110 Units Delivered Vacant-Unique Opportunity Variety of Uses-Affordable, Market, Co-Living, Short Term

| OFFERING MEMORANDUM a Berkshire Hathaway and Jefferies Financial Group company

Rare Large Core Los Angeles Asset-172 Units 96 Walk Score and Steps to Metro Station

Currently Operated as a Hotel and Apartment Building Massive Unutilized Common Areas to Add Amenities 110 Units Delivered Vacant THE OLYMPIC 725 S WESTLAKE AVENUE | LOS ANGELES, CA 90057 172 UNITS | BUILT 1925 OFFICE INVESTMENT ADVISORS

BRENT SPRENKLE Senior Managing Director 310.470.4892 [email protected] CA BRE License #01290116

MORTGAGE BANKING

ALLAN FREEDMAN Managing Director 310.209.3243 [email protected]

SOUTH BAY LOS ANGELES

2321 Rosecrans Avenue, Suite #3235 El Segundo, CA 90245 Office: (424) 239-5900 Fax: (424) 239-5901 Frontmatter

THE PROPERTY 4 THE LOCATION 8 THE OPPORTUNITY 18 FINANCIALS 26 COMPARABLE PROPERTIES 28 ECONOMIC & DEMOGRAPHIC OVERVIEW 40 MULTIFAMILY FORECAST 56 DISCLAIMER 59

BERKADIA 3 THE PROPERTY PROPERTY SUMMARY

Units 172

Year Built 1925

Parcel Number(s) 5141-019-013

Type of Buildings 1, Four-Story, Rentals

Roofs Flat

Exterior Brick Pro p ert y Summar

PROPERTY DESCRIPTION The Olympic is a 172-unit apartment complex/hotel situated in the redeveloping Westlake district of Los Angeles, just west of downtown. The Olympic will be delivered with a minimum of 110 units vacant at the close of escrow. The property is steps away from Wilshire Boulevard, Alvarado Street, MacArthur Park, and the Metro Station. The Olympic was built in 1925 and is a four-story complex constructed of reinforced brick with two large basements and a massive lobby. All units are efficiencies and have private y bathrooms and a closet but no kitchen. No units share bathrooms. The certificate of occupancy from 1926 states the property is a “four-story, Class C, 172 Rooms, Hotel”. As the property was originally a hotel, all utilities are master-metered. The property is serviced by four staircases and an elevator in a central hallway configuration with a courtyard between the u-shaped structure. There is a large lobby that features a leasing desk as well as a private office. There are two large basements on either side of the property with the basement to the north having a separate entrance to the street. This space could possibly be leased for additional income. The Olympic Hotel boasts a walk score of 96 which is defined as a “Walker’s Paradise” as it is a two-minute walk to the Metro Purple Line and Red Line. The property has been featured in movies, television commercials and shows and additional income has been received by the current owner for filming purposes.

BERKADIA 5 6 Property Summary PROERTY PHOTOS BERKADIA PROPERTY PHOTOS Pro p ert y Summar y

BERKADIA 7 THE LOCATION NEIGHBORHOOD SHOPPING DEMAND DRIVER LOS ANGELES, CA FROM THE FROM THE 1.3mi PROPERTY 0.8mi PROPERTY THE OLYMPIC N E IGHBORHOOD QUICK FACTS SF SHOPPING JOBS 330k DESTINATION 1.3k SUPPORTED

TOTAL HOSPITAL 30 STORES 408 BEDS

618.2k H&M | Nordstrom | Zara Good Samaritan Hospital Population (Within Three Miles)

NEIGHBORHOOD CONVENIENCES DEMAND DRIVER Pro p ert y Summar

78% FROM THE PROPERTY Renter Occupied Housing Units 2.5mi (Within Three Miles) JOBS 20.9k SUPPORTED

$ STUDENTS 922.4k 48.5k ENROLLED

Median Housing Unit Value y Within a two-mile radius of the property University of Southern California (Within Three Miles)

$ 42.2k PRIMARY EDUCATION DEMAND DRIVER Median Household Income STUDENTS FROM THE (Within Three Miles) 673.8k SERVED 1.2mi PROPERTY

SCHOOLS JOBS 1.4k AND CENTERS 25.0k SUPPORTED 4.0% SF OF City Unemployment Rate JOBS COMMERCIAL SUPPORTED SPACE (December 2019) 66.5k 5.6m

MacArthur Park ES | John H. Liechty MS | Belmont Sr. HS L.A. Live

BERKADIA 9 10 The Location L OCAT ION MAP BERKADIA LOCATION MAP Th e Lo c at i on

BERKADIA 11 12 The Location PROERTY BOUND AR Y AERIAL BERKADIA PROPERTY POINT OF INTEREST AERIAL Th e Lo c at i on

BERKADIA 13 14 The Location etr Epsto Pr, h Msc etr Te ra, onon A rWl, A Convention LA ArtWalk, LA Downtown Broad, Center, entertainment Live and MOCA district. sports Los Walt Angeles, The Disney L.A. Hall,and Center, Music The Park, Exposition Center, Staples the include DTLA and in attractions and venues community,popular most the of culture, Some Century.” 21st the the embracing enthusiastically - city centers dynamic conveniencemost of the Downtownare of defining that one as Angeles Los visitors and workers, residents, of 2018 Survey by the Downtown Center Business Improvement District states “a growing population DTLA’s population has tripled since 1999 and is expected to double again over the next decade. The residents of and over 1,000thousands new with tostores, restaurants, home and companies. currently As efforts the region’sis areaeconomic engine, revitalization The area. undergoing the into dollars continually of billions is investing developers DTLA cities, many Like spaces. public and a hub for the Metro rapid transit system, and is known for its government buildings, parks, theaters, neighborhood destinations such as Silverlake, Echo Park, and Koreatown. Downtown also serves as spectrum of companies with highly skilled workers, cultural activities, and is surrounded by popular Downtown requiring is Angeles Los of city the redevelop, developers to to include affordable projects. innew housing apartment continues Westlake As living. downtown to seven years, rent has increased significantly in theneighborhood, but is still economical compared location close to Downtownconvenient Los Angeles, public transit establishments, options, and rolling park land. Over the dining last historic best-known LA’s of some aspects, cultural area’s the enjoy Residents theaters. and bars, nightclubs,swanky lofts, stylish featuring now neighborhood, Westlake L OCAT ION DESCRIPT – With the recent upscale boom, young artists and professional are drawn to the Westlake - Downtown Los Angeles (DTLA) is the city’s central business district featuring a wide featuringa district business centralcity’s the is (DTLA) Downtown Angeles Los- BERKADIA LOCATION DESCRIPTION Downtown Los Angeles Tenant Highlights Th e Lo c at i on

BERKADIA 15 16 The Location L Downtown ArtWalk, LA Convention LA Center, entertainment Live and MOCA district. sports Los Walt Angeles, Disney L.A. Hall,and Center,Broad, Music The The Park,Exposition Center, Stadium, Staples Dodger the include DTLA in attractions and venues popular most the of Some • • • • about 34restaurants, cafes, bars. and from five-minute walk a within is downtownaverageresident the Downtownwhere lifestyle, the to drawnYoung arespaces.professionals public and Downtownneighborhoodsunique offering of mix varietya a is connected all activities byand amenities sophisticatedof a transit system, streetscapes, Nightlife, &Entertainment Dining, seventh-busiestand world. inthe airport Both LAX and Burbank Airport are within 15 minutes of DTLA, and Long Beach Airport is about 25 miles away. LAX is the third-busiest airport in the nation RegionalConnector,The atransformative publictransit isunderway project, which willeventually connect Blue,Expo, the GoldLines. and is property boast aWalkscorecore of96which isconsidered city’s aWalker’s Paradise The lines. rail Metro five and lines, network. The extensiveGreaterto Angeles’ freeway Metrolink connect Los which freeways, (Harbor)110 and six Ana), (Santa Bernardino),101 (San 10 the byfreeways, bounded six to home hub, transportation regional a as serves Angeles Los Downtown Transportation OCAT ION DESCRIPT The areaThe to ishome over 100live musicvenues, galleries, 15farmers and 60art markets, grocers, coffee and roasters There are 65bike share stationswith800bikes 15miles ofbike and lanes DTLA offers over 1,000 new bars, restaurants, nightclubs. and Downtown hasawalkability LA score of97, inLos highest the Angeles. BERKADIA Th e Lo c at i on

BERKADIA 17 THE OPPORTUNITY VALUE-ADDED OPPORTUNITIES The Olympic, with a minimum of 110 units delivered vacant, is a true value-added opportunity that is a prime candidate for a variety of uses including:

Short Term Housing

Co-Living or Communal Housing

Affordable Housing and Market Rate

Senior Housing

Unit Descriptions-All units are very similar. The property was originally a hotel and all units have a private bathroom, a small closet and a main room. No units share bathrooms and no units have kitchens. The property is master-metered for all utilities.

Unutilized Common Areas:

Basements-The property has two basements that are completely underutilized. The basement to the south is mostly building mechanical equipment t h e o pp ortun i y but the basement to the north, which is estimated to be over 5,000 square feet (buyer to verify), is completely unused and has a direct entrance from the street as well as a formal staircase from the lobby. It is rumored but not verified that this area was previously a restaurant. This basement is currently closed to the occupants of the building and could be utilized for a variety of uses including:

» Storage Lockers

» Communal kitchen

» Laundry Facility

» Restaurant or retail use

» Gym or Fitness Center

» Recreation Room

» Tenant Lounge

» Community Medical Center

Courtyard-There is a large courtyard accessed through the lobby that is underutilized. Various amenities could be added including:

» Bicycle Racks

» Landscaping and Fountains

» Fire Pits or Barbeques

» Patio Furniture

BERKADIA 19 20 the opportunity » » » » » » » » » V

AL HotWater Heater BoilerReplaced Operable radiators ineach unit electrical Some upgrades upgrades MajorPlumbing 110UnitsRenovated-Some taken down to studs the New Exterior Front Signand Door Resurfaced Roof Refurbished elevator New Boilerfor heat improvements (buyer to verify) including: Unit Renovations and Capital Improvements-The owner has upgraded approximately 110 of the units as well as invested close to $1.5 million in capital currently allows for annualrent increases of6%. capitalize on higher rents upon the turnover of these units. The units are subject to the Los Angeles rent stabilization ordinance (rent control) which Existing Long-Term Tenants-Approximately 35% of the units are leased to long term tenants at below market lease rates. A new owner will be able to UE - ADDED OPPORTUNITS-RECENTPITAL IMP RO VEMENTS BERKADIA DEVELOPMENT IN THE AREA - AERIAL

7 6 2 5 1 7th St t h e o pp ortun i y

3 9 8

10 S Alvarado St

W Olympic Blvd

LEASE-UP ESTIMATED COMPLETION PROPOSED COMPLETED

1. MacArthur Park: 665 Units 2. The Lake on Wilshire: 478 Units 9 740 S Alvarado Stree : 80 Units 6 739 S Park View Street - 144 Units 8 742 S Westlake Ave - 37 Units 678 S Alvarado Street 1930 Wilshire Boulevard, Estimated Completion: 2020 Proposed Completed: 2019 Estimated Completion: 2022 Estimated Completion: 2023 7 733 S Park View St - 266 Units Status: Lease-Up 10. 831 S Westlake Avenue - 75 Units 3. Silver Sands Premium Outlets: 57 Units Proposed Estimated Completion: 2021 Estimated Completion: 2021 4. 619 S Westlake Avenue: 78 Units Estimated Completion: 2021 5. 714 S Grand View Street : 100 Units Estimated Completion: 2022

BERKADIA 21 22 the opportunity DEVL Olympic HotelResidencesConstructionPipeline 10 ID 8 9 7 6 5 4 3 2 1 Total Existing 742 SWestlake Ave Total Proposed 831 SWestlake Ave 740 SAlvaradoSt 733 Park View 739 Park View 714 SGrandViewSt 619 SWestlake Ave 2101 W8thSt Lake onWilshire MacArthur Park MetroApartments PROPERTY OPMENT INTHEAREA-MA UNITS 1,943 266 144 100 478 665 37 37 75 80 78 57 LEGEND Existing Proposed BERKADIA 50 m Source: Yardi Matrix DEVELOPMENT IN THE AREA - PIPELINE

The Olympic Construction Pipeline

PERMIT FORECASTED ID PROPERTY NAME ADDRESS CITY STATE ZIP STATUS UNITS SUBMARKET DATE COMPLETION DATE 1 MacArthur Park Metro Apartments 678 S Alvarado St Los Angeles CA 90057 Proposed 665 MacArthur Park MF 2022 08/06/2019 2 Lake on Wilshire 1930 W Wilshire Blvd Los Angeles CA 90057 Proposed 478 MacArthur Park MF 2023 11/01/2016 3 2101 W 8th St 2101 W 8th St Los Angeles CA 90057 Proposed 57 MacArthur Park MF 2021 03/01/2019 4 619 S Westlake Ave 619 S Westlake Ave Los Angeles CA 90057 Proposed 78 MacArthur Park MF 2021 08/06/2019 5 714 S Grand View St 714 S Grand View St Los Angeles CA 90057 Proposed 100 MacArthur Park MF 2022 11/01/2016 6 739 Park View 739 Park View Los Angeles CA 90057 Proposed 144 MacArthur Park MF N/A 03/01/2019 7 733 Park View 733 Park View Los Angeles CA 90057 Proposed 266 MacArthur Park MF N/A 08/06/2019

9 740 S Alvarado St 740 S Alvarado St Los Angeles CA 90057 Proposed 80 MacArthur Park MF 2020 11/01/2016 t h e o pp ortun i y 10 831 S Westlake Ave 831 S Westlake Ave Los Angeles CA 90057 Proposed 75 MacArthur Park MF 2021 03/01/2019 Total Proposed 1,943 8 742 S Westlake Ave 742 S Westlake Ave Los Angeles CA 90057 Existing 37 MacArthur Park MF 2019 Total Existing 37 TOTAL LOS ANGELES (ZIP CODE 90057) 1,980

© 2019 Berkadia Real Estate Advisors LLC. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx. The information and details contained within this report have been obtained from a third-party and believed to be accurate; however, Berkadia has not independently verified its accuracy. Date of survey: January 2020

BERKADIA 23 24 the opportunity V make arrangements to view lobby, the courtyard, basement, afew and units. ofthe Tours are available Property Tours: condition. unitsare These currently sparsely furnished. renovatedpartially willbeready and for abuyer to fullyreposition orpotentially needs unitspertheir the lease as-is intheir them propertyThe willbedelivered to abuyer withaminimumof110vacant close unitsatthe ofescrow. unitshave These been Occupancy: A CANCIES DPROERTYTOUR S only by appointment , please calloremailBrent Sprenkle to make arrangements for aconvenient We time. will BERKADIA t h e o pp ortun i y

BERKADIA 25 Financials PRO FORMA

Unit Mix & Rent Schedule INVESTMENT SUMMARY Estimated Current Market Current Market Est. Total Units Unit Type Unit SF Rent Rent Rent/SF Rent/SF Net SF Price $19,500,000 172 Efficiency/1 Bath 150 $916 $995 $6.10 $6.63 25,800 Price/Unit $113,372 172 150 $916 $995 $6.10 $6.63 25,800 Price/SF $432.49 Gross SF 45,088 Current Pro Forma Cap Rate 5.03% Projected Market Pro Forma Cap Rate 6.02% Current Market Income Operations Proforma ALL FINANCING Scheduled Market Rent $1,889,832 $2,053,680 Vacancy 7.00% ($132,288) ($143,758) Total Loan Amount $11,750,000 Net Rental Income $1,757,544 $1,909,922 Down Payment $7,917,000

Plus: Laundry Income $5,160 $5,160 LTV 60% Total Operating Income (EGI) $1,762,704 $1,915,082 Mo. Payment ($46,313) Debt Constant 4.8% F i nan ci a ls Estimated Expenses Percentage Per Unit Administrative $100 $17,200 $17,200 NEW FIRST MORTGAGE (to be originated at purchase) Advertising & Promotion $25 $4,300 $4,300 Payroll $600 $103,200 $103,200 LTV for this loan 60% Repairs & Maintenance $400 $68,800 $68,800 Amount $11,700,000 Management Fee 4.00% $439 $75,593 $75,593 Interest Rate 4.75% Utilities (Water, Sewer, Electric & Gas) $879 $151,200 $151,200 Contracted Services $300 $51,600 $51,600 Amortization Interest Only Base Property Taxes 1.174% $1,331 $228,984 $228,984 Payment ($46,313) Property Tax Direct Assessments $22 $3,784 $3,784 Fees 1.00% Insurance $250 $43,000 $43,000 I/O Term (yrs) 10 Replacement Reserve $200 $34,400 $34,400 Total Estimated Expenses $782,062 $782,062

% of Scheduled Rent: 41.38% 38.08% Per SF: $17.35 $17.35 Per Unit: $4,547 $4,547

Net Operating Income $980,642 $1,133,021

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein ($555,750) ($555,750) is assumed to be correct and market-supported. Output produced from this Less: Debt Service model should not be considered an appraisal. Projections are forecasts and are $424,892 $618,344 not to be considered fact. The information contained in this file is privileged and Projected Net Cash Flow confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed Total Economic Loss 7.0% 5.0% written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. Cash-on-Cash Return (Based on Asking Price) 5.37% 7.81% © 2020 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Debt Service Coverage 1.76 2.11 Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts GRM GRM business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Cap Rate Cap Rate Current Market Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx Cap Rate Analysis Price $/Unit $/Foot Current Market Operations Proforma All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Asking Price $19,500,000 $113,372 $432.49 5.03% 6.02% 10.29 9.47 Purposes Only.

BERKADIA 27 Comparable Properties COMPARABLE RENTAL PROPERTIES

CURRENT RENT / UNITS TYPE UNIT SF RENT SF 172 Efficiency / 1 Bath 150 $916 $6.63 172 Weighted Average 150 $916 $6.63 Com p SUBJECT: THE OLYMPIC LOS ANGELES, CA 90057 ara bl e Pro p ert i s

Units: ��18 Built: ��1962

MARKET RENT / UNITS TYPE UNIT SF RENT SF 20 Studio / 1 Bath 200 $1,295 $6.47 20 Weighted Average 200 $1,295 $6.47

1. 725 S ALVARADO ST LOS ANGELES, CA 90057

Units: ��21 Built: �� 1923

BERKADIA 29 30 Comparable Properties COMP Built: Units: CALOS 90057 ANGELES, 420 SWESTLAKE AVENUE 3. REGINA Built: Units: CALOS 90057 ANGELES, 412 STREET SLAKE THEELEANOR 2. �� ARABLE RENTAL PROERTIES

1920 1927 96 41 UNITS UNITS 10 12 Weighted Average Weighted Average Studio /1Bath Studio /1Bath TYPE TYPE UNIT SF UNIT SF 209 350 209 350 MARKET MARKET $1,260 $1,425 $1,260 $1,425 RENT RENT RENT / RENT / $6.03 $4.07 $6.03 $4.07 SF SF BERKADIA COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 48 Studio / 1 Bath 350 $1,225 $3.50 Weighted Average 350 $1,225 $3.50

4. CARLTON Com p 526 S UNION AVENUE LOS ANGELES, CA 90017 ara bl e Pro p ert i s

Units: ��54 Built: ��1926

MARKET RENT / UNITS TYPE UNIT SF RENT SF 148 Studio / 1 Bath 235 $1,310 $5.57 Weighted Average 235 $1,310 $5.57

5. WILLIAM PENN 2208 W 8TH STREET LOS ANGELES, CA 90057

Units: �� 189 Built: �� 2003

BERKADIA 31 32 Comparable Properties COMP Built: Units: CALOS 90057 ANGELES, 847 SALVARADO STREET ALVARADO6. Built: Units: CALOS 90057 ANGELES, 7. SWESTLAKE 717 AVENUE �� ARABLE RENTAL PROERTIES 1924 1918 40 99 UNITS UNITS 87 33 Weighted Average Weighted Average Studio /1Bath Studio /1Bath TYPE TYPE UNIT SF UNIT SF 300 300 400 400 MARKET MARKET $1,050 $1,050 $1,350 $1,350 RENT RENT RENT / RENT / $3.50 $3.50 $3.38 $3.38 SF SF BERKADIA COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 10 Studio / 1 Bath 448 $1,650 $3.38 Weighted Average 448 $1,650 $3.38

8. THE MANALI Com p 742 S WESTLAKE AVENUE LOS ANGELES, CA 90057 ara bl e Pro p ert i s

Units: �� 37 Built: ��2018

BERKADIA 33 34 Comparable Properties COMP ARABLE RENTAL PROERTIES LOS ANGELES, CALOS 90057 ANGELES, 742 SWESTLAKE AVENUE THEMANALI 8. CALOS 90057 ANGELES, 7. SWESTLAKE 717 AVENUE CALOS 90057 ANGELES, 847 SALVARADO STREET ALVARADO6. CALOS 90057 ANGELES, 2208 W8TH STREET 5. WILLIAN PENN CALOS 90017 ANGELES, 526 SUNION AVENUE, CARLTON4. CALOS 90057 ANGELES, 420 SWESTLAKE AVENUE 3. REGINA CALOS 90057 ANGELES, 412 STREET SLAKE THEELEANOR 2. CALOS 90057 ANGELES, 1. 725SALVARADO ST CALOS 90057 ANGELES, 725 SWESTLAKE AVENUE SUBJECT: THEOLYMPIC

BERKADIA Com p ara bl e Pro p ert i s

BERKADIA 35 36 Comparable Properties GRM: Cap Rate: List Price: Rentable SF: Price /SF: Price /Unit: Units: Built: CALOS 90057 ANGELES, 725 SWESTLAKE AVENUE SUBJECT: THEOLYMPIC AP �� ARTMENT SALECOMP ��

$19,500,000 $432.49 $113,372 45,088 5.03% 10.29 1925 172

GRM: Cap Rate: Closed: Sold for: Rentable SF: Price /SF: Price /Unit: Units: Built: CALOS 90057 ANGELES, 2424 WILSHIRE BOULEVARD 1. PARK WILSHIRE �� ARABLES

$38,200,000 12/24/2019 $224,706 $320.73 4.40% 21,992 1924 N/A 170 Built: CALOS 90027 ANGELES, 5217 HOLLYWOOD BOULEVARD GUARDIAN2. ARMS GRM: Cap Rate: Closed: Sold for: Rentable SF: Price /SF: Price /Unit: Units: �� $26,015,000

12/18/2019 $257,574 $290.04 BERKADIA 89,694 4.00% 1928 N/A 101 APARTMENT SALE COMPARABLES Com p

3. 238 S MARIPOSA AVENUE 4. THE ELEANOR 5. 2795 W 8TH STREET LOS ANGELES, CA 90004 412 S LAKE STREET LOS ANGELES, CA 90005 LOS ANGELES, CA 90057 ara bl e Pro p ert i s

Built: �� 1928 Built: ��1920 Built: ��1925 Units: ��40 Units: ��41 Units: ��36 Price / Unit: ��$183,750 Price / Unit: �� $218,293 Price / Unit: ��$166,667 Price / SF: ��$323.50 Price / SF: �� $406.97 Price / SF: ��$297.03 Rentable SF: ��22,720 Rentable SF: ��21,992 Rentable SF: �� 20,200 Sold for: ��$7,350,000 Sold for: ��$8,950,000 Sold for: ��$6,000,000 Closed: �� 11/20/2019 Closed: �� 10/18/2019 Closed: �� 09/27/2019 Cap Rate: �� 4.69% Cap Rate: ��5.35% Cap Rate: ��4.07% GRM: ��N/A GRM: �� N/A GRM: ��N/A

BERKADIA 37 38 Comparable Properties GRM: Cap Rate: Closed: Sold for: Rentable SF: Price /SF: Price /Unit: Units: Built: CALOS 90020 ANGELES, 520 SMARIPOSA AVENUE THELONGINE6. AP �� ARTMENT SALECOMP ��

$9,375,000 08/16/2019 $195,312 $329.27 28,472 4.68% 12.77 1935 48 GRM: Cap Rate: Closed: Sold for: Rentable SF: Price /SF: Price /Unit: Units: Built: CALOS 90005 ANGELES, 7. 2975 LEEWARD AVENUE �� ARABLES �� $6,550,000 05/24/2019 $142,391 $315.66 21,675 4.21% 12.67 1927 46 GRM: Cap Rate: Closed: Sold for: Rentable SF: Price /SF: Price /Unit: Units: Built: CALOS 90005 ANGELES, 29338. W8TH STREET �� $6,875,000 05/22/2019 $171,875 BERKADIA $303.13 22,680 4.74% 1928 12.18 40 APARTMENT SALE COMPARABLES c om p

9. GERSHWIN, THE 10. WESTERN ARMS 11. LAFAYETTE HOTEL

5533 HOLLYWOOD BOULEVARD 1057 S WESTERN AVENUE 2731 BEVERLY BOULEVARD ara bl e s p ro ert i LOS ANGELES, CA 90028 LOS ANGELES, CA 90006 LOS ANGELES, CA 90057

Built: �� 2013 Built: ��1926 Built: ��1927 Units: �� 172 Units: ��76 Units: ��65 Price / Unit: ��$267,442 Price / Unit: �� $165,263 Price / Unit: �� $142,308 Price / SF: �� $483.44 Price / SF: ��$245.72 Price / SF: �� $373.06 Rentable SF: �� 95,152 Rentable SF: ��51,116 Rentable SF: ��24,795 Sold for: ��$46,000,000 Sold for: ��$12,560,000 Sold for: �� $9,250,000 Closed: �� 04/11/2019 Closed: �� 02/19/2019 Closed: ��01/28/2019 Cap Rate: ��4.00% Cap Rate: �� 4.50% Cap Rate: �� 5.04% GRM: ��N/A GRM: ��12.30 GRM: �� 11.96

BERKADIA 39 40 comparables properties AP ARTMENT SALECOMP ARABLES LOS ANGELES, CALOS 90057 ANGELES, 2731 BEVERLY BLVD 11. LAFAYETTE HOTEL CALOS 90006 ANGELES, 1057 SWESTERN AVE 10. WESTERN ARMS CALOS 90028 ANGELES, 5533 HOLLYWOOD BLVD 9. GERSHWIN, THE CALOS 90005 ANGELES, 29338. WEST 8TH STREET CALOS 90005 ANGELES, 7. 2975 LEEWARD AVENUE CALOS 90020 ANGELES, 520 SMARIPOSA AVE THELONGINE6. CALOS 90005 ANGELES, 5. 2795 WEST 8TH STREET CALOS 90057 ANGELES, 412 ST, SLAKE THEELEANOR 4. CALOS 90035 ANGELES, 3. 238SMARIPOSAAVENUE CALOS 90027 ANGELES, 5217 HOLLYWOOD BLVD GUARDIAN2. ARMS CALOS 90057 ANGELES, 2424 WILSHIRE BOULEVARD 1. PARK WILSHIRE CALOS 90057 ANGELES, 725 SWESTLAKE AVENUE SUBJECT: THEOLYMPIC

BERKADIA c om p ara bl e s p ro ert i

BERKADIA 41 ECONOMIC AND DEMOGRAPHIC OVERVIEW LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

DEMOGRAPHICS - MID-WILSHIRE SUBMARKET

% OF RESIDENTS WORK IN 11.6% 63 39.9 e c onom ic & d emo g ra phic o HOUSEHOLD GROWTH WHITE-COLLAR MEDIAN AGE PROJECTED FOR THE IN THE SUBMARKET SUBMARKET (2020-25) POSITIONS IN THE SUBMARKET

9.8k 2.4k $940.0k 4.5k $53.5k v er vi e w

The Mid-Wilshire The median home price The Mid-Wilshire Nearly 39% of the More than 75% submarket’s population in the Mid-Wilshire submarket’s median submarket’s residents of housing units in is forecast to grow submarket reached household income age 25 or older hold a submarket are renter $940,000 in is projected to reach 10.2% over the next bachelor's degree or occupied, compared to December 2019 $53,465 by 2025, up five year, reaching 9,774 higher, compared to 31% 31% nationally % from 2020 residents nationally 14.0

BERKADIA 43 44 economic & demographic overview L OS ANGEL|MID-WILSHIRE 11.6 LOS ANGELES|CALIFORNIA residents five year 10.2 is forecasttogrow s The Mid-Wilshire 9.8 DEMOGRAPHICS -MID-WILSHIRE SUBMARKET u SUBMARKET (2020-25) HOUSEHOLD GROWTH bmarket’ PROJECTED FOR THE % k , reaching9,77 o

ver thenext s

population %

4 2.4 nationally higher, compared to 31% bachelor's degree or age 25orolderholda submarket’s residents Nearly 39 k % ofthe POSITIONS INTHESUBMARKET 63 WHITE-COLLAR %

OF RESIDENTS WORK IN $940,000 $ December 2019 submarket reached in the Mid-Wilshire The medianhomeprice 940.0 k in 31% nationally occupied, compared to submarket are renter of housingunitsin 4.5 More than k 75 % 39.9 IN THESUBMARKET MEDIAN AGE $53,465 by 2025,up is projected to reach household income submarket’s median The Mid-Wilshire 14.0 $ 53.5 %

from 2020 k

BERKADIA LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

INDUSTRY BREAKDOWN

AVERAGE ANNUAL WAGE BY OCCUPATION

With breakthrough technology companies and research organizations, the home of the largest Management $ entertainment industry in the world, and a strong tourism industry, Los Angeles County has one 133.7k of the most diverse, dynamic economies in the country. e c onom ic & d emo g ra phic o Healthcare Practitioners $ The metro division added approximately 67,800 jobs during the 12-month period ending in & Technical 94.8k December 2019, 32,200 of which were in the education and health services sector.

Business & Financial Construction Industry Breakdown Operations $ 81.4k Trade, Transportation, & Utilities 4% 19% Education, Training, $ & Library 69.3k Education & Health Services 19%

Sales & Related $ 45.4k

Office & Administrative $ LOS ANGELES, CA, Financial Activities Support 42.7k Professional & Business Services METRO DIVISION 5% Transportation & 14%

$ EMPLOYMENT BY v er vi e w Material Moving 39.4k SECTOR Government Production $ 38.3k Other Services 12% 4%

Personal Care & Service $ Manufacturing 29.7k Information 8% Leisure & Hospitality 5% Food Preparation & $ 12% Serving Related 27.8 k Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey

BERKADIA 45 46 economic & demographic overview L OS ANGEL|MID-WILSHIRE LOS ANGELES|CALIFORNIA EMPLOYMENT TRENDS 12% 15% *Projected 0% 3% 6% 9% 0021 0221 0421 0621 0821*2020* 2019* 2018 2017 2016 2015 2014 2013 2012 2011 2010 NOVEMBER DECEMBER City Unemployment City rate was down the city’s monthlyunemployment increase division, a were created inthemetro 2019 2019

4.2 67,800 1.5 % 30 EmploymentTrends % annual Metro Division Jobs Added / Lost / Added Jobs Division Metro bpsannually jobs 0 8,000 16,000 24,000 32,000 40,000 Source: Los AngelesAlmanac;LAUSD; USC;UCLA Providence Health&Services Northrop Grumman Corporation University ofSouthernCalifornia State ofCalifornia Kaiser Permanente U.S. Government University ofCalifornia, Los Angeles City ofLos Angeles Los AngelesUnifiedSchoolDistrict Los AngelesCounty LARGEST EMPLOYERS LOS ANGELESCOUNTY, CA 107,400 15,000 16,600 27,650 29,800 37,400 43,600 48,740 61,900 66,520 BERKADIA LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

TRADE & LOGISTICS

PORT OF LOS ANGELES 1.2 million $58 billion Total Jobs Supported Annual Wages by the Two Ports and Tax Revenues

$431.4 billion e c onom ic & d emo g ra phic o Worldwide Trade Value

Los Angeles is one of the world’s leading trade and logistics centers. Based on a recent report, the Los Angeles Customs District ranked first in the nation in terms of total worldwide trade handled, totaling more than $431.4 billion. The Port of Los Angeles and the Port of Long Beach provide access to major U.S. markets and the Pacific Rim as well as handle over 40% ofall inbound containers for the entire United States. Combined, the ports support more than 1.2 million direct and indirect jobs and generate over $58 billion annually in wages and tax revenues.

MANUFACTURING

NORTHROP GRUMMAN CORP. No. 1 65 Manufacturing Center I-605 Corridor in the Country Manufacturing Firms v er vi e w 342,900 Jobs Supported

Los Angeles’s unique geography, strong infrastructure, and skilled workforce make it an ideal location for manufacturing companies. With approximately 342,900 jobs supported in the sector, Los Angeles serves as the top manufacturing center in the country. Approximately 65 plants are situated along the city’s I-605 Corridor, providing easy access to the growing industrial hub. Companies like Northrop Grumman Corp., Edelbrock LLC, and Belkin International Inc. help make up the industry’s strong focus on aerospace, fabricated metals, and food processing.

BERKADIA 47 48 economic & demographic overview L OS ANGEL|MID-WILSHIRE LOS ANGELES |CALIFORNIA AVERY DENNISON PARAMOUNT PICTURES PROFESSIONAL &BUSINESS SERVICES ARTS &ENTERTAINMENT more than 50 Fortune 500 companies in California, 11 are headquartered in Los Angeles County. including businesses, major bysupported are jobs is home to corporate skyscrapers, law firms, and real estate companies. Approximately codn t te lbl iaca Cnrs ne, o Agls s oe o n o te most the economies. Los Angeles’s business historic of dynamic Financial District, referred most one to the as the of to one to home contributing world, the is in centers Angeles financial competitive Los Index, Centres Financial Global the to According filmmakers, actors, dancers, and musicians living in Los Angeles than any other city in the world. economy,generatehelping an Over region. the in drivers major culture and arts making theaters, 225 its throughout productions theatrical 1,500 than including As the “Entertainment Capital of the World,” Los Angeles is home to major production studios, Disney, Paramount, Metrowide Economic Impact $ Jobs Supported 639,500 Headquarters Fortune 500 11 Metrowide Jobs Supported 792,600 198 billion are supported directly and indirectly in the creative the in indirectly and directly supported are jobs 792,600 , and Universal, economic impact of $198 billion $198 of economicimpact . Each year, the city boasts more boasts year,city Each Warnerthe Brothers . Amgen, Avery and Dennison, . There. aremorewriters,artists, Annual Revenue Combined $ Theater Productions 1,500 212.2 billion “Wall Street of the West,” . Of the Of Mattel. 639,500 639,500 BERKADIA

LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

CONSTRUCTION AND DEVELOPMENT

CROSSROADS HOLLYWOOD SOFI STADIUM AND ENTERTAINMENT DISTRICT AT HOLLYWOOD PARK e c onom ic & d emo g ra phic o

$1 billion $2.6 billion Redevelopment Project Investment

1.4 million 1.5 million SF Mixed-Use Development SF of Commercial Space v er vi e w The site of the historic Crossroads of the World complex is set to undergo A 70,240-seat sport stadium and the adjacent entertainment district are a major revitalization project. Crossroads Hollywood will be an eight-acre, 1.4 currently under construction at the former site of Hollywood Park in the city of million-square-foot, mixed-use development. The project will be comprised of Inglewood, approximately 10 miles north of Torrance. The stadium will be the nine buildings including up to 308 hotel rooms; 950 residential units, including new home of the NFL’s Rams and Chargers franchises. At three million square 84 affordable units; 185,000 square feet of commercial space; 95,000 square feet, it will be the largest stadium in professional football. The $2.6 billion, 300- feet of office sp ace; an d 2, 494 un derground pa rking sp aces. Th e pr oposed acre, multipurpose facility will also include a 6,000-seat performance venue, realignment of Las Palmas Avenue and Sunset Boulevard will promote more than 1.5 million square feet of retail and office space, 2,500 homes, a 300- pedestrian safety and enhance connectivity. The $1 billion project has an room hotel, and 25 acres of parks. Combined team annual revenue is estimated estimated 48-month construction timeline, with expected completion in 2022. to generate $700 million to the region. The new stadium is expected to be completed in time for the 2020 NFL season.

BERKADIA 49 50 economic & demographic overview L OS ANGEL|MID-WILSHIRE and b open Construction on the Metro’s Purple o the to an generatingstops,seven more add extensionwill about cost will project extension Line for the2028SummerOlympics. LOS ANGELES|CALIFORNIA METRO PURPLELINE CONSTRUCTION ANDDEVELOPMENT wih il u 25 ie ws fo Wlhr Boulevard Wilshire from west miles 2.5 run will which phase, second illion expected completion date completionexpected a Cienega La to the public in 2023. In February 2018, officials broke ground on the V cmu i epce t bek rud n 09 I ttl te Purple the total, In 2019. in ground break to expected is campus A vne o etr Cit Century to Avenue in 2026, the Purple Line will be fully operational fully be will Line Purple the 2026, in Construction Jobs 22,000 Investment $ 6.3 billion Line 3 billion. $6.3 y continues. The project’s first phase will The . cin rm etr City Century from section final 78,0 At build-out, the nine-mile the build-out, At 00 new daily trips daily new 00 . With . $2.5 vr ,0 prig pcs Al he sts r epce t b cmltd by completed be 2023. to expected are sites three All spaces. parking 2,100 over morethan support siteswill centertotal,the In . story structure with senior housing units and a demolishing the existing parks and recreation office and replacing it with a six- the building will feature street-level retail and a rooftop deck. Site three includes second site will be converted into tower underway. Site one of the Along Vermont Avenue in Los Angeles’s Koreatown, a three-site development is VERMONT CORRIDOR that will house government offices and nearly 2,200 employees. The employees. 2,200 nearly and offices government house will that Vermont Corridor will include a Jobs Supported 2,990 Office Tower $ 270 million 172 units of residential housing 13,200-square-foot community 2,990 employees2,990 provideand $270 million, . Additionally, 21-story BERKADIA LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

CONSTRUCTION AND DEVELOPMENT

BROADWAY TRADE CENTER LAX MODERNIZATION PROGRAM e c onom ic & d emo g ra phic o

1.1 million $14 billion SF Renovation Investment

1,500 121,000 Jobs Created Construction Jobs v er vi e w Plans are underway to renovate the early 20th century Broadway Trade Center Known as the largest public-works program in the history of the city of Los into a 15-story multiuse property in Downtown Los Angeles. The 1.1 million- Angeles, the $14 billion LAX modernization program began in 2009 and has a square-foot renovation will feature retail space on the ground floor, restaurants, projected completion date of 2023. The Tom Bradley International Terminal was multiple bars, a spa, a private club, office space capable of accommodating up completed in September 2013 and features new aircraft gates and concourses, to 3,000 workers, more than 150 hotel rooms, and underground parking for 400 retail shops and other amenities. Other projects that were recently completed to 600 vehicles. The renovated property will showcase a rooftop activity area include new taxiways and taxi lanes, infrastructure upgrades, and renovation with a movie screen and Olympic-size swimming pool. The project is expected improvements to all terminals. The future $5.5 billion Landside Access to be completed in 2020. Modernization Program (LAMP) will generate additional terminal renovations and provide the growing number of airport passengers convenient connections to public transportation from the airport.

BERKADIA 51 52 economic & demographic overview L OS ANGEL|MID-WILSHIRE etr Cit Century cit the in nodes employment important within location central submarket’s The rates. occupancy elevated maintain helping Wilshire, Demand come onlinein2020, acycle high. the outpacing has Los in boom While LOS ANGELES|CALIFORNIA many ofthesamedemanddriversasMid-Wilshire. boast that development new significant with submarkets core other several with Mid-Wilshirecompetes investors,as and operators for news good is This insteadnewlymovingdevelopedMid-Wilshire.the into in communities A class are submarket, the of much throughout million $1 exceeding or approaching to Residents who prefer to live in the centrally located submarket but are unwilling activity isforecast to jumpto 2,445unitsabsorbedin2020. 392 net move-ins in 2019. With an influx of new rental options this yea DELIVERIES ANDABSORPTION make the commitment to purchase a single-family home, whose prices are prices whose home, single-family a purchase to commitment the make accelerated h Mid-Wilshire the for y , utfml uis ed to tends units multifamily Angeles during Angeles n Hollywood. and e xetd to expected are units 2,999 additional An average. five-year o Angeles Los recentl y umre mse ot n uh f h construction the of much on out missed submarket I 2019, In . DELIVERIES the early part of the current the of part early the rvds fil es cmue o numerous to commute easy fairly a provides h MdWlhr aatet submarket apartment Mid-Wilshire The 873 NEW in20

n h submarket, the in added were units y ep ae with pace keep , nldn Miracle including

873 19 units e spl i Mid- in supply new cycle, developmentcycle, ie Downtown, Mile, r , leasing noted (1,000) 3,000 4,000 1,000 2,000 *PROJECTED 0 0421 0621 0821 2020* 2019 2018 2017 2016 2015 2014 ABSORPTION ConstructionAbsorption vs. NET in20 APARTMENT SUBMARKET Deliveries 392 MID-WILSHIRE 19 units Absorption BERKADIA LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

RENT AND OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 2,470 RATE 96.7%

in 4Q19, up 2.8% year over year in 4Q19, down 40 bps annually e c onom ic & d emo g ra phic o

The Mid-Wilshire apartment submarket has historically been a devalued MID-WILSHIRE section of Los Angeles, but its desirable location at the heart of the metro is APARTMENT SUBMARKET spurring development and investor interest, particularly along the submarket’s 98% Occupancy & Ask Rent $2,600 border with red-hot downtown Los Angeles. The renter pool is still mostly low-income and more concerned with affordability than luxury, but the rising tide in adjacent submarkets is beginning to lift rent in this submarket as well. 97% $2,400

Rents have grown at a steady annual pace in the Mid-Wilshire apartment 96% $2,200 submarket, and elevated demand drove gains above the historical average for most of the cycle. In 2019, average effective r ent i n t he s ubmarket increased 2.8% to $2,470 per month by year-end. This speaks to a submarket 95% $2,000 in transition, as new development driven by growth in adjacent submarkets pushes into what has traditionally been a low-income area. Rent growth is 94% $1,800 projected to continue its upward trend, settling at $2,497 per month by year-

end 2020, equating to a 1.1% annual increase. v er vi e w $2,057 $2,203 $2,296 $2,327 $2,402 $2,470 $2,497 93% $1,600 The challenge for this submarket has been attracting and retaining more 2014 2015 2016 2017 2018 2019 2020* affluent residents as the area gentrifies and high-end product delivers nearby. *PROJECTED Rent Occupancy The average occupancy rate in the Mid-Wilshire apartment submarket was 96.7% in the fourth quarter of 2019, down 40 basis points from one year prior and on par with the preceding five-year a verage. T hriving a djacent submarkets like Downtown and Hollywood are attractive destinations in their own right, but Mid-Wilshire’s central location and strong transit links to major employment hubs continue to underpin demand. By year-end 2020, the occupancy rate in the submarket is forecast to settle to a still-healthy 96.3%.

BERKADIA 53 54 economic & demographic overview L OS ANGEL|MID-WILSHIRE B ranked No. 22amongnational universities by U.S. News andWorld Report. was California Southern of University the 2019, In health. and engineering, science, in nation the employs27,650morethan largestthe private-universityhas residents. USC graduate program in The supporting region, the $284.4 millionintaxes anda$5.7 billioneconomic impactfor SouthernCalifornia . in employers largest the of approximately 65,600 jobs countywide. one With an enrollment of 45,920 students, UCLA generates is university The programs. degree graduate 150 and majors undergraduate 125 over offers UCLA programs. athletic and research, The University of California Los Angeles (UCLA) nation. The housing. off-campus the in for county any of number demand highest annually,graduatesthe 60,000produce sustained alone universities generates and education higher for hub a is regiongrowth, driveeconomicthe provide and universitiesthat jobs overand With colleges 120 LOS ANGELES|CALIFORNIA EDUCATION E R nvriy f oten aiona (USC) California Southern of University KAI A EDUCATION students metrowide HIGHER 625 a a erlmn o over of enrollment an has is world-renowned for its high-quality academic, k 750 students 47,500 and and GRADUATES Chancellor’s Office Source: listed college websites; California Community Colleges Mount SaintMary’s University Loyola MarymountUniversity California State University Los Angeles California State University Northridge University ofCalifornia Los Angeles University ofSouthernCalifornia Los AngelesCommunity College District HIGHER EDUCATION CITY OFLOS ANGELES universities eachyear produced by metro Los Angeles ANNUAL 60 k 147,630 27,690 38,720 45,920 47,500 2,970 9,700 BERKADIA LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

LIFESTYLE AND ENTERTAINMENT

LACMA 140k THE GROVE 60

pieces of art shops & restaurants e c onom ic & d emo g ra phic o

Los Angeles’ Miracle Mile neighborhood was named after its swift car-driven rise to prominence in the 1920s. The neighborhood, which spans a stretch THE GROVE of Wilshire Boulevard between Fairfax and La Brea Avenue, was the first commercial strip designed specifically to cater to car traffic rather than foot traffic. Miracle Mile boasts a concentration of cultural institutions known as Museum Row, home to the Los Angeles County Museum of Art (LACMA), The Petersen Automotive Museum, Craft and Folk Art Museum, George C. Page Museum, and the La Brea Tar Pits and Museum as well as the future Academy Museum of Motion Pictures.

Serving as the anchor of Museum Row, The Los Angeles County Museum of Art (LACMA) is the largest art museum in the western United States. LACMA consists of 140,000 objects that highlight 6,000 years of artistic history from across the world. Attracting more than 1.5 million visitors each year, the museum collects work of art that extent both history and geography, reflecting Los Angeles’ diverse culture and population. v er vi e w

Featuring an eclectic mix of shopping and dining options, The Grove is one of the premier lifestyle centers in Los Angeles. Located on the site of the historic Farmer’s Market, The Grove features over 600,000 square feet of retail space for brands like Nordstrom, Nike, Coach, and Crate & Barrel.

The neighborhood’s centrality provides a fairly easy commute to numerous important business / employment nodes in metro Los Angeles, including Downtown, Century City, and Hollywood. Also within a reasonable distance are the tech-heavy “Silicon Beach” areas of Santa Monica, Venice Beach, and Playa Vista, as well as entertainment-industry hubs in Burbank and Culver City.

BERKADIA 55 56 economic & demographic overview L OS ANGEL|MID-WILSHIRE busiest airportinthenation and seventh-busiest airportintheworld. billion. LAX served over 87.5 million passengers in 2018, making it the third- more than 620,600 local jobs and has an annual economic impact of $126.6 (LAX) Airport International Angeles Los million rail andbuspassengers in2018. Valley.383Fernandoover to San MTAserviceprovided the and Pasadena, rail service, linking communities of Long Beach, Downtown L.A., Hollywood, The (I-605). Freeway routes, major Freeway with network freeway extensive including the Santa Ana Freeway an (I-5), boasts Angeles Los LOS ANGELES|CALIFORNIA TRANSPORTATION rvds oa bs and bus local provides (MTA) Authority Transportation Metropolitan (I-110), Long Beach Freeway (I-210), Santa Monica Santa PASSENGERS and rail andbuspassengers in2018 San BernardinoFreewaysSan (I-10), (I-710), and San Diego Freeway (I-405), MTA iety n idrcl supports indirectly and directly

383.8 San Gabriel River Freeway m Foothills Harbor

Occidental College; SouthernCalifornia Association ofGovernments; AirportsCouncil International DowntownMary’sSt. CommunityCollegeDistrict;Mt. College;LosAngeles News; CSU-L.A.; CSU-Northridge; USC; UCLA; ConventionNews;Daily LosAngeles VisitorsBusinessJournal; LosAngeles and LosAngeles Los Angeles; Bureau;of City Chamber of Commerce; Los Angeles World Airports; Port of Los Angeles; Los AreaAngeles UnifiedAngeles SchoolLos Corporation; District;DevelopmentEconomic Los Angeles Angeles Los Times; Angeles Los County; Angeles Los Authority; TransportationMetropolitan County Angeles Tourism;Los of Division California Forbes; Department Development ment Employ California of State CAFR; Angeles Los of City Realtors; of Association California Axiometrics; Wikipedia; Logic; Core Moody’s; Services; Data Apartment Statistics; Labor of Bureau U.S. Bureau; Tetrad;Census Berkadia; U.S.Sources: LOS ANGELESINTERNATIONAL AIRPORT (LAX) passengers served in2018 AIRPORT LAX 87.5 m BERKADIA - - LOS ANGELES | CALIFORNIA LOS ANGELES | MID-WILSHIRE

BY THE NUMBERS - MID-WILSHIRE SUBMARKET

TOTAL POPULATION MEDIAN AGE 2010 5,359 2010 36.8 2020* 8,867 2020* 39.9 e c onom ic & d emo g ra phic o 2025* 9,774 2025* 41.6

Growth Rate (2020 - 2025) 10.2%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 2,607 December - 2018 $610,000 2020* 4,227 December - 2019 $940,000

2025* 4,719 Growth Rate Y-o-Y 54.1%

Growth Rate (2020 - 2025) 11.6% ZIP Code: 90010

MEDIAN INCOME EMPLOYMENT GROWTH (MD) 2010 $34,960 December - 2018 4,583,200

2020* $46,879 December - 2019 4,651,000 v er vi e w 2025* $53,465 Growth Rate Y-o-Y 1.5%

Growth Rate (2020 - 2025) 14.0%

RENT SHARE OF WALLET RENT VS. OWN National - 2020* 29.0% Average Mortgage Payment** $4,292 Mid-Wilshire Submarket - 2020* 63.9% Effective Rent $2,470

National - 2025* 29.4% Difference $1,822 Mid-Wilshire Submarket - 2025* 61.0% *Projected **30-yr fixed; 20% down; 4.0% interest rate; 0.79% CA property *Projected taxes; $1,000 annual homeowner’s insurance Annual Rent / Median Household Income

BERKADIA 57 MULTIFAMILY FORECAST REPORT e c onom ic & d emo g ra phic o v er vi e w

BERKADIA 59 60 multifamily forecast report L 2019 h sm pro, otl effective rent monthlyrose 1.4%to $2,727. period, same the During deliveries. trailed demand as basis December 40 in 96.3% to annually points decreased West Angeles Los in Occupancy 2019. to 2018 from occupancy apartment in increase an with West Angeles the Los in submarket only had the being of distinction Angeles notable Los Downtown communities, in the submarket in 2019. Nevertheless, competition multifamily resulting in no appreciable rent growth heightened among stocksparked apartment new abundant The county. housing the of parts other many high-density than to amenable more area an submarket, Angeles Los inventorywas Downtownthe in added new the of 40% than More 2018. from West,Angeles 26.5% Los up in 2019 in apartments 6,143 delivering by pool renter expanding the accommodate which to growth. attempted increase, developers population Multifamily 0.9% 0.1% a outpaced countywide 2019, households in 31,500 of job formation the promote sustained helped growth The a gain. 2019, annual in 1.2% jobs County net Angeles 53,900 created Los in Employers OS ANGEL|WT

REVIEW *Estimate; **Forecast | Source: Berkadia, Moody’s Analytics Moody’s Berkadia, |Source: **Forecast *Estimate; 100,000 150,000 50,000 $2,900 $2,500 $2,300 $2,700 *Estimate; **Forecast | Source: Berkadia, Axiometrics Berkadia, |Source: **Forecast *Estimate; $1,900 $2,100 AND OCCUPANCY AND RENT EFFECTIVE 0 2011 14

15 2012 16 Rent &Rent Occupancy 17 2013 18 EMPLOYMENT CHANGE 19* 2014 20** 92% 93% 94% 95% 96% 97% 2015 Employment *Estimate; **Forecast | Source: Berkadia, Axiometrics Berkadia, |Source: **Forecast *Estimate; 10,000 2016 4,000 6,000 8,000 2,000 0 ABSORPTION 14 2017 15 Absorption & Deliveries & Absorption 16 2018 AND DELIVERIES AND 17 2019* 18 19* BERKADIA 2020** 20** LOS ANGELES | WEST 2019 PERFORMANCE HIGHLIGHTS 2020 PREVIEW COUNTY COUNTY Decelerating job growth this year in Los EMPLOYMENT CHANGE UNEMPLOYMENT RATE OCCUPANCY Angeles County will mirror many other 53,900 4.4% 96.3% metro areas in the U.S. Approximately 1.2% YOY 30 BPS YOY 40 BPS YOY 15,500 net jobs will be created in the county, a 0.3% annual gain. In the apartment market, deliveries in Los Angeles West are EFFECTIVE RENT ABSORPTION CONSTRUCTION anticipated to crest this year as builders mu l $2,727 4,600 Units 6,143 Units deliver 9,666 units, more than half of which 1.4% YOY 26.5% YOY will be near the employment and cultural t if centers concentrated in the Downtown Los Angeles and the Mid-Wilshire submarkets. am ily f ore c a s t re p ort CAP RATE | PRICE PER UNIT SALES ACTIVITY INDEX Net absorption in Los Angeles West is 4.5% Cap Rate & PPU $450,000 150 Sales Index projected to rise 35.2% from 2019 as renters newly occupy 6,220 apartments. Despite this

4.0% $400,000 increase in demand, apartment occupancy

100 is expected to fall 70 basis points to 95.6% in December due largely to the wave of new 3.5% $350,000 apartments. Sub-2% annual rent growth is anticipated again this year, though the rate 50 of rent appreciation is projected to tick up 3.0% $300,000 from last year’s rate of growth. By year-end, monthly effective rent of $2,770 is forecast, Index Value (Base Year 2014 = 100) 2.5% $250,000 0 a 1.6% year-over-year gain. A continuation of 15 16 17 18 19* 15 16 17 18 19* recent rent growth would not exceed the rent *Estimate | Source: Berkadia, CoStar Group *Estimate | Source: Berkadia, CoStar Group cap imposed by AB 1482. However, investors MARKET FACTS seeking asset repositioning and value-add MEDIAN RENT plays common in Los Angeles County may COUNTY COUNTY HOUSEHOLD SHARE OF need to more carefully weigh post-acquisition POPULATION HOUSEHOLDS INCOME WALLET improvements amid a potentially lengthier 10,114,600 3,480,900 $74,765 43.8% return on investment. YE 2019 0.1% YOY YE 2019 0.9% YOY YE 2019 3.8% YOY YE 2019 100 BPS YOY

BERKADIA 61 INVESTMENT ADVISORS DISCLAIMER & CONFIDENTIALITY AGREEMENT

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property BRENT SPRENKLE described therein and is not to be copied and/or used for any purpose or made available to any other person without the express Senior Managing Director written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential. 310.470.4892 [email protected] This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject CA BRE License #01290116 property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers MORTGAGE BANKING conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter ALLAN FREEDMAN that may affect their decision to purchase the property and the subsequent consequences of ownership. Managing Director All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect 310.209.3243 the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, [email protected] if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale. SOUTH BAY LOS ANGELES For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com

2321 Rosecrans Avenue, Suite #3235 Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial El Segundo, CA 90245 properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry. Office: (424) 239-5900 Fax: (424) 239-5901 © 2020 Berkadia Proprietary Holding LLC Berkadia® is a trademark of Berkadia Proprietary Holding LLC

Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada. For state licensing details, visit: http://www.berkadia.com/ legal/licensing.aspx

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