68 Luxury Residential Units Condo Mapped (Separate Apns) Delivered Vacant: Units Can Be Immediately Leased Or Sold

Home , Adamson House, Century City, Downtown Los Angeles

68 Luxury Residential Units Condo Mapped (Separate APNs) Delivered Vacant: Units Can Be Immediately Leased or Sold

For more information, please visit: 1 www.MalibuCBRE.com TABLE OF CONTENTS

EXECUTIVE LAURIE LUSTIG-BOWER P. 10 SUMMARY Lic. 00979360 +1 310 550 2556 [email protected]

PROPERTY KADIE PRESLEY WILSON P. 16 DESCRIPTION Lic. 01476551 +1 310 550 2575 [email protected] MARKET OVERVIEW REBECCA SHUM P. 45 +852 9099 9884 [email protected]

AREA P. 54 OVERVIEW

2 Malibu Los Angeles

Santa Monica

Los Angeles International Airport

PACIFIC OCEAN

3 4 For Illustration Only 5 6 7 8 9 EXECUTIVE SUMMARY 10 CBRE, Inc., as exclusive advisor, is pleased to present for sale a newly renovated 68-unit luxury residential community in the world-famous, exclusive beach community of Malibu, California. Cavalleri Malibu is situated on 10 lush acres of fee simple land. Units are vacant and have been condominium mapped so an investor could immediately execute a condominium for-sale program, or lease and operate the property as a luxury rental community. Amenities include concierge services, a 50’ swimming pool with hot tub and cabañas, two tennis courts, an entertainment pavilion with outdoor dining, BBQ and fireplace, a fitness center, and a large dog park.

The Cavalleri community is located along the beautiful slopes of Malibu overlooking the Point Dume Nature Preserve, just over 17 miles west of Santa Monica. All units enjoy the abundant hillside landscape and the gorgeous Malibu sunsets. Some units boast blue-water ocean views. Under this elegant veil of privacy, future residents can soak in the natural beauty of Malibu while enjoying a vibrant mix of destination restaurants, retailers and lifestyle amenities. With high barriers to entry and no immediate multifamily development of scale planned in the Malibu submarket, Cavalleri provides an investor with a truly unique opportunity to own a rare and beautiful piece of real estate in an exceptional beach locale. Cavalleri offers investors strong fundamentals for long term value appreciation given its scarcity and near irreplaceability in the market.

Price: UNPRICED 11

OFFERING HIGHLIGHTS A Luxury Community with Resort-Like Amenities

Residences boast large floorplans with ample private outdoor spaces

Malibu is a popular second home location for Beverly Hills and Hollywood elite residents

Cavalleri is mere minutes to California’s most desirable beaches and major employment hubs

Luxury Homes Built to High-End Condominium Standards at a Relative Discount

Cavalleri is the only existing community of scale in Malibu - only eight multifamily units have been delivered in Malibu over the last 15 years 12 12 INVESTMENT HIGHLIGHTS

Large Floor Plans and Premium Interiors Complement a Resort- Like Highly Amenitized Experience: With thoughtfully upgraded interior design by Edmonds + Lee Architects, Cavalleri offers a lifestyle experience and quality level akin to that of Malibu’s multi- million dollar homes or the finest condominium product in the Westside. With views of the Pacific Ocean and the Santa Monica Mountains, the Property offers seven distinct floor plans averaging 1,985 square feet. The extensively renovated two-bedroom, three- bedroom, and penthouse loft units are true single-family home replacements, offer lock-and-go convenience, and appeal to the affluent Malibu demographics. With a hospitality ambiance, Cavalleri offers a recently upgraded 52- foot pool and spa, a fitness center, an outdoor dining pavilion, two tennis courts, a dog park, Iconic Malibu Prestige with Flexible Exit Strategy: Cavalleri’s walking trails, private storage, and ample garage parking. Malibu prestige allows investors the exceptional turnkey opportunity to operate the asset as either Malibu’s premier rental property or sell the condominiums, allowing a new owner to capitalize on the luxury for-sale demand and very limited near-term supply of condominiums at this price point in the market. Current ownership has already received condominium offer reservations in the range of $1M-$2.2M despite no active sales and marketing program, ongoing site construction, and several of the Properties most appealing amenities still under renovation. These reservations maybe cancelled by a new owner. With potential to be the premier rental property in Malibu, Cavalleri’s ultra luxury finishes and enticing amenity base will garner rents significantly higher than nearby offerings. The Property’s unveiling in 2019 will substantially enhance what is already an unbeatable experience in Malibu

13 housing. The best of Cavalleri is yet to come. 13 INVESTMENT HIGHLIGHTS

Exceptional Luxury Homes at a Relative Discount Appeal to a Diverse Audience: Cavalleri offers a discount to comparable rental properties in Santa Monica and comparable ocean view assets, which are 1.9x and 2.5x higher in rent on a PSF basis, respectively. Cavalleri offers a tremendous discount to nearby homes as the median list price is $3.5M in Malibu and $8.8M in Point Dume, as of August 2017. Given its attractive price point, strong amenity base, and lock-and-go convenience, Cavalleri has drawn demand from surrounding submarkets such as Beverly Hills, Century City, Hollywood, Calabasas, Santa Monica, Pacific Palisades, as well as second-home buyers seeking an escape from the desert or snow.

The Only Community of Scale in Malibu: Cavalleri is an unrivaled trophy acquisition opportunity uniquely positioned in a world-famous center of wealth and celebrity appeal with virtually no competition. Cavalleri is the only existing community of scale in Malibu with considerable street presence. Only eight multifamily units have been delivered in Malibu over the last 15 years. Cavalleri offers the rare opportunity to own irreplaceable turnkey real estate with premier ocean views on the Westside. Cavalleri will continue to stand alone as the only institutional- quality asset in Malibu, as well as the only product available in the ultra-luxury space for single family homes or new condominiums. 14 INVESTMENT HIGHLIGHTS

Supply Constrained Market with Extremely High A True World-Class Destination: Cavalleri is the one Barriers to Entry: Due to the lack of available land, premier ocean view offerings along the coast, which high land costs, and a rigid entitlement process boasts the best of both worlds: minutes from two of with the coastal commission, trophy development California’s most desirable beaches, Point Dume and and investment opportunities along the Westside Zuma Beach, and convenient access to the area’s coastline are few and far between. Other than extensive amenity base and employment hubs. The commercial areas, development along the Pacific Property is 10 minutes to Pepperdine University and Coast Highway is comprised of single- and multifamily 12 minutes to the Malibu Country Mart. Cavalleri housing, mostly of low-density projects with five is strategically located just off scenic Pacific Coast units or less. Cavalleri remains the only amenity- Highway (Hwy 1), and residents can access the 101 rich, large scale, high density multifamily project Corridor in less than 20 minutes. The Property provides in Malibu and has been completely renovated to access to major business districts in Santa Monica (24 further enhance its desirability. minutes), Brentwood (30 minutes), Westwood (30 minutes), and Century City (35 minutes).

15 PROPERTY DESCRIPTION 16 17 PROPERTY OVERVIEW

6487 and 6489 Cavalleri Road, PROPERTY ADDRESS Malibu, CA 90265

Two phases, 1992 and 1994; YEAR BUILT Redeveloped 2018

TOTAL UNITS 68

AVERAGE UNIT SIZE (SF) 1,985

BUILDING TOTAL NET SF 134,996

SITE SIZE (ACRES) 10.07

DENSITY (DU/ACRE) 6.75

STORIES Four

PARKING SPACES 196

ARCHITECTURE Edmonds + Lee Architects

LANDSCAPE DESIGN Pamela Burton & Company

DEVELOPER Pacific Eagle

18 PHYSICAL SUMMARY PROPERTY NAME Cavalleri PROPERTY ADDRESS 6487 and 6489 Cavalleri Road

CITY Malibu, CA 90265 COUNTY Los Angeles County, CA APN 4467-020-018 (Parcel C) and 4467-020-026 to 057 (Parcel A) and 4467-020-058 to 091 (Parcel B) inclusive YEAR BUILT Two phases, 1992 and 1994, renovated 2018 SITE SIZE (ACRES) 10.068 UNITS 68 DENSITY (DU/ACRE) 6.75 RSF 134,996 AVERAGE RSF 1,985 BUILDINGS Four STORIES Four CONSTRUCTION TYPE Type V Over Podium FOUNDATION Concrete Spread Footing ROOF Sloped Clay Tile / Flat Bur EXTERIOR WALL Stucco/ Wood Trim INTERIOR WALL Textured Drywall PLUMBING Copper ELECTRICAL Copper SMOKE DETECTORS Hard-Wired with Battery Back-Up WATER HEATER Four Boilers, 115-Gallons Capacity WINDOWS Vinyl Framed Dual Pane On-Site Waste Water New HVAC, Nest controls, Rooftop Condensers, and In-Unit Fan Coil Treatment System Units CEILING HEIGHTS 8’ - 17’ DOORS Flat Wood Interior Doors with Frosted Glass STAIRS Exit Stairs - Precast Concrete Stair Treads, Steel Structure And Risers Interior Unit Stairs - Wood Framed PATIO/BALCONY All Units MAIL BOXES Two Kiosk Locations FIRE PROTECTION Partial Wet System - at Protected Courtyard Window Openings Only GAS SoCal Gas ELECTRICITY Southern California Edison 19 WATER HEATER Gas SEWER Septic UNIT MIX SUMMARY Type Description Total Units % Total Sq. Ft. 2x2 Residence A 4 5.90% 1,577 2x3 Residence A - Garden 4 5.90% 1,577 2x4 Residence A - Penthouse 4 5.90% 1,884 2x2.5 Residence B 4 5.90% 1,828 2x2 Residence C 12 17.60% 1,880 3x3.5 Residence D 4 5.90% 1,981 3x3 Residence E 4 5.90% 2,057 3x3 Residence E - Garden 4 5.90% 2,057 3x3 Residence E - North 2 2.90% 2,057 3x3 Residence E - North Garden 2 2.90% 2,232 3x3 Residence E - North Penthouse 2 2.90% 2,232 3x3 Residence E - Penthouse 4 5.90% 2,232 3x3 Residence F 2 2.90% 2,057 3x3 Residence F - Garden 2 2.90% 2,057 3x3 Residence F - Penthouse 2 2.90% 2,232 3x3.5 Residence G - Townhouse 12 17.60% 2,190 Total/Weighted Average 68 100% 1,990

20 PARKING SUMMARY SIDE-BY-SIDE GARAGE SPACES 145 Standard 13 Compact UNCOVERED SPACES 30 Standard 2 Compact TOTAL SPACES 196 TOTAL SPACES PER UNIT 2.9

PROPERTY AMENITIES 10 Gated Acres of Native Southern California Plantings

50’ Swimming Pool with Hot Tub and Cabanas

Two North-South Facing Tennis Courts

Great Lawn

Entertainment Pavillion with Outdoor Dining, BBQ, Fireplace

Fitness Center

Dog Park

WiFi Throughout

Concierge service provided by Luxury Attache

21 22 UNIT AMENITIES

Modern Fully-Equipped Kitchens

Double Ovens

5-Burner Stoves

Dishwashers

Ceiling Heights Ranging From 9’ up to 17’ in Penthouse Units

Natural 7” European Oak Hardwood Floors

Northcutt Cotton Blossom Carpet in Bedrooms

Gas Fireplaces in all Living Rooms with Pietra Cardosa Hearth

Gas Fireplaces in Master Bedrooms (Select Units)

Air Conditioning

Soaking Tubs

Patio/ Balcony KITCHEN Grey Bedford Oak Mesa Matte Cabinetry

Bertazzoni Professional Series 30” Convection Oven

Bertazzoni Professional Series 30” Convection Speed Oven

Bertazzoni Professional Series 36” 5-Burner Gas Cooktop

Thermador 36” Integrated Refrigerator

Bosch 24” Integrated Dishwasher

46-Bottle, Dual-Zone Wine Refrigerator

Silestone White Quartz Countertops with Waterfall Edge

23 Hangsrohe HighArc Kitchen Faucet BATHROOM FINISHES - MASTER

Italian Porcelain Stoneware Floor and Wall Tiles

Freestanding 5’6” Soaking Tub

Hangsrohe Axor Stark Freestanding Tub Faucet

Hansgorhe Croma Showerhead

Duravit Sinks

Hangsrohe Chrome Sink Faucet

Duravit Two-Piece Toilet

Double Sinks in Master Bathroom

BATHROOM FINISHES - SECOND BATHROOM

Italian Porcelain Stoneware Floor and Wall Tiles

Duravit Bathtub

Duravit Sink

Hansgrohe Chrome Sink Faucet

Hansgrohe Croma Airjet Showerhead

Duravit Two-Piece Toilet

24 Click Here for Virtual Reality Tour of Unit 103 FLOOR PLANS Floor Plan: Residence F - Garden

Residence A Residence A - Garden 2 Bedrooms, 2 Baths 2 Bedrooms, 2 Baths Residence SF: 1,577 Residence SF: 1,577 Terrace SF: 150 Terrace SF: 680

25 26Rendering FLOOR PLANS

Residence A - Penthouse 2 Bedrooms & Loft, 2 Baths Residence SF: 1,884 Terrace SF: 246 TERRACE

TERRACE FP FP

FP TERRACE RESIDENCE A FP TERRACE PENTHOUSE RESIDENCE A 2 BE DR O O MS, 2 BA TPENTHOUSE H S 2 BE DR O O MS, 2 BA T H S SECOND BEDROOM LIVING ROOM SECONDSECOND BEDROOM LIVING ROOM MASTER BEDROOM 1,884 INTERIOR SF SECOND MASTER BEDROOM 1,884 INTERIOR SF BEDROOM BEDROOM APPROX.246 EXTERIOR APPROX.246 SF EXTERIOR SF

175 INTERIOR SM 175 INTERIOR SM APPROX.23 EXTERIOR SM WIC LOFT OPEN TO BELOW APPROX.23 EXTERIOR SM WIC LOFT OPEN TO BELOW

6 4 8 7 C AVA LLER I ROAD MALIBU , C A 9 0 2 6 5 6 4 8 7 C AVA LLER I ROAD T 310.985.3353 MALIBU , C A 9 0 2 6 5 CAVALLERIMA LIBU.COM T 310.985.3353 CAVALLERIMA LIBU.COM

WF W/D DEVELOPED B Y PACIFI C EAGLE WO make modifications in materials, specifications, plans, designs, pricing, scheduling and delivery of ENTRY DW KITCHEN the homes without prior notice. All dimensions are approximate and subject to normal construction variances and tolerances. Plans and dimensions may contain minor variations from floor to floor. R Dimensions are maximum overall subject cutouts. We reserve the right to make changes in WF W/D DEVELOPED B Y PACIFI C EAGLEonly. Exclusively represented by The Mark Company. CalBRE License 01527205. WO make modifications in materials, specifications, plans, designs, pricing, scheduling and delivery of DW KITCHEN I R O A D ENTRY A L L E R PAC IFIC the homes without prior notice. All dimensions are approximate and subject to normalC AconstructionV OCEAN variances and tolerances. Plans and dimensions may contain minor variations from floor to floor. R

Dimensions are maximum overall subject cutouts. We reserve the right to make changes in P

2 1 H only. Exclusively represented by The Mark Company. CalBRE License 01527205.3 27

4 N

I R O A D A L L E R PAC IFIC SCA LE: 1/8"= 1' C A V OCEAN

2 1 H

4 N

SCA LE: 1/8"= 1' Rendering 28 FLOOR PLANS Residence B Residence C 2 Bedrooms, 2.5 Baths 2 Bedrooms, 2 Baths Residence SF: 1,828 Residence SF: 1,880 Terrace SF: 236 Terrace SF: 548 or 456

29 Rendering 30 FLOOR PLANS Residence D Residence E 3 Bedrooms, 3.5 Baths 3 Bedrooms, 3 Baths Residence SF: 1,981 Residence SF: 2,057 Terrace SF: 182 or 249 Terrace SF: 427

31 32 FLOOR PLANS Residence E - North Penthouse 3 Bedrooms, 3 Baths Residence SF: 2,232 Terrace SF: 464

TERRACE

TERRACE FP SECOND MASTER BEDROOM FP BEDROOM TERRACE RESIDEN CE E NORTH PENTHOUSE

3 BE DR O O MS, 3 BA T H S LIVING ROOM 2,232 INTERIOR SF APPROX.464 EXTERIOR SF

207 INTERIOR SM APPROX.43 EXTERIOR SM LOFT

6 4 8 7 C AVA LLER I ROAD MALIBU , C A 9 0 2 6 5 VANITY T 310.985.3353 DINING CAVALLERIMA LIBU.COM ROOM OPEN TO BELOW WIC

WIC W/D WO R DEVELOPED B Y PACIFI C EAGLE make modifications in materials, specifications, plans, designs, pricing, scheduling and delivery of the homes without prior notice. All dimensions are approximate and subject to normal construction variances and tolerances. Plans and dimensions may contain minor variations from floor to floor. KITCHEN THIRD BEDROOM Dimensions are maximum overall subject cutouts. We reserve the right to make changes in only. Exclusively represented by The Mark Company. CalBRE License 01527205. UPPER LEVEL

TERRACE DW WF

I R O A D A L L E R PAC IFIC ENTRY C A V OCEAN

P 33 C

2 1 H

4 N

SCA LE: 1/8"= 1' 34 FLOOR PLANS Residence E - Garden Residence E - North Garden 3 Bedrooms, 3 Baths 3 Bedrooms, 3 Baths Residence SF: 2,057 Residence SF: 2,057 Terrace SF: Range from 928 to 1,174 Terrace SF: 833 or 919

35 36 FLOOR PLANS Residence E - Penthouse 3 Bedrooms & Loft, 3 Baths Residence SF: 2,232 Terrace SF: 568

TERRACE TERRACE

FP MASTER BEDROOM FP TERRACE

RESIDENCE E SECOND BEDROOM PENTHOUSE LIVING ROOM 3 BE DR O O MS, 3 BA T H S 2,232 INTERIOR SF APPROX.568 EXTERIOR SF LOFT 207 INTERIOR SM APPROX.53 EXTERIOR SM

VANITY

6 4 8 7 C AVA LLER I ROAD DINING MALIBU , C A 9 0 2 6 5 ROOM T 310.985.3353 OPEN TO BELOW CAVALLERIMA LIBU.COM WIC

WIC R WO W/D

DEVELOPED B Y PACIFI C EAGLE TERRACE KITCHEN make modifications in materials, specifications, plans, designs, pricing, scheduling and delivery of THIRD BEDROOM the homes without prior notice. All dimensions are approximate and subject to normal construction variances and tolerances. Plans and dimensions may contain minor variations from floor to floor. Dimensions are maximum overall subject cutouts. We reserve the right to make changes in WF DW UPPER LEVEL only. Exclusively represented by The Mark Company. CalBRE License 01527205.

37 ENTRY I R O A D A L L E R PAC IFIC C A V OCEAN

2 1 H

4 N

SCA LE: 1/8"= 1' 38 FLOOR PLANS

Residence E - North Residence F - Garden 3 Bedrooms, 3 Baths 3 Bedrooms, 3 Baths Residence SF: 2,057 Residence SF: 2,057 Terrace SF: 323 Terrace SF: 823 or 1,024 Click Here for Virtual Reality Tour of Unit 103 (Floor Plan: Residence F - Garden)

39 FLOOR PLANS Residence F 3 Bedrooms, 3 Baths Residence SF: 2,057 Terrace SF: 424

40 41 FLOOR PLANS Residence F - Penthouse 3 Bedrooms & Loft, 3 Baths Residence SF: 2,232 Terrace SF: 565

TERRACE

FP MASTER FP BEDROOM

TERRACE SECOND BEDROOM RESIDENC E F LIVING ROOM PENTHOUSE 3 BE DR O O MS, 3 BA T H S 2,232 INTERIOR SF APPROX.565 EXTERIOR SF LOFT 207 INTERIOR SM APPROX.53 EXTERIOR SM

VANITY DINING 6 4 8 7 C AVA LLER I ROAD ROOM MALIBU , C A 9 0 2 6 5 T 310.985.3353 WIC OPEN TO BELOW CAVALLERIMA LIBU.COM

WIC DW WF

KITCHEN DEVELOPED B Y PACIFI C EAGLE THIRD BEDROOM make modifications in materials, specifications, plans, designs, pricing, scheduling and delivery of the homes without prior notice. All dimensions are approximate and subject to normal construction W/D variances and tolerances. Plans and dimensions may contain minor variations from floor to floor. WO R Dimensions are maximum overall subject cutouts. We reserve the right to make changes in UPPER LEVEL only. Exclusively represented by The Mark Company. CalBRE License 01527205. ENTRY TERRACE

I R O A D A L L E R PAC IFIC C A V OCEAN

C 2 1 H 3 42

4 N

SCA LE: 1/8"= 1' 43 FLOOR PLANS Residence G - Townhouse 3 Bedrooms, 3.5 Baths Residence SF: 2,190 Terrace SF: 305 & 309

44 MARKET OVERVIEW 45 MULTIFAMILY MARKET OVERVIEW

Malibu has an established reputation as one of the world’s most renowned and exclusive communities and is one of the most desirable submarkets in South California. With its beautiful natural surroundings and immediate access to gorgeous beaches and mountains, various recreational activities and retail amenities, and regional employment centers, Malibu appeals to individuals who seek a peaceful lifestyle in a coastal setting with immediate access to Santa Monica, Brentwood, Westwood, and Century City.

No Competing Supply: Cavalleri is an unrivaled trophy acquisition opportunity uniquely positioned in a world-famous center of wealth with virtually no competition. It is the only existing community of scale in Malibu. 22065 Pacific Coast Highway, built in 2010 and comprised of a total of eight units, is the only multifamily project delivered it Malibu in the last 15 years. Cavalleri will continue to stand alone as the only institutional-quality asset in Malibu and offers an investor the rare opportunity to own irreplaceable real estate in a premier Westside location.

Ultra-Luxury Residences and Compelling Amenity Base: Cavalleri’s high-quality interior finishes, attractive amenity base, and lock-and- go convenience offer a strong differentiator when compared to the luxury single-family home market and existing rental offerings. 46 Highly Educated Affluent Residential Community: Malibu is a highly affluent residential community with outstanding homeownership rates.

• Malibu’s homeownership rate of 71.2% is significantly higher than that of California as a whole (54.3%), according to the US Census Bureau. • 65.7% of the population has an associate degree or higher (bachelor, graduate or other professional degree)*. • Almost 64% of owner-occupied housing units are valued at $2 million or more*. • Most housing units are single-unit detached (62%), according to American Community Survey. • In 2018 the Average Household Income is over $220,000*.

* Within a three-mile radius of Cavalleri Malibu

47 Source: CBRE Fast Report Dimension Outstanding Demographics: Situated in the heart of Malibu, Population Cavalleri is surrounded by Population 8,324 exceptionally affluent and well- Education educated neighborhoods including the Pacific Palisades and Santa Associate`s Degree 8.8% Monica. Home to media moguls, movie stars, professional athletes and Bachelor`s Degree 37.1% the rich and famous, there are nearly Graduate or 19.8% 11,343 residents living within a five- Professional Degree mile radius of Cavalleri. According Household Income to Zillow, the median home value in Malibu is $2.9M, a 5.9% increase over $200,000 and Over 42.2% the prior year and over 14.5 times the 2018 Average $222,269 national average. Household Income

2023 Average $253,363 Household Income

Almost 64% of Owner Occupied Housing Units are valued at $2 Million or more. Source: CBRE Fast Report Dimension

48 RENTAL MARKET OVERVIEW

Premier Coastal Multifamily Product Commands a Premium: Cavalleri is uniquely positioned in the coveted Malibu submarket of Los Angeles, where there truly are no comparable properties. Outside of this submarket, the only comparable properties are coastal assets in Southern California. Given the significant lack of product and desirability for coastal living, rental rates for premier coastal product carry a premium and range from $7 to $11 PSF, exceeding non-coastal counterparts with rental rates in the $4 to $6 PSF range. Furthermore, Malibu’s affluent resident base suggests potential depth for luxury housing in the marketplace and the ability to push rents at Cavalleri.

49 COMPARABLES

Select Apartment Sales Comparables 50 Units or More Built 2000 or Later Sold in Los Angeles County from November 2016 to October 2018 Source: CoStar

Property Address City Zip Units Sale Price Cap $/Unit $/SF Bldg SF Yr Blt Sale Date 1318-1320 2nd St Santa Monica 90401 53 $56,784,000 - $1,071,396 $1,352 42,000 2016 09/12/17 1500 W Pacific Coast Hwy Wilmington 90744 204 $75,000,000 - $367,647 $1,206 62,190 2016 12/30/16 348 S Hauser Blvd Los Angeles 90036 1,132 $369,824,891 - $326,700 $1,124 700,000 2005 07/05/17 313 W California Ave Glendale 91203 183 $86,200,000 4.30% $471,038 $1,121 76,893 2017 08/01/18 8500 W Sunset Blvd Los Angeles 90069 110 $97,378,930 - $885,263 $885 110,000 2017 06/27/17 801 S Olive St Los Angeles 90014 363 $280,000,000 - $771,349 $875 320,000 2017 05/19/18 702 Arizona Ave Santa Monica 90401 106 $83,000,000 - $783,019 $847 98,000 2015 12/27/16 420 Santa Monica Blvd Santa Monica 90401 62 $64,300,000 - $1,037,096 $843 76,290 2009 11/21/16 5555 W 6th St Los Angeles 90036 250 $81,675,109 - $326,700 $766 226,975 2002 07/05/17 1411 N Highland Ave Hollywood 90028 76 $52,000,000 3.60% $684,211 $763 68,137 2016 07/24/18 9901 Washington Blvd Culver City 90232 131 $94,500,000 - $721,374 $763 123,879 2016 11/21/16 5550 Hollywood Blvd Los Angeles 90028 280 $148,000,000 - $1,000,000 $715 206,863 2017 10/12/18 3584 S Figueroa St Los Angeles 90007 56 $66,250,000 - $1,183,035 $693 95,639 2012 05/22/18

50 CONDOMINIUM MARKET OVERVIEW

Average Condo Sales Price Continues to Rise: As of YE 2017, the average price per square foot for a condominium in Malibu increased by 20% since 2014, according to The Mark Company. The average list price for homes in Malibu is more than $4.2 million, according to Redfin.

Supply Constrained Market with Extremely High Barriers to Entry: Due to the lack of available land, high land costs, and a rigid entitlement process, trophy development and investment opportunities along the Westside are few and far between. Other than commercial areas, development along the Pacific Coast Highway is comprised of single- and multifamily housing, mostly low-density projects with five units or less. Cavalleri remains the only large-scale or high-density multifamily project in Malibu. According to Polaris Pacific, there are only 1,081 condominiums under construction and 172 condominiums approved in the entire Westside submarket. As a condominium project, Cavalleri’s main source of competition will be resale condominiums and single-family homes in Malibu.

51 COMPARABLES Select Malibu Condominium Sales Comparables November 1, 2017 to October 25, 2018 Sold for $900 PSF or Higher Source: TheMLS, Sorted by Sale Price Per SF

Address Bed Bath Sale Price SF $/SF Yr Blt Pool Sale Date MLS 22548 PACIFIC COAST HWY #311 2 2 $4,350,000 1,580 $2,753 1963 Yes 12/26/17 17-246594 20638 PACIFIC COAST HWY #8 1 1 $1,400,000 594 $2,357 1961 No 08/11/18 17-296762 22822 PACIFIC COAST HWY 2 3 $4,500,000 1,956 $2,301 1984 No 04/27/18 18-337718 20638 PACIFIC COAST HWY #10 1 1 $1,200,000 576 $2,083 1961 No 07/17/18 18-334972 6820 LAS OLAS WAY 2 3 $1,975,000 1,320 $1,496 1975 Yes 06/26/18 18-311332 26170 PACIFIC COAST HWY #3 3 3 $2,710,000 1,887 $1,436 1975 No 09/25/18 18-351674 6813 SEAWATCH LN 3 4 $2,100,000 1,484 $1,415 1975 Yes 12/27/17 17-216520 27400 PACIFIC COAST HWY #106 1 2 $1,285,000 915 $1,404 1956 Yes 09/28/18 18-350982 26664 SEAGULL WAY #B216 1 2 $1,050,000 770 $1,364 1973 Yes 07/10/18 17-265886 22626 PACIFIC COAST HWY #14 1 1 $945,000 693 $1,364 1963 Yes 05/03/18 17-270846 11930 OCEANAIRE LN 2 2 $1,275,000 986 $1,293 1975 Yes 05/03/18 17-296818 29660 Zuma Bay WAY 2 3 $1,648,750 1,320 $1,249 1975 Yes 09/06/18 18-342144 6809 SEAWATCH LN 3 3 $1,835,000 1,484 $1,237 1975 Yes 06/25/18 18-336334 6790 LAS OLAS WAY 2 3 $1,625,000 1,320 $1,231 1975 Yes 05/14/18 18-313456 6801 SEAWATCH LN 3 3 $1,950,000 1,640 $1,189 1975 Yes 08/14/18 18-357604 18055 COASTLINE DR #1 3 2 $1,775,000 1,728 $1,027 1975 No 03/28/18 17-294644 11916 WHITEWATER LN 2 2 $1,055,000 1,044 $1,011 1974 Yes 06/18/18 17-291128 18219 COASTLINE DR #4 2 2 $995,000 986 $1,009 1972 No 07/18/18 18-316228 6240 TAPIA DR #A 2 2 $1,225,000 1,270 $965 1965 Yes 06/21/18 18-305474 11952 WHITEWATER LN 2 1 $980,000 1,044 $939 1974 Yes 12/08/17 17-295146 11912 WHITEWATER LN 2 2 $987,500 1,075 $919 1974 Yes 06/18/18 18-333530 18125 COASTLINE DR #D 2 2 $1,261,575 1,385 $911 1962 Yes 08/16/18 18-333692

52 COMPARABLES Select Malibu Condominium Units on the Market Listed for $900 PSF or Higher as of November 1, 2018 Source: TheMLS, Sorted by List Price Per SF Address Yr Blt Bed Bath List Price SF L$/SF List Date MLS Status 26668 SEAGULL WAY #D103 1973 1 1 $1,999,000 664 $3,011 10/24/18 18-400098 Active 21650 PACIFIC COAST HWY 1958 4 4 $8,200,000 3,084 $2,659 05/08/18 SR18105770CN Active 6825 SHEARWATER LN 1975 3 4 $3,395,000 1,484 $2,288 08/27/18 18-379656 Active 20638 PACIFIC COAST HWY #9 1961 1 1 $1,290,000 576 $2,240 08/09/18 18-374078 Active 20638 PACIFIC COAST HWY #6 1961 1 1 $1,199,000 576 $2,082 07/30/18 18-370216 Active 26668 SEAGULL WAY #D101 1973 1 1 $1,200,000 664 $1,807 10/12/18 18-396442 Active 26665 SEAGULL WAY #A117 1973 2 2 $1,595,000 920 $1,734 10/28/18 18-401694 Active 22626 PACIFIC COAST HWY #1 1963 1 1 $1,125,000 693 $1,623 10/16/18 18-397512 Active 20718 PACIFIC COAST HWY #4 1962 2 2 $1,595,000 1,006 $1,585 10/14/18 18-396904 Active 26666 SEAGULL WAY #C201 1973 1 1 $995,000 672 $1,481 08/23/18 18-378796 Active 6763 LAS OLAS WAY 1975 3 3 $2,195,000 1,484 $1,479 08/10/18 18-374410 Active 20718 PACIFIC COAST HWY #1/2 1962 3 3 $2,850,000 2,091 $1,363 07/02/18 18-360812 Pending 18219 COASTLINE DR #8 1972 2 2 $1,199,000 972 $1,234 05/03/18 OC18103946MR Active 29239 HEATHERCLIFF RD #13 1977 2 3 $1,195,000 1,053 $1,135 09/21/18 18-389042 Active 23929 DE VILLE WAY 2004 3 3 $3,095,000 2,744 $1,128 08/01/18 18-371132 Active 11950 WHALERS LN 1974 2 2 $1,149,000 1,044 $1,101 08/07/18 18-373026 Active 29221 HEATHERCLIFF RD #9 1980 3 2 $1,650,000 1,500 $1,100 09/06/18 18-383080 Active 18125 COASTLINE DR #C 1962 2 3 $1,495,000 1,385 $1,079 11/01/18 18-398768 Active 18125 COASTLINE DR #E 1971 3 3 $2,499,000 2,399 $1,042 07/16/18 18-363328 Active 6775 LAS OLAS WAY 1975 3 3 $1,535,000 1,484 $1,034 04/20/18 18-334328 Active 6489 CAVALLERI RD #321 1993 3 3 $2,235,000 2,232 $1,001 09/16/17 17-271196 Pending 6487 CAVALLERI RD #324 1993 2 2 $1,880,000 1,880 $1,000 12/09/17 17-295318 Pending 11838 EBBTIDE LN 1974 2 2 $1,299,000 1,300 $999 03/05/18 SR18051441CN Active 18203 COASTLINE DR #9 1971 2 2 $998,000 1,032 $967 10/11/18 SR18248057CN Active 23901 CIVIC CENTER WAY #376 1972 3 2 $777,000 849 $915 09/05/18 18-382570 Active 23906 DE VILLE WAY #A 1965 3 3 $1,380,000 1,518 $909 09/24/17 17-273556 Active 53 18147 COASTLINE DR #6 1973 2 2 $1,100,000 1,210 $909 10/29/18 18-401814 Active AREA OVERVIEW 54 CENTURY CITY 35 minutes SANTA MONICA 24 minutes

Moonshadow’s Malibu Nobu Malibu

Solstice Canyon Adamson House Museum Pacific Ocean Pepperdine University

Geoffrey’s MALIBU COUNTRY MART

Escondido Beach

Paradise Cove MALIBU COLONY PLAZA

Zuma Beach PACIFIC COAST HIGHWAY

Native Hotel

Gravina Malibu KANAN DUME ROAD

CAVALLERI ROAD Diamond’s Malibu Gym

Tennis Court

Malibu features diverse landscapes including beaches, mesas, and canyons that create a unique living and recreational environment. The closely- knit residential community is characterized POINT DUME PLAZA by its carefully preserved rural atmosphere 55encompassing approximately 45,000 acres. Malibu – an Iconic Destination

Home to celebrities, entertainment executives and the global elite, this 21-mile long strip of paradise is among the most beautiful and inspiring beach cities in the United States, offering both spectacular beach-side and hill-side living. Drive along the Pacific Coast Highway will be amazed by the variety of upscale homes, gourmet restaurants and exclusive boutiques that make Malibu so memorable. Some of the region’s most desirable demographics surround the property, including a 2018 average household income of $211,906 within a one-mile radius.

City of Malibu

Malibu is an affluent beach community in Los Angeles County famous for its warm, sandy beaches and for being home to many Hollywood movie stars and others associated with the entertainment industry. Most Malibu residents live within a few hundred yards of the Pacific Coast Highway, which traverses the city, Carbon Beach (locally known as “Billionaires Row”) is a mile-long beach between the historic Malibu Pier at Surfrider Beach and Carbon Canyon Road. Many of the million-dollar homes on this spectacular beach are built out to the water’s edge. Santa Monica and the Los Angeles Basin are located 20 miles to the south and east. Oxnard in Ventura County is 30 miles to the north and west.

56 Proximity to 6487 Cavalleri Road, Malibu

Local Amenities Regional Destinations

Pavillions Grocery Store Santa Monica 3 minutes 24 minutes Pepperdine University Calabasas 8 minutes 30 minutes Starbucks Warner Center 10 minutes 35 minutes Malibu Country Mart Los Angeles International Airport 12 minutes 40 minutes Malibu Colony Plaza Downtown Los Angeles (Ralphs/CVS) 45 minutes 12 minutes

57 MALIBU POINTS OF INTEREST

58 Retail

The Malibu Country Mart and Malibu Lumber Yard may sound rustic, but they are something else entirely. The Country Mart is a ±90,000 SF outdoor shopping center located in the heart of Malibu. The Country Mart is a an all- encompassing shopping center for Malibu locals and visitors alike. It has places to lounge, a movie theater, a playground for children and high-end shops and restaurants. Its neighbor the Lumber Yard sports a similar description with upscale dining and shopping venues. Designer labels and notable brands can easily be found side-by- side with independent boutiques and retailers while shopping in Malibu.

Dining

The variety of restaurants, cafes and bars along the PCH in Malibu is expansive. From old seafood mainstays like Neptune’s Net and Paradise Cove, to the new, farm-to-table menu offered at Malibu Farm or the famed, fusion sushi of Nobu Malibu, there is an option for all appetites 59 and countless tables offering ocean views! Malibu’s beautiful coastline along the Pacific Ocean attracts over 15 million visitors per year, and popular beaches include: Surfrider Beach, Zuma Beach, and Topanga State Beach.

The Adamson House and Malibu Lagoon Museum, a national Historical Site and registered Califonia Landmark, is the unused home site of the 19th century original owners of Malibu, the Rindge Family. The Malibu Lagoon is a haven for bird watchers and features garden with a diverse array of plants and flowers.

Malibu contains some of the most desirable residential real estate in the country with beachfront homes and canyon estates averaging over $.3 million in value.

Malibu offers incredible and unique dining and shopping venues.

60 MALIBU WINE COUNTRY

PACIFIC OCEAN

Malibu has more than 50 independent vineyards and several tasting rooms throughout the Santa Monica Mountains and along the coast, where fog laces through in the mornings and sun warms the vines in the afternoons. Some vineyards are small, backyard plots, and others are thousand-acre estates. Luxury hotels around Malibu include Malibu Beach Inn, Calamigos Guest Ranch and Beach Club, Jet Luxury Resorts Malibu Estate, and Nobu Ryokan. 61

Layout ID:L01 MapId:5826579 © 2018 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified by either CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take such steps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced. Education and Major Employers

Pepperdine University is an independent, private university affiliated with the Church of Christ with an annual enrollment of 8,000 students. The university’s 830-acre Malibu campus overlooks the Pacific Ocean and is home to Seaver College, the School of Law, the Graduate School of Education and Psychology, the Graziadio School of Business and Management, and the School of Public Policy. Pepperdine is also home to the contemporary Weisman Museum of Art as well as Smothers Theatre, which features concerts, plays, musicals, operas, and dance.

HRL Laboratories is the research arm of the former Hughes Aircraft Company. HRL was founded in 1960 in Malibu and is best known for designing the first working laser. In the 1990s, H RL developed the FastScat computer code, recognized as the most accurate code in the world for radar cross•section calculations. HRL is one of the world’s premier physical science and engineering research laboratories, featuring cutting-edge technology and research and real-world technology solutions.

62 SUCCESSFUL TOURIST DESTINATION Malibu is one of California’s most popular tourist destinations, and its breathtaking beaches, idyllic climate, and the Santa Monica Mountains draw visitors from all over the world. Malibu attracts more than 15 million visitors each year to its famed beaches, including Surfrider Beach, Topanga State Beach, and Zuma Beach, in addition to other world-renowned attractions such as the J. Paul Getty Villa, Malibu Pier, and Malibu Lagoon. Visitors are also drawn to the region’s hiking and horseback riding trails, local parks including Leo Carrillo State Beach and Park, and the Malibu Bluffs Park, fine dining, and shopping destinations.

HIGH BARRIERS TO ENTRY The city of Malibu is considered to be one of the most restrictive communities for development in the country. The lack of sewer facilities in the city places significant restraints on new commercial development, making this Property virtually impossible to replicate.

63 AFFILIATED BUSINESS DISCLOSURE CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

CONFIDENTIALITY AGREEMENT This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

DISCLAIMER © 2018 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

64 68 Luxury Residential Units Condo Mapped (Separate APNs) Delivered Vacant: Units Can Be Immediately Leased or Sold

For more information, please visit: www.MalibuCBRE.com

MALIBU CALIFORNIA

LAURIE LUSTIG-BOWER KADIE PRESLEY WILSON Lic. 00979360 Lic. 01476551 +1 310 550 2556 +1 310 550 2575 [email protected] [email protected]

REBECCA SHUM +852 9099 9884 65 [email protected]