SUBJECT PROPERTY

LONG BEACH MIXED-USE (RETAIL/RESIDENTIAL)

KIDDER.COM OFFERING MEMORANDUM | 1023-1031 E 4TH STREET | LONG BEACH, CA 01 INVESTMENT SUMMARY TABLE OF The Offering Investment Highlights CONTENTS Amenities 02 FINANCIALS Pricing Variations Annualized Operating Data Annualized Expenses Rent Roll

EXCLUSIVELY LISTED BY 03 MARKET OVERVIEW Long Beach ALI LODIN RYAN SHARPE Demographics Associate Vice President 949.872.8591 310.893.3397 [email protected] [email protected] LIC N° 02090525 LIC N° 01940376 KIDDER.COM

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Kidder Mathews and should not be made available to any other person or entity without the written consent of Kidder Mathews. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Kidder Mathews has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Kidder Mathews has not verified, and will not verify, any of the information contained herein, nor has Kidder Mathews conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. This information has been secured from sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Recipient of this report must verify the information and bears all risk for any inaccuracies. 01 INVESTMENT SUMMARY

THE OFFERING

INVESTMENT HIGHLIGHTS

AMENITIES

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 3 INVESTMENT SUMMARY PROPERTY OVERVIEW Address 1023-1031 E 4th Street, Long Beach, CA 90802

Price $1,888,000 The front building is just under 5,000 square feet containing one NOI $69,288 1 bedroom 1 bath unit and one 2 Cap Rate 3.32% Ali Lodin, Ryan Sharpe and the bedroom 1 bath unit above three retail team at Kidder Mathews is retail/commercial units. The second Proforma Cap Rate 6.42% proud to present the opportunity freestanding structure is a +/- 800 No. of Tenants 6 to acquire the fee simple interest square foot two bedroom house. All tenants are Month to Month in 1023-1031 E 4th Street in the Building Size 5,750 SF (MTM) and are paying conservative middle of the east village and 4th or below market rents. The MTM Street Corridor. Lot Size 7,510 (.17acres) tenancy gives an owner user or an investor the ability to either occupy Price/SF $328.35 or reposition the property at market Price/Land $251.40 THE OFFERING rents. This is a rare opportunity to The following mixed-use purchase a mixed-use asset on Parcel Number 7266-009-014 opportunity consists of two separate just over a 7,500 square foot lot structures and approximately 5,750 just outside of the East Village Arts square feet of gross leasable space. District in Long Beach, CA.

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 4 DOWNTOWN LONG BEACH

INVESTMENT SUBJECT HIGHLIGHTS PROPERTY

LONG TERM tenants, low rents. Near 100% collection since COVID

LOCATED and on one of the best retail corridors in the city of Long Beach

WALK SCORE Walker's Paradise (93)

NEW general plan allows for redevlopment up to 7 stories in the future

LONG BEACH is the up and coming coastal city in Los Angeles county. Hundreds of millions of dollars are pouring into this city and tons of high density mixed use development in planning or developing stages.

MIXED-USE allows to diversify risk with both retail and residential tenants

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 5 W WILLOW ST

SIGNAL HILL

WEST SIDE ORANGE AVE LONG BEACH BLVD BEACH LONG SANTA FE AVE SANTA

W ANAHEIM ST

ALAMITOS AVE

SUBJECT RETRO ROW PROPERTY

LONG BEACH

PORT OF LONG BEACH W OCEAN BLVD ALAMITOS

BEACH N

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 6 02 FINANCIALS

ANNUALIZED OPERATING DATA

ANNUALIZED EXPENSES

RENT ROLL

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 7 FINANCIALS

ANNUALIZED OPERATING DATA

Current Pro Forma Gross Potential Rent $99,540 $163,200 SUBJECT Expenses Reimbursements - - PROPERTY Gross Potential Income $99,540 $163,200 Vacancy/ Collection Allowance $2,986 (3%) $4,896 (3%) Effective Gross Income $96,554 $158,304 Less Expenses ($33,890) ($37,073)

Net Operating Income $62,664 (3.32%) $121,231 (6.42%) Less Loan Payments ($65,773) ($65,773)

Pre-Tax Cash Flow $3,109 (-0.37%) $55,458 (6.53%) Plus Principal Reduction (Yr 1) $26,788 $26,788

Total Return Before Taxes $23,679 (2.79%) $77,830 (9.68%)

ANNUALIZED EXPENSES PROPOSED FINANCING

Current Pro Forma Current PF Exp. Exp. Reimb. Reimb. Loan Amount $1,038,400 Tax Rate (1.1193%) $21,133 $21,113 - - Rate 4.00% SUBJECT Tax Special Assess. $197 $197 - - PROPERTY Amortization 25 years Insurance $3,035 $3,035 - - Down Payment $849,600 Cleaning/Maintenance $2,719 $2,719 - - LTV 65% Utilities $1,629 $1,629 - - Licenses $200 $200 - - Monthly Payment $5,481.06

Management $4,977 $8,160 - - Annual Payment $65,772.69 Total Expenses $33,890 $37,073 Per SF $5.89 $6.45

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 8 RENT ROLL

TENANT INFORMATION CURRENT PRO FORMA

Lease Lease Rent Lease Mo. Annual % NNN (PF) (PF) (PF) (PF) Ann. Suite Tenant GLA % of Bldg Start End Increases Options Type Rent Rent/SFF Income Reimb. Reimb. Lease Mo. Rent Rent/SF Income

1023 Dead Rockers 725 12.61% - MTM - None MG $950 $1.31 $11,400 - - MG $2,200 $3.03 $26,400

1025 1 BD/1BA Apt. 725 12.61% - MTM - None MG $945 $1.30 $11,340 - - MG $1,500 $2.07 $18,000

1027 2 BD/1BA Apt. 850 14.78% - MTM - None MG $1,800 $2.12 $21,600 - - MG $2,200 $2.59 $26,400

1029 Play Nice 850 14.78% - MTM - None MG $800 $0.94 $9,600 - - MG $2,500 $2.94 $30,000

Industrial Flex 1029 1/2 Tenant 1,800 31.30% - MTM - None MG $1,600 $0.89 $19,200 - - MG $2,700 $1.50 $32,400

1031 2BD/1BA House 800 13.91% - MTM - None MG $2,200 $2.75 $26,400 - - MG $2,500 $3.13 $30,000

Total/ 5,750 100.00% $8,295 $1.55 $99,540 $13,600 $2.37 $163,200 Averages

SUBJECT PROPERTY

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 9 04 MARKET OVERVIEW

LONG BEACH

DEMOGRAPHICS

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 10 MARKET OVERVIEW

RETAIL is the only mall anchored by major department stores within city limits, while mall is adjacent to Long Beach. Until the 1950s, LONG BEACH Long Beach was the major retail hub between Los Angeles and Long Beach is a city in the U.S. state Santa Ana. Buffum's, Walker's and of located within the Los Robert's all had their flagship stores Angeles metropolitan area. It is in the city. Later the Long Beach troop transport. It was purchased by the 43rd most populous city in the Plaza and malls the City of Long Beach in 1967 for United States with a population of were built, since repurposed as conversion to a hotel and maritime RESIDENTS WITHIN A 462,257 in 2010. A charter city, Long retail power centers. The largest museum. 5-MILE TRADE AREA Beach is the 7th most populous city 539K+ shopping center within the city is in California. the , a The nonprofit Aquarium of the opened in 1999 on Pacific is on a 5-acre (20,000 m2) Incorporated in 1897, Long Beach site on Rainbow Harbor in Long EMPLOYEES WITHIN A lies in , more the site of the Long Beach Naval 5-MILE TRADE AREA Hospital Beach, across the water from the 221K+ precisely in the southern part of Long Beach Convention Center, Los Angeles County. Long Beach Sites of Interest Shoreline Village, and the Queen is approximately 20 miles (32 km) Mary Hotel and Attraction. temporia south of downtown Los Angeles, The RMS Queen Mary is a 1936 AVERAGE HH INCOME verum, odiossunt. WITHIN A 5-MILE TRADE AREA and is part of the Art Deco ocean liner permanently $84K+ region. The Port of Long Beach is docked at Long Beach. Roughly the second busiest container port 200 ft (61 m) longer than the RMS EDUCATION in the United States and is among Titanic, the former Cunard Liner Long Beach, California has two HOUSEHOLDS WITHIN A the world's largest shipping ports. is famous for being the fastest in public institutions dedicated to 184K+ 5-MILE TRADE AREA The city is over an oilfield with minor the world from 1936 to 1952, for higher education: California State wells both directly beneath the city its distinctive art deco design and University, Long Beach and Long as well as offshore. for its use during World War II as a Beach City College.

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 11 DEMOGRAPHICS

Area Overview

1 Mile 3 Mile 5 Mile Population

2020 Estimate 24,771 217,884 539,177

2025 Projection 24,459 216,183 534,486

2010 Census 24,882 211,963 528,582

Growth 2020-2025 -0.3% -0.2% -0.2%

Growth 2010-2020 - 0.3% 0.2%

Households

2020 Estimate 6,810 69,489 184,453

2025 Projection 6,959 71,298 189,042

2010 Census 6,558 64,321 173,383 DOWNEY Growth 2020-2025 0.4% 0.5% 0.5% LYNWOOD EL SEGUNDO Growth 2000-2020 0.4% 0.6% 0.4%

Average Household Income MANHATTAN GARDENA PARAMOUNT 2020 Estimate $78,994 $77,960 $84,542 BEACH

2020 Projection $74,808 $72,001 $77,894 REDONDO 5 MILES BEACH 2010 Census $57,872 $56,593 $61,154 TORRANCE Growth 2020-2025 3.6% 3.6% 3.9% 3 MILES

Growth 2000-2020 3.1% 3.8% 3.7% LOMITA 1 MILE 2020 Estimate Per Capita $21,949 $25,048 $29,062

2025 Estimate Per Capita $26,583 $27,808 $27,939 ROLLING HILLS LONG BEACH SUBJECT Employment RANCHO PROPERTY PALOS VERDES SAN Total Businesses 568 10,423 22,242 PEDRO

Total Employees 5,916 114,517 221,667

1023-1031 E 4TH STREET  OFFERING MEMORANDUM  KIDDER MATHEWS 12 EXCLUSIVELY REPRESENTED BY

ALI LODIN Associate 949.872.8591 [email protected] LIC N° 02090525

RYAN SHARPE Vice President 310.893.3397 [email protected] LIC N° 01940376

KIDDER.COM