or provided Broker or of authorization Seller written prior the without reproduced otherwise or the of enclosed materials may be copied portion or no () Seller and Broker; the of approval written prior the or without Property of Type directly Property, of materials enclosed the Property of aspect any regarding indirectly of Type Property, of tenants or employees contact not shall recipient the Seller/ () or and Broker request; upon promptly Lessor to returned be in the strictest confidence and their shall nature and and will be held and treated contents materials are of a highly confidential the enclosed (a) that agrees recipient the herein, contained information the reviewing and of possession taking By waived. or satisfied been have Purchaser’s obligations there under and Lessor to conditions any and delivered, and approved by owner executed, fully been for has Property a of Type agreement Property, of until purchase the written and unless binding Property Type of Property, purchase an to making offer and/or investigation TABLE OF CONTENTS

5 6 7 8 4 TEAM THE AERIAL PROPERTY BIOS + HISTORY OFFERING HIGHLIGHTS

10 12 14 16 23 FLOOR LOCATION BROADWAY COMMERCIAL NEW PLANS MAPS HISTORY BUILDING HIGHLIGHTS DEVELOPMENTS

28 32 36 38 CIVIL TENANT RENT MARKET PROJECTS PROFILES ROLL SNAPSHOT

S. BROADWAY | CA WHAT DAUM’s competitive advantage is its entrepreneurial depth, spirit of market coverage, superior service and state of the art technology which allows us to solve more of our DIFFERENTIATES clients’ problems faster. This high level of service helps clients acquire more productive and cost effective industrial properties, or dispose of problematic facilities, enhancing DAUM shareholder value. In the following pages we look forward to describing how we out AGENT BIO perform our competition.

CAREER SUMMARY SPECIALIZATIONS • Sales, leasing, sale-leasebacks, and investment Sehyung has been working in real estate since 1998, when transactions representing both buyers and sellers he started working in real estate consulting with Ernst and • Best-use analysis for multiple property types Young. As a consultant, he provided real estate services • Investment analysis, acquisition and disposition for national and multi-national real estate companies on strategy, project feasibility, and profitability analysis many levels including marketing, market analysis, and comprehensive feasibility and investment analysis. & AFFILIATIONS • University of Maryland, Leveraging his consulting experience, he joined one of the Masters of City Planning oldest Korean American Brokerage Firms in Los Angeles in • UCLA, Bachelor of Science degree 2001 as an analyst, getting his brokerage license shortly in Civil thereafter. He has been a part of DAUM Commercial Real • American Industrial Real Estate Association (AIR) Estate Services since 2004. • ONCOR International

Having been in brokerage for nearly two decades, he has CLIENT LIST extensive experience working with private and institutional industry, metals industry, food service and investors as well as owner-users. He has represented both processing industry, import and export industry, as well as SEHYUNG KIM landlords and tenants for all types of buildings including individual investors with affinity towards industrial and industrial, and office, across many industries. retail properties. VICE PRESIDENT In addition to real estate, Sehyung also worked in business PARTIAL LIST process management consulting for a venture capital • Joia Trading Company start-up company in Boston, MA, now part of EMC, a • Coty Fashion multibillion dollar publicly traded company. Having • Rhude Clothing CONTACT INFORMATION: worked with executives and managers of such Fortune • Kayo Corp/DGK 500 companies as Verizon, General Electric, Unisys, and • Dailylook P: 213.270.2270 | : 213.621.0903 Honeywell, he hasa unique insight into the real estate • Softees needs and requirements of a variety of businesses that he • Erewhon Natural Foods [email protected] can translate to meet the needs and requirements of his • 7-Eleven clients in varying scales. CRE LICENSE: #01327276

4 DAUM HISTORY

No other CRE brokerage firm has More than a century later DAUM had such a profound impact on the continues to serve as a visionary transformation of Los Angeles into partner for its real estate clients, a world-renowned metropolis. .H. helping them to better position their Daum founded Los Angeles’ first businesses and take full advantage commercial real estate brokerage of developing local, regional and firm in 1904, a venture that was global opportunities. DAUM runs ten instrumental in bringing more (10) strategically located offices DAUM HISTORY than 6,500 companies into the throughout Southern fledgling Los Angeles market and and and provides a full helping the city grow into one array of commercial real estate of the most commercially and services, including brokerage, culturally relevant marketplaces in national tenant representation, the world. consulting, leasing, sales and property management.

MARKETING & RESEARCH CHAD JEFFREY JENNIFER JACOBSON GRINBAUM RODRIGUEZ At DAUM, you are not only working with CHIEF RESEARCH MARKETING OPERATING individual agents, but a team of highly DIRECTOR DIRECTOR OFFICER qualified professionals who are here to support the research and marketing efforts for your property. Jeffrey, Jenny, Christian, P: 213.270.2208 | F: 213.626.5729 P: 213.270.2277 | F: 213.626.5729 P: 818.449.1626 | C: 310.991.2423 Melina, Mike and Chad are at your service. [email protected] [email protected] [email protected]

MICHAEL SARAH STEWART CHRISTIAN MELINA FOXWORTHY STOUTLAND REYES JR. ADMINISTRATIVE ASISTANT RESEARCH MARKETING CHIEF P: 213.629.9101 | F: 213.621.0903 ANALYST SPECIALIST DEVELOPMENT OFFICER [email protected] P: 818.449.1625 | F: 818.710.1012 P: 213.270.2229 | F: 818.710.1012 P: 213.270.2236 | F: 818.710.1012 [email protected] Los Angeles [email protected] [email protected] 801 S. Figueroa St|Suite 600 5 Los Angeles , CA 90017 THE OFFERING

Daum Commercial Real Estate Services, travelers staying in nearby hotels, including has the leasehold of the billboard until with its continuous presence in Downtown Ace Hotel across the street, and the the expiration of its lease, the roof-top Los Angeles since 1904, proudly presents residents that call this very upscale and billboard, which presents an amazing a truly once in a generation opportunity exclusive part of downtown home. value given the city’s restriction on new to acquire a fee simple interest in a hard signs. corner property at “Main and Main” - The retrofitted 1905 structure, which is southeast corner of West Ninth Street and approximately 17,506 square feet and As South Broadway, along with the rest South Broadway, which is the epicenter of approximately 22,400 square feet including of , continues the ongoing revival of Broadway, a historic the basement, is of masonry construction to see an influx of capital from both part of the commercial and cultural with wooden floors and a composite roof. domestic and international investors, 900 development of Los Angeles, both in the The lot, approximately 6,280 square feet South Broadway, with its unique physical early 1900’s when the rest of American in size, is bound by South Broadway to the attributes, presents a rare opportunity to was discovering Los Angeles for the first west, West Ninth Street to the north and purchase a 114-year old building on a time, and again in the early 2000’s as the a public alley to the east that provides hard corner along historic Broadway in rest of American as well as the entire world access to its basement, which is partially economically and culturally significant part is once again discovering Los Angeles. occupied and the available space has an of one of the hottest real estate markets in ADA-compliant restroom. the world that is Downtown Los Angeles. Situated among some of the landmark Furthermore, 900 South Broadway presents giants of downtown Los Angeles - 900 South Broadway, also known as 124- an opportunity for a savvy investor to aforementioned historical and trend- 126 West Ninth Street, is fully tenanted acquire an asset that has and will continue setting Ace Hotel, art-deco stunner Eastern except for approximately 1/2 of the to have a dependable and steady cash Columbia Building, the famed Orpheum basement. The street level has two tenants flow from strong and stable tenants ina Theater, 900 South Broadway is three stories - a convenient store with a liquor license market that is high in demand by businesses and a basement as well as a fully-owned that occupies the corner, and a high-end in a variety of industries. billboard on the rooftop that gets over men’s specialty boutique store, who also 20,000 daily looks from the traffic flow on occupies a good portion of the basement. top of all the pedestrian traffic generated The upper two floors are occupied by by those working in fashion in the adjacent Rocket Dog, a fashion company that Fashion District, tourists attracted to local started out designing and historic landmarks, business and vacation shoes in 1997. Although Rocket Dog also 6

LA CONVENTION CENTER LA LIVE COOPER DESIGN SPACE AERIAL

DOWNTOWN LOS ANGELES

LA FASHION DISTRICT

NEW MART BUILDING 110 CA MARKET CENTER

SUBJECT PROPERTY

E. 11TH STREET W. PICO BLVD. W. OLYMPIC BLVD. S. S. FIGUEROA STREET . 12TH STREET SANTEE ALLEY E. 11TH STREET

S. GRAND AVE. SAN JULIAN STREET S. HILL STREET E. 12TH STREET

SAN PEDRO STREET VENICE BLVD. S. BROADWAY

S. MAIN STREET

S. MAPLE AVENUE E. 17TH STREET E. 16TH STREET

10 PICO BLVD.

E. 16TH STREET

SAN PEDRO STREET E. WASHINGTON BLVD. 10 LOCATION HIGHLIGHTS • Across the street from Ace Hotel, diagonally across the street from Eastern Columbia • Amazing location! Alley Corner Space at 9th E.St. WASHINGTON and BLVD. Broadway • Immediate Access to Umami Burger, The Orpheum Theater, Urban Outfitter, New Apple Store, AESOP, • Hottest Retail Intersection in Los Angeles: Acne Studios, Adjacent to Broadway Palace Mixed-Use Development APC, Tanner Goods, BNKR SAN PEDRO STREET 7 S. BROADWAY 900 LOS ANGELES | CA

LOCATION HIGHLIGHTS: PROPERTY SPECIFICATIONS: PROPERTY HIGHLIGHTS Size • South East Corner of West Ninth Street 17,506 SF and South Broadway (On Title/ does not include Basement) 22,400 SF (including Basement) • One of the Hottest Retail Corners in Downtown Los Angeles Lot Size 6,280 SF • Immediate Access to Retail/ Original Year Built Commercial Amenities on Broadway 1905 • Across Street from Ace Hotel and Construction Type Diagonally Across from Easter Columbia Masonry with Wooden Floors • Adjacent to Broadway Palace Zoning • Two Major Thoroughfare Exposure C2

• Alley Access to Basement APN 5139-002-018

8 S. BROADWAY PARCEL PROFILE 900 REPORT LOS ANGELES | CA

ZONING DETAILS PARCEL PROFILE REPORT Complete Zoning Code

[Q]C2-4D-DCO-SN

[Q] - Qualified Classification: Zoning Changed to

Ensure Community Compatibility

C2 - Medium Density Commercial

4 - Height District 4: FAR 13:1; No Height Limit

D - Development Limitations:

Design Guidelines in Place.

CDO - Community Design Overlay: Broadway

SN - Sign District: Historic Broadway

9 10 FLOOR PLANS BASEMENT LEVEL 5,100 SF FLOOR SIZE TENANTS 03 3. 2. 1. VACANT ROYAL NATIVE STORAGE ROCKET DOG NOT TOSCALE 900 LOS ANGELES|CA S. BROADWAY FIRST FLOOR 4,480 SF FLOOR SIZE TENANTS 02 2. 1. SIDHU BROADWAY/ JASON’S ON ROYAL NATIVE NOT TOSCALE 5,238 SF SECOND FLOOR FLOOR SIZE TENANTS 01 1. BRANDS ROCKET DOG 900 LOS ANGELES|CA S. BROADWAY THIRD FLOOR 5,238 SF FLOOR SIZE TENANTS 01 1. BRANDS ROCKET DOG 11 FLOOR PLANS S. BROADWAY 101

101 101 900 LOS ANGELES | CA LOCATION MAP

110 10 101 101 110

10 101

110

10 10 60

60 5 10 10

12 10 6 110 5

Border of Fashion District 8

10 12 11 9 110 8 16 7 19 4 4 15 7

5 3 2 18 5 2 1 11 1 3 17 22 4 110 SUBJECT PROPERTY 2 14 PARCEL INFORMATION

11 3 7 6 10 6 The Santee Alley 1 110 10 13

10 13 20 12 8 7

10 9 21 110 N 10

CIVIC/LANDMARK RESTAURANTS RETAIL

1. THE ORPHEUM 7. ART SHARE LA 1. THE ALLEY DOG 12. TACOS DE CANASTA 1. BNKR 10. JOKER PARTY THEATRE 8. JAPANESE 2. UMANI BURGER LA SALSA 2. ACNE STUDIO SUPPLY 2. LOS ANGELES AMERICAN BROADWAY 13. THE VEGAN JOINT 3. EASOP 11. THE LAST BOOK CONVENTION NATIONAL MUSEUM 3. STARBUCKS 14. POPPY+ROSE 4. URBAN OUTFITTERS STORE CENTER 9. LA ARTWALK 4. MIKKELLER DTLA 15. COLE’S FRENCH DIP 5. SOULCYCLE 12. RIF 3. STAPLES CENTER 10. THE SANTEE ALLEY 5. BROKEN SPANISH 16. NICKEL DINER 6. LA JEWELRY PLAZA 13. ROW DTLA 4. GRAMMY MUSEUM 11. CALIFORNIA 6. SHAYAN EXPRESS 17. PREUX & PROPER 7. MAPLE PLAZA BUILDING M1 LA LIVE MARKET CENTER 7. 18. TERRONI 8. JACK’S CANDY 5. LOS ANGELES 8. WHOLE FOODS MARKET 19. DUNKIN’ 9. PINATA DISTRICT CENTRAL LIBRARY 9. BOTTEGA LOUIE 20. MCDONAL’S 6. OUE SKYSPACE LOS 10. PAUL’S KITCHEN 21. FARMER BOYS 13 ANGELES 11. PIZZA HUT 22. URTH CAFFE THE HISTROY OF BROADWAY

Broadway is considered one of the highest priorities in the nexus between historic preservation and revitalization because of its importance as part of our city’s history. Its prominence as part of a National Register Historic District offers tremendous potential for reactivation and new uses which will allow these architectural and historical gems to

BROADWAY HISTORY be enjoyed by future generations. Theatre District in Los Angeles features the largest concentration of historic theatres and movie palaces on one street in the

nation, most of which date back to the 1920s and 1930s. Cantor, , George Burns & Gracie Allen, Duke Entertainment was always king on Broadway, but in the Ellington, , and W.C. Fields all performed first half of the 20th century, Broadway enjoyed success to the delight of Broadway audiences. Behind their as a business and retail destination and was considered deceptively simple exteriors, Broadway’s ornate the commercial capital of the nation. Broadway’s and spectacular theatres featured sweeping marble elegant high-rise buildings produce an uncommonly staircases leading to ornate balconies, plush seats, and urban character that compares to famously vibrant soaring, star-sprinkled ceilings, along with spacious, cities like . elaborately crafted interiors, gilded rococo designs and a wide range of flamboyant architectural styles. When The Broadway District boasts block after block of stunning cinema became in vogue, the theatres were mostly Beaux Arts, , and revival-style buildings which converted to grand movie palaces, and functioned as bestow the district with historic integrity uncommon in such for many years before many of them closed their major metropolitan downtowns. stages were doors. all the rage when the theatres were built and famous acts such as the Marx Brothers, Bob Hope, Houdini, Bing Crosby, , , , Eddie 14 THE HISTROY OF BROADWAY

Broadway is a major thoroughfare in and Los Angeles County, . Broadway from 3rd to 9th streets in the Historic Core was the city’s main commercial street from the 1910s until World War Two. It is also the location of the Broadway Theater District, the first and largest historic theater district listed on the National Register of Historic Places (NRHP). With twelve movie palaces located along a six-block stretch of Broadway, it is the only large concentration of movie palaces left in the . Broadway is one of the oldest streets in the city, it was laid out as part of the 1849 plan of Los Angeles made by Lieutenant Edward Ord and named Fort Street. Fort Street began at the south side of Hill (a block north of Temple Street) at Sand Street (later California Street). BROADWAY HISTORY

In 1890, the name of Fort Street, from 1st Street to 10th Street, was changed to Broadway. The rest of Fort Street, from California Street to

1st Street, was changed to North Broadway. Proposal for opening Downey were then changed to North Broadway, but not without Broadway through to Buena Vista Street (now North Broadway), and significant objections from affected residents and landowners. The extending the street south into what was then part of Main Street, bridge, which continued to be referred to as the Buena Vista Street below Tenth Street, in order to give a continuous, wide thoroughfare Bridge for a good while, was opened to traffic in late September from the southern city limits to the Eastside, was made as early as 1911. February 1891. For more than 50 years, Broadway from 1st Street to Olympic The Broadway Tunnel under Fort Moore Hill was opened in 1901, Boulevard was the main commercial street of Los Angeles, and one extending North Broadway to Buena Vista Street at Bellevue Avenue of its premier theater and districts as well. It contains a (later , now ). A section vast number of historic buildings and is listed on the National Register of Broadway in was originally named Moneta of Historic Places. Avenue until 1923.

In 1909, construction on a bridge across the was begun to connect Buena Vista Street to Downey Avenue, which ran from the river to . The names of Buena Vista and

15 THE HISTROY OF ACE HOTEL LOS ANGELES

COMMERCIAL BUILDING HIGHLIGHTS Ace Hotel Downtown Los Angeles, originally built as the United COMMERCIAL BUILDING HIGHLIGHTS Artists Building and later known as the Texaco Building, is a 243 ft (74 m), 13-story highrise hotel and theater building located at 937 South Broadway in downtown Los Angeles, California. It was the tallest building in the city for one year after its completion in 1927, and was the tallest privately owned structure in Los Angeles until 1956. Its style is Spanish Gothic, patterned after Segovia Cathedral in Segovia, Spain.

The building contains the historic Theater, the flagship theater built for the United Artists motion picture studio. The theater was later used as a church by and his widow Melissa Scott under the name “Los Angeles University Cathedral”. In October 2011, Scott’s Wescott Christian Center Inc. sold the building to Greenfield Partners, a real estate investment company located in Westport, , for $11 million.[5] It was converted to a hotel, and opened in 2014. The hotel is part of the Ace Hotels chain. 16 THE HISTROY OF EASTERN COLUMBIA BUILDING

The Eastern Columbia Building, also known as the Eastern Columbia Lofts, is a thirteen story Art Deco building designed by located at 849 S. Broadway in the Broadway Theater District of Downtown Los Angeles. It opened on September 12, 1930 after just nine months of construction. It was built at a cost of $1.25 million as the new headquarters and 39th store for the Eastern-Columbia , whose component Eastern and Columbia stores were founded by Adolph Sieroty and family. At the time of construction, the City of Los Angeles enforced a height limit of 150 feet, however the decorative clock tower was granted an exemption, allowing the clock a total height of 264 feet. COMMERCIAL BUILDING HIGHLIGHTS

The edifice is easily spotted from the Interstate 10 - Santa Monica Freeway, as well as many other sections of downtown, due to its bright “melting turquoise” terra cotta tiles and trademark four-sided clock tower, emblazoned with the word “EASTERN” in bright white neon on each face of the clock.

The building is widely considered the greatest surviving example of Art Deco architecture in the city. It is one of the city’s most photographed structures and a world- renowned Art Deco landmark.

17 18 COMMERCIAL BUILDING HIGHLIGHTS s h ms rsoe te itrcl oi plcs in the city. palaces movie historical the of restored most the is it 1989, in started renovation, million $3 a After circuit. fourth the as 1926, vaudevilleOrpheum the for venue Angeles Los final and 15, February on Los opened Downtown in Angeles Broadway on Theatre Orpheum The ORPHEUM THEATRE THE HISTROYOF

h Opem hars nmd o te Greek the for named are mythological figure, Orpheus. theatres Orpheum The organs remaininginSouthernCaliforniavenues. Wurlitzer organ, installed in 1928, that is one of three pipe Mightya has and Lansburgh Albert . architect theater The Orpheum has a Beaux Arts facade designed by movie from 625 square feet to nearly 950 size month. in range last units One-bedroom tenants to door its opened building the Palace phases, newest two in Completed along sign Broadway. blade another the and at Broadway building and Olympic of corner the atop one eye- There’s two own. its of signs catching features signs, Palace glowing the and marquees with in bright theaters’s blend neighboring the to it Helping wasLA. historic the Downtownin Broadway Palace on district into fit to Broadway designed The for whichheisknown. complexes Renaissance-inspired Italian fakey, the from departure the quite is complex apartment newest Palmer’s Geoff Developer APARTMENTS PALACE BROADWAY THE HISTROYOF

and lesslikethisone. complexesVinci Da and Orsini his it’s probably going to be more like name, Italian-ish its from theJudging Street. alongside Temple near Freeway up 110 snuggled is project called The Ferrante, which huge a on working also is Palmer screening room. a and lounge, karaoke a courts, volleyball and basketball indoor room, steam wood teak a pool, Palace’s rooftop a hotspots, include WiFi personal the perks resident website, to According building isnoexception. This amenities. over-the-top their for known are buildings Palmer’s a $3,100 to month. up at $2,900 priced roughly They’re feet. 1,038 to square feet square 930 about from measure units Two-bedroom month. a$2,800 about to month a $2,100 square feet and rent from just over 19 COMMERCIAL BUILDING HIGHLIGHTS 20 COMMERCIAL BUILDING HIGHLIGHTS CALIFORNIA MARKET glass windows; adding Construction for the CMC CENTER skybridges to connect all renovation is already floors between the three underway, and is expected to 110 EAST 9TH STREET, LOS buildings; the construction of be carried out in two phases. ANGELES, CA 90021 a 5,000-Square-Foot rooftop Completion is anticipated in amenity space for tenants; the 2020. Brookfield purchased a One year after buying the removal of a two-story retail majority stake in CMC in 2017 immense California Market structure at 9th and Main to for a reported price of $440 Center (CMC) in Downtown create a 13,700-Square-Foot million. The seller - prominent Los Angeles, Brookfield has landscape for outdoor events; local landlord Jamison unveiled plans for a $170-million and adding “fashion focused” Services, Inc. - retained a overhaul of the 1.85-million- building amenities. minority stake in the property, square-foot complex. Built and is planning to convert an over 50 years ago on a city In addition to new open space, adjoining building into a hotel. block bounded by Olympic CMC’s fortress-like ground Boulevard, 9th Street, Main level will be made more Since acquiring the portfolio Street, and Los Angeles inviting to pedestrians through of defunct MPG Office Trust in

Street, the three buildings the creation of 150,000 square 2013, Brookfield has emerged COMMERCIAL BUILDING HIGHLIGHTS of CMC have long served feet of retail space, with room as the largest office landlord as a hub of the wholesale for outdoor seating and dining. in Downtown Los Angeles. The apparel industry, and is billed company has since invested as one of its West Coast While much of the property in renovations to some of its hubs. Brookfieldhas tapped will serve as office space, trophy assets, highlighted by a architecture firm Gensler to Brookfield’s plan will continue to $60-million amenity center now modernize and open the emphasize CMC’s importance under construction at the Wells brutalist complex to the street. to the fashion industry. Going Fargo Center. Brookfield is forward, the bulk of the also pursuing the development PLANNED IMPROVEMENTS property’s fashion tenants will of a high-rise residential tower INCLUDE: be concentrated into Building on a vacant lot abutting the C, which will be improved Figat7th mall. Recladding the building’s with polished concrete floors façade with floor-to-ceiling and open concept spaces.

21 REVITILIZATION OF Charlie Chaplin, , Lena Horne, George Burns & Gracie Allen, , Judy Garland, and BROADWAY W.C. Fields all performed to the delight of Broadway audiences. The Broadway Theatre District in Los Angeles features the largest concentration of historic theatres and movie Behind their deceptively simple exteriors, Broadway’s palaces on one street in the nation, most of which date ornate and spectacular theatres featured sweeping back to the 1920’s and 1930’s. There are twelve historic marble staircases leading to ornate balconies, plush theatres along Broadway in Downtown Los Angeles. Each seats, and soaring, star-sprinkled ceilings, along with offers a different and important glimpse into the history spacious, elaborately crafted interiors, gilded rococo of our city, and its primary industry - entertainment. designs and a wide range of flamboyant architectural styles. When cinema became in vogue, the theatres Vaudeville stages were all the rage when the theatres were mostly converted to grand movie palaces, and were built and famous acts such as the Marx Brothers, functioned as such for many years before many of them Bob Hope, Houdini, Bing Crosby, Jack Benny, Will Rogers, closed their doors. COMMERCIAL BUILDING HIGHLIGHTS

22 4

101

101 3

110 1 2

110 NEW DEVELOPMENTS

6 5

110

1 ANGELS LANDING 4 THE GRAND

The 1.26-million-square-foot project, which would The Grand will include a 20-story hotel, retail rise at the northwest corner of 4th and Hill Streets and entertainment, and a 39-story residential in Downtown Los Angeles, will feature 120 condos, tower with 128 condos, 214 market-rate 450 apartments, 480 hotel rooms, a 45,000-square- apartments, and 86 affordable housing units. foot charter school, and 50,000 square feet of The Grand’s two towers will rise on a parking lot commercial space, according to a case filing just east of the . with the Planning Department.

2 PERLA ON BROADWAY 5 TOWER THEATER APPLE STORE

Apple Inc. is in the in the process of securing The project, which is being built by SCG a lease for retail space at the historic Tower America, will offer 450 studio, one-, and two- Theater downtown, according to sources bedroom units, ranging between 400 and familiar with the transaction. When complete, 1,300 square feet in size. Plans also call for the lease for an Apple store at the building, at 7,000 square feet of ground-floor commercial 800 S. Broadway, could spark dramatic changes uses and a podium parking garage. along a corridor that has long been in flux.

3 LA TIMES BUILDING 6 BROADWAY TRADE CENTER

Onni’s redevelopment plans calls for preserv- These proposed uses will require substantial ing the oldest structures, which Onni has called alterations to the interior of the 107-year- “the historic heart” of . old Beaux Arts masterpiece, which once The firm intends to reuse the old buildings for served as a flaship for the May Company offices, shops, and restaurants. department store chain. 23 HIGHLIGHTED DEVELOPMENT PROJECTS DOWNTOWN | CA UNDER DEVELOPMENT “The adjustment makes both towers significant and important,” says Fred MacFarlane, a representative for ANGEL’S LANDING the developers. They can now “brand the two hotels individually and create two high-end luxury brands.” The plan to develop Angels Knoll, one of Downtown LA’s prime vacant spots, with a residential and hotel The project—which will eventually rise across from complex is forging ahead, but the finished project will Grand Central Market—is also being developed by likely be shorter and open much later. MacFarlane Partners, Claridge Properties, and The Peebles Corporation. It was initially designed to hold A new blueprint for the Handel Architects-designed 500 SLS and Mondrian hotel rooms, 250 condos, and 400

NEW DEVELOPMENTS complex, called Angels Landing, now calls for a 64-story

apartments (both market-rate and affordable). Shops NEW DEVELOPMENTS skyscraper and a 42-story high-rise. The two towers and restaurants and a charter elementary school were were originally planned to take the form of an 88-story also planned. skyscraper and a 24-story high-rise.

24 UNDER DEVELOPMENT PERLA ON BROADWAY

The first new skyscraper to come to Downtown LA’s Historic Core in more than 100 years broke ground today at Fourth and Broadway, on a site formerly occupied by a one-story building of retail storefronts.

The new tower, called Perla, will will rise 35 stories, including a 10-story podium, and will hold 450 condos and 7,000 square feet of groundfloor retail space. NEW DEVELOPMENTS Designed by CallisonRTKL, the Art Deco-tinged Perla will also contain a four- story atrium, meant to evoke the nearby . Its decorative motif of metal screens were “inspired by the ornate wrought iron grilles and vintage railings of adjacent historic buildings.”

The building will offer residents on-site office space operated by coworking company WeWork, a gym, a media room, and an indoor gold simulator. Construction isn’t expected to be complete until 2020, but condo sales are expected to begin in the spring, according to the . SCG American bought the property in 2015 from Downtown developer Izek Shomoff’s Grand Pacific LLC.

25 NEW DEVELOPMENTS

UNDER DEVELOPMENT In 1923, the building was expanded and redesigned by architect Albert C. Martin. That same year, the Hamburgers sold the store BROADWAY COMMERCE to the St. Louis-based May Company, which made the store its CENTER flagship in the West. Another renovation and expansion occurred in 1929, and for the next 50 years, the May Company was a When it opened in 1908, the enormous Hamburger & Downtown Los Angeles institution. But as fabulous Broadway Sons department store made Downtown LA’s South declined in the postwar years, so did the store’s profits and cachet. Broadway into a destination for the first time. Thanks In 1986, the May Company moved out of the historic building to to the area’s explosive redevelopment, the building is a much smaller space at Seventh and Figueroa. The building now making a comeback. eventually became the Broadway Trade Center, a rundown commercial space on equally rundown South Broadway.

26 NEW DEVELOPMENTS

ENTERTAINMENT HISTORIC STREETSCAPE OVERLAY ZONE & COMMERCIAL DTLA STREETCAR MASTER PLAN DESIGN GUIDE REUSE SPACE

27 1 FIRST AT BROADWAY PARK

CIVIC PROJECTS The $28-million park is planned to break ground in 2018, with the park’s open date DOWNTOWN | CA scheduled for sometime in early 2020.

2 BRINGING BACK BROADWAY

CIVIC PROJECTS 110 101 Bringing Back Broadway is a 10-year strategic economic development plan launched in 2008 for the revitalization 5 of the historic Broadway corridor in Downtown Los Angeles.

101 1 3 STREETCAR

110 The LA Streetcar supports this vision by im- 4 proving connections Downtown and to the regional transit network, bringing new life 3 to under-invested areas, generating jobs, 2 increasing safety, and ultimately preparing Downtown for the future.

4 METROSTATION (AT HILL & 4TH)

Pershing Square is a heavy-rail subway station in the Los Angeles County Metro Rail system. It is located on Hill Street between 4th and 5th Streets, near Pershing Square in Downtown Los Angeles. This station is served by the Metro Red Line and the Metro Purple Line and various local bus services.

5 CIVIC CENTER REDESIGN

Though officially a distinct green space, the First and Broadway Park will offer an expansion of sorts to the neighboring . The 12-acre park, which opened in 2012, has become the home of 28 a popular New Year’s Eve gathering. LA the regioncontinues togrowandthrive. $1.4 estimated billion in economic an willdevelopment revitalizing to ensure spurring of Streetcar trend Downtown LA the all. continue also not that’s And homes, entertainment and historic lofts –we’ll have modern you covered. offices, hotels, of restaurants, venues, one or countless theaters, Broadway’s historic of one beautiful Marriott, JW the or Hotel Ace Market, Central Grand or Park Grandit’s Whether Downtown. connector serve as a crucial, quick, and comfortable A 3.8-mile urban circulator, LA Streetcar will it today. along that path – and stepwe’re ready next to build the ever is Streetcar LA than The before. sustainable and fun, connected, active, more is that city a building we’re Together, environment. built their the way in helping Angelenos to reimagine For the past 15 years, Downtown LA has led DTLA

STREET CAR 29 CIVIC PROJECTS DTLA Installing two-way bike lanes on one-way streets— OPEN like Spring and Main— SPACES/ can minimize potentially BIKE LANES dangerous consequences for CIVIC PROJECTS riders traveling in the opposite The first two-way bike lane direction, according to the in the city of Los Angeles National Association of City is officially open, offering Transportation Officials. The cyclists and scooter riders Spring Street bike lane is also a protected ride in two shielded from vehicle traffic directions along Spring Street by a protective buffer zone in Downtown LA. and plastic pylons added in October. The bike lane is part of a larger makeover of Spring and The two-street makeover Main streets. The project will now underway is the result eventually bring a separate of LA’s Vision Zero initiative two-way lane to Main Street, to eliminate traffic deaths which intersects with Spring citywide by 2025. According at Ninth Street. to data gathered by the city, Spring and Main streets were Spring Street has long had the site of three fatal crashes a dedicated bike lane in and nine serious injuries from the southbound direction, 2009 to 2013. but striping added over the weekend makes the lane Work on the Main Street useable for riders headed portion of the project is north as well. expected to wrap up this fall.

30 ’sUnionSquare. well- other to orPark Central York’s New as such Park parks urban established Grand compared have visitors some encourage andofficials to City area. the of kiosks exploration and walking the and furniture, park movable lights, street of plenty courtyards, and lawns performance plaza, fountain interactive an plants, drought-tolerant sidewalks, tree-shadedinclude plans Bunkerpark The center. civic the connects to Hill and friendly pedestrian be to designed is It Avenue. Grand on Hall Center Music City Angeles Los Angeles the and Los the between stretches Park Grand nearby LosAngelesMusicCenter. and programming Park theby maintained are upkeep and security Studios. entertainment, Hale Clementi Rios firm designed was designmultidisciplinary Los-Angeles-based the by built It and County. Angeles Los and Angeles Los of city the by venture joint a of part is Park Grand 2012. July larger the of part is , with its first phase having opened in It California. Angeles, Los of center civic the in located park ha) (4.9 12-acre a is Park Grand GRAND PARK UNDER DEVELOPMENT

31 CIVIC PROJECTS STREET LEVEL JASON’S ON BROADWAY

Jason’s on Broadway is a locally owned and operated beer and wine retailer with its original location in California Market Center.

Jason’s Market occupies approximately 3,170 square feet of leasable space and its current lease expires in April, 2022. TENANT PROFILES

32 STREET LEVEL VOO DOO

Voo Doo is a high end men’s elegant, and refined to present fashion boutique that carries an to its patrons as a backdrop to eclectic and esoteric collection accompany its collection of of hand-picked and personally fashion and lifestyle merchandise. curated by its owner and operator. Voo Doo occupies approximately Voo Doo has turned this former 1,310 square feet on the street

restaurant space into a unique level and approximately 1,564 TENANT PROFILES retail store front that combines square feet of basement, which the building’s 1905 construction is connected to the street level elements with contemporary and space via a staircase, for a total modern finishing touches. The result of approximately 2,874 square is a retail canvas whose aesthetic is feet of space. Voo Doo’s NNN historic and raw, yet sophisticated, lease expires in February of 2022.

33 SECOND/THIRD FLOORS ROCKET DOG

Rocket Dog, whose parent since 2011, occupying both second company is Top Pick Global, is a and third floors, which consists lifestyle based clothing brand that of approximately 10,473 square started out as a shoe company. feet. Rocket Dog spent millions of

TENANT PROFILES Named after one of the founder’s improvement dollars to turn the two dog, the Southern California separate floors into one amazing founded company has been contiguous space, including designing and selling shoes since converting an open area on the 1997 to major retailers like , third floor into an unforgettable outdoor lounge that is only While remaining true to their outshone by the 20 feet high stairs California roots, the brand that connects the two floors that is has continued to evolve and adorned by three oversized lighting expand the brands offerings by fixtures that hang from the ceiling. introducing sport-casual, sandals, boots, kids and men’s footwear Rocket Dog’s current term expires to compliment the whole family. in September, 2021, and includes the rooftop billboard, which Rocket Dog has been a tenant belongs to the building owner. INVESTMENT ANALYSIS | RENT ROLL

34 35 TENANT PROFILES RENT ROLL Current Lease Address Square Feet Notes/Options Term

GROUND FLOOR

"Base Rent Increases Royal Native, LLC 124 W. 9th St. 1,310 3/1/2017 2/28/2022 on 3/1/2020 by CPI DBA Voodoo Two 3-Year Options" "Base Rent Increases Jason's On 900 S. Broadway 3,170 2/1/2012 4/30/2022 on 5/1/2020 by CPI Broadway/Sidhu Two 5-Year Options" Ground Floor 4,480 Total

SECOND & THIRD FLOORS

"Base Rent Increases Rocket Dog 900 S. Broadway 10,473 9/10/2011 9/30/2021 on 10/1/2019 Brands Units 200-300 No Options" Above Grade 14,953 Totals INVESTMENT ANALYSIS | RENT ROLL

BASEMENT

Rocket Dog 400 Month-to-Month Storage Same as Ground Royal Native, LLC 1,564 3/1/2017 2/28/2022 Floor Space Vacant 2,750 Basement Space Utility rooms, 386 Corridors, Stairs

Basement Totals 5,100

Rent Increases on ROOFTOP SIGN N/A 9/10/2011 9/30/2021 10/1/2019

36 TOTAL LEASABLE BUILDING AREA 20,053 S. BROADWAY 900 LOS ANGELES | CA

FOR DETAILED FINANCIAL INFORMATION PLEASE CONTACT BROKER INVESTMENT ANALYSIS | RENT ROLL

37 LOS ANGELES MARKET SUMMARY MARKET SNAPSHOT

Economic conditions continue to impact market fundamentals. Malibu to El Segundo, as well as to improve in .A., but the retail One consequence of softening Calabasas/Westlake Village and market in some parts of the metro conditions is a deceleration in Woodland Hills/Warner Center, has plateaued. Vacancies remain rent growth. While L.A. rents have grown the most. Meanwhile, near their cyclical low of 4%, outpaced the nation earlier in the some submarkets have less retail about where they have stood cycle, growth has stalled recently. inventory than they did eight since 16Q4. However, during the Longer-term improvements in years ago because buildings last cycle vacancies touched 3% the vacancy rate are in large have become obsolete or have in 07Q3, showing that vacancies part due to the limited amount been converted to apartments or in L.A. have yet to reach their of supply developed during this offices. floor. One obstacle has been cycle. Net deliveries for the widespread store closures. Big- past 12 months total 100,000 SF, Limited growth in net operating box space vacated over the last while annual net deliveries have income has turned into the three years by , , Sports averaged 880,000 SF over the slowest gains in pricing since the Authority, Sports Chalet, Toys past six years. In comparison, start of the cycle. Yet Los Angeles R Us/Babies R Us, and Orchard annual net deliveries averaged remains a very liquid market, and Hardware Supply presents leasing over 4.4 million during the last 2018 sales volume surpassed 2017 challenges, often necessitating cycle (2002–08)—much of which levels. Last year saw a return dividing the space and securing was power centers anchored by in sales of luxury assets, where multiple smaller tenants. We may and Target. Most recent volume for 4 & 5 Star properties see this trend continue as store deliveries have been smaller surpassed 2017 sales. There was closures, such as those of Fallas shopping centers, often carefully also more institutional capital Paredes, continue. Furthermore, developed to suit communities that came into the market in 2018 smaller spaces occupied by with a growing consumer base. than there was in 2017. Payless Shoes and other traditional Retail inventories in coastal mall tenants are now also starting submarkets from Pacific Palisades/

38 Vacancy Rate Rate 12.0%

10.0% ECONOMIC 8.0% 6.0%

SUMMARY 4.0%

2.0% MARKET SNAPSHOT 0.0% LA’s labor market has been extremely tight since 2013 2014 2015 2016 2017 2018 2019 mid2016 and the unemployment rate reached 4.6% in March 2019—creating challenges for many firms trying to expand. The pace of job growth in AskingAsking RentRent PSF PSF LA has been slightly below the national rate for $3.20 much of this cycle, with the health care, leisure and $3.10 hospitality, and construction sectors expanding the most over the past five years. Over the same period, $3.00 manufacturing jobs have continued to decrease $2.90 and payrolls in retail trade have hardly changed. $2.80 $2.70 Expectations for job growth in LA could be curbed $2.60 because the prohibitive cost of housing has been $2.50 driving lower-income households east, to places $2.40 like the Inland Empire, Arizona, and . The $2.30 .S. Census estimates that LA experienced slight $2.20 population losses in 2017 and 2018, and altogether 2013 2014 2015 2016 2017 2018 2019 has averaged only 0.4% annual population growth over the last ten years. Still, LA remains an entry point Net Absorption for international migration and also an attractive Vacancy Rate destination for younger tech, entertainment, and 200,000 professional workers—which often fall into the 100,000 HENRY category (high earners, not rich yet). These 0 two demographics help to reliably drive apartment (100,000) demand. (200,000) (300,000) (400,000) (500,000) (600,000) (700,000) 2013 2014 2015 2016 2017 2018 2019 39 OFFERING MEMORANDUM S. BROADWAY 900 DTLA | CA

For More Information, Contact: DATE: AUGUST 2019 SEHYUNG KIM Vice President P: 213.270.2270 | F: 213.621.0903 [email protected] DRE License: #01327276

Although all information is furnished regarding for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof, and it is submitted subject to errors, omissions, changes of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. D/AQ Corp. # 01129558