3201-3209 West 110Th Street Inglewood, Ca 90303 Non - Endorsement and Disclaimer Notice

3201-3209 WEST 110TH STREET INGLEWOOD, CA 90303 NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

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ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3201-3209 WEST 110TH STREET Inglewood, CA ACT ID Z0380583 Presented by

Bridget Behmke Associate Tel: (310) 909-2321 Fax: (310) 909-5410 [email protected] License: CA 02019943

Aaron Fierstein V.P. Investments Associate Member - National Multi Housing Group Tel: (310) 909-5477 Fax: (310) 909-5410 [email protected] License: CA 01271183 33201 2 0 1-3209- 3209 WEST 110THWest STREET 110 th S t r e e t TABLE OF CONTENTS

INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Pricing Detail Acquisition Financing MARKET COMPARABLES 03 Sales Comparables Rent Comparables MARKET OVERVIEW 04 Market Analysis 3201-3209 WEST 110TH STREET INVESTMENT OVERVIEW 3 2 0 1 - 3209 West 110 th S t r e e t OFFERING SUMMARY

EXECUTIVE SUMMARY

VITAL DATA Price $1,100,000 PRO FORMA Down Payment 100% / $1,100,000 CAP Rate 9.00% MAJOR EMPLOYERS Loan Type All Cash GRM 8.61 Price/Unit $183,333 Net Operating Income $99,009 EMPLOYER # OF EMPLOYEES Price/SF N/A Net Cash After Debt Service 9.00% / $99,009 Raytheon 8,994 Number of Units 5 + 1 Total Return 9.00% / $99,009 Public Affairs 4,000 Number of Buildings 3 Spacex 3,000 Number of Stories 1 Year Built / Renovated 1948 / 1954 Aerospace Corporation 2,662 Lot Size 0.31 acre(s) Classic Party Rentals 2,502 Factory 2-U Acquisition LLC 2,500 Fallas Discount Stores 2,500 Time Warner Cable Entps LLC 2,500 US Post Office 2,416 UNIT MIX Charles Drew Univ Mdcine Scnce 2,372 NUMBER OF UNITS UNIT TYPE APPROX. SQUARE FEET Parks & Recreation Dept 2,342 Mattel Toy Company 1,900 3 1 Bedroom + 1 Bath N/A 2 2 Bedroom + 1 Bath N/A 1 2 Bedroom + 1 Bath HOUSE N/A 6 Total DEMOGRAPHICS

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 36,889 368,797 885,574 2010 Census Pop 35,851 353,109 850,576 2017 Estimate HH 10,707 116,268 277,053 2010 Census HH 10,398 111,019 265,422 Median HH Income $45,127 $41,810 $45,518 Per Capita Income $17,745 $18,411 $21,144 Average HH Income $60,702 $57,922 $67,166

5 3 2 0 1 - 3209 West 110 th S t r e e t OFFERING SUMMARY

INVESTMENT OVERVIEW

The City of Inglewood is experiencing a renaissance with the likes of the Hollywood Park Redevelopment, the new NFL Stadium under construction and future home to the L.A. Rams and L.A. Chargers, the proposed development of an NBA Sports Arena for the L.A. Clippers, the newly constructed Hollywood Park Casino, and the recently remodeled world class entertainment venue, the L.A. Forum.

Countless other residential and commercial projects in the City of Inglewood are in the midst of being developed including mass public transportation lines to accommodate the surge of economic growth. This City is becoming the new Downtown Los Angeles in which an experienced investor can financially benefit now and into the future with rising rents and property value. You will find easy access to the subject properties as they are conveniently located just five miles from the Los Angeles Airport (LAX), 14 miles from Hollywood, and 13 miles from Downtown Los Angeles.

Please do not trespass or disturb the tenants. Contact listing agent with any questions and for more information. Thank you for your interest!

INVESTMENT HIGHLIGHTS

▪ Terrific unit mix of two-bedroom and one-bedroom units ▪ Approximately 200% in rental upside

▪ Located in one of the fastest growing real estate markets ▪ Close proximity to Los Angeles Stadium and Entertainment District ▪ Deliverable with Two Vacancies

7 3 2 0 1 - 3209 West 110 th S t r e e t OFFERING SUMMARY

PROPERTY OVERVIEW

We are proud to present for sale 3201 and 3209 West 110th Street, Inglewood, CA 90303. This terrific, custom-built property, is a true value-add real estate investment opportunity with an astounding 200% in rental upside and can be delivered with two vacancies.

The offering consists of two adjacent triplexes, totaling six units, located on separate parcels in the non-rent control community of Inglewood, California which is rapidly becoming the next downtown Los Angeles of Los Angeles County. The building has operated as three two-bedroom, one-bathroom units, and three one-bedroom, one-bathroom units under the same ownership for the last forty years. Four of the apartments are separately metered for electricity, two of the apartments share one meter for electricity. Each parcel has individual water heaters.

THE OFFERING Common Area Amenities Property 3201-3209 West 110th Street Price $1,100,000 Assessors Parcel Number 4031-006-009 & 4031-006-008 ▪ Two adjacent triplexes, separate parcels Zoning INR2YY ▪ On-site parking Proposed Financing All Cash SITE DESCRIPTION ▪ Two-car garage and one-car garage Number of Units 5 + 1 ▪ Spacious layouts Number of Buildings 3 ▪ Charming interior Number of Stories 1 Year Built/Renovated 1948-1954 Lot Size 13,545 sf Unit Amenities Type of Ownership Fee Simple

▪ Mostly individually metered for electricity

7 3 2 0 1 - 3209 West 110 th S t r e e t REGIONAL MAP

9 3 2 0 1 - 3209 West 110 th S t r e e t LOCAL MAP

10 3 2 0 1 - 3209 West 110 th S t r e e t AERIAL PHOTO

11 3201-3209 WEST 110TH STREET FINANCIAL ANALYSIS 3 2 0 1 - 3209 West 110 th S t r e e t FINANCIAL ANALYSIS

RENT ROLL SUMMARY

13 3 2 0 1 - 3209 West 110 th S t r e e t FINANCIAL ANALYSIS

RENT ROLL DETAIL

14 33201 2 0 1-3209- 3209 WEST 110THWest STREET 110 th S t r e e t FINANCIAL ANALYSIS

OPERATING STATEMENT

15 33201 2 0 1-3209- 3209 WEST 110THWest STREET 110 th S t r e e t FINANCIAL ANALYSIS

PRICING DETAIL

16 3 2 0 1 - 3209 West 110 th S t r e e t FINANCIAL ANALYSIS

ACQUISITION FINANCING

MARCUS & MILLICHAP CAPITAL CORPORATION WHY MMCC?

CAPABILITIES Optimum financing solutions to MMCC—our fully integrated, dedicated financing arm—is committed to enhance value providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates Our ability to enhance buyer pool and terms. by expanding finance options We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of Our ability to enhance financing options. seller control • Through buyer Our dedicated, knowledgeable experts understand the challenges of financing qualification support and work tirelessly to resolve all potential issues to the benefit of our clients. • Our ability to manage buyers finance expectations • Ability to monitor and manage buyer/lender progress, insuring timely, predictable closings • By relying on a world class Closed 1,651 debt National platform $5.1 billion total Access to set of debt/equity sources and equity operating national more capital financings within the firm’s volume in 2016 sources than and presenting a tightly in 2016 brokerage offices any other firm underwritten credit file in the industry

17 3201-3209 WEST 110TH STREET MARKET COMPARABLES 3201 West 110 TH S t r e e t SALES COMPARABLES

3201-3209 WEST 110TH STREET (SUBJECT)

1 820 Cory Drive

2 1022 Larch Street

3 10522 S Inglewood Avenue

4 814 N Market Street

SALES COMPARABLES

19 3201PROPERTY3201-3209 West WESTNAME 110TH110 THSTREETS t r e e t SALES COMPARABLES

SALES COMPARABLES SALES COMPS AVG

Average Price Per Unit

$300,000

$270,000 Avg. $259,625

$240,000

$210,000

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0 3201- 3209 820 Cory Dr 1022 10522 S 814 N West 110th Larch St Inglewood Market St Street Avenue

20 3201PROPERTY3201-3209 West WESTNAME 110TH110 THSTREETS t r e e t SALES COMPARABLES

SALES COMPARABLES

820 CORY DRIVE 1022 LARCH STREET 3201-3209 W 110TH STREET 820 Cory Dr, Inglewood, CA, 90302 1022 Larch St, Inglewood, CA, 90301 3201-3209 W 110th St, Inglewood, CA, 90303 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Units Unit Type Offering Price: $1,100,000 3 1 Bdr + 1 Bath Close Of Escrow: 4/2/2018 4 1 Bdr 1 Bath Close Of Escrow: 3/7/2018 1 1 Bdr 1 Bath Price/Unit: $183,333 3 2 Bdr + 1 Bath Sales Price: $1,500,000 2 2 Bdr 1 Bath Sales Price: $1,305,000 3 2 Bdr 1 Bath Pro Forma CAP Rate: 9.00% Price/Unit: $250,000 Price/Unit: $261,000 1 3 Bdr 1 Bath Pro Forma GRM: 8.61 Price/SF: $327.23 Price/SF: $309.68 Total No. of Units: 5 + 1 CAP Rate: 3.86% Total No. of Units: 5 Year Built: 1948 Total No. of Units: 6 Year Built: 1962 Year Built: 1955

NOTES NOTES Average square footage per unit: 764 sf Cap rate NA GRM N/A

21 3201PROPERTY3201-3209 West WESTNAME 110TH110 THSTREETS t r e e t SALES COMPARABLES

SALES COMPARABLES

10522 S INGLEWOOD AVENUE 814 N MARKET STREET 10522 S Inglewood Ave, Inglewood, CA, 90304 814 N Market St, Inglewood, CA, 90302

3 4

rentpropertyname1 rentpropertyname1

Units Unit Type Units Unit Type Close Of Escrow: 1/3/2018 3 1 Bdr 1 Bath Close Of Escrow: 1/18/2018 4 1 Bdr 1 Bath Sales Price: $1,050,000 1 2 Bdr 1 Bath Sales Price: $1,325,000 1 3 Bdr 1 Bath Price/Unit: $262,500 Price/Unit: $265,000 Price/SF: $292.81 Price/SF: $359.76 Total No. of Units: 4 Total No. of Units: 5 Year Built: 1956 Year Built: 1933

NOTES NOTES Cap rate and GRM N/A Cap rate and GRM N/A 737 sf

22 3 2 0 1 - 3209 West 110 th S t r e e t RENT COMPARABLES

8 RENT COMPARABLES MAP

3201-3209 WEST 110TH STREET (SUBJECT)

1 638 Howland Drive

2 Hollypark Knolls

3 10235 Woodworth Avenue

4 3221 W 112th Street

RENT COMPARABLES 20

23 3 2 0 1 - 3209 West 110 th S t r e e t RENT COMPARABLES

AVERAGE RENT - MULTIFAMILY

2 Bedroom 1 Bedroom

$3,000 $2,000

$2,700 $1,800

$2,400 $1,600

$2,100 Avg. $1,944 $1,400

$1,800 $1,200

$1,500 $1,000

$1,200 $800

$900 $600

$600 $400

$300 $200

$0 $0 3201-3209 West Hollypark 10235 3221 W 3201-3209 West 638 Howland Hollypark 110th Knolls Woodworth 112th 110th Drive Knolls Street Avenue Street Street

24 3 2 0 1 - 3209 West 110 th S t r e e t RENT COMPARABLES

638 HOWLAND DRIVE HOLLYPARK KNOLLS 3201rentpropertyname1 WEST 110TH STREET 638 Howland Dr, Inglewood, CA, 90301 3120 Hollypark Dr, Inglewood, CA, 90305 3201 W 110th St, Inglewood, CA, 90303 rentpropertyaddress1 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF $1,650- $1,575- 1 Bdr + 1 Bath 3 $1,650 $0.00 1 Bdr 1 Bath 800-800 $2.06 1 Bdr 1 Bath 660-660 $2.60 $1,650 $1,855 2 Bdr + 1 Bath 3 $1,900 $0.00 $1,810- Total/Avg. $1,650 1 Bdr 1 Bath 660-660 $2.74 $1,810 Total/Avg. 6 $1,775 $1,595- 1 Bdr 1 Bath 770-775 $2.24 $1,860 $1,710- 1 Bdr 1 Bath 770-770 $2.22 $1,710 $1,910- 2 Bdr 1 Bath 828-948 $2.37 $2,302 $1,910- 2 Bdr 1 Bath 948-948 $2.01 $1,910 YEAR BUILT: 1948 YEAR BUILT: 1955 YEARTotal/Avg. BUILT: 1954 $1,830

25 3 2 0 1 - 3209 West 110 th S t r e e t RENT COMPARABLES

10235 WOODWORTH AVENUE 3221 W 112TH STREET 10235 Woodworth Ave, Inglewood, CA, 90303 3221 W 112th St, Inglewood, CA, 90303

3 4

rentpropertyname1 rentpropertyname1

Unit Type Units SF Rent Rent/SF Unit Type Units SF Rent Rent/SF $1,850- $1,975- 2 Bdr 1 Bath 2 Bdr 1 Bath 900-900 $2.19 $1,850 $1,975 Total/Avg. $1,850 Total/Avg. $1,975

YEAR BUILT: 1955 YEAR BUILT: 1958

26 3201-3209 WEST 110TH STREET MARKET OVERVIEW 39801 2 0 1-9809- 3209 CRENSHAW West BOULEVARD 110 th S t r e e t MARKET OVERVIEW

SOUTH BAY-LONG BEACH OVERVIEW

The South Bay-Long Beach area of southwestern Los Angeles County contains 21 miles of coastline between Long Beach and El Segundo and METRO HIGHLIGHTS includes Los Angeles International Airport, the Port of Los Angeles and the Port of Long Beach. The region boasts a population of approximately PORT ACTIVITY 1.3 million and is projected to add roughly 7,300 residents through 2022. The ports of Los Angeles and Long Beach are the two busiest ports in the nation, High home values allow just half of households to afford to own their underpinning employment in the trade, transportation and utilities sector.

home, generating a large rental market. EDUCATED LABOR POOL High educational attainment supports hiring in the business services and healthcare sectors. Roughly 23 percent of residents age 25 and older hold a bachelor’s degree.

STRATEGIC LOCATION Los Angeles International Airport and two port facilities provide an ideal location for e- commerce and logistics companies.

ECONOMY

▪ The area’s economy historically relied on the aerospace industry and defense-related technologies, including companies such as Boeing, Honeywell Aerospace and Raytheon. ▪ Widespread diversification in recent years has produced a large contingent of professional and business services firms and corporate headquarters. Significant operations are held by American Honda Motor Co., BP, Snapchat and Mattel. ▪ A growing population base and public healthcare have supported growth in the education and healthcare sector thanks to both public and private employers.

DEMOGRAPHICS

2017 2017 2017 2017 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 1.3M 487K 38.1 $70,000 Growth Growth U.S. Median: U.S. Median: 2017-2022*: 2017-2022*: 0.5% 2% 37.8 $56,300

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

28 39801 2 0 1-9809- 3209 CRENSHAW West BOULEVARD 110 th S t r e e t MARKET OVERVIEW

LOS ANGELES METRO AREA: SOUTH BAY/LONG BEACH

Investment Trends

• Regarded as Los Angeles County’s aerospace hub, South Bay/Long Beach is home to many mid- to high-earning engineers, software professionals and machinists. Anticipated additions by Boeing Co., SpaceX and Northrop Grumman this year should bolster the region’s stock of well-paid workers and preserve demand for rentals while home prices remain out of reach for most 4Q17 – 12-Month Period residents. Economic growth and a recent dearth of apartment deliveries have CONSTRUCTION VACANCY RENTS allowed vacancy to remain tight throughout the region, prolonging a span of strong rent growth. Owners’ ability to units completed basis point increase increase in effective notably boost rents, often following 480 Y-O-Y 20 in vacancy Y-O-Y 10.0% rents Y-O-Y significant property renovations, heightens investor demand for value-add properties prior to the delivery of more • After the completion of roughly • After hovering below 4 percent • Limited new units heightened the than 2,000 units over the next two years. 2,400 units in 2016, delivery for three straight years, the value of existing apartments as volume slowed over the past region’s vacancy rate rose the average effective rent rose • Transactions involving older Class C year as less than 500 units were slightly to 4.1 percent over the by double digits to $2,203 per assets dominate deal flow. Local and finalized. month. Orange County-based investors primarily last 12 months. vie for these properties, many of which • Developers are building more • Long Beach’s vacancy rate sits • Rent is becoming less affordable are priced slightly below $10 million. than 2,700 units. Roughly 40 just below 4 percent entering this in Long Beach at $1,932 per Downtown Long Beach represents a percent of these apartments are year following a 20-basis-point month following a recent 10 locale of interest for opportunistic buyers slated for 2018 completion, uptick. South Bay witnessed the percent bump. The South Bay’s targeting low- to mid-4 percent returns. including the 375-unit Modera same bump in availability, average rent advanced by a • Buyers seeking value-add assets priced West LA adjacent to the pushing the submarket’s comparable 9.9 percent to below $300,000 per unit focus on the Promenade at Howard Hughes vacancy rate to 4.3 percent. $2,509 per month. South Bay cities of Torrance and Center. Inglewood, where yields can reach the high-4 percent range.

29 39801 2 0 1-9809- 3209 CRENSHAW West BOULEVARD 110 th S t r e e t MARKET OVERVIEW

LOS ANGELES COUNTY

Historically High Delivery Volume Multifamily 2018 Outlook Minimally Adjusts Vacancy Metro well-positioned to handle spike in new supply. Los Angeles County enters this Y-O-Y Effective Y-O-Y year having recently absorbed 10,500 units, which has preserved tight vacancy and Metro Vacancy BasisPoint Rent Change pent-up demand throughout most of the market. Recent leasing activity has spurred Change a rise in construction activity, with a cycle-high number of new rentals slated for finalization this year. While this influx of apartments could be cause for concern, rising single-family home values, a strong rate of household formations and diverse job Downtown Los Angeles 5.5% 130 $2,529 5.2% growth suggest the county should experience a second consecutive year of robust San Fernando absorption. 3.4% 0 $2,168 6.0% Valley/Tri-Cities

Demand for luxury rentals further tested. In 2018, more than 17,000 units will be South Bay/Long Beach 4.5% 40 $2,328 5.4% completed in the county, a record level of multifamily development and the highest annual volume among West Coast metros. More than 40 percent of this year’s new Westside Cities 3.6% 10 $3,252 4.1% supply is in Greater Downtown Los Angeles, including nearly 4,000 rentals within the city’s core. The county’s three other primary regions are also slated to witness Los Angeles 4.1% 30 $2,309 6.3% upticks in apartment deliveries, led by the Tri-Cities/San Fernando Valley and Westside Cities where finalizations total 1,900 and 1,700 units, respectively. Renter demand should match construction activity in most locales, with the exception of downtown Los Angeles, supporting a minimal rise in overall vacancy and a second Investment Trends consecutive year of above-average rent growth. • Deal flow in Los Angeles County fell moderately over 2017, yet annual sales volume dropped by $600 million year over year. The billions of dollars closed in 2017 reflect an increased number of smaller Class C trades coupled with a reduction in Class A and larger-scale property deals. • Sales activity within the city of Los Angeles accounted for roughly a third of recent deal flow. Hollywood represents the top locale for value-add Class C trades, with Mid-Wilshire home to a concentration of Class A and B opportunities that net low-3 percent returns. Investors with an eye for higher- quality assets just outside the city target the southern portion of the San Fernando Valley, home to low-4 percent maximum returns. • Affordable submarkets adjacent to the core also represent hot spots for capital deployments. Value-add investors focused on sub-$20 million deals pursue listings in Long Beach, the South Bay and the San Gabriel Valley. Downtown Long Beach, Torrance and Inglewood all possess sizable inventories of Class C assets that net buyers mid-4 percent cap rates. • The high-priced tech hub of Santa Monica remains a sought-after locale Sources: CoStar Group, Inc.; Real Capital Analytics among institutional investors, yet a lack of listings hinders local deal flow and drives pricing for available properties.

30 39801 2 0 1-9809- 3209 CRENSHAW West BOULEVARD 110 th S t r e e t MARKET OVERVIEW

LOS ANGELES COUNTY

4Q17 – 12-Month Period * Forecast

EMPLOYMENT CONSTRUCTION VACANCY RENTS

increase in total units completed basis point change increase in effective 1.4% employment Y-O-Y 11,000 Y-O-Y 0 in vacancy Y-O-Y 5.7% rents Y-O-Y

• Metro employers created 62,300 • Deliveries rose over the past 12 • Net absorption of 10,500 units • Unchanging vacancy and an jobs over the past year, reducing months after annual completions allowed vacancy to hold at 3.8 influx of new rentals supported a the unemployment rate by 70 totaled 9,900 units in 2016. percent last year, following an 5.7 percent rise in rent growth, basis points to a historically low More than half of last year’s new increase of 40 basis points with the average effective rate 4.5 percent. During the previous supply was located in the during the previous period. advancing to $2,172 per month 12-month period, organizations Downtown Los Angeles region, • Renter demand slightly following a 4.3 percent boost last added 60,500 positions. with 2,000 rentals finalized in the outpaced deliveries in the San year. • Education and health services San Fernando Valley/Tri-Cities Fernando Valley/Tri-Cities • Rent growth was most hiring drove overall job gains, yet market. region, reducing vacancy to 3.4 pronounced in the South the professional services, • Metrowide, developers have at percent. Net absorption was Bay/Long Beach region, where construction and financial sectors least 22,800 apartments historically strong in Downtown the average effective rate added a combined 27,600 underway with completions Los Angeles as 5,800 units were climbed by 10 percent to $2,203 positions. extending into 2020. leased. per month.

31 939801 28 0 1-9809- 98093209 CRENSHAW CrenshawWest BOULEVARD 110 th BoulevardS t r e e t MARKET OVERVIEW

LOS ANGELES COUNTY

Submarket Trends

Lowest Vacancy Rates 4Q17

Y-O-Y Effective Y-O-Y% Submarket Vacancy BasisPoint Rate Rent Change Change

South Los Angeles 2.1% 0 $1,681 8.7%

* 2017-2022 **2016 Los Angeles-Long Beach-Anaheim, CA Metropolitan Statistical Area Southeast Los Angeles 2.7% -60 $1,664 7.0%

Van Nuys/Northeast San Sales Trends 2.8% 20 $1,667 6.8% Buyers Targeting Below-Average Pricing Drive Deal Flow Fernando Valley

• Sales velocity slowed by nearly 9 percent year over year as a sizable pool of Los Palms/Mar Vista 2.9% -20 $2,527 3.3% Angeles County-based buyers pursued a smaller inventory of value-add complexes. • The average price per unit advanced 4 percent to $256,200 per door, compressing the Mid-Wilshire 3.4% -20 $2,319 3.4% metro’s average cap rate by 10 basis points to 4.7 percent.

North San Gabriel Valley 3.5% 0 $1,638 6.2% Outlook: Investors seek rentals in Northridge/Northwest 3.5% 30 $1,835 6.6% transitioning submarkets and areas of San Fernando Valley minimal construction amid a peak in Sherman Oaks/North apartment development. An influx of new 3.5% -30 $2,236 3.6% Hollywood/Encino projects over a three-year span could Burbank/Glendale/ equate to more Class A acquisition 3.7% -30 $2,335 2.4% opportunities for institutional buyers. Pasadena Santa Monica/ 3.7% 0 $3,407 2.5% Marina del Rey

Overall Metro 3.8% 0 $2,172 5.7%

Sources: CoStar Group, Inc.; Real Capital Analytics