Pacific Court Apartments Offering Memorandum Confidentiality and Disclaimer

PACIFIC COURT APARTMENTS OFFERING MEMORANDUM CONFIDENTIALITY AND DISCLAIMER

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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. Marcus & Millichap 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. ACTIVITY ID: Y0130277 table of contents INVESTMENT OVERVIEW

FINANCIAL ANALYSIS

COMPARABLES

MARKET OVERVIEW overview INVESTMENT OVERVIEW PROPERTY DETAILS

PACIFIC COURT APARTMENTS Address 245 Pine Avenue Long City, State, Zip Beach, CA 90803 Price $89,990,000 Down Payment $89,990,000 Number of Units 211 Price/Unit $347,017* Rentable SF 222,977 Price/SF $509.63 Year Built 1992 / 2016 Cap Rate - Current 4.0% Cap Rate - Pro Forma 4.55% GRM - Current 18.90 GRM - Pro Forma 17.19

* Calculated using apartment NOI/pricing only. 211 units does not include the 9 retail units.

2 INVESTMENT OVERVIEW THE PROPERTY

Marcus & Millichap is pleased to offer for sale Pacific Court, a luxury Pacific Court apartment homes was constructed in 1992 except for the 69 mixed-use community ideally located at 250 and 270 Pacific Avenue lofts, which were constructed in 2016. All units are condo mapped. and 245 Pine Avenue, in beautiful downtown Long Beach, California. This Class A property is comprised of 211 apartment homes and Pacific Court’s apartment homes offer high-end amenities and unique 34,251 square feet of retail space within one six-story building that interiors with one and two-bedroom units and two-bedroom loft floor also includes ample parking for residents, guests, and shoppers. plans with modern spiral staircases. All the two-bedroom units have two- bathrooms. The 69 lofts range from 1,015 to 1,340 square feet except for Pacific Court features modern architecture with unique extras, and seven lofts, which are just under 1,000 square feet. 59 of the lofts are single seven spacious floor plans with modern interiors and well-appointed level, while 10 lofts are double level. There is a total of seven different floor amenities. plans.

Located in the very heart of downtown Long Beach, Pacific Court Residents enjoy numerous amenities at the property, including two represents an exceptional multifamily and retail investment opportunity beautifully landscaped courtyards, two elevators that service the building, a that is well positioned for long-term appreciation in a high-growth area convenient stairway to the retail shops, and a state-of-the-art fitness center of Los Angeles County. with free weights, cable television, treadmills, paramount machines, bikes and elliptical machines. The apartment homes at Pacific Court feature fully equipped all-electric modern kitchens, ceramic tile counter tops and European-style cabinets, spacious private patios and balconies, stackable washer and dryers, individual intruder alarms, wall-to-wall Berber carpeting in the living areas, and high-speed internet capabilities. Residents also HIGHLIGHTS enjoy on-site secured parking and the property offers a total of 255 spaces, creating ample space for residents and guests. Pacific Court’s ideal location •• Institutional-Quality, Class A Property Located in Beautiful in downtown Long Beach and impressive apartment homes have allowed Downtown Long Beach the property to enjoy a history of less than three percent vacancy.

•• Property Includes 211 Apartment Homes and 34,251 Square Feet Pacific Court’s retail component totals 34,251 square feet of prime space of Retail Space With Nine Tenants on the first floors of the six-story mixed-use complex. In all, nine credit and local tenants occupy the space in the retail portion of the building. Three of • • Stunning Architecture With 69 Brand New Lofts and Remodeled the major tenants include Chipotle, Johnny Rockets, and Sprint. Fitness Center There is a spacious leasing office on-site and the Pacific Court apartments • • Extremely Low and Falling Single-Family Home Affordability in website is www.pacificcourtapt.com. Long Beach

•• Ideally Positioned Near Major Long Beach Employment Centers

•• Short Distances to a Multitude of Newly Constructed Retail and Entertainment Options

3 UNIT AMENITIES •• All Electric Kitchens With Microwave, Dishwasher, and Garbage Disposal •• Ceramic Tile Counter Tops and European-Style Cabinets •• Spacious Private Patios and Balconies •• Stackable Washer and Dryer for All Units •• Fiberglass Shower and Bathtub With Glass Doors •• Linen Closets and Vertical Blinds •• Central Heating and Air Conditioning •• Individual Intruder Alarms •• Linoleum Floors in Kitchens and Bathrooms •• Wall-to-Wall Berber Carpet in Living Areas •• DSL/Cable Connections •• Fully Sprinklered Units •• Walk-In Closets (Two-Bedroom Units) •• Wood-Burning Fireplaces (Selected Units)

COMMON AREAS •• Recreation Room With Pool Table, Television, Kitchenette With European Cabinets, and Seating Area •• Fitness Center With Free Weights, Cable Television, Treadmills, Paramount Machines, Bikes, and Elliptical Machines •• Two Courtyards With Patio Furniture and Gas Barbeque Grills •• Two Elevators •• Trash Chute on Each Floor •• Convenient Stairway to Retail Shops and Pine Avenue •• Two Vending Machines 4 MAIN AND MAIN LOCATION

Situated on a prominent corner on Broadway Avenue and located at the epicenter of a vibrant 24-7 community, Pacific Court Apartments is truly located at the focal point of the market. It’s easy access to the Metro, freeways, and major local arterials provides ideal routes of transportation to anywhere in the region for work or play.

PERFECTLY POSITIONED IN THE HEART OF DOWNTOWN LONG BEACH

Downtown Long Beach’s central location amongst Downtown LA, West Los Angeles and Orange County make it ideal for commuters and businesses alike.

WALKABILITY AND LIFESTYLE

Pacific Court Apartments is situated in an amenity rich location. The property is only two blocks from the beautiful Pacific Ocean, the 1st Street Metro Station, four blocks from Von’s Supermarket and sits among approximately 105 restaurants and bars in Downtown Long Beach. Numerous shops and destinations like The Aquarium of the Pacific, The Pike at Rainbow Harbor, Pine Avenue and 4th Street’s Retro Row are within easy walking distance.

The opening of The Pike at Rainbow Harbor brought 350,000 square feet of retail, dining, and entertainment space to the waterfront in downtown Long Beach. The Pike at Rainbow Harbor includes a 14-screen Cinemark theatre and a Sega Gameworks, along with various national restaurants and retailers. In addition, newly built residential developments and increased entertainment venues are strengthening the demand for restaurants downtown. Along pedistrian-friendly Pine Avenue, historic buildings reborn as studio lofts, outdoor cafes, office space, and retail boutiques prosper and drive interest in the area. Its proximity to the multitude of praised culinary hot-spots and entertainment venues will provide residents with highly desirable lifestyle amenities right outside their front door.

FLOOR PLANS

PLAN C PLAN D PLAN B PLAN A TWO-BEDROOM/TWO-BATHS TWO-BEDROOM/TWO-BATHS ONE-BEDROOM/ONE-BATH TWO-BEDROOM/TWO-BATHS 972 - 1,019 SF 1,067 - 1,154 SF 987 SF 662 - 722 SF

11 FLOOR PLANS

DROP LEVEL LOFT FLAT LEVEL LOFT DUAL STORY ONE-BEDROOM/ONE-BATH ONE-BEDROOM/ONE-BATH TWO-BEDROOM/TWO-BATHS 1,100 - 1,250 SF 1,000 - 1,050 SF 1,200 - 1,325 SF

12 MAP

CITY PLACE

MALL PINE AVENUE PINE PACIFIC AVENUE PACIFIC EAST VILLAGE ARTS DISTRICT PACIFC COURT APARTMENTS

WORLD TRADE CENTER/ BOULEVARD BEACH LONG WEST GATEWAY OCEAN BOULEVARD

LONG BEACH CONVENTION CENTER LONG BEACH CATALINA EXPRESS ARENA TERMINAL THE PIKE SHORELINE DRIVE RAINBOW LAGOON PARK AQUARIUM OF THE PACIFIC

SHORELINE VILLAGE

13 MAJOR TENANTS

JOHNNY ROCKETS

Headquarters: Aliso Viejo, California No. of Locations: 320 CHIPOTLE Website: www.johnnyrockets.com Headquarters: Denver, Colorado Description: Johnny Rockets opened its first restaurant on No. of Locations: 2,250 trendy Melrose Avenue in Los Angeles on June 6, 1986. From opening day to today, Johnny Rockets has offered its Website: www.chipotle.com guests great service, food, and fun that keep them coming Description: Chipotle is an American chain of fast casual restaurants in the back. People are immediately drawn to the all-American United States, United Kingdom, Canada, Germany, and France specializing diner’s look and feel, servers who know the secret behind in tacos and Mission-style burritos. Its name derives from chipotle, the getting ketchup out of the bottle, tabletop jukeboxes that Nahuatl name for a smoked and dried jalapeno chili pepper. The company belt out the tunes for a nickel, and the authentic décor. has released a mission statement called Food with Integrity, which highlights its efforts in using naturally-grown ingredients, and serves more naturally raised meat than any other restaurant chain. Chipotle is one of the first chains of fast casual dining establishments.

SPRINT

Headquarters: Overland Park, Kansas Website: www.sprint.com Description: commonly referred to as Sprint, is an American telecommunications holding company that provides wireless services and is an internet service provider. It is the fourth largest mobile network operator in the United States, and serves 59.7 million customers, as of April 2017. The company also offers wireless voice, messaging, and broadband services through its various subsidiaries under the Boost Mobile, Virgin Mobile, and Assurance Wireless brands, and wholesale access to its wireless networks to mobile virtual network operators.

14 analysis FINANCIAL ANALYSIS INCOME CURRENT MARKET FINANCIAL OVERVIEW Gross Potential Rent $6,011,484 $6,612,396 Reimbursements $619,348 $622,867 Gross Potential Income $6,630,832 $7,235,263 Less: Vacancy/Deductions (GPR) 2.8% / $165,770 3.0% / $195,667 Effective Gross Income $6,465,062 $7,039,596 PROPERTY DETAIL Less: Expenses $2,433,618 $2,493,292 Address 245 Pine Avenue Long Net Operating Income $4,031,444 $4,546,304 City, State, Zip Beach, CA 90803 Net Cash Flow Before Debt Services $4,031,444 $4,546,304 Price $99,900,000 Down Payment $99,900,000 EXPENSES CURRENT MARKET Number of Units 211 Real Estate Taxes $1,300,000 $1,300,000 Price/Unit $400,787* Insurance $85,612 $87,550 Rentable SF 222,977 Utilities $208,400 $219,580 Price/SF $509.63 Repairs & Maintenance $334,502 $354,936 Year Built 1992 / 2016 Recurring Services $114,510 $117,973 Cap Rate - Current 4.00% On-Site Payroll $65,000 $110,285 Cap Rate - Pro Forma 4.55% Off-Site Management $260,000 $260,000 GRM - Current 18.90 Leasing Expenses $52,458 $31,136 GRM - Pro Forma 17.19 Other Expenses $13,136 $11,830 Total Expenses $2,433,618 $2,493,292 * Calculated using apartment NOI/pricing only. 211 Units does not include the 9 retail units. Expenses/Unit $11,062 $11,333 Expenses/SF $10.91 $11.18 % of EGI 37.64% 35.42%

16 RENT ROLL SUMMARY

NO OF UNITS UNITY TYPE APPROX SQUARE FEET CURRENT RENTS RENT/SF MONTHLY INCOME MARKET RENTS RENT/SF MONTHLY INCOME 69 Lofts 987 - 1,340 $1,950 - 2,795 $2.04 $156,498 $2,205 - $2,895 $2.19 $170,450 55 2BD/2BA 972 - 1,121 $1,745 - $2,595 $2.07 $126,340 $2,450 - $2,550 $2.39 $136,590 87 1BD/1BA 662 - 775 $1,325 - $2,100 $2.38 $158,904 $2,045 $2.85 $177,915

9 Retail 34,186 $59,215 $1.73 $59,215 $66,078 $1.93 $66,078 211 TOTAL/AVG. 222,977 $500,957 $55,033

17 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 101 loft-a 1,165.00 2,395.00 2,495.00 102 loft-b-2 1,015.00 1,950.00 2,295.00 103 loft-c 1,015.00 2,095.00 2,295.00 104 loft-b-2 1,015.00 2,095.00 2,295.00 105 loft-br1 1,015.00 2,200.00 2,295.00 106 loft-b-2 1,015.00 2,095.00 2,295.00 107 loft-br1 1,015.00 1,995.00 2,295.00 108 loft-b-2 1,015.00 2,295.00 2,295.00 109 loft-d 1,000.00 2,095.00 2,195.00 110 loft-e 1,120.00 2,395.00 2,495.00 111 loft-br 987.00 2,095.00 2,195.00 112 loft-b-1 987.00 2,050.00 2,195.00 113 loft-br2 1,026.00 2,050.00 2,295.00 114 loft-b-3 1,018.00 1,995.00 2,295.00 115 loft-br3 1,030.00 2,250.00 2,295.00 116 loft-b 950.00 2,195.00 2,150.00 117 loft-br5 1,090.00 2,150.00 2,395.00 118 loft-b-6 1,082.00 2,350.00 2,395.00 119 loft-br5 1,090.00 2,050.00 2,395.00 120 loft-b-6 1,082.00 2,050.00 2,395.00 121 loft-b-6 1,082.00 2,150.00 2,395.00 122 loft-f 965.00 1,950.00 2,150.00 123 loft-gg 1,020.00 1,950.00 2,295.00 124 loft-br4 1,075.00 2,000.00 2,250.00 125 loft-b-5 1,075.00 2,050.00 2,250.00 126 loft-br4 1,075.00 2,450.00 2,250.00 127 loft-b-5 1,075.00 2,150.00 2,250.00 128 loft-br4 1,075.00 2,050.00 2,250.00 129 loft-h 1,132.00 2,409.00 2,495.00 130 loft-j 1,262.00 2,595.00 2,595.00 131 loft-k 1,340.00 2,395.00 2,895.00 132 loft-k 1,340.00 2,795.00 2,895.00 133 loft-k 1,340.00 2,695.00 2,895.00 18 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 134 loft-l 1,340.00 2,495.00 2,895.00 135 loft-k 1,340.00 2,595.00 2,895.00 136 loft-k 1,340.00 2,695.00 2,895.00 137 loft-m 1,340.00 2,700.00 2,895.00 138 loft-k 1,340.00 2,695.00 2,895.00 139 loft-n 1,130.00 2,150.00 2,495.00 200 bachelor 0.00 980.00 1,200.00 201 loft-a 1,165.00 2,295.00 2,495.00 202 loft-b-2 1,015.00 2,095.00 2,295.00 203 loft-c 1,015.00 2,100.00 2,295.00 204 loft-br1 1,015.00 2,095.00 2,295.00 205 loft-br1 1,015.00 2,395.00 2,295.00 206 loft-b-2 1,015.00 2,195.00 2,295.00 207 loft-br1 1,015.00 2,195.00 2,295.00 208 loft-b-2 1,015.00 2,095.00 2,295.00 209 loft-d 1,000.00 2,095.00 2,295.00 210 loft-e 1,120.00 2,395.00 2,395.00 211 loft-br 987.00 2,195.00 2,195.00 212 loft-b-1 987.00 2,050.00 2,195.00 213 loft-br3 1,030.00 2,095.00 2,295.00 214 loft-b-4 1,030.00 2,095.00 2,295.00 215 loft-br3 1,030.00 2,095.00 2,295.00 216 loft-b 950.00 2,395.00 2,195.00 217 loft-br5 1,090.00 2,195.00 2,395.00 218 loft-b-7 1,090.00 2,195.00 2,395.00 219 loft-br5 1,090.00 2,395.00 2,395.00 220 loft-b-7 1,090.00 2,195.00 2,395.00 221 loft-b-7 1,090.00 2,195.00 2,395.00 222 loft-f-1 1,090.00 2,395.00 2,395.00 223 loft-g 1,000.00 2,275.00 2,295.00 224 loft-br4 1,075.00 2,395.00 2,395.00 225 loft-b-5 1,075.00 2,395.00 2,395.00 226 loft-br4 1,075.00 2,395.00 2,395.00 19 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 227 loft-b-5 1,075.00 2,395.00 2,395.00 228 loft-br4 1,075.00 2,395.00 2,395.00 229 loft-h 1,132.00 2,409.75 2,495.00 230 loft-j 1,262.00 2,595.00 2,595.00 301 22flat 972.00 2,000.00 2,395.00 302 11flat 722.00 1,850.00 1,995.00 303 22flat 972.00 2,395.00 2,395.00 304 11flat 662.00 1,795.00 1,995.00 305 22flat 1,019.00 2,395.00 2,495.00 306 11flat 662.00 1,325.00 1,995.00 307 22flat 997.00 2,350.00 2,395.00 308 11flat 664.00 1,375.00 1,995.00 309 11flat 662.00 1,375.00 1,995.00 310 11flat 662.00 1,850.00 1,995.00 311 11flat 662.00 1,375.00 1,995.00 312 11flat 664.00 1,995.00 1,995.00 313 11flat 662.00 1,995.00 1,995.00 314 22flat 997.00 2,295.00 2,395.00 315 11flat 662.00 1,595.00 1,995.00 316 11flat 662.00 1,595.00 1,995.00 317 11flat 662.00 1,595.00 1,995.00 318 11flat 662.00 1,850.00 1,995.00 319 11flat 662.00 1,850.00 1,995.00 320 22flat 972.00 2,350.00 2,395.00 321 22flat 972.00 2,250.00 2,395.00 322 11flat 662.00 1,795.00 1,995.00 323 11flat 722.00 1,795.00 1,995.00 324 22flat 972.00 2,350.00 2,395.00 325 11flat 662.00 1,995.00 1,995.00 326 22flat 1,019.00 2,395.00 2,495.00 327 11flat 662.00 1,850.00 1,995.00 328 22flat 997.00 2,250.00 2,395.00 329 11flat 664.00 1,995.00 1,995.00 20 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 330 11flat 662.00 1,850.00 1,995.00 331 22flat 972.00 2,250.00 2,395.00 332 11flat 662.00 1,795.00 1,995.00 333 11flat 662.00 1,895.00 1,995.00 334 11flat 662.00 1,850.00 1,995.00 335 22flat 997.00 2,395.00 2,395.00 336 22flat 997.00 2,250.00 2,395.00 401 22flat 972.00 2,350.00 2,395.00 402 22flat 1,019.00 2,250.00 2,495.00 403 22flat 972.00 2,350.00 2,395.00 404 11flat 662.00 1,850.00 1,995.00 405 22flat 1,019.00 2,250.00 2,495.00 406 11flat 662.00 1,895.00 1,995.00 407 22flat 997.00 2,295.00 2,395.00 408 11flat 664.00 1,850.00 1,995.00 409 11flat 662.00 1,850.00 1,995.00 410 11flat 662.00 1,850.00 1,995.00 411 11flat 662.00 1,995.00 1,995.00 412 11flat 664.00 1,995.00 1,995.00 413 11flat 662.00 1,995.00 1,995.00 414 22flat 997.00 2,395.00 2,395.00 415 11flat 662.00 1,445.00 1,995.00 416 11flat 662.00 1,850.00 1,995.00 417 11flat 662.00 1,325.00 1,995.00 418 11flat 662.00 1,850.00 1,995.00 419 11flat 662.00 1,950.00 1,995.00 420 22flat 972.00 1,825.00 2,395.00 421 22flat 972.00 2,250.00 2,395.00 422 11flat 662.00 1,850.00 1,995.00 423 22flat 1,019.00 2,495.00 2,495.00 424 22flat 972.00 2,000.00 2,395.00 425 11flat 662.00 1,895.00 1,995.00 426 22flat 1,019.00 2,250.00 2,495.00 21 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 427 11flat 662.00 1,325.00 1,995.00 428 22flat 997.00 2,350.00 2,350.00 429 11flat 664.00 1,850.00 1,995.00 430 11flat 662.00 1,995.00 1,995.00 431 22flat 972.00 1,850.00 2,395.00 432 11flat 662.00 1,457.50 1,995.00 433 11flat 662.00 1,512.50 1,995.00 434 11flat 662.00 1,850.00 1,995.00 435 22flat 997.00 2,100.00 2,395.00 436 22flat 997.00 2,250.00 2,395.00 501 22flat 972.00 2,250.00 2,395.00 502 22flat 1,019.00 2,450.00 2,495.00 503 22flat 972.00 2,395.00 2,395.00 504 11flat 662.00 1,795.00 1,995.00 505 22flat 1,019.00 2,395.00 2,495.00 506 11flat 662.00 1,795.00 1,995.00 507 22flat 997.00 2,250.00 2,395.00 508 11flat 664.00 1,850.00 1,995.00 509 11flat 662.00 1,850.00 1,995.00 510 11flat 662.00 1,850.00 1,995.00 511 11flat 662.00 1,795.00 1,995.00 512 11flat 664.00 1,795.00 1,995.00 513 11flat 662.00 1,850.00 1,995.00 514 22flat 997.00 2,100.00 2,395.00 515 11flat 662.00 1,595.00 1,995.00 516 11flat 662.00 1,795.00 1,995.00 517 11flat 662.00 1,995.00 1,995.00 518 11flat 662.00 1,695.00 1,995.00 519 11flat 662.00 1,795.00 1,995.00 520 11flat 675.00 1,795.00 1,995.00 521 11flat 675.00 1,950.00 1,995.00 522 11flat 662.00 1,850.00 1,995.00 523 22flat 1,019.00 2,250.00 2,495.00 22 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 524 22flat 972.00 2,395.00 2,395.00 525 11flat 662.00 1,850.00 1,995.00 526 22flat 1,019.00 2,250.00 2,495.00 527 11flat 662.00 1,795.00 1,995.00 528 22flat 997.00 2,100.00 2,395.00 529 11flat 664.00 1,795.00 1,995.00 530 11flat 662.00 1,850.00 1,995.00 531 22flat 972.00 2,250.00 2,395.00 532 11flat 662.00 1,895.00 1,995.00 533 11flat 662.00 1,595.00 1,995.00 534 11flat 662.00 1,795.00 1,995.00 535 22flat 997.00 2,395.00 2,395.00 536 22flat 997.00 1,745.00 2,395.00 601 22flat 1,074.00 1,900.00 2,495.00 602 22flat 1,121.00 2,495.00 2,550.00 603 22flat 1,074.00 2,595.00 2,495.00 604 11flat 662.00 2,000.00 1,995.00 605 22flat 1,121.00 2,595.00 2,550.00 606 22flat 1,121.00 2,650.00 2,550.00 607 22flat 1,081.00 2,595.00 2,495.00 608 11flat 662.00 2,100.00 2,100.00 609 11flat 662.00 1,995.00 1,995.00 610 11flat 662.00 1,695.00 1,995.00 611 11flat 662.00 1,995.00 1,995.00 612 11flat 763.00 1,995.00 1,995.00 613 22flat 997.00 2,295.00 2,395.00 614 11flat 662.00 2,000.00 1,995.00 615 11flat 662.00 1,995.00 1,995.00 616 11flat 662.00 2,000.00 1,995.00 617 11flat 662.00 2,100.00 1,995.00 618 11flat 662.00 2,000.00 1,995.00 619 11flat 775.00 2,000.00 1,995.00 620 11flat 775.00 1,795.00 1,995.00 23 RENT ROLL

UNIT UNIT TYPE SF ACTUAL RENT MARKET RENT 621 11flat 662.00 2,100.00 2,100.00 622 22flat 1,121.00 2,350.00 2,550.00 623 22flat 1,074.00 2,495.00 2,495.00 624 11flat 662.00 1,995.00 1,995.00 625 22flat 1,121.00 2,595.00 2,550.00 626 22flat 1,013.00 2,540.71 2,350.00 627 22flat 1,081.00 2,195.00 2,195.00 628 11flat 662.00 2,000.00 1,995.00 629 22flat 1,074.00 2,350.00 2,395.00 630 11flat 662.00 1,995.00 1,995.00 631 11flat 662.00 2,000.00 2,000.00 632 11flat 662.00 1,995.00 1,995.00 633 11flat 763.00 1,850.00 2,195.00 634 22flat 997.00 2,280.00 2,395.00 211 TOTAL $441,744.46 $474,330

TENANT RENT ROLL UNIT LEASE NAME LEASE TYPE LEASE FROM LEASE TO AREA SF BASE RENT RENT PER AREA 110 Johnny Rockets Retail Net 8/1/2005 12/31/2021 1,835 6,615.18 3.61 120 Jung Hong Retail Net 9/1/2014 8/31/2019 785 1,915.45 2.44 130 Steve Y. Huh & Helen Retail Net 6/1/2016 6/30/2021 700 1,370.00 1.96 140 Pilates Plus Retail Net 4/1/2015 3/31/2020 2,200 2,652.25 1.21 180 Sprint Spectrum, LP Retail Net 4/13/2012 4/30/2022 2,900 6,525.00 2.25 190 Chipotle Retail Net 6/1/2017 5/31/2027 2,850 8,977.50 3.15 200-290 Cuban Pete's Mojito Retail Net 9/1/2014 8/31/2019 9,016 12,000.00 1.33 270 Metropoloitan Design (new) Retail Net 5/1/2017 6/30/2020 2,700 3,480.00 1.29 145W Common Grounds, LLC (new) Office 6/1/2017 5/31/2027 11,200 15,680.00 1.40 160 Vacant N/A 6/1/2017 6/1/2017 1,200 0.00 0.00 240 Vacant N/A 6/1/2017 6/1/2017 1,200 0.00 0.00 9 TOTAL $59,215

24 comps COMPARABLES SALES COMPARABLES

7 2 4 1 Subject Property

2 Ashton Sherman Village 3 6 3 Rubix Hollywood

4 Trio 5 5 8th + Hope 6 1724 Highland 7 Lofts at Noho Commons

26 SALES COMPARABLES

1 2 3 4 5 Pacific Court Apartments Ashton Sherman Vilalge Rubix Hollywood Trio 8th + Hope 245 Pine Avenue 12729 Riverside Drive 1714 North McCadden Place 44 North Madison Avenue 801 South Hope Street Long Beach, CA 90802 Valley Village, CA 91607 Hollywood, CA 90028 Pasadena, CA 91101 Los Angeles, CA 90017

List Price $99,900,000 Close of Escrow 12/9/2016 Close of Escrow 9/9/2016 Close of Escrow 11/2/2016 Close of Escrow 3/3/2015 Units 211 Sales Price $118,000,000 Sales Price $109,000,000 Sales Price $154,000,000 Sales Price $200,000,000 Price/Unit $400,787 Units 264 Units 218 Units 304 Units 290 Price/SF $509.63 Price/Unit $446,969 Price/Unit $500,000 Price/Unit $506,579 Price/Unit $689,655 Cap Rate 4.00% Price/SF $380.21 Price/SF $430.60 Price/SF $451.69 Price/SF $666.67 GRM 18.90 Cap Rate 4.0% Cap Rate 3.75% Cap Rate 3.60% Cap Rate 3.75% Year Built 1992 / 2016 GRM N/A GRM N/A GRM N/A GRM N/A Year Built 2013 Year Built 2010 Year Built 2004 Year Built 2014 Unit Mix Unit Mix Unit Mix Unit Mix Unit Mix 69 Lofts 102 1-Bedroom 15 Studio 75 Studios 100 1-Bedroom 87 1-Bedroom 162 2-Bedroom 113 1-Bedroom 104 1-Bedroom 100 2-Bedroom 55 2-Bedroom 90 2-Bedroom 125 2-Bedroom 90 3-Bedroom 9 Retail

27 PRICE/SF SALES COMPARABLES

6 7 1724 Highland Lofts at Noho Commons 1724 North Highland 11136 Chandler Boulevard Hollywood,CA 90028 North Hollywood, CA 91601

PRICE/UNIT

Close of Escrow 1/3/2017 Close of Escrow 11/17/2016 Sales Price $132,500,000 Sales Price $102,500,000 Units 270 Units 292 Price/Unit $490,741 Price/Unit $351,027 Price/SF $555.69 Price/SF $472.66 Cap Rate 3.70% Cap Rate 3.72% GRM N/A GRM N/A Year Built 2010 Year Built 2006 Unit Mix Unit Mix 164 1-Bedroom 237 Studios CAP RATE 106 2-Bedroom 55 1-Bedroom

28 RENT COMPARABLES

1 Subject Property

2 Gallery 421

3 Camden Harbor View

4 Lofts at the Promenade 5 The Edison 6 The Current

3 5 1 6

29 RENT COMPARABLES

1 2 3 Pacific Court Apartments 1900 Ocean Gallery 421 245 Pine Avenue 1900 East Ocean Boulevard 421 West Broadway Long Beach, CA 90802 Long Beach, CA 90802 Long Beach, CA 90802

Unity Type Units SF Rent Rent/SF Unity Type Units SF Rent Rent/SF Unity Type Units SF Rent Rent/SF Lofts 69 987-1,340 $1,950-$2,795 $2.04 Studio 1 Bath 82 420-560 $1,599-$2,015 $3.69 1 Bdr 1 Bath 144 720 $2,075-$2,125 $2.92 1Bdr 1 Bath 87 662-775 $1,325-$2,100 $2.38 1 Bdr 1 Bath 103 710-1,075 $2,099-$2,830 $2.77 1 Bdr 1 Bath D 12 1,128 $2,450-$2,610 $2.25 2 Bdr 1 Bath 55 972-1,121 $1,745-$2,595 $2.07 2 Bdr 1 Bath 9 1,075 $2,899 $2.70 2 Bdr 2 Bath 123 1,056-1,161 $2,605-$2,785 $2.44 Retail 9 34,186 $59,215 $1.73 2 Bdr 1.5 Bath 28 980-1,150 $2,499-$3,175 $2.67 2 Bdr 2.5 Bath 12 1,354 $2,800-$3,000 $2.15 2 Bdr 2 Bath 28 1,500-1,508 $3,299-$3,399 $2.23 2 Bdr 2 Bath PH 8 1,400-1,653 $3,699 $2.43 Total/Avg 220 222,977 $2.05 Total/Avg 258 876 $2,445 $2.97 Total/Avg 291 927 $2,402 $2.65 Year Built: 1992 / 2016 Year Built: 1969 Year Built: 2010 Notes: W/D in-unit (selected units), laundry on-site, carpet floors, granite or marble Notes: W/D in-unit, hardwood/carpet floors, stainless steel appliances, granite countertops, stainless steel appliances, walk-in closets, patio/balcony, pool/spa, counters, 9’ceilings, walk-in closets, patio/balcony, pool/spa/BBQ area, on-site fitness center, 24 hour doorman, fitness center and lounge, concierge services retail, fitness center, game room, movie theater

30 RENT COMPARABLES

4 5 6 Camden Harbor View Lofts at the Promenade The Edison 250 West Ocean Boulevard 225 Long Beach Boulevard 100 Long Beach Boulevard Long Beach, CA 90802 Long Beach, CA 90802 Long Beach, CA 90802

Unity Type Units SF Rent Rent/SF Unity Type Units SF Rent Rent/SF Unity Type Units SF Rent Rent/SF 1 Bdr 1 Bath 78 585-725 $2,100-$2,300 $3.36 Studio 1 Bath 16 631-723 $1,855-$1,955 $2.82 Studio 1 Bath 45 485-630 $1,880-$2,470 $3.91 1 Bdr 1 Bath D 80 860-973 $2,150 $2.35 1 Bdr 1 Bath 72 879-1,039 $2,435-$2,515 $2.59 1 Bdr 1 Bath 70 620-1,103 $2,110-$3,235 $3.11 1 Bdr 1 Bath LOFT 39 841 $2,319-$2,377 $2.80 2 Bdr 1 Bath 16 1,230-1,369 $3,000-$3,030 $2.33 2 Bdr 2 Bath 23 1,140-1,170 $3,070-$3,635 $2.91 2 Bdr 1 Bath 21 950-2,309 $2,400 $1.48 2 Bdr 2 Bath LOFT 1 1,090 $3,105-$3,930 $3.23 2 Bdr 2 Bath LOFT 111 1,000-1,128 $2,469-$2,819 $2.49 2 Bdr 2 Bath 2 1,000-1,180 $3,080-$3,155 $2.87 2 Bdr 2 Bath D 112 1,112-1,280 $2,609-$2,759 $2.25 Total/Avg 441 1,006 $2,448 $2.53 Total/Avg 104 968 $2,470 $2.58 Total/Avg 141 826 $2,637 $3.32 Year Built: 2004 Year Built: 2008 Year Built: 2016 Notes: W/D in-unit, hardwood/carpet floors, granite counters, stainless steel Notes: W/D in-unit, polished concrete floors, stainless steel appliances, stone coun- Notes: W/D in-unit , floor-to-ceiling windows, stone countertops, up to 12’ ceilings, appliances, double-sink vanities, patio balcony, Queen Mary view (select units), ters, fitness center, pool/spa, business center, resident lounge, BBQ area, on-site tile backsplash, polished concrete floors, soft-closing cabinets, tiled showers, USB pools/BBQ area, on-site retail, clubhouse, movie theater, fitness center retail charging outlets, category 6 wiring, electronic door locks, rooftop pool and lounge, fitness center and yoga studio, resident lounge, outdoor kitchen and grill station, bicycle storage, dog-washing station, electric car stations, historic lobby

31 RENT COMPARABLES STUDIO

7 The Current 707 East Ocean Boulevard Long Beach, CA 90802

1-BEDROOM

Unity Type Units SF Rent Rent/SF Studio 1 Bath 25 673-702 $2,415-$2,425 $3.52 1 Bdr 1 Bath 48 702-891 $2,500-$2,810 $3.34 1 Bdr 1.5 Bath 86 839-882 $2,700-$3,200 $3.43 2 Bdr 2 Bath 60 1,128-1,405 $3,700-$3,900 $3.01 2 Bdr 2.5 Bath 4 1,258-1,441 $5,900-$6,100 $4.45 2-BEDROOM Total/Avg 223 945 $3,110 $3.32 Year Built: 2016 Notes: Granite or quartz countertops, full size W/D in-unit, stainless steel appliances, 9-13’ ceilings available, wood-style flooring, plush carpeting, modern cabinetry, fiber optic wired, personal patio/balcony available, large private terrace available, electric vehicle charging station, outdoor living room with fire pit, skyline terrace, BBQ area, rooftop pool, LEED certified, outdoor residential entertainment plaza, pet spa, fitness room, designer community kitchen, bike maintenance workspace

32 overview MARKET OVERVIEW CITY OF LONG BEACH

Long Beach is California’s 7th largest city, and Downtown Long Beach is one of Southern California’s top waterfront destinations. Scenic Downtown Long Beach and waterfront marina set the standard for “walkability.” Within conveniently close proximity there are first-class hotel accommodations, shopping, numerous entertainment options and more than 100 restaurants within an eight-block area. Airport, a pleasant cruise to Catalina Island residents have an almost unlimited choice and a short distance from other Southern of activities. A bike ride, a jog on the beach, Downtown Long Beach residents and visitors California attractions like Disneyland and a karate class, or a mountain hike can all can experience it all, from a deep sea adventure Universal Studios Hollywood. Long Beach be a part of daily routines. As can tennis, a at the Aquarium of the Pacific right on the truly has it all in an amazing centralized round of golf, or a weekend ski trip. Like all bay and a voyage in time aboard the historic coastal location. of Southern California, Long Beach basks in Queen Mary, to lively guided tours through nearly perpetual sunshine. The ocean breezes Named for its lovely seven-mile-long, Downtown and the colorful East Village. from the Pacific keep the temperatures mild 500-footwide beach, Long Beach is said to be Long Beach is a cultural and entertainment throughout the year. Snow falls in the far- Los Angeles County’s ocean side playground. hotspot with numerous attractions like the off mountain ranges, bringing great skiing Long Beach communities occupy a wide range regal Queen Mary, stirring Broadway shows, opportunities just a few hours away. live music venues and hundreds of exclusive of economic and social differences. The City dining destinations. of approximately 52 square miles was once a turn-of-the-century resort now thrives on the Long Beach boasts dynamic urban synergies aerospace, health care, and tourism industries. creating the heart of a walkable city-Pine LONG BEACH DEMOGRAPHICS Avenue, The Pike at Rainbow Harbor and Long Beach residents take advantage of Shoreline Village; each offers an array of their Southern California climate, enjoying 2016 Estimated Population 476,253 activities and add their own distinct, local their proximity to the ocean and to some 2021 Projected Population 491,060 2010 Census Population 462,257 flavor. Harbor cruises alongside breathtaking of the best healthcare, higher education, 2016 Average Household Income $77,223 ocean bays, and biking or walking on restaurants, and entertainment anywhere. 2021 Projected Average Household Income $83,975 With a lifestyle that is part seaside resort and dedicated paths next to 5.5 miles of sandy 2016 Average Value of Occ. Housing Units $543,064 beaches provide serenity in a truly urban part urban sophisticate, Long Beach residents % of 2016 Households who made $100,000 or more 25% % of 2016 Population who have an Associates degree setting. Long Beach boasts sunny skies and know that they have the best of both worlds. 38% or better (Bachelor, Graduate, or Professional) moderate climate year-round. This centralized From the beach to the nearby mountains, coastal location is a quick drive to Long Beach

34 ORANGE AND LOS ANGELES COUNTY AREA OVERVIEW

Long Beach is among the most central areas from which to distribute products to all of Southern California. Situated between the I-710, I-605, I-405, I-5 and I-105 freeways, this highly accessible area serves as PORTS OF LOS ANGELES a critical gateway to Southern California, a hub of international trade and AND LONG BEACH commerce. With the 13.3 million residents in Los Angeles and Orange Counties fueling a combined Gross County Product of $769 bill ion in International trade is a key driver of the Southern 2013, this area remains a nucleus of economic activity on the Pacific Rim. California economy. In fact 40% of the nation’s products are imported through the Ports of Los Angeles The area is a highly desirable destination for labor intensive businesses (POLA) and Long Beach (POLB). The sister ports are due to the dense local population and the excellent transportation system individually the two busiest ports in North America. detailed below. Housing is also easily accessible in the market and ranges Combined, the ports are the fifth busiest port in the from executive housing in Palos Verdes, South Bay Beach Cities and world and handle over 65% of all container traffic on Newport Beach to affordable housing in several inland communities and the West Coast. The number of containers moved at central Los Angeles. These advantages offer employers the ability to attract the Ports of Los Angeles and Long Beach has increased workers throughout the Southland, and ensure accessibility on proven 44% since 2000 and is projected to more than double infrastructure. Much of the success of the area is due to the significant from current levels by the year 2030, according to the trade, distribution and transportation facilities that benefit both Los Los Angeles Economic Development Corporation. Angeles and Orange Counties directly. The Ports of Los Angeles and Long Beach are the largest transfer points for products being shipped to and from Asia due to their geographical location and access to a sophisticated multi-modal transportation infrastructure. The top trading partners include China, Japan, Taiwan, South Korea, Thailand and Mexico. Both Ports continue to prepare for increased trade going forward with aggressive expansion projects. The Federal government has allocated economic stimulus dollars to improve Southern California’s ports, highways and bridges. In addition the POLA is in the process of deepening its main channel to 53 feet to accommodate larger container ships. The POLB is also in the process of upgrading the Middle Harbor to double cargo capacity and upgrade the terminals.

35 2015 ROLLING 12-MONTH TOTAL TEU STATISTICS

RANK 12 MOS TOTAL TEUS LOADED INBOUND TEUS N.A. US PORT COAST THROUGH 2015 Y-O-Y CHANGE 2015 Y-O-Y CHANGE 1 1 Los Angeles W Oct 8,146,092 -0.3% 4,149,454 -2.7% 2 2 Long Beach W Oct 7,124,673 4.4% 3,593,109 1.6% 3 3 New York & New Jersey E Oct 6,341,966 12.1% 3,186,138 10.3% 4 4 Northwest Seaport Alliance W Oct 3,553,545 2.4% 1,296,430 7.2% 5 Vancouver, Canada W Oct 3,039,859 3.9% 1,545,244 3.3% 6 5 Savannah E Oct 3,742,197 14.2% 1,616,806 24.0% TEU COUNTS 1990 - 2015 7 6 Port of Virginia E Oct 2,560,799 8.7% 1,085,016 8.3% Millions LA LB 8 7 Oakland W Oct 2,290,717 -3.8% 841,775 1.3% 9 Manzanillo, Mexico W Oct 2,480,891 6.5% 1,089,668 n/a 10 8 Houston G Oct 2,130,860 10.8% 841,012 18.3% 11 9 Charleston E Oct 1,961,067 11.2% 818,590 18.9% 12 Montreal, Canada E Oct 1,445,114 2.8% n/a n/a 13 Lazaro Cardenas, Mexico W Oct 1,048,021 6.2% 455,962 23.5% All Major Ports Oct 45,865,801 5.5% 20,519,204 12.1% Major West Coast Ports W Oct 27,683,798 2.2% 12,971,642 10.8% Major East Coast Ports E Oct 16,051,143 11.0% 6,706,550 14.0%

36 AIRPORTS RAIL SERVICE

Long Beach Airport (LGB) covers 1,166 acres and has five runways, Rail freight service is provided by two main carriers - Union Pacific and Burlington Northern Santa Fe, which serve the entire Southern the longest being 10,000 feet. It is a hub of corporate activity as well California area. as being one of the world’s busiest airports in terms of general aviation activity. The airport provides passenger service on Jet Blue, Delta, and FREEWAYS American Airlines. Scheduled airlines also provide cargo service. Owned The Los Angeles County and Orange County transportation networks and operated by the City of Long Beach, the airport is an important are dominated by an extensive freeway system. The existing 1,700 miles part of the Long Beach community. Completed in 2013, the new of freeway corridors provide convenient access within Orange and Los passenger concourse is modern, comfortable and inviting. Offering a Angeles, as well as to all surrounding areas such as the Riverside and San variety of shopping destinations, the concourse is comprised of 35,000 Diego Counties. square feet of new construction with a peaceful garden core. The garden LONG BEACH METRO BLUE LIGHT RAIL LINE is home to a variety of vibrant, native plant life as well as an extensive array of exhibits highlighting LGB’s history in the aviation industry. Metro Rail is an urban rail system serving Los Angeles County. It consists of six lines, including two rapid transit subway lines (Red and The terminal area is 74,000 square feet, and accentuates the historic Purple lines) and four light rail lines (Blue, Green, Gold and Expo lines) terminal building. serving 80 stations.

Los Angeles International Airport (LAX), only 21 miles from 100 Pine The Blue Line’s Downtown Long Beach station is located at 128 West Avenue, offers more than 692 daily flights to 85 destinations in the U.S., 1st Street between Pine Avenue and Pacific Avenue in Downtown over 900 weekly nonstop flights to 67 international destinations and is Long Beach and is located on a northbound loop from Long Beach to the busiest airport in California in terms of flight operations, passenger Downtown LA. traffic and air cargo activity. In 2015, LAX was the fifth busiest airport The Downtown LA hub connects to the Red Line leading to Hollywood in the world, with 74,937,004 passengers. In 2015, LAX was the fifth and the San Fernando Valley, Gold Line to Pasadena, Purple Line to busiest airport in the world by traffic movement, with 655,564 total Koreatown (eventually to Westwood and Beverly Hills with construction aircraft takeoffs and landings. LAX is the fifteenth busiest cargo airport plans in place), and the Expo Line to Culver City (currently being in the world, handling 1.8 million tons of origination and destination extended to Santa Monica). air cargo in 2014. Midway between Long Beach and Downtown LA the Green Line offers access to Norwalk to the east, LAX Airport to the west and continues John Wayne Airport, although much smaller than LAX, services the south to Redondo Beach in the South Bay. Orange County area with seven commercial and two freight carriers and features a 300,000 square foot terminal. The airport, just 25 miles from The Blue Line has specific stops to major attractions in the area such 110 Pine Avenue, also accommodates private and corporate flights, due as Veteran’s Park, Long Beach Memorial Medical Center, City Place Shopping Centers, The Pike at Rainbow Harbor (retail shops, private to the heavy volume of business-related travel. events, festivals, open air markets and art exhibitions). Long Beach Convention and Entertainment Center, Shoreline Aquatic Park and Shoreline Village(charming boardwalk shops and restaurants).

37 LONG BEACH RESTAURANTS AND NIGHTLIFE

Long Beach is jeweled with a vast world of great food, exotic dining POPULAR EATING and memorable restaurants from AND DRINKING romantic hideaways, sidewalk cafes ESTABLISHMENTS and neighborhood favorites to those • Padre serving up elegance, spectacular city •L’Opera and harbor views and seaside charm. You will find more than 100 quality • Michael’s Pizzeria restaurants within an eight block radius • Beachwood Brewing & BBQ in Downtown, serving everything • Cafe Sevilla from hot wings to haute cuisine. Long • ASHA Moroccan Mediterranean Beach is also where world-class arts • BO-beau Kitchen & Roof Tap and cultural exhibition complement • The Sky Room a spectacular seaside locale. Musical • 555 East masterpieces are performed at the waterside Long Beach Performing • James Republic Arts Center, home to the Long • La Traviata Beach Symphony Orchestra, Long • Gaucho Grill Beach Opera and International City • Fuego Theater. Downtown Long Beach • Berlin boasts one of Los Angeles County’s • George’s Greek Cafe largest concentrations of restaurants, • Pier 76 Fish Grill nightclubs, and entertainment venues • King’s Fish House making it one of LA’s most exciting neighborhoods.

38 TOURISM

Long Beach benefits from its proximity to Los Angeles in more ways than one. The cultural scene here is great, providing residents with the best in arts and entertainment. Hundreds of artistic and cultural events take place in Long Beach every year. The local Cal State Long Beach School of Fine Arts not only provides top notch instruction in these areas, but also performs more than 200 dance, music, and theater productions each year. Long Beach is home to the only museum in the Western United States that exclusively features contemporary art from Mexico, Central America, South America, and the Spanish-speaking Caribbean at the Museum of Latin America.

Beach and ocean activities are favorites, from sand volleyball to scuba diving to whale-watching, there is fun to be had by all. A short drive puts residents in the Santa Monica Mountains or Angeles Crest, where they can mountain bike along thousands of miles of dirt roads and trails, seeing deer, an occasional mountain lion, and diverse bird life. A dozen excellent rock climbing spots are also within an hour of town, some of them right on the beach. While a short drive to Los Angeles puts you within TRANSPORTATION reach of all the recreation and nightlife that a major metropolis can offer. Known as the region’s “Easy In, Easy Out” airport, Long Beach Airport (LGB) hosts Alaska Airlines, Delta, JetBlue Airways and US Airways. It stays true to its history as one of the world’s busiest general aviation airports, Downtown Long Beach is clustered with restaurants, providing a degree of ground and air transportation convenience that is unparalleled in Southern California. galleries, and shops. The city’s harbor and marina are home LGB is included in the National Plan of Integrated Airport Systems for 2011–2015, which categorized it as a to many private ships, charter boats and ferries, and sport- primary commercial service airport. In December of 2012, the new passenger concourse opened to the public. fishing outfits. The city is also the permanent home of the LGB’s new passenger concourse is modern, comfortable and inviting. This project brings the overall terminal RMS Queen Mary, the historic ship that made hundreds area to 77,850 square feet, while accentuating the historic terminal building. of Atlantic crossings. A combination hotel, museum, and tourist attraction, the Queen Mary testifies to the city’s Long Beach Transit was formed in 1963 and currently serves over 27 million passengers per year with regular multiplicity. It also features the shimmering kid-friendly bus service. In addition to its own bus system, the Metro Rail light rail station travels from Downtown Long Long Beach Aquarium of the Pacific, which has taken its Beach to Staples Center in Downtown Los Angeles where it connects with Hollywood and Pasadena. Downtown place as one of Southern California’s must-see attractions. Long Beach also excels in connecting public transportation options with public parking and pedestrian mobility. Other attractions include whale-watching excursions, In addition, several freeways run through Long Beach, connecting it with the greater Los Angeles and Orange fishing off Belmont Pier, and swimming and boating at County areas. Alamitos Bay. In addition, the Gondola Getaway brings 39 the charm of Italy to Long Beach as real Venetian gondolas float the waterways of Naples Island. ECONOMY Sea-based trade also plays a major role in the The Long Beach economy is a blend of high-tech economy. Long Beach is a major seaport, and the industry and tourism as well as a being a leading Port of Long Beach moves more freight than any commercial center, and banking, petroleum, and port in North or South America. The Port was computer industries all thrive in the area. One small EDUCATION founded in 1911 and is comprised of 3,200 acres in piece of petroleum-rich real estate known as Signal Long Beach with 10 piers. Internationally ranked, The Long Beach Unified School District has won Hill is among the wealthiest pieces of land anywhere the Port of Long Beach is the second busiest port in several county, state, and national awards for its in the world. the United States. A major economic force, the Port innovative programs, such as mandatory uniforms supports more than 30,000 jobs in Long Beach, for public school students. The district provides The medical facilities in Long Beach are consistently 316,000 jobs throughout Southern California and education for close to 100,000 students at nearly ranked among the best in the nation. The Long 1.4 million jobs throughout the United States. 100 schools, and is the one of the largest employers Beach Memorial Medical Center was ranked as one It generates about $16 billion in annual trade- in the Long Beach area. The diverse Long Beach of the 50 most affordable facilities in the United related wages statewide. The Port of Long Beach community exposes students to all the exciting States. It offers a state-of-the- art cancer center, 24- operates under a Green Port Policy guiding efforts elements of city life. hour urgent care, maternity care, and quality senior care. Saint Mary Medical Center is the second to minimize or eliminate negative environmental Long Beach is also an educational utopia for adults. largest facility in the city. It is a church-run non- impacts. It also serves as a model for ports around Long Beach is home to California State University, profit that offers short term acute care. Saint Mary’s the world pioneering such programs as the Green Long Beach; Brooks College, a fashion and design offers the full gamut of services, from cardiac care Flag vessel speed reduction air quality program, school; and Long Beach City College. Several other and rehabilitation services, to organ transplants and and the San Pedro Bay Ports Clean Air Action University of California campuses are located within psychiatric care. Long Beach is also home to the Plan. Currently the port is moving aggressively to commuting distance. The continuing education Miller Children’s Hospital and the VA Long Beach have all container terminals outfitted with shore programs, adult education, and multiple price Healthcare System. power by 2020. This will allow the docked ships to ranges makes Long Beach an inexhaustible source plug into the land-based electrical utility instead of of education. Boeing is the largest regional employer, anchoring burning diesel fuel to run their auxiliary engines, the local aerospace industry. Other high-tech cutting down the source of pollution. The first shore companies and equipment manufacturers are powered terminal is scheduled to be completed affiliated with this industry, giving the city a strong in 2014. There are special opportunities in Long technological and industrial base. Tourism is also a Beach for bilingual employees, especially Spanish, major draw to the area. Many local businesses thrive Japanese, and Chinese speakers. in the city’s marina, offering fishing excursions and yacht charters, as well as hotel, restaurant, and service businesses for tourists.

40 LONG BEACH TOP EMPLOYERS

COMPANY NAME NO. OF EMPLOYEES Uti Worldwide Inc. 21,077 Long Beach Unified School Dist 15,000 Western Territorial Of The Salvation Army 12,094 Memorial Health Services - University Of California At Irvine Center 10,000 Molina Healthcare, Inc. 8,200 California State University, Long Beach 7,500 City Of Long Beach 5,000 Myriad Group Inc 5,000 Aecom Technical Services, Inc. 4,655 Audio Visual Services Group, Inc. 4,000 Daniel D Whitcraft Iii Md 4,000 Long Beach Memorial Medical Center 3,500 Audio Visual Services Corporation 3,400 Acapulco Restaurants, Inc. 3,000 Alumni Assoc Of Delta Chi 3,000 Mullikin Medical Center, A Medical Group, Inc 3,000 Avsc Intellectual Property Management, Inc 2,968 Audio Visual Services Group, Inc. 2,968 Molina Helathcare Of California Partner Plan, Inc 2,800 Computer Sciences Corporation 2,716 Maintenance Staff, Inc. 2,600 Retirement Housing Foundation Inc 2,500 Star-Kist Samoa Inc 2,500 Xerox Education Services, Llc 2,350 U.S. Epson, Inc. 2,225 Foundation Property Management Inc 2,200 St Mary Medical Center Inc 2,000 Boeing 1,800 Earth Tech Inc 1,800 Long Beach Community College District 1,725 Buffums Inc 1,500 Earth Tech (Infrastructure) Inc. 1,500 Kit Manufacturing Company 1,476 St. Mary Medical Center 1,400 Eastman, Inc. 1,226 Long Beach Community Hospital Association 1,050 Molina Information Systems, Llc 1,022 Bragg Investment Company Inc. 1,000 Hr Serve Enterprises 1,000 Irwin Industries Inc. 1,000 Lasorda/Ses, Inc 1,000 U.S. Skillserve Inc 1,000

41 LONG BEACH BUSINESS JOURNAL ARTICLE

APPROVED/IN PLAN CHECK 14. Residences at City Place – 495 Promenade North; four-story, mixed-use project with 20 residential units, and 5,220 square feet of ground floor commercial space.

15. Beacon Apartments – 1201-1235 Long Beach Blvd.; 121-unit affordable housing development that will serve extremely low- to low-income seniors 62 years and over, and a 39-unit supportive housing building for extremely low-income veterans who are homeless or at risk of homelessness.

16. 227 Elm Ave. – Developer City Ventures proposes 40 townhomes consisting of three-story dwellings over one car garages.

17. 101 Alamitos Ave – Mixed-use project consisting of a seven-story, 136 condominium development; including 10 studio units, and 2,560 square feet of pedestrian-oriented retail/restaurant; located in the East Village Arts District.

18. 434 E. 4th St. – Mixed-use project with 49 apartment units over ground floor resident amenities and retail space with 82 parking stalls.

19. 230 W. 3rd St. – Mixed-use residential complex including 163 dwelling units, 261 subterranean parking spaces, community COMPLETED spaces for tenants, pool deck and fitness area. 1. Edison – 100 Long Beach Blvd.; Transit-oriented development across from Metro Blue Line; 114,267-square foot, mixed-use development consisting of a 12-story apartment complex and more than 3,600 square feet of retail space. Reinvention of 20. 107 Long Beach Blvd. – Proposed new hotel; 30,620 square feet with 34 guest rooms. original mid-century design and façade and sustainable design approach with on-site bicycle storage areas to encourage alternative modes of transportation. 21. 437 E. 5th St. – Mixed-use project; 18 apartment units and 230 square feet of commercial space.

2. The Current – 707 E. Ocean Blvd.; City’s first high-rise apartment complex in over a decade. 17-story, mixed-use complex 22. Security Pacific National Bank Building – 110 Pine Ave. – An adaptive reuse project to convert office space at the 13-story including 223 luxury rental units; a 25,000-square foot plaza, and additional retail space on the ground floor. With close building into 118 residential units above the Federal Bar. proximity to dining and entertainment districts like Pine Avenue and the East Village and easy access to the waterfront, the project is expected to enhance economic energy by attracting more restaurants and shops to the busy corridor. 23. Ocean View Tower – 200 W. Ocean Blvd.; An adaptive reuse project of the Verizon Building, converting over 95,000 square feet into a mixed-use development consisting of a nine-story, 94-unit residential apartment complex with over 4,500 square feet 3. Pacific Court Apartments – 245 Pine Ave./250 Pacific Ave.; Adaptive-reuse of the former AMC Pine Square movie theater to a of retail space. multi-family residential development consisting of 69 loft-style apartment units. 24. 207 Seaside Way – The proposed mixed-use development project includes 113 residential units and 2,000 square feet of retail 4. Sixth Street Lofts – 431 E. 6th St.; Four-story, 30-unit residential apartment building. at a five-story building. Construction has begun on a public pedestrian bridge located adjacent to the site.

5. Urban Village – 1081 Long Beach Blvd.; Mixed-use, transit-oriented development; five-story, 129 units. 25. Ocean Center Building – An adaptive reuse project to convert office space at the historic Ocean Center Building at 110 W. Ocean Blvd. into approximately 74 residential units with ground-floor retail and restaurant space. 6. Newberry Lofts – 433 N. Pine Ave.; An adaptive reuse project to convert a building that once housed the Newberry department store into a mixed-use complex, including 28 residential units and 6,500 square feet of ground floor retail. 26. 777 E. Ocean Blvd. – Part of the Shoreline Gateway Master Plan; East Tower; proposed with 315 residential

7. Studio One Eleven – 245 East 3rd St.; Two-story, 34,321-square foot office remodel project. New headquarters for architectural firm and its parent company, Retail Design Collaborative (formerly P + R Architects). Completion of the first project as part of the ongoing revitalization of City Place Long Beach was celebrated in October 2016. PENDING/UNDER REVIEW 27. 135 Linden Ave. – Proposed five-story building includes up to 44 residential units above about 2,688 square feet of retail UNDER CONSTRUCTION space. 8. The Park Broadway – 245 W. Broadway (site of former State Office Building); 222 residential units with 8,500 square feet of retail space on the ground floor, including an art gallery, café, and “bike kitchen.” 28. 320 Alamitos Ave. – Proposed 77 market-rate apartments with 109 parking stalls (located on 2 levels below grade and a grade level). 9. 137 W. 6th St. – Four-story, mixed-use development will include a 10-unit residential component, and an additional 1,200 square feet of commercial retail space. 29. Broadway & Magnolia Apartments – 500 W. Broadway – Proposed seven-story, 142-unit apartment building with 2,954 square feet of commercial space. 10. 117 E. 8th St. – Adaptive reuse of designated landmark building, including two levels of medical offices, and a six-story, 49- unit assisted living component for seniors. 30. Pacific Avenue/3rd and 4th – Proposed 325 residential units. 11. Long Beach Civic Center – 411-415 W. Ocean Blvd. – Re-envisioned Civic Center project to include a new 11-story, 31. 507 Pacific Ave. – Proposed mixed-use project consisting of 134 residential condos with 7,000 square feet of commercial 254,000-square foot City Hall; an 11-story, 237,000-square foot Port Building; a 92,500-square foot Main Library; and a church and retail space. 73,000-square foot Civic Plaza with subterranean parking structure; and a renewed Lincoln Park. 32. Broadway Block– 240 Long Beach Blvd. – Proposed two-building, mixed-use project consisting of a total of 375 residential 12. Oceanaire – 150 W. Ocean Blvd. – Ground-breaking held on December 6 for seven-story, 216-unit residential project with units, 5,212 square feet of retail space, and 5,773 square feet of creative office space. 1,500 square feet of retail space located adjacent to the historic Ocean Center Building. 33. 825 E. 7th St. – Proposed 19 residential units. 13. 442 W. Ocean Blvd. – Mixed-use development, consisting of a a five-story building with 94 residential units and 1,455 square feet of retail. 42 (Source: Prepared by the City of Long Beach Development Services Department and the Long Beach Business Journal) LONG BEACH BUSINESS JOURNAL ARTICLE

1 25 23 22 12

3 11 2 11 11 18 27 8

19 16

32 1 DOWNTOWN PERSPECTIVE Randal Hernandez Chairman, Long Beach Economic Development Commission 20

Downtown Long Beach is alive with renewed energy driven by shiny new housing, stylish new restaurants 28 and refreshed streetscapes. And, the new Civic Center will be a catalyst for more investment in downtown residential, restaurant and hotel developments. This reawaking of downtown is built on a strong foundation of urban pioneers who invested in the “future” of the community many years ago. While we take pride in 17 the sparkling new buildings, I’m excited about what this revitalization is doing to create new employment, entrepreneurial and housing opportunities for individuals and families. The energy in downtown has also become a catalyst for connecting people with their neighbors, with residents across the city and linking Long 2 Beach to the Southern California region. Creating new economic opportunities and connecting people across 26 the city is at the core of the Long Beach Economic Blueprint currently under-development by the Economic Development Commission.

The success of Downtown Long Beach is part of the foundation on which we hope to drive more economic opportunities in Bixby Knolls, north town, east, central and the Westside . . . indeed in neighborhoods across the city. Again, the success is not just found in the new buildings rising. Fundamental to this success has been the collaboration among residents, business-owners, developers, government and the community – driven by the Downtown Long Beach Alliance – to create opportunities from the west end, to the ocean, to the east village and throughout the downtown core. Yes, the future is indeed bright for Downtown Long Beach! The challenge and opportunity now is to learn from this success, leverage the economic energy and connect people together to develop a citywide Economic Blueprint that brings new investment and vitality to neighborhoods across the city.

We invite readers to learn more about the Blueprint including opportunities for comment as well as commission meeting dates and times, at www.longbeach.gov/blueprint.

43 LONG BEACH BUSINESS JOURNAL ARTICLE

Development project Park Broadway (foreground) is under construction at 245 W. Broadway, between Cedar and Pacific avenues. The project consists of 222 residential units and 8,500 square feet of retail space. Just behind Park Broadway is the site of the Sares-Regis Group project 3rd + Pacific. The eight-story, multifamily residential development includes 163 residential units and 261 subterranean parking spaces. (Photograph by the Business Journal’s Larry Duncan)

44 exclusivelyEXCLUSIVELY LISTED BY: listed

OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com