11944 Bellflower Blvd | Downey, CA 90242

Matthew Guerra |Senior Associate Dir 626.898.9740 | Fax 626.316.7552 OFFERING MEMORANDUM [email protected] License No. 02022646 INVESTMENT HIGHLIGHTS • +/- 33% Rental Upside in Non-Rent Controlled Area • Attractive six (6) units consisting of 2 Bedrooms + 1 Bathroom • Individual one (1) car garages for each unit • Superb location being walking distance from Downey Landing, New Promenade at Downey, and Stonewood Mall which include: LA Fitness, 24 Hour Fitness Super Sport, Macy’s, Kohl’s, Starbucks, Benihana, Chipotle, Kirkland’s, GNC, Five Guys, Chase, Bed Bath and Beyond, PetSmart, Cinemark Movie Theater and more. • Near Downey High School, Kaiser Permanente and (PIH) Presbyterian Intercommunity Hospitals. • Nearby to Downey Adult School and Los Angeles County Office of Education along with other county buildings and abundant education and employment opportunities • Excellent student housing opportunities with Cerritos College, one of the five largest community colleges in Los Angeles County with an average annual enrollment of 22,000 students, less than 5 miles away.

PROPERTY HIGHLIGHTS • Excellent unit mix of six 2Bed + 1Bath units • Large open floor plan with tile and hardwood floors • Individual garage for each unit • Laundry area with new coin-operated machines owned by seller • Easy access to FWY 605, 105, 710, and 5 • Close distance to three major shopping malls and promenades, Cerritos College, Downey High School, Presbyterian Intercommunity and Kaiser Permanente Hospitals & County Buildings creating an amazing rental market. • Under-utilized common garden and barbecue area • On major boulevard making it easier to rent Executive Summary The Growth Investment Group is proud to offer 11944 Bellflower Boulevard, a spectacular apartment building comprised of six (6) 2 Bedroom + 1 Bathroom units, and individual one (1) car garages located in the highly desirable city of Downey, . This non-rent- controlled value-add opportunity is perfect for an investor looking to acquire an apartment property and maximize its income potential. The property has been under the same ownership since 2008. The units are currently leased to many long-time tenants on a month- to-month agreement at below market rents. With no rent control Buyers can quickly add value and increase the income by modernizing the units. With only minutes away from Kaiser Permanente, it is within walking distance to Downey Landing, Stonewood Mall, and the New Promenade at Downey.

The entire property features large open layout units, with hardwood floors and tile throughout. None of the units have been extensively upgraded which provides prime opportunity for new ownership to complete unit upgrades and maximize the income potential. Most of the tenants are on month-to-month agreements at below market rents, perfect for a sophisticated investor to increase the value.

All six (6) units are 2 bedrooms + 1 bathroom with a private individual one (1) car garage. The fence gives added security to the property. Each unit possesses its own one-car garage that contain shelving inside and security lighting outside. Well maintained units equipped with large kitchen, large living area and large bedrooms. Newer paint throughout and tile throughout all the units provide easy maintenance. For added convenience a laundry area is accessible to tenants, with new coin-operated machines owned by the seller which provide additional income. The garbage bins are enclosed behind secured fencing, for added security.

LOCATION AMENITIES AND ACCESS

The property is located in the prestigious city of Downey with all its appropriate amenities, suitable dining and fashionable shopping. The city of Downey is a city located in southeast Los Angeles County, California, United States, 13 mi (21 km) southeast of Downtown Los Angeles. In 2017, the City of Downey was recognized as L.A. County's "Most Business-Friendly City" by the Los Angeles County Economic Development Corporation. It is home to the Columbia Memorial Space Center and the oldest still operational McDonald’s restaurant in the world. Located less than 5 miles from Cerritos College, which is a public comprehensive community college serving an area of 52 square miles (130 km2) of Southeast Los Angeles County; with a district population comprising approximately 500,000 residents (2010). Its single campus is the largest community college campus in Southeast Los Angeles County by total enrollment.

The property is situated on Bellflower Blvd and Elm Vista Drive, nearby to Lakewood Blvd & Firestone Ave. Excellently situated in the heart of Downey, the property has superb freeway access to FWY’s 605, 710, 5, & 105. This investment maintains excellent proximity to a variety of nearby amenities such as restaurants, shops, universities, community colleges, hospitals and entertainment venues. Excellent student housing opportunities with close proximity to Cerritos Community College, which has an average annual enrollment of 22,000. Summary

Subject Property: 11944 Bellflower Blvd.,

Downey, CA 90242

Year Built: 1955

Building Area: 5,032 SF

Lot Size: 6,886 SF

Assessor’s parcel number: 6284-020-004

Number of Units: 6 units

Unit Mix: 6 x 2 Bedroom + 1 Bathroom

Price: $1,749,000

KAISER PERMANENTE

NEW DEVELOPMENT

11944 Bellflower Blvd, Downey, CA

KAISER PERMANENTE

Traffic Count Average Household Income .01 miles 1 Mile 2 Miles 3 miles 18,175 CPD $68,470 $78,013 $75,465 Total Population 1 Mile 2 Miles 3 miles 28,362 120,869 283,402 Financial 11944 BellflowerAnalysis Blvd, Downey Matthew William Guerra - Office (626) 898-9740 | Direct (909) 997-9765 | [email protected] | BRE#02022646 Investment Overview Unit Mix & Rent Schedule

Price $ 1,749,000 Units Type Avg. Monthly Rent Total Rent Proforma Rent Total Proforma Rent Price Per Unit $ 291,500 6 2B + 1B $ 1,441 $ 8,645 $ 1,895 $ 11,370 Price Per SF $ 348 6 TOTAL $ 8,645 $ 11,370 Cap Rate 4.05% Est. Upside GRM 16.70 Income 32% Property Information Current Proforma Building Size 5,032 Annual Gross Rent (Current/Potential) $ 8,645 per month $ 103,740 $ 136,440 Lot Size 6,886 Laundry Income $ 85 per month $ 1,020 $ 1,020 Number of Units 6 Storage/Garage Income per month $ - $ - Year Built 1955 Gross Scheduled Income $ 104,760 $ 137,460 Parcel(s) 6284-020-004 Vacancy Factor 3.00% $ (3,143) $ (4,124) Zoning DOR3* Effective Gross Income $ 101,617 $ 133,336 Parking 6 (six) 1-car garages Proposed Financing Expenses Down Payment $839,520 Operating Expenses (Current/Potential) Current Proforma per tax assessors Approximate Loan Amount $909,480 New Property Taxes 1.152588% $ 20,159 $ 20,159 per tax assessors Interest Rate 4.850% Direct Assessment $ 1,428 $ 1,428 Actual Loan To Value 52.0% Water $ 200.00 per month $ 2,400 $ 2,400 Actual Annual Debt Service $58,155 Trash $ 158.00 per month $ 1,896 $ 1,896 Actual Debt Coverage Ratio 1.26 Gardening $ 70.00 per month $ 840 $ 840 Actual Year-1 Net Cash-Flow $14,867 Repairs & Maintenance $ 250.00 per month/yr $ 1,500 $ 1,500 Actual Loan Type New loan, 5-year fixed, 30- Insurance $ 150.00 per month $ 1,800 $ 1,800 Actual year amortization Electric $ 45.00 per month $ 540 $ 540 Actual Gas $ 20.00 per month $ 240 $ 240 General Assumptions * Estimated Rehab cost/unit $ 5,500 Estimated Rehab Cost Total $ 33,000 Estimated Total Project Costs $ 1,782,000 Total Operating Expenses 29% of GSI Current Proforma Proforma CAP Post Rehab 5.75% Expenses Per Unit $ 30,802 $ 30,802 Proforma GRM Post Rehab 12.96 Expenses Per SF $ 5,134 $ 5,134 Proforma Net Cash-Flow $ 44,379 $ 6.12 $ 6.12 * General Assumptions are estimate only! Buyer shall conduct their own due diligence and use their own Current Proforma underwriting guidelines to evaluate the performance of this investment offering. NET Operating Income $ 70,815 $ 102,534 Rent Roll

CURRENT PROFORMA

Estimated Unit Unit No. Unit Type Rent Rent/SF Rent Rent/SF Size

1 2B + 1B $ 1,595 $ 1,850

2 2B + 1B $ 1,410 $ 1,850

3 2B + 1B $ 1,410 $ 1,850

4 2B + 1B $ 1,410 $ 1,850

5 2B + 1B $ 1,410 $ 1,850

6 2B + 1B $ 1,410 $ 1,850

TOTAL 6 - $ 8,645 $ 11,100

AVERAGE

# Units Unit Type AVG RENT MIN RENT MAX RENT PROFORMA RENT

6 2B + 1B $ 1,441 $ 1,410 $ 1,595 $ 1,850 Market Overview: City of Downey Downey is a city located in southeast Los Angeles County, California, Unit- • Williams Elementary School ed States, 13 mi southeast of downtown Los Angeles. It is considered part of • Small sections are within the Montebello Unified School District. the . The city is the birthplace of the Apollo space program, • Calvary Chapel Christian School: pre-K–12 and is the hometown of Richard and Karen Carpenter. It is also the home • St. Pius X-Matthias Academy: 9–12 of the oldest still operational McDonald’s restaurant in the world. The cities • Our Lady of Perpetual Help School: pre-K–8 of South Gate and Bell Gardens are adjacent to the west and northwest, • Saint Raymond’s Catholic School: pre-K–8 Pico Rivera lies to the northeast, Santa Fe Springs and Norwalk to the east, • Saint Mark’s Episcopal School: pre-K–8 and Paramount and Bellflower are to the south. TRANSPORTATION & ACCESS ECONOMY The city can be conveniently reached by any of four freeways: Interstate In 2017, the City of Downey was recognized as L.A. County’s “Most Business- 105 with its Metro rail line passes through the southern part of the city, In- Friendly City” by the Los Angeles County Economic Development Corpora- terstate 5 passes through the northern part, Interstate 605 passes along the tion for cities with a population greater than 68,000. eastern side, and Interstate 710 passes just west of the city.

EDUCATION Los Angeles County Metropolitan Transportation Authority (Metro) provides Most of Downey is within the Downey Unified School District. Downey’s two bus services to the city, and is served by the Lakewood Boulevard station main public high schools are named for Governor John G. Downey and of the Green Line (Los Angeles Metro). The city also operates a local bus Governor and US Supreme Court Chief Justice Earl Warren. service called DowneyLINK.

Downey has three public high schools: Downey, Warren, and Columbus. Other schools include:

• Stauffer Middle School (formerly West Middle School) • Doty Middle School (formerly East Middle School) • Griffiths Middle School (formerly North Middle School) • Sussman Middle School (formerly South Middle School) • Alameda Elementary School • Carpenter Elementary School • Gallatin Elementary School • Gauldin Elementary School • Imperial Elementary School • Lewis Elementary School • Old River Elementary School • Price Elementary School • Rio Hondo Elementary School • Rio San Gabriel Elementary School • Unsworth Elementary School • Ward Elementary School The Growth Investment Group

Matthew Guerra Senior Associate Dir 626.898.9740 [email protected] License No. 02022646

Han Widjaja Chen, CCIM Donald T. La President Vice President Dir 626.594.4900 | Fax 626.316.7551 Dir 626.824.8853 [email protected] [email protected] Broker License No. 01749321 Broker License No. 01928418 Justin McCardle Leo Shaw Vice President Vice President Dir 909.486.2069 Dir 626.716.6968 [email protected] [email protected] License No. 01895720 Broker License No. 01879962 Jeanelle Mountford David Ballou Broker Associate Associate Dir 818.839.0222 Dir 626.898.9710 [email protected] [email protected] License No. 01737872 License No. 02043484 Ryan Yip Marketing Coordinator Dir 626.594.4901 [email protected]

DISCLAIMER AND CONFIDENTIALITY AGREEMENT: This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of: 11944 Bellflower Blvd, Downey, CA 90242 (“Property”). This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information that prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner and Growth Investment Group. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. Neither the Owner nor Growth Investment Group, nor any of their respective directors, officers, affiliates, or representatives make any representation or warranty, expressed or implied, as to the accuracy or com- pleteness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents. The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time, with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or Growth Investment Group. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or Growth Investment Group. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to Growth Investment Group.