For Sale 5 Units | Walking Distance to 1236 & 1238 W

Home , Los Angeles FC

FOR SALE 5 UNITS | WALKING DISTANCE TO 1236 & 1238 W. 30th St. THE UNIVERSITY OF SOUTHERN CALIFORNIA (USC) Los Angeles, CA 100% LEASED THROUGH www.West30thUSC.com 2019-2020 ACADEMIC YEAR

SUBJECT PROPERTIES

PRICE: $3,295,000 C A P R A T E : 5.72%

LAURIE LUSTIG-BOWER KAMRAN PAYDAR THOMAS M. SMITH Executive Vice President Senior Sales Director First Vice President +1 310 550 2556 +1 310 550 2529 +1 408 453 7475 [email protected] [email protected] [email protected] Lic. 00979360 Lic. 01242590 Lic. 00837106 SOUTH VERMONT AVENUE

TABLE OF CONTENTS

4 EXECUTIVE SUMMARY

WEST 30TH PLACE

10 PROPERTY PHOTOS 1236 30TH STREET 1238 & 1238 ½ W 30TH STREET 26 FLOORPLANS

30 FINANCIAL ANALYSIS

33 AREA OVERVIEW

LAURIE LUSTIG-BOWER Executive Vice President +1 310 550 2556 [email protected] Lic. 00979360 WEST 30TH STREET KAMRAN PAYDAR Senior Sales Director +1 310 550 2529 [email protected] Lic. 01242590

THOMAS M. SMITH First Vice President +1 408 453 7475 [email protected] Lic. 00837106 REGIONAL MAP

1236 30TH STREET 1238 & 1238 ½ W 30TH STREET

Pacific Ocean

CBRE 3 THE OPPORTUNITY

CBRE, Inc., as exclusive agent is pleased to present for sale a 5-unit apartment community located within walking distance to the University of Southern California (USC). The Property consists of a well-maintained triplex built in 1907 and a duplex built in 2015.

Located at 1236 W. and 1238-38 ½ W. 30th Street the Property offers a combination of vintage architectural detail and best-in-class modern construction standards. The Property is fully gated and includes spacious units, garaged parking, and outdoor common areas with gas barbeque and a hot tub.

Unit amenities include in-unit washers and dryers, stainless steel kitchen appliances, air conditioning, tiled showers with glass enclosures, wall-mounted flat screen televisions and USB charging ports.

The USC multifamily submarket is severely USC has projected significant continued student undersupplied relative to current student enrollment enrollment growth through 2030. Between 75% and will continue to experience unmet need as and 80% of USC students live off-campus, and student enrollment increases into the future. The with enrollment comprised of more graduate and subject property is already fully leased for the professional students than undergraduate students, 2019-20 school year with rent increases as much the on-campus stock severely underserves the nearly as $150 to $200 per unit over the current school 24,000 graduate students in particular with only year rents. 580 beds. The influx of students continues to fuel demand for off-campus housing near the school. The University of Southern California, currently enrolling 45,500 undergraduate, graduate, and The Property is located within the USC Public Safety professional students, is one the most prestigious Patrol Area and is also within the USC Transportation universities in the United States. Along with its College Campus Cruiser service boundaries, one of the of Letters, Arts, and Sciences the University features largest student-run safe ride home programs in the 21 professional schools and units, is allocated $764 country. million in annual sponsored research, and maintains a renowned athletics program. PRICE: $3,295,000 USC has seen a 52% increase in first-year applications CAP RATE: 5.72% since 2011, is a top university destination for international student enrollment and is ranked #15 on the Wall Street Journal/Times Higher Education College Rankings 2018. CBRE 4 INVESTMENT SUMMARY

INVESTMENT AND LOCATION HIGHLIGHTS

• Well-maintained asset that includes 2015 construction • Property has demonstrated 100% historical occupancy (except during 1-week turnover in August) • Parent-guaranteed leases (zero percent historical bad debt) • One-year lease terms • Located within walking distance to University of Southern California (USC), a thriving, growing and international institution with a $5.1 billion endowment • Located within the USC Public Safety Patrol Area • Rents for non-USC-owned off-campus housing inside the Public Safety-patrolled area have higher rents than apartments outside the zone • Strong Rental Unit Demand Drivers • USC experienced first-year application growth of 52% and first-year enrollment grown of 15% from Fall 2011 to Fall 2017

5 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM INVESTMENT SUMMARY

INVESTMENT AND LOCATION HIGHLIGHTS (Continued)

• Fully Leased Through 2019-2020 Academic Year

• Two Blocks from University of South California

• Located Within USC Safety Patrol Zone

• Triplex and Newly Built Duplex (2015)

• Continued demand due to increasing university enrollment and shortage of student housing

• Only 20%-25% of the student body are housed on campus leaving 33,000 students to find alternative living accommodations • USC has projected significant continued student enrollment growth through 2030 • Located within the high barriers and high cost to entry Los Angeles and USC markets, which helps protect values. • Walking distance to USC shops and restaurants • Located within the USC Transportation Campus Cruiser service boundaries, one of the largest student-run safe ride home programs in the country • Convenient access to DASH transit shuttle, USC Tram and Metro Bus stops • USC is ranked #15 on the Wall Street Journal/Times Higher Education College Rankings 2018 • USC has one of the most affluent student body populations in the country

6 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM PROPERTY DESCRIPTION

UNIT MIX 1236 W 30th St 1238-38 W 30th St ADDRESS ½ 1236 W 30th 1238-38½ W 30th Los Angeles, CA

Triplex and Duplex Unit 1 3 BR / 2 BA 3 BR / 2 BA

# OF UNITS 5 Unit 2 0 BR / 1 BA 3 BR / 3 BA

YEAR BUILT 1907 and 2015 Unit 3 4 BR / 2 BA

OCCUPANCY 100%

Unit 1 - Driveway Garage - 2 Tandem Parking Unit 2 - 1 Garage Space Spaces per Unit Unit 3 - 4 Gated Spaces

BUILDING SIZE 2,598 and 2,697

LOT SIZE 6,951

utilities Trash, Montly Maid Service - Landlord Water, Gas, Electric - Tenant SUBJECT PROPERTY mechanical Central Air and Heating

apn 5039-001-050

CAP RATE 5.72%

GRM 12.2 VERMONT AVE PRICE $3,295,000

7 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM AERIAL MAP

1236 30TH STREET 1238 & 1238 ½ W 30TH STREET

USC VILLAGE

USC CAMPUS

Expo Line to 8 Downtown1236 and 1238-38½ Santa Monica W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM

Layout ID:L04 MapId:5206032 UNIT AMENITIES 1236 W 30TH STREET 1238-38½ W 30TH STREET • Washers & Dryers on Site • In-Unit Washers and Dryers • Hardwood Floors • Recessed Lighting Throughout • Tiled Floors • Custom Cabinetry • Quartzstone Counter Tops • Quartzstone Counter Tops • Stainless Steel Appliances • Stainless Steel Appliances • Gas Stove and Oven • Raised Dining Bar • Dishwasher • Dishwasher • Water Filtration System • Water Filtration System • Air Conditioning • Garbage Disposal • Modern Vanities • Subway Tile Shower Stalls • Tiled Showers • Glass Shower Enclosures • Glass Shower Enclosures • A/C and Heating with • Mini Blinds Individual Unit in Each Room • Large Front Private Patio • Private Bath (Unit 1) • Large Closets • USB Charging Ports in Each • Mini Blinds Bedroom (Units 2 & 3) • Balconies • Wall Mounted Flat Screen TV • Wall Mounted Flat Screen TV • USB Charging Stations

SHARED AMENITIES • Outdoor Common Area with Gas BBQ • Hot Tub • Garaged Parking with Automatic Door Opener • Fully Gated Property

9 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

10 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 1 - 3 BEDROOM, 2 BATH

11 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 1 - 3 BEDROOM, 2 BATH

12 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 1 - 3 BEDROOM, 2 BATH

13 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 2 - SINGLE, FULLY FURNISHED

14 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 2 - SINGLE, FULLY FURNISHED

15 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 3 “PENTHOUSE” - 4 BEDROOM, 2 BATH

16 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 3 “PENTHOUSE” - 4 BEDROOM, 2 BATH

17 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 3 “PENTHOUSE” - 4 BEDROOM, 2 BATH

18 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

UNIT 3 “PENTHOUSE” - 4 BEDROOM, 2 BATH

19 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 30TH STREET

COMMON YARD WITH BBQ & HOT TUB

20 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1238-38½ W 30TH STREET

21 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1238-38½ W 30TH STREET

KITCHEN

22 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1238-38½ W 30TH STREET

LIVING ROOM

23 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1238-38½ W 30TH STREET

BATH

24 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1238-38½ W 30TH STREET

BEDROOM

25 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 W 30TH STREET

26 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM FLOOR PLANS 1238 W 30TH STREET

UNIT 3

27 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM FLOOR PLANS 1238 W 30TH STREET

28 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM FLOOR PLANS 1238½ W 30TH STREET

29 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM FLOOR PLANS 1236 W 30TH STREET 1238-38½ W 30TH STREET

Los Angeles

CALIFORNIA

FINANCIAL ANALYSIS FINANCIAL ANALYSIS

1236 - 1238 1/2 W 30TH STREET, LOS ANGELES, CA 90007 RENT ROLL

Unit Number SF Type Aug 2017 to Jul 2018 Aug 2018 to Jul 2019 Aug 2019 to Jul 2020* 1236.1 1,139 3 + 2 $4,400 $4,550 $5,000 1236.2 233 Single $1,350 $1,390 $1,430 1236.3 1,325 4 + 2 $5,500 $5,650 $5,900 1238.4 1,054 3 + 2 $4,300 $4,500 $5,000 1238.5 1,054 3 + 3 $4,560 $4,700 $5,200 4,805 $20,110 $20,790 $22,530 * 100% pre-leased for the 2019-2020 school year.

CBRE 31 FINANCIAL ANALYSIS

1236 - 1238 1/2 W 30TH STREET, LOS ANGELES, CA 90007 CURRENT OPERATIONS 1.00 INVESTMENT PRO FORMA HISTORICAL OPERATIONS ESTIMATED INCOME Annual % of EGI Per Unit Comments 2017 Rent Income $22,530 per mon. $270,360 101.9% $54,072 Per 2019-2020 Scheduled Rent $245,796 Total Scheduled Gross Income $270,360 101.9% $54,072 $245,796 Vacancy 2.0% of SGI ($5,407.20) -2.0% ($1,081) Estimated $0 Total Net Rental Income $264,953 99.9% $52,991 $245,796 Other Income $25 per mon. $300 0.1% $60 Estimated $0 TOTAL ESTIMATED INCOME $265,253 100.0% $53,051 $245,796

ESTIMATED EXPENSES Annual % of Exp. % of EGI Per Unit 2017 Property Taxes 1.193027% of est. price $39,310 51.1% 14.8% $7,862 Per LA County Tax Assessor $13,208 Direct Assessments $484 0.6% 0.2% $97 Per LA County Tax Assessor $0 Business Taxes $514 0.7% 0.2% $103 Estimated $0 Insurance $0.40 per GSF $2,118 2.8% 0.8% $424 Estimated $2,774 Management Fee 5.0% EGI $13,263 17.3% 5.0% $2,653 Estimated $11,878 Electricity $63 per mon. $750 1.0% 0.3% $150 2018 Budget $498 Water & Sewer $175 per mon. $2,100 2.7% 0.8% $420 2018 Budget $0 Cleaning $400 per mon. $4,800 6.2% 1.8% $960 2018 Budget $4,800 Turnover $320 per unit $1,600 2.1% 0.6% $320 2018 Budget $1,600 Repairs and Maintenance $1,219 per unit $6,095 7.9% 2.3% $1,219 2018 Budget $3,496 Spa Service $90 per mon. $1,080 1.4% 0.4% $216 2018 Budget $1,080 Extermination $63 per mon. $750 1.0% 0.3% $150 2018 Budget $925 Landscaping $120 per mon. $1,440 1.9% 0.5% $288 2018 Budget $240 Trash Removal $215 per mon. $2,580 3.4% 1.0% $516 2018 Budget $2,655 TOTAL ESTIMATED EXPENSES $76,884 100.0% 29.0% $15,377 $43,444

ESTIMATED NET OPERATING INCOME $188,369 71.0% $37,674 $202,352

This broker opinion of value was prepared solely for the client for the purpose and function stated in the report and is not intended for subsequent use. It was not prepared by a licensed or Price $3,295,000 certified appraiser and may not comply with the appraisal standards of the Uniform Standards of Professional Appraisal Practice. Capitalization Rate 5.72% Gross Rent Multiplier 12.2 Est. Sales Price Per Unit $659,000 Unit Type Units Mix Avg SF Avg Rent Rent/SF Price Per Sq. Ft. $622 Single 1 20.0% 233 $1,390 $5.97 Number of Units 5 3 + 2 2 40.0% 1,097 $4,525 $4.13 Est. Expenses Per Unit $15,377 3 + 3 1 20.0% 1,054 $4,700 $4.46 Est. Expenses Minus Taxes Per Unit $7,418 4 + 2 1 20.0% 1,325 $5,650 $4.26 Est. Expenses Per Sq. Ft. $14.52 Total 5 100.0% 961 $4,158 $4.33 Bldg. Sq. Ft. 5,295 © 2018 CBRE, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty Year Built 1907/2015 or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only APN 5039-001-050 and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, Zip Code 90007 financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

32 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM 1236 W 30TH STREET 1238-38½ W 30TH STREET

Los Angeles

CALIFORNIA

AREA OVERVIEW AREA POINTS OF INTEREST

POINTS OF INTEREST

1236 30th street DRIVING DISTANCE 1238 & 1238 ½ W 30TH STREET FROM 1236-38 W 30TH STREET TO:

USC CAMPUS 2 MINS

USC VILLAGE 2 MINS

LOS ANGELES MEMORIAL COLISEUM 4 MINS

STAPLES CENTER/LA LIVE 9 MINS

FIG@7TH 12 MINS

GRAND CENTRAL MARKET 12 MINS

© 2018 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. WALT DISNEY CONCERT HALL 12 MINS Layout ID:L04 MapId:5303806 AREA MAP © 2018 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced.

Layout ID:L04 MapId:5303806

34 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM

NEARBY AMENITIES

1236 30th street 1238 & 1238 ½ W 30TH STREET

Expo Line to Downtown Santa Monica

35 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM

Layout ID:P03 MapId:5303849

»» Convenient access to the 110, 10 and 101 Freeways with linkages to Greater Los Angeles, Southern California and beyond.

»» Area will benefit from the $20 Million Figueroa Corridor Streetscape Project. Funded by a Proposition 1C grant under the custodianship of the Community Redevelopment Agency of Los Angeles and launched in 2010, the Project aims to better support community life, economic development and mobility along an iconic

3.5 mile section of Figueroa extending from 1236 30th street Exposition Park/USC to Staples Center and 1238 & 1238 ½ W 30TH STREET Downtown Los Angeles. Improvements to include landscaped medians, parkways with street trees

and pedestrian lighting, new transit stops and P A C I F I C more. As of Spring 2018 the Project is nearing OCEAN completion. (myfigueroa.com)

»» Proximate to Expo Line light rail with access from USC to Downtown Los Angeles and Santa Monica.

36 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM UNIVERSITY OF SOUTHERN CALIFORNIA

OVERVIEW Located in Los Angeles, a global center for arts, technology and international trade, the University of Southern California is one of the world’s leading private research universities. USC is a top destination for international students, with the second-highest international student enrollment of any U.S. university, and offers extensive opportunities for internships and study abroad. With a strong tradition of integrating liberal and professional education, USC fosters a vibrant culture of public service and encourages students to cross academic as well as geographic boundaries in their pursuit of knowledge.

USC ACADEMIC UNITS

Letters, Arts and Sciences Gerontology Accounting Law Architecture Medicine Business Music Cinematic Arts Occupational Therapy Communication Pharmacy Journalism Physical Therapy Dentistry Policy, Planning, and Development Education Social Work

37 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM USC SUB-MARKET SUPPLY/DEMAND

USC Department of Public Safety University Park Campus Patrol and Response Boundary The subject property is located in the Los Angeles USC submarket and competes with on- and off-campus University-owned and privately-owned apartments. Current demand for student housing substantially exceeds the supply of housing provided by USC.

Out of a total USC student population of approximately 45,500, 1236 30th street USC receives approximately 10,000 applications for housing 1238 & 1238 ½ W 30TH Patrol and Response Area each year. USC only provides 6,675 residential beds, situated STREET The USC DPS Patrol and Response Area refers to the community surrounding in approximately 2,977 units in 11 facilities on the campus and the University Park Campus where DPS patrols and responds to calls for service 3,698 units in 33 facilities in the area around the campus. 24 hours a day, 365 days a year. These off-campus units include two large complexes adjacent to the campus, Cardinal Gardens and Century, located across Jefferson Boulevard from the campus. These two complexes contain approximately 1,200 units. The next closest units to the campus are in Troy Hall and Troy Hall East, located north of 32nd Street, which contain approximately 715 units. The remaining off-campus units owned by USC are generally located farther away from campus, north of 30th Street and south of Adams Boulevard. Legend µ University Park Campus The subject property is located within the northern portion of Patrol and Response Area Sources: Esri, DeLorme, NAVTEQ, USGS, Intermap, iPC, NRCAN, Esri Japan, the Public Safety Patrol Area. This is an area to the north and METI, Esri China (Hong Kong), Esri (Thailand), TomTom, 2012 Prepared by USC DPS Crime Analysis September 5, 2012 Miles 0 0.1 0.2 0.4 0.6 0.8 west of the USC campus in which a safety patrol routinely drives LEGEND the neighborhood. This area commands higher rents than USC Public Safety Patrol Area properties that are not located in the Public Safety Patrol Area. USC Campus

38 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM USC VILLAGE

USC Village USC Village, opened in the summer of 2017, is located within convenient walking distance of the subject property, on Jefferson Boulevard between Hoover Street and McClintock Avenue.

The $700 million project represents the biggest expansion ever of the University Park Campus, covering 15 acres and representing 1.2 million sq. ft. of residential, retail, dining, recreation, and public space.

The addition of 663 residential units were proposed by the University in an effort to relieve the shortfall of residential units in the submarket. Notwithstanding this new supply, the shortfall of residential units in the USC submarket will continue to persist. This supply shortfall combined with continued student enrollment growth at the University are expected to present favorable student housing investment dynamics into the foreseeable future.

39 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM USC Village is Located Within Walking Distance of the Property

USC Village covers 15 acres and comprises of eight residential colleges in six buildings with 663 residential units, a 30,000 sq. ft. fitness center, a grand plaza and 100,000 sq. ft. of CENTRAL PLANT retail. Anchor tenants include Target, specialty grocer Trader Joe’s, and Bank of America.

COWLINGS AND ILLIUM RESIDENTIAL COLLEGES

NEMIROVSKY AND BOHNETT RESIDENTIAL COLLEGES MCCARTHY HONORS RESIDENTIAL COLLEGE

CALE AND IRANI PRIAM RESIDENTIAL COLLEGE RESIDENTIAL COLLEGES

40 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM AMENITIES AND ATTRACTIONS

EXPOSITION PARK: Exposition Park is a collection of world-class museums, EXPOSITION PARK educational and sport facilities and entertainment venues. It is one of the top five tourist and visitor destinations in Southern California with approximately four million visitors each year. Within the 160-acre campus are the California Science Center, Natural History Musuem, and the African American Museum. Exposition Park will also be home to the planned Lucas Museum of Narrative Art which will house the personal art collection of acclaimed director George Lucas along with a Star Wars exhibit. The $1-billion museum broke ground in March 2018 and is scheduled for completion in 2021.

LA MEMORIAL COLISEUM: In addition to serving as home field for the USC Trojans since 1923, the landmark Los Angeles Memorial Coliseum will be home of the NFL Los Angeles Rams until the completion of the Los Angeles Stadium at Hollywood Park in 2020. Recently, the USC began its $270 million project to renovate the Coliseum including increasing seating capacity from 77,500 to 93,607.

BANC OF CALIFORNIA STADIUM/LOS ANGELES FC: This $350 million open-air soccer-specific stadium is currently under construction. Upon completion in May 2018 it will be home of the expansion Major League Scott team, Los Angeles FC (LAFC) and will boast a 86,000 sq. ft. grass field, a seating capacity of 22,000 and 125,000 sq. ft. of public walkways LA MEMORIAL COLISEUM and plazas and a swimming pool.

41 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM DOWNTOWN LOS ANGELES

DTLA Districts Downtown Los Angeles is bounded by the Los Angeles river to the east, 101 Hollywood Freeway to the Downtown Los Angeles north, the 10 Santa Monica Freeway on the south and just west of the 110 Harbor Freeway on the west. consists of many diverse Downtown Los Angeles features many of the city’s major arts institutions and sports facilities, a variety of districts with each area having skyscrapers and associated large multinational corporations, and an array of public art, unique shopping its own distinct characteristics opportunities and the hub of the city’s freeway and public transportation networks. and amenities for residents »» Broadway Theater & Downtown Los Angeles features one of the largest skylines in the United States, and its development has Commercial District continued in recent years. The skyline will continue to see rapid growth with a number of high profile Asia- »» Bunker Hill based developers building landmark projects. »» Central City West The renaissance of Downtown Los Angeles that began in the late 1990’s has attracted over $17.3 Billion »» Civic Center of investment. With many historic buildings having been converted into lofts, the transformation continues »» Chinatown today as numerous retail businesses and restaurants are opening, and new mid- and high-rise residential »» Fashion District buildings are being built and in the planning pipeline. »» Financial District »» Flower District Downtown LA’s residential growth has been unprecedented. Since the passage of the Adaptive Reuse »» Jewelry District Ordinance in 1999 more than 22,000 new housing units have been constructed in Downtown Los Angeles »» Little Tokyo and another 7,400 additional residential units are currently under construction. Of the new units 6,509 are »» South Park market rate rental units and 69 are affordable units. With a current 95% rental occupancy rate, the long »» Toy District term demand for housing is expected to be strong.

42 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM LOCAL AMENITIES AND ATTRACTIONS

STAPLES CENTER & LA LIVE STAPLES CENTER & LA LIVE: Staples Center is home to the Los Angeles Lakers (basketball), Los Angeles Clippers (basketball), Los Angeles Kings (hockey), and the Los Angeles Sparks (women’s basketball). This world- class arena hosts over 270 events a year and over four million visitors annually. The adjacent LA Live campus boasts the JW Marriott and Ritz Carlton hotel, Microsoft Theater, 18 restaurants, 3 night clubs, the Grammy Museum and a 14-screen Regal Cinema.

THE MUSIC CENTER THE MUSIC CENTER: The Music Center is Los Angeles’ performing arts destination. The campus consists of the Dorothy Chandler Pavilion (LA Opera), Ahmanson Theatre, Mark Taper Forum (Center Theatre Group), and the Frank Gehry-designed Walt Disney Concert Hall (Los Angeles Philharmonic and Los Angeles Mater Chorale). The Music Center also programs and manages Grand Park, a 12-acre greenspace located adjacent to the campus. The Music Center brings the world’s greatest artistic programs and events to Los Angeles, in addition to free community events, festivals, outdoor concerts and arts education.

43 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM LOCAL AMENITIES AND ATTRACTIONS

THE BROAD THE BROAD: Located adjacent to the Walt Disney Concert hall, The Broad is Los Angeles’ newest art museum. The $140-million museum was financed by philanthropist Eli Broad, after who it is named, and houses the Broad art collection. Admission to the museum’s permanent collection is free. The Broad’s permanent exhibits include works by Cindy Sherman, Jeff Koons, Roy Lichtensteinn and Andy Warhol. The museum was opened in September 2015 and attracted over 700,000 visitors in its first year.

GRAND CENTRAL MARKET grand central market: Grand Central Market has been in continuous operation since it first opened in 1917. Up to the early 2000’s, the market consisted primarily of grocers, butchers and delicatessens serving local residents. The renaissance of Downtown Los Angeles, and the recent food hall trend sweeping the U.S. has transformed the 30,000-square foot arcade in to a culinary destination. Grand Central Market gained national recognition when it was nominated for Best New Restaurant in 2014 by Bon Appetit Magazine. The market’s 35+ food stalls along with three produce markets reflect the vibrant and diverse culture of Los Angeles.

44 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM LOCAL AMENITIES AND ATTRACTIONS

FIG AT 7TH THE BLOC

ACE HOTEL

FIGAT7TH: Reopened in late 2012 after a $40 million makeover, FIGat7th is an open-air shopping mall located in the Financial District. Notable tenants include City Target, Nordstrom Rack, Zara, Sunglass Hut, H&M, MAC Cosmetics and L’Occitane. The center also features numerous restaurant and eatery options including California Pizza Kitchen, Loteria Grill, Morton’s Steakhouse, Mendocino Farms, Sprinkles Cupcakes, City Tavern, and Starbucks.

45 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM DOWNTOWN LOS ANGELES TRANSPORTATION

Downtown Los Angeles is the transportation hub of Southern California for EFFECTIVE FEBRUARY 1, 2 017 bus and rail and subway transit. Multiple modes of transportation provide DOWNTOWN LOS ANGELES A PATIR DEL 1 DE FEBRERO, 2017

convenient access for people to get into, and around Downtown Los Angeles. Chinese Bernard St Cultural Center

LEGEND/LEYENDA tS niaM

Gin Ling Way T Chinatown Route/Ruta A Gold Line Centennial St Station The Metro Blue, Red, Purple and Gold and Expo Lines deliver passengers from A Little Tokyo, City West T Figueroa Terrace Vignes St College St CHINATOWN Spring St Route/Ruta B Cleveland St New High St Alameda St Alpine St Broadway B Hill St outlying communities to majestic Union Station as well as Pershing Square, Chinatown, Financial District Yale St

Sunset Blvd Piper Route/Ruta D Grand Ave MTA Building Technical D Union Station, South Park B Center Ord St Union Station Civic Center and Staples Center and USC. Commuter trains arrive daily Ramirez St Route/Ruta E Library Cesar Chavez Ave Red/Purple/ Patsaouras E City West, Fashion District Gold Line/ Transit Plaza at Hollywood Fwy Olvera St Amtrak/ Union Station

& Plaza Metrolink Vignes St Center St from as far away as San Diego and Santa Barbara dropping off passengers Pasadena Fwy El Pueblo Arcadia St Route/Ruta F Historic Park Garey St F Santa Ana Fwy LADOT Federal Commercial St Financial District, Exposition Park, USC Transit Cathedral of Store Building City our Lady of Aliso St Geffen DWP Personnel Temple St the Angels Criminal LA Building at Union Station. DASH Pico Union/Echo Park Courts Mall Contemp. Ahmanson ywF robraH at MOCA Theater TempleLittl Ste Tokyo/ Arts District DASH Lincoln Heights/Chinatown Dept. of Mark Taper Judge John DAiso St Gold Line Water & Forum County CIVIC T yrduaeBPower Ave Hall of CENTER City City Japanese Station Music Hall American 2nd St Administration Civic Ctr Hall Hewitt St DASH Southeast Dorothy Center Red/Purple East National 1st St Chandler County /Line Museum Rose St Pavilion Courthouse Station 1st St Hundreds of Metro bus lines converge on the Downtown Center District. Alameda St DASH King-East 3rd St Walt LITTLE Disney 2nd St Traction

lliH tS Caltrans Metro Purple Line 2nd St Concert TOKYO Ave Hall Library Museum of ARTS Once in town, many workers and visitors catch the DASH buses. Surface Contemporary Japan DISTRICT Art (MOCA) America Metro Blue Line tS niaM Grand Theater A tS epoHBUNKER Central Little A 3rd St LAUSD HILL Market James Tokyo Metro Red Line Japanese Irvine Plaza Headquarters F Reagan American Wells Watercourt Garden tS ttiweH Fargo Bradbury State Cultural & tS kcirreM routes take passengers to USC and Exposition Park, the Fashion District, Museum at Calif. Bldg Office Community Central Ave Metro Gold Line Lucas Ave 4th St Plaza Bldg Center/Plaza Angels

tS rewolFcrosswalk 4th St

dnar vA e G Flight Metro Expo Line CITY WEST Pershing TOY Bunker Sq.Red & DISTRICT

r e u a g i o FtS Hill evilO St Purple Gladys Ave Line Towne St Union Station, Chinatown, Little Tokyo and more. Shuttles and other San Pedro St Bus stop - matches route color Steps 5th St

Station tS gnirpS Good Wall St Samaritan (Parada de Autobús - corresponde al T yawdaorB

Hospital B lpaM vA e e

St. Paul Ave Los Angeles St Angeles Los

rauqS e color de la ruta) 6th St City Central nihsreP g Bixel St Library 6th St T National St Julian San express ground transport options provide easy access from hotels within the Plaza Witmer St Multiple Route stop aa i VtS c n e l Visitor Info. FINANCIAL Center DISTRICT JEWELRY (Parada de Rutas Múltiples) DISTRICT Wilshire Blvd Downtown Center District to Burbank and Los Angeles International Airports. T T 7th St Point of Interest (Punto de Interés) T 7th St T T T Flower E Market Transfer Point (Punto de Transbordo) FIGat7th Macy’s 7th St/ Plaza 8th St Garland Metro 8th St Bldg (City Center Ralphs Fresh Metro Station and Entrances Offices) Red/Purple/ Fare Market Blue/Expo Fashion Institute (Estación y Entrada de Metro) Lines of Design & Merchandising (FIDM) 9th St Federal California Tunnel (Túnel) James M. Wood Blvd Reserve Apparel Bank Mart D Olympic Blvd

Flower St Flower Figueroa StFigueroa

Olive St Olive HopeSt

ryawdaoBr stop tSHil l FASHION

dnarG Ave San Pedro St a tSiaM n DISTRICT cancelled Olympic Blvd

The Alley 11th St Santee St 11/21/17 LA Live 11th St AT&T SOUTH Center PARK City Public Sentous Staples 12th St Center 12th St Works EXPOSITION PARK, USC INSET/RECUADRO Bldg. West Hall Pico Blvd 14th St Adams Blvd Los Angeles Pico Los Angeles St Maple Ave Automobile T Convention Blue/ Expo and Exhibition Lines Station Club of 28th St Southern Center 14th Pl Hoover St California 14th St F Grand Ave California Hospital Cherry

Figueroa St Grand Ave 15th St 16th St South Hall Shrine Flower St 30th St Auditorium Venice Blvd E and Jefferson/ University Exhibition USC Expo San Pedro Village 32nd St Center Line Station Friedman Blue Line 29th St Center Venice/ 18th St Grand Occupational Station Parking Center/Central Griffith Ave 30th St Mercado Adult School Jefferson Blvd Garage Olive St Trousdale Pkwy Washington Blvd 35th St La Paloma Stanford Ave Hope St T McClintock USC DMV Grand Blue Line 20th St USC Ent. 2 T Watt Way F Station V Santa Monica Fwy ermont Ave Expo Park/USC Municipal 21st St Expo Line Station T Court Adair St Maple Ave

Aerospace Los Angeles St Los Main St 22nd St Museum Bonsallo Ave T Park Grove Ave Angeles Rose Afro- San Pedro St Museum Norwood St Trade Broadway Hill St Oak St Garden American Tech Trinity St 36th Pl Expo/Vermont Museum College Expo Line Menlo Cal. Science Station Center/Imax Figueroa St Theater LA Natural ColiseumEXPOSITION Sports City of Los Angeles 37th Pl History PARK Arena Museum Exposition Blvd Hoover St Department of Transportation SEE EXPOSITION PARK, USC INSET/ LA 23rd St Memorial CONSULTE EL RECUADRO EXPOSITION PARK, USC MLK Jr. Blvd Orthopaedic 39th St Coliseum T Mount 23rd St Hospital (213, 310, 323 or/o 818) 808-2273 St.Mary’s Expo College T Line www.ladottransit.com Station Adams Blvd

46 1236 and 1238-38½ W 30TH STREET, LOS ANGELES | OFFERING MEMORANDUM AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of This Memorandum contains selected receipt of this Memorandum or use of its companies with many subsidiaries and/or information pertaining to the Property and does contents; and you are to rely solely on your related entities (each an “Affiliate”) engaging in not purport to be a representation of the state investigations and inspections of the Property in a broad range of commercial real estate of affairs of the Property or the owner of the evaluating a possible purchase of the real businesses including, but not limited to, Property (the “Owner”), to be all-inclusive or to property. brokerage services, property and facilities contain all or part of the information which management, valuation, investment fund prospective investors may require to evaluate a The Owner expressly reserved the right, at its management and development. At times purchase of real property. All financial sole discretion, to reject any or all expressions different Affiliates may represent various clients projections and information are provided for of interest or offers to purchase the Property, with competing interests in the same general reference purposes only and are based and/or to terminate discussions with any entity transaction. For example, this Memorandum on assumptions relating to the general at any time with or without notice which may may be received by our Affiliates, including economy, market conditions, competition and arise as a result of review of this Memorandum. CBRE Investors, Inc. or Trammell Crow other factors beyond the control of the Owner The Owner shall have no legal commitment or Company. Those, or other, Affiliates may and CBRE, Inc. Therefore, all projections, obligation to any entity reviewing this express an interest in the property described in assumptions and other information provided Memorandum or making an offer to purchase this Memorandum (the “Property”) may submit and made herein are subject to material the Property unless and until written an offer to purchase the Property and may be variation. All references to acreages, square agreement(s) for the purchase of the Property the successful bidder for the Property. You footages, and other measurements are have been fully executed, delivered and hereby acknowledge that possibility and agree approximations. Additional information and an approved by the Owner and any conditions to that neither CBRE, Inc. nor any involved Affiliate opportunity to inspect the Property will be made the Owner’s obligations therein have been will have any obligation to disclose to you the available to interested and qualified prospective satisfied or waived. involvement of any Affiliate in the sale or purchasers. In this Memorandum, certain By receipt of this Memorandum, you agree that purchase of the Property. In all instances, documents, including leases and other this Memorandum and its contents are of a however, CBRE, Inc. will act in the best interest materials, are described in summary form. confidential nature, that you will hold and treat of the client(s) it represents in the transaction These summaries do not purport to be it in the strictest confidence and that you will described in this Memorandum and will not act complete nor necessarily accurate descriptions not disclose this Memorandum or any of its in concert with or otherwise conduct its business of the full agreements referenced. Interested contents to any other entity without the prior in a way that benefits any Affiliate to the parties are expected to review all such written authorization of the Owner or CBRE, detriment of any other offeror or prospective summaries and other documents of whatever Inc. You also agree that you will not use this offeror, but rather will conduct its business in a nature independently and not rely on the Memorandum or any of its contents in any manner consistent with the law and any contents of this Memorandum in any manner. manner detrimental to the interest of the Owner fiduciary duties owed to the client(s) it or CBRE, Inc. represents in the transaction described in this Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or Memorandum. If after reviewing this Memorandum, you have representatives make any representation or no further interest in purchasing the Property, This is a confidential Memorandum intended warranty, expressed or implied, as to the kindly return this Memorandum to CBRE, Inc. solely for your limited use and benefit in accuracy or completeness of this Memorandum determining whether you desire to express or any of its contents, and no legal commitment further interest in the acquisition of the Property. or obligation shall arise by reason of your

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE and the CBRE logo are service marks of CBRE,47 Inc. and/or1236 its affiliatedand 1238-38½ or related companies W 30TH in the STREET,United States LOSand other ANGELES countries. All | otherOFFERING marks displayed MEMORANDUM on this document are the property of their respective owners. 1236 30TH STREET 1238 & 1238 ½ W 30TH STREET

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