4177 S Normandie 4177 S Normandie, CA 90037 4 units | 4+4/4+3 Townhouses with Sundeck

O F F E R I N G M E M O R A N D U M 4177 S Normandie

CONTENTS

01 Executive Summary 05 Financial Analysis Investment Summary 5 Income & Expense Analysis 20 Unit Mix Summary 7 Multiyear Cash Flow Assumptions 21 Location Summary 8 Cash Flow Analysis 22 Disposition Sensitivity Analysis 24

02 Property Description Property Features 10 Aerial Map 11 Parcel Map 12

03 Rent Comps Rent Comparables 14

04 Sale Comps Sale Comparables Summary 18

Exclusively Marketed by:

Aram Afshar Goran Vujanovic Broker Luxury Sales Associate (310) 385-3174 (323) 979-5867 License # 01484569 License # 02038459 [email protected] [email protected]

We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. 4177 S Normandie Confidentiality and Disclaimer | 03

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Coldwell Banker Residential Brokerage and it should not be made available to any other person or entity without the written consent of Coldwell Banker Residential Brokerage.

By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property, please promptly return this offering memorandum to Coldwell Banker Residential Brokerage. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Coldwell Banker Residential Brokerage 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, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or 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 offering memorandum has been obtained from sources we believe reliable; however, Coldwell Banker Residential Brokerage has not verified, and will not verify, any of the information contained herein, nor has Coldwell Banker Residential Brokerage 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT COLDWELL BANKER RESIDENTIAL BROKERAGE FOR MORE DETAILS. Copyright © 2019 CREOP, LLC. All Rights Reserved. 4177 S NORMANDIE S 4177

Executive Summary Investment Summary Unit Mix Summary Location Summary ...... 01

4177 S Normandie | Executive Summary 4177 S Normandie Investment Summary | 05

OFFERING SUMMARY PROPOSED FINANCING ADDRESS 4177 S Normandie LOAN 1 Los Angeles CA 90037 LOAN TYPE Fully Amortized COUNTY Los Angeles DOWN PAYMENT $573,750 BUILDING SF 5,934 LOAN AMOUNT $1,721,250 LAND SF 6,215 INTEREST RATE 3.50 % NUMBER OF UNITS 4 ANNUAL DEBT SERVICE $92,754 YEAR BUILT 2019 LOAN TO VALUE 75 % CAP RATE 6.7% AMORTIZATION PERIOD 30 Years APN 5021-016-041 NOTES 30 Yr Fixed OWNERSHIP TYPE Other LOAN 2 FINANCIAL SUMMARY LOAN TYPE Fully Amortized OFFERING PRICE $2,295,000 DOWN PAYMENT $459,000 PRICE PSF $386.75 LOAN AMOUNT $1,836,000 PRICE PER UNIT $573,750 INTEREST RATE 3.88 % OCCUPANCY 100.00 % ANNUAL DEBT SERVICE $103,662 NOI (PROJECTED) $154,228 LOAN TO VALUE 80 % AMORTIZATION PERIOD 30 Years NOTES 30 Yr Fixed

LOAN 3 LOAN TYPE Fully Amortized DOWN PAYMENT $229,500 LOAN AMOUNT $2,065,500 INTEREST RATE 4.13 % ANNUAL DEBT SERVICE $120,199 LOAN TO VALUE 90 % AMORTIZATION PERIOD 30 Years NOTES 30 Yr Fixed 4177 S Normandie Investment Summary | 06

Amazing 6.7% projected CAP rate 4177 S. Normandie Ave is a 4 unit multifamily property built in 2019. It consists of two separate buildings, each building has 2 units. The front building has two 4 bed, 4 bath townhomes each with a roof top sun deck. Opportunity zone property Rear building has two 4 bed, 3 bath townhomes each with a roof top sun deck. This is an excellent 2019 new construction building to add to your investment portfolio. This fourplex is located in the heart of Los Angeles, 5 minutes from USC ( University of Southern ) very close to USC. Easily rentable to USC students, which usually pay around $1,100/month per room. Each unit has roof top sundeck STYLE: Modern Farm House

Due to the high quality of construction, the property is very low maintenance

Great way to obtain easy, passive income!

Excellent unit mix of two 4 bedroom/4 bath and two 4 bedroom/3 bath 4177 S Normandie Unit Mix Summary | 07

Actual Market Unit Mix # Units Square Feet Current Rent Rent PSF Monthly Income Market Rent Market Rent Market Income PSF 4 bd + 4 ba 1 1,572 $4,200 $2.67 $4,200 $4,200 $2.67 $4,200 4 bd + 4 ba 1 1,572 $4,200 $2.67 $4,200 $4,200 $2.67 $4,200 4 bd + 3 ba 1 1,395 $4,200 $3.01 $4,200 $4,200 $3.01 $4,200 4 bd + 3 ba 1 1,395 $4,200 $3.01 $4,200 $4,200 $3.01 $4,200 Totals/Averages 4 1,484 $4,200 $2.84 $16,800 $4,200 $2.84 $16,800 4177 S Normandie Location Summary | 08

The property is conveniently located in the district. Our property is located 1.4 mi from University of Southern California (USC),0.8 mi from LA Memorial Coliseum,1.2 mi from Natural History Museum of Los Angeles County and 1.8 mi from California Science Center.The property is around 4.3 miles from Microsoft Theater, 3.6 miles from Staples Center and L.A. Live. The nearest airport is Los Angeles International Airport (LAX) 8.9 miles.

LAUSD has 12 schools within Vermont Square. They are: *Manual Arts Senior High School, LAUSD, 4131 South Vermont Avenue, a high school just across the street from the Los Angeles Memorial Coliseum. *Manual Arts Community Adult School, LAUSD, 4131 South Vermont Avenue *Barack Obama Global Preparatory Charter Academy, LAUSD, 1708 West 46th Street *Lou Dantzler Preparatory Charter Middle School, LAUSD, 5029 South Vermont Avenue *Global Education Academy, LAUSD charter, 4141 South Figueroa Street *Menlo Avenue Elementary School, LAUSD, 4156 Menlo Avenue *Normandie Avenue Elementary School, LAUSD, 4506 South Raymond Avenue *Dr. James Edward Jones Primary Center, LAUSD, 1017 Locator Map West 47th Street *Garr Academy of Math and Entrepreneurial Studies, LAUSD charter, 5101 South Western Avenue *Fifty-Second Street Elementary School, LAUSD, 816 West 51st Street *Western Avenue Elementary School, LAUSD, 1724 West 53rd Street *Lou Dantzler Preparatory Charter Elementary School, LAUSD, 1260 West 36th Street Parks and Libraries The century-old Vermont Square Branch Library sits in Vermont Square Park. 49th Street Park, located at 670 E. 49th Street, features a children's play area and benches. Vermont Square Park, located at 1248 West 47th Street, is opposite the Vermont Square branch library.It contains barbecue pits, basketball courts, a children's play area and picnic tables. The Vermont Square Branch library is located at 1201 W. 48th Street. The oldest branch library in the Los Angeles Public Library system, it was built in 1913 with a grant from Andrew Carnegie and is one of three surviving Carnegie libraries in Los Angeles. It is a designated a Historic- Cultural Monument and listed on the National Register of Historic Places. To direct visitors, there is city-installed signage on Vermont Avenue at 48th Street, on King Boulevard at Budlong Avenue, and on Normandie Avenue at 48th Street. 4177 S NORMANDIE S 4177

Property Description Property Features Aerial Map Parcel Map ...... 02

4177 S Normandie | Property Description 4177 S Normandie Property Features | 10

PROPERTY FEATURES NUMBER OF UNITS 4 BUILDING SF 5,934 LAND SF 6,215 PARKING SF 1712 YEAR BUILT 2019 CAP RATE 6.7% # OF PARCELS 1 ZONING TYPE R 1.5 FRONT BLDG. SF INCLUDING 3518 PARKING REAR BLDG. SF INCLUDING 3754 PARKING TOTAL RENT INCOME 16800/month TOPOGRAPHY Flat NUMBER OF STORIES 3.5 NUMBER OF BUILDINGS 2 NUMBER OF PARKING SPACES 6 covered 2 uncovered POOL / JACUZZI NO FIRE PLACE IN UNIT NO WASHER/DRYER IN UNIT

CONSTRUCTION FOUNDATION CONCRETE FRAMING WOOD EXTERIOR STUCCO/WOOD ROOF METAL/WOOD 4177 S Normandie Aerial Map | 11 4177 S Normandie Parcel Map | 12 4177 S NORMANDIE S 4177

Rent Comps Rent Comparables Details ...... 03

4177 S Normandie | Rent Comps 4177 S Normandie Rent Comparables | 14

Unit Mix and Rent Schedule 1 Unit Mix # of Units Square Feet Rent Rent per SF 3 bd + 3 ba 2 1,342 $3,595 $2.67 Total/Avg 2 1,342 $3,595 $2.67

Unit Mix Breakdown

1135 Leighton Ave, Los Angeles, CA 90037

Property Summary UNITS 4 YEAR BUILT 2019 DISTANCE 0.6 miles 4177 S Normandie Rent Comparables | 15

Unit Mix and Rent Schedule 2 Unit Mix # of Units Square Feet Rent Rent per SF 3 bd + 3 ba 3 1,305 $3,195 $2.44 Total/Avg 3 1,305 $3,195 $2.44

Unit Mix Breakdown

1273 W 39th St, Los Angeles, CA 90037

Property Summary UNITS 3 YEAR BUILT 2016 DISTANCE 0.6 miles 4177 S Normandie Rent Comparables | 16

Unit Mix and Rent Schedule S Unit Mix # of Units Square Feet Rent Summary Rent per SF 4 bd + 4 ba 1 1,572 $4,200 $2.67 4 bd + 4 ba 1 1,572 $4,200 $2.67 4 bd + 3 ba 1 1,395 $4,200 $3.01 4 bd + 3 ba 1 1,395 $4,200 $3.01 Totals/Averages 4 1,484 $4,200 $2.84

Unit Mix Breakdown

4177 S Normandie 4177 S Normandie, Los Angeles, CA 90037

Property Summary UNITS 4 YEAR BUILT 2019 Comparables Rent Analysis OCCUPANCY 100.00 % 4 bd + 4 ba $4,200 - $4,200

Notes 4177 S Normandie LOW HIGH

4 bd + 4 ba $4,200 - $4,200 LOW HIGH

4 bd + 3 ba $4,200 - $4,200 LOW HIGH

4 bd + 3 ba $4,200 - $4,200 LOW HIGH 4177 S NORMANDIE S 4177

Sale Comps Sale Comparables Summary ...... 04

4177 S Normandie | Sale Comps 4177 S Normandie Sale Comparables Summary | 18

PROPERTY Units Built Sale Price Price/Unit PSF Cap Rate Close Date DISTANCE (mi)

1 4112 S Normandie Ave Los Angeles, CA 90037 4 2019 $2,350,000 $587,500 $424.03 0.07

2 1121 W 39th Pl Los Angeles, CA 90037 4 2017 $2,390,000 $597,500 $487.76 5.05% 0.70

3 1135 Leighton Ave Los Angeles, CA 90037 4 2019 $2,297,500 $574,375 $412.40 5.29% 8/6/2019 0.60

4 3944 Budlong Ave Los Angeles, CA 90037 4 2019 $2,297,500 $574,375 $418.72 5.19% 8/6/2019 0.70

AVERAGES 4 2018 $2,333,750 $583,438 $435.73 5.18% SUBJECT 4 2019 $2,295,000 $573,750 $386.75 4177 S NORMANDIE S 4177

Financial Analysis Income & Expense Multiyear Cash Flow Assumptions Multiyear Cash Flow Projections Disposition Sensitivity Analysis ...... 05

4177 S Normandie | Financial Analysis 4177 S Normandie Income & Expense Analysis | 20

INCOME PROJECTED REVENUE ALLOCATION Effective Gross Income $201,600 Less: Expenses $47,372 Net Operating Income $154,228 Principal Reduction $99,833 $99,833 Total Return -17.2 % ($216,782) -5.0 % ($62,554)

EXPENSES Per Unit PROJECTED DISTRIBUTION OF EXPENSES Real Estate Taxes $6,875 $27,500 Insurance $1,650 $6,600 Repairs & Maintenance $1,818 $7,272 Water / Sewer $600 $2,400 Utilities $900 $3,600 Total Operating Expense $11,843 $47,372 Consolidated Loans $79,154 $316,615 $79,154 $316,615 % of EGI 23.50 %

Expense Notes: REAL ESTATE PROPERTY TAXES 1.25% HOME INSURANCE 0.3% REPAIRS& MAINTENANCE $1/sq ft 4177 S Normandie Multiyear Cash Flow Assumptions | 21

GLOBAL PROPOSED FINANCING Sale Price $2,295,000 LOAN 1 Analysis Period 10 year(s) Loan Type Fully Amortized Exit CAP Rate 6.70 % Down Payment $573,750 Loan Amount $1,721,250 INCOME Interest Rate 3.50 % Gross Potential Rent 3.00 % Annual Debt Service $92,754 Loan to Value 75 % EXPENSES Amortization Period 30 Years Real Estate Taxes 1.25 % Notes 30 Yr Fixed Insurance 0.30 % Repairs & Maintenance 3.60 % LOAN 2 Loan Type Fully Amortized Down Payment $459,000 Loan Amount $1,836,000 Interest Rate 3.88 % Annual Debt Service $103,662 Loan to Value 80 % Amortization Period 30 Years Notes 30 Yr Fixed

LOAN 3 Loan Type Fully Amortized Down Payment $229,500 Loan Amount $2,065,500 Interest Rate 4.13 % Annual Debt Service $120,199 Loan to Value 90 % Amortization Period 30 Years Notes 30 Yr Fixed 4177 S Normandie Cash Flow Analysis | 22

CASH FLOW Calendar Year Year1 PROJECTE Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 D Gross Potential Revenue Gross Rental Income $201,600 $207,648 $213,877 $220,294 $226,903 $233,710 $240,721 $247,943 $255,381 Gross Potential Income $201,600 $207,648 $213,877 $220,294 $226,903 $233,710 $240,721 $247,943 $255,381 Effective Gross Income $201,600 $207,648 $213,877 $220,294 $226,903 $233,710 $240,721 $247,943 $255,381 Operating Expenses Real Estate Taxes $27,500 $27,844 $28,192 $28,544 $28,901 $29,262 $29,628 $29,998 $30,373 Insurance $6,600 $6,620 $6,640 $6,660 $6,680 $6,700 $6,720 $6,740 $6,760 Repairs & Maintenance $7,272 $7,534 $7,805 $8,086 $8,377 $8,679 $8,991 $9,315 $9,650 Water / Sewer $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 $2,400 Utilities $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 $3,600 Total Operating Expense $47,372 $47,997 $48,636 $49,290 $49,958 $50,641 $51,339 $52,053 $52,784 Net Operating Income $154,228 $159,651 $165,241 $171,004 $176,945 $183,069 $189,382 $195,890 $202,597 Consolidated Loans $316,615 $316,615 $316,615 $316,615 $316,615 $316,615 $316,615 $316,615 $316,615 $316,615 Cash Flow ($316,615) ($162,387) ($156,965) ($151,374) ($145,611) ($139,670) ($133,546) ($127,233) ($120,726) ($114,018)

Effective Gross Income vs Operating Expenses Cash Flow 4177 S Normandie Cash Flow Analysis | 23

Calendar Year Year1 PROJECT Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 ED Financial Metrics Cash on Cash Return b/t -25.08 % -12.86 % -12.44 % -11.99 % -11.54 % -11.07 % -10.58 % -10.08 % -9.56 % -9.03 % Price / SF $386.75 $386.75 $386.75 $386.75 $386.75 $386.75 $386.75 $386.75 $386.75 $386.75 Price / Unit $573,750 $573,750 $573,750 $573,750 $573,750 $573,750 $573,750 $573,750 $573,750 $573,750 4177 S Normandie Disposition Sensitivity Analysis | 24

5 YEAR SENSITIVITY ANALYSIS EXIT CAP RATE PROJECTED SALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER IRR SALES PRICE LOAN PAYOFF 5.70% $3,000,070 $750,018 $506 ($2,144,771) -100.00% 5.95% $2,874,017 $718,504 $484 ($2,270,825) -100.00% 6.20% $2,758,129 $689,532 $465 ($2,386,712) -100.00% 6.45% $2,651,225 $662,806 $447 ($2,493,617) -100.00% 6.70% $2,552,299 $638,075 $430 ($2,592,543) -100.00% 6.95% $2,460,489 $615,122 $415 ($2,684,352) -100.00% 7.20% $2,375,056 $593,764 $400 ($2,769,786) -100.00% 7.45% $2,295,356 $573,839 $387 ($2,849,486) -100.00% 7.70% $2,220,831 $555,208 $374 ($2,924,010) -100.00%

10 YEAR SENSITIVITY ANALYSIS EXIT CAP RATE PROJECTED SALES PRICE/UNIT SALES PRICE PSF PROCEEDS AFTER IRR SALES PRICE LOAN PAYOFF 5.70% $3,554,339 $888,585 $599 ($1,153,293) -100.00% 5.95% $3,404,997 $851,249 $574 ($1,302,635) -100.00% 6.20% $3,267,698 $816,925 $551 ($1,439,933) -100.00% 6.45% $3,141,043 $785,261 $529 ($1,566,588) -100.00% 6.70% $3,023,840 $755,960 $510 ($1,683,791) -100.00% 6.95% $2,915,069 $728,767 $491 ($1,792,562) -100.00% 7.20% $2,813,851 $703,463 $474 ($1,893,780) -100.00% 7.45% $2,719,427 $679,857 $458 ($1,988,205) -100.00% 7.70% $2,631,134 $657,783 $443 ($2,076,498) -100.00% 4177 S Normandie

Exclusively Marketed by:

Aram Afshar Goran Vujanovic Broker Luxury Sales Associate (310) 385-3174 (323) 979-5867 License # 01484569 License # 02038459 [email protected] [email protected]

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