4186-4190 S. Western Avenue Los Angeles, CA 90062 Offering Memorandum Presented By:

Andrew Wilkey Investment Associate DRE: 01998185 [email protected] (949) 355-3834 4186-4190 S. Western Avenue Table of Contents

Location Overview Neighborhood Description Location Highlights Nearby Developments Local Hotspots

Property Summary Property Description Property Highlights Photography Renderings Sales Comparables We sweat the details, so you don’t have to. Location Overview Introducing: Leimert Park A South LA Jewel Continuing to Evolve

The historically-rich neighborhood of Leimert Park is widely regarded as a premier cultural hub promoting diversity in Los Angeles. Developed by Walter H. Leimert in 1928, the city is one of the first planned communities in Southern California designed for upper and middle-class families. Additionally, Leimert Park is regarded as a model for urban planning with car traffic near schools minimized, utility wires hidden from views and tree-lined streets. Located East of Crenshaw and North of Vernon, the 1.19 square mile neighborhood is at the epicenter of Spanish Colonial Revival architecture. Residents cherish the friendly small-town environment while having proximity to major employment hubs such as Culver City and Downtown Los Angeles.

Recently, Leimert Park has been undergoing a significant transformation and the neighborhood is becoming multi-cultural. High-income young professionals are recognizing the new developments in the city and are coming from the Westside and beach communities such as Venice, Santa Monica, and Marina Del Rey. The completion of the Crenshaw Metro Line will afford residents convient forms of transportation to the Westside and Greater Los Angeles. Due to the new train line, Crenshaw Boulevard, the city’s main artery, is getting an overhaul with trendy boutiques and restaurants moving in.

Leimert Park has been rated as one of the top neighborhoods in Los Angeles by Curbed and The Los Angeles Times. With plenty of new developments, trendy retail boutiques establishing themselves in the community and a wealth of high-income young professionals, Leimert Park will be a premier South LA neighborhood for years to come. Nearby Developments

4252-4272 Crenshaw Blvd. A non-profit developer plans on constructing a four-story building featuring 11 studio and one-bedroom apartments, rooftop deck and rear yard. Kaiser Permanente With construction recently completed, Kaiser Permanente developed a 100,000 SF medical office offering a full range of primary and specialty services. 3416 W. 43rd St. & 4300 Degan Blvd. The city is soliciting redevelopment ideas for two publicly-owned parking lots less than a block from the future Leimert Park metro station. Parcels would be eligible for TOC incentives. 3450 W. 43rd St. Located one block north of the Crenshaw/LAX metro line (currently under construction), plans call for 62 live-work units with seven set aside for affordable housing. Crenshaw Blvd. & Stocker St. Sitting on a 20,000 SF lot, proposed plans call for three five-story commercial buildings featuring 69 residential units and parking for 52 vehicles. Nearby Developments Map Subject Location: 4186-4190 S. Western Ave.

Local Hotspots Notes:

1) 4252-4272 Crenshaw Blvd. Four-story building featuring 11 studio and one-bedroom apartments 2) Kaiser Permanente 100,000 SF medical office offering 60 practioners and a full range of services 3) 3418 W. 43rd St. & 4300 Deegan Blvd. The city is currently soliciting ideas for two pubicly-owned parking lots (TOC opportunity) 2) 3450 W. 43rd St. Located one block north of Crenshaw/LAX line, plans call for 62 live-work units 5) Crenshaw Blvd. & Stocker St. Proposed plans call for 69 residential units and parking for 52 vehicles Local Hotspots

USC Village Located at the USC Campus, The village offers 104,000 SF of retail space, offering a myriad of shopping, dining and fitness destinations. Shrine Auditorium One of LA’s favorite venues, the Shrine is a landmark large- event venue that frequently hosts chart-topping artists Vision Theatre Baldwin Hills Crenshaw Mall attracting locals and guests from around the world. Baldwin Hills Crenshaw Mall With plans for a $700 Million renovation and expansion, the mall is currently home to over 100 shops and restauraunts. Banc of California Stadium Opening its doors in 2018, Banc of California stadium is Los Angeles’ first open-air stadium. It is home to the newest and hottest MLS Soccer team, LAFC. Vision Theatre Designed by Morgan, Walls & Clements, who are responsible for designing LA’s most historic buildings, this landmark theatre recently underwent a multi-million dollar renovation and is now a performing arts haven for diverse talent.

Banc of California Shrine Auditorium Stadium USC Village 1 1 22

45 33 5 4186-4190 S. Western4186-4190 Ave. S. Western Ave.

Local Hotspots Map Subject Location: 4186-4190 S. Western Ave.

Local Hotspots Notes:

1) USC Village Located near the USC campus, 104,000 SF of retail space 2) Shrine Auditorium Landmark Los Angeles venue frequently hosting world-famous artists 3) Baldwin Hills Crenshaw Mall Home to the LA Lakers, LA Clippers, LA Kings and LA Sparks 4) Banc of California Stadium Los Angeles’ newest stadium and home to the Los Angeles Football Club 5) Vision Theatre Historical art-deco theatre that serves as a haven for diverse cultural talent Property Overview Existing Improvements Property Description 2 VACANT Single-Family Homes Kenny Stevens Team is pleased to present 4186-4190 S. Western Avenue, located in the rapidly growing neighborhood of Leimert Park with Year Built - 1912 proximity to USC, Baldwin Hills and West Adams. The offering consists of Building Size(s) two adjacent parcels, with a combined lot size of 10,309 SF zoned LAC2- 1,420 SF & 1,352 SF 1VL-CPIO, and is comprised of (2) 3-bedroom and 1-bathroom single-family homes that are currently vacant. The land measures 80’ X Lot Size - 10,309 SF 129’ making it a perfect candidate to build 48 units with a Tier 3 TOC Lot Dimensions - 80’ X 129’ density bonus incentive. The parcels are also located in an Opportunity Zone which qualifies the owner for a special tax incentive program. Zoning Type LAC2-1VL-CPIO Property Highlights Submarket - Leimert Park

- Opportunity to build 48 units with Tier 3 TOC density bonus Major Intersection S. Western Ave. & W. 42nd - Maximum of 38,663 buildable SF, 67 ft. height restriction (5 stories) - Close proximity to USC, Baldwin Hills and West Adams APN 5021-009-030 - Two VACANT Single-Family homes on unentitled land 5021-009-029 - 2 adjacent parcels combine to form a flat spacious 10,309 SF lot (measuring 80” X 129’) Price - $1,550,000 - Located in Opportunity Zone Land Cost - $150 Per SF

- LAC2-1VL-CPIO zoning Price/Unit - $32,291 Property Overview Opportunity Zone Development

Example: Purchase 4186-4190 S. Western Avenue with your capital gains for 4186-4190 S. Western Avenue is located (1,550,000), spend the substantial improvement money to build 48 units (at least in an Opportunity Zone! What does this 1,550,000), hold the property for 10 years and cash out with 15% less tax owed on mean? the original gains rolled into the project, AND pay NO CAPITAL GAINS on the proceeds from your development project. See financials page for more info. Opportunity Zones are a new community Opportunity Zone Map: development program established by https://cafinance.maps.arcgls.com/apps/webappviewer/Index. Congress in the Tax Cuts and Jobs Act html?id=do68b90cb97f4b429f3b180593036b7e

of 2017 to encourage long-term More on Opportunity Zones: investments in low-income urban and https://www.irs.gov/newsroom/opportunity-zonesfrequently-asked-questions rural communities nationwide.

An investor can roll their capital gains into an Opportunity Zone property and avoid paying up to 15% on thos gains. More importantly, an investor can avoid paying up to 100% of the capital gains taxes accrued in the 10 year required holding period if they substantially improve the property. The substantial improvement must cost at least as much as the purchase price, and must be done 30 month of acquiring the property. The Opportunity Zone program favors ground-up development and 4186-4190 S. Western Avenue is the perfect Opportunity Zone deal. Property Overview | Parcel Map Neighborhood - LA Metro

Metro Rail Red Line North Hollywood to Union Station Purple Line Wilshire/Western to Union Station Blue Line Downtown LA to Long Beach Expo Line Downtown LA to Santa Monica 4186-4190 S. Western Ave. Green Line Redondo Beach to Norwalk Gold Line East Los Angeles to Azusa Metro Busway Orange Line Chatsworth to North Hollywood Silver Line San Pedro to El Monte Property Overview | Seismic Hazard Info

Parcel Number(s): 5021-009-030 5021-009-029

Address: 4186-4190 S. Western Avenue Los Angeles, CA 90062

Fault Zone: This parcel is NOT WITHIN an Earthquake Fault Zone.

Landslide Zone: This parcel is NOT WITHIN a Landslide Zone.

Liquefaction Zone: This parcel LIES WITHIN a Liquefaction Zone.

Slope: This parcel is on a flat piece of Land. Property Overview | Drone Photography

USC LA Memorial Coliseum

Downtown Los Angeles Banc of California Stadium

4186-4190 S. Western Ave.

Western Ave. Property Overview | Drone Photography

4186-4190 S. Western Ave. Property Overview | Drone Photography

4186-4190 S. Western Ave. Property Overview | Renderings Property Overview | Renderings Property Overview | Renderings Comparables Property Overview | Sales Comparables

Property Photo

4186-4190 4813 1128 1257 4706 Address S. Western Ave. S. Kansas Ave. W. 39th St. W. 39th Pl. S. Western Ave.

LAR3 Tier 3 LAR3 Tier 3 LAR3 Tier 3 LAR3 Tier 1 LAR3 Tier 3 Zoning TOC - Ozone TOC - Ozone TOC - Ozone TOC - Ozone TOC - Ozone

Price $1,550,000 $2,000,000 $1,950,000 $1,443,000 $1,275,000

COE Subject Property 08/05/2019 07/09/2019 12/08/2017 05/04/2018

Type LND LND LND LND INC

Lot Size 10,310 SF 18,000 SF 17,378 SF 11,100 SF 11,100 SF

PPF $150 $111 $112 $130 $114

PPU $32,291 $50,000 $26,000 $180,000 $98,000 2 3 4186-4190 S. Western Ave.

4 1

Sales Comparables Map Subject Location: 4186-4190 S. Western Ave.

Local Hotspots Zoning Price COE Lot Size PPF PPU

1) 4186-4190 S. Western Ave. LAR3 Tier 3 TOC - Ozone $1,550,000 Subject Property 10,308 SF $150 $32,291 2) 4813 S. Kansas Ave. LAR3 Tier 3 TOC - Ozone $2,000,000 08/05/2019 18,000 SF $111 $50,000 2) 1128 W. 39th S LAR3 Tier 3 TOC - Ozone $1,950,000 07/09/2019 17,378 SF $112 $26,000 4) 1257 W. 39th Pl. LAR3 Tier 3 TOC - Ozone $1,443,000 12/08/2017 11,100 SF $130 $180,000 4) 4706 S. Western Ave. LAR3 Tier 3 TOC - Ozone $1,275,000 05/04/2018 11,100 SF $114 $98,000 If you have any questions regarding this listing, please contact:

Andrew Wilkey Investment Associate DRE: 01998185 [email protected] (949) 355-3834

Wake Up and Smell The Cash Flow