13103 South Broadway

13103 SOUTH BROADWAY

LOS ANGELES, CA 90061 Exclusively Listed By: DEREK STEPHENS & ZACHARY ZANELLO NON-ENDORSEMENT & DISCLAIMER NOTICE CONFIDENTIALITY & DISCLAIMER

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

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

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

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

Marcus & Millichap is pleased to present this Exclusive Offering for the sale of 13103 South Broadway, a single-tenant building of approximately 5,586 square feet in the City of Los Angeles, California. The building is situated on approximately 8,050 square feet of industrial zoned land. The subject property was built in 1961 of concrete block construction. This fa- cility has historically enjoyed a very high occupancy level and is currently 100 percent occupied. The interior build-out has been reconfigured to meet the tenant’s operational requirements.

The property is currently leased to LA Hydro, a cannabis cultivation com- pany that has committed to a long-term lease of 5 years. Under the terms of the lease, the Landlord is only responsible for the property taxes and insurance, which makes the tenant solely responsible for the maintenance of the building including the roof, structure, parking, mechanical systems and utilities.

The sale represents a rare opportunity for an investor to acquire a 100 percent occupied single-tenant investment with a growth oriented tenant in the cannabis industry. The State of California has the largest cannabis economy in the world, supported by the state government and populous. LA Hydro currently cultivates and distributes cannabis for their two legal dispensaries in Southern California.

The property is located in a highly desirable area on the southwest corner of South Broadway and West 131st Street, with nearly 200’ of combined frontage. It is approximately one-half mile east of the 110 freeway and roughly one mile south of the 110-105 freeway interchange. The property resides within the 90061 zip code where industrial vacancy rates are at an all-time low of 1.9 percent.

EXECUTIVE SUMMARY 3 TABLE OF CONTENTS 01 02 03 OFFERING SUMMARY MARKET COMPARABLES MARKET OVERVIEW 13103 South Broadway LOS ANGELES , CA 90061 SECTION 1 OFFERING SUMMARY 13103 SOUTH BROADWAY INVESTMENT HIGHLIGHTS

THE OFFERING ABOUT THE INVESTMENT »» Rare Single-Tenant Industrial Investment Opportunity Purchase Price $1,400,000 »» Attractive Year 1 CAP Rate of 9.02% Price/SF $250.63 »» 3.4-Year Remaining of Personally Guaranteed Lease Cap Rate 9.02% »» 3% Rental Increases Annually Net Operating Income $126,260 »» Lessor Only Responsible for Property Tax & Insurance Monthly Rent/SF $2.21

CURRENT INCOME STATEMENT ABOUT THE LOCATION »» Strong Location Fundamentals with Very Low Industrial Gross Rents Collected $148,320 Vacancy Rates at 1.9% (1) Real Estate Taxes ($18,060) »» Hard Corner Location with Substantial Frontage Property Insurance (2) ($4,000) »» Immediate Access to the 110 Freeway Net Operating Income $126,260 »» Approximately 1 Mile to the 110-105 Freeway Interchange

(1) 1.29% of the purchase price »» Proximity to Downtown Los Angeles, LAX, and the Ports of Los Angeles (2) Actual expense for an extended policy with Farmers Insurance. and Long Beach

6 OFFERING SUMMARY LEASE SUMMARY

LEASE SUMMARY RENT SCHEDULE

Property Type Industrial Warehouse Lease Year Annual Rent Monthly Rent Rent Escalation Tenant LA Hydro 1 $144,000 $12,000 Guarantor Personal Guarantee 2 $148,320 $12,360 3% Lease Commencement 4/15/2019 3 $152,770 $12,731 3% Lease Expiration 4/14/2024 4 $157,353 $13,113 3% Lease Term Remaining 3.4 Years 5 $162,073 $13,506 3% Lease Type Modified Gross (MG) Current Annual Rent $148,320 Rental Increases 3%

LEASE STRUCTURE - MODIFIED GROSS

Roof Tenant Structure Tenant HVAC Tenant Common Area Maintenance Tenant Parking Tenant Utilities Tenant Property Taxes Landlord Property Insurance Landlord

OFFERING SUMMARY 7 13103 SOUTH BROADWAY PROPERTY DESCRIPTION

PROPERTY ADDRESS 13103 South Broadway Los Angeles, CA 90061 APN: 6132-011-017

Site Description Construction/Mechanical

Type of Ownership Fee Simple Year Built 1961

Rentable Square Feet 5,586 Construction Type Concrete Block

Lot Size Square Feet 8,050 Number of Floors 1

Floor Area Ratio (FAR) 0.69 Mezzanine None

Zoning M1 1/2-B1 Clear Height 14’ - 15’

Landscaping None Sprinklers None

Parking Spaces 4 Ground Level Doors (2)10’w x 10’h

Parking Ratio 0.71/1000 SF Parking Surface Paved Asphalt

64’ on South Broadway, 127’ on West Power 1200a Street Frontage 131st Street

Cross Street West 131st Street

8 OFFERING SUMMARY PARCEL MAP

OFFERING SUMMARY 9 13103 SOUTH BROADWAY LOCAL MAP

13103 SOUTH BROADWAY

SUBJECT PROPERTY

10 OFFERING SUMMARY REGIONAL MAP

A 10.2 Miles

Subject Property to A DTLA 10.2 Miles Driving Distance

C 8.2 Miles Subject Property to B 110 Freeway 0.9 Miles Driving Distance 13103 SOUTH 0.9 Miles B BROADWAY

SUBJECT PROPERTY

Subject Property to C LAX 8.2 Miles Driving Distance

Subject Property to D Port of Los Angeles 15.1 Miles Driving Distance

N D 15.1 Miles

OFFERING SUMMARY 11

13103 South Broadway LOS ANGELES , CA 90061 SECTION 2 MARKET COMPARABLES 13103 SOUTH BROADWAY SALES COMPARABLES

13103 SOUTH BROADWAY 7 1 160 EAST ALONDRA BOULEVARD 4 9 6 2 215 WEST 134TH STREET 11 3 13516 SOUTH MARIPOSA AVENUE 2 4 350 WEST 130TH STREET 3 5 1625 WEST 144TH STREET 6 120 WEST 131ST STREET 13103 SOUTH BROADWAY 7 416 WEST EL SEGUNDO BOULEVARD 8 15915 SOUTH SAN PEDRO STREET SUBJECT PROPERTY 9 13012 ATHENS WAY 5 10 422 WEST ROSECRANS AVENUE 10 11 13110 SOUTH FIGUEROA STREET

8 1 N

14 MARKET COMPARABLES SALES COMPARABLES

Average Price Per SF $300.00

$290.00

$280.00

$270.00

$260.00

$250.00 Avg $251.28

$240.00

$230.00

$220.00

$210.00

$200.00 13103 160 EAST 215 WEST 13516 350 WEST 1625 WEST 120 WEST 416 WEST EL 15915 13012 ATHENS 422 WEST 13110 SOUTH ALONDRA 134TH SOUTH 130TH 144TH 131ST SEGUNDO SOUTH WAY ROSECRANS SOUTH BROADWAY BOULEVARD STREET MARIPOSA STREET STREET STREET BOULEVARD SAN AVENUE FIGUEROA AVENUE PEDRO STREET STREET

MARKET COMPARABLES 15 13103 SOUTH BROADWAY SALES COMPARABLES

13103 SOUTH BROADWAY 1 160 EAST ALONDRA BOULEVARD 2 215 WEST 134TH STREET Los Angeles, CA 90061 Gardena, CA 90248 Los Angeles, CA 90061

Proposed List Price $1,400,000 Sale Price $950,000 Sale Price $3,129,500

Rentable SF 5,586 COE 7/9/2019 COE 10/31/2019

Price/Rentable SF $250.63 Rentable SF 3,332 Rentable SF 12,036

CAP Rate 9.02% Price/Rentable SF $285.11 Price/Rentable SF $260.01

Year Built 1961 Year Built 1975 Year Built 1978

Lot Size SF 8,050 Lot Size SF 5,884 Lot Size SF 22,216

Clear Height 14’ Clear Height 16’

Loading (1) Ground Level Door (1) Dock High, Loading (1) Ground Level Door

16 MARKET COMPARABLES 3 13516 SOUTH MARIPOSA AVENUE 4 350 WEST 130TH STREET 5 1625 WEST 144TH STREET Gardena, CA 90247 Los Angeles, CA 90061 Gardena, CA 90247

Asking Price $1,150,000 Sale Price $1,470,000 Asking Price $1,850,000

On Market 2/28/2020 COE 7/23/2019 COE 11/8/2020

Rentable SF 4,650 Rentable SF 6,000 Rentable SF 7,700

Price/Rentable SF $247.31 Price/Rentable SF $245.00 Price/Rentable SF $240.26

Year Built 1969 Year Built 1967 Year Built 1962

Lot Size SF 6,703 Lot Size SF 9,000 Lot Size SF 16,932

Clear Height 13’ - 15’ Clear Height 15' Clear Height 12’

Loading (1) Ground Level Door Loading (2) Ground Level Door Loading (4) Ground Level Door

MARKET COMPARABLES 17 13103 SOUTH BROADWAY SALES COMPARABLES

6 120 WEST 131ST STREET 7 416 WEST EL SEGUNDO BOULEVARD 8 15915 SOUTH SAN PEDRO STREET Los Angeles, CA 90061 Los Angeles, CA 90061 Gardena, CA 90248

Sale Price $2,400,000 Sale Price $1,860,000 Asking Price $1,800,000

COE 11/13/2019 COE 2/4/2020 On Market 37 Days

Rentable SF 10,000 Rentable SF 8,240 Rentable SF 6,106

Price/Rentable SF $240.00 Price/Rentable SF $225.73 Price/Rentable SF $294.79

Year Built 1960 Year Built 1966 Year Built 1956

Lot Size SF 19,014 Lot Size SF 13,068 Lot Size SF 17,415

Clear Height 14’-15’ Clear Height 14’ Clear Height 13’

Loading (1) Ground Level Door Loading (2) Ground Level Door Loading (2) Ground Level Door

Note: Exclusively listed and represented the Seller. Note: Exclusively represented the Buyer.

18 MARKET COMPARABLES 9 13012 ATHENS WAY 10 422 WEST ROSECRANS AVENUE 11 13110 SOUTH FIGUEROA STREET Los Angeles, CA 90061 Gardena, CA 90248 Los Angeles, CA 90061

Asking Price $1,180,000 Asking Price $2,234,650 Sale Price $2,600,000

On Market 135 Days On Market 112 Days On Market 9 Days

Rentable SF 4,450 Rentable SF 9,350 Rentable SF 11,730

Price/Rentable SF $265.17 Price/Rentable SF $239.00 Price/Rentable SF $221.65

Year Built 1967 Year Built 1968 Year Built 1979

Lot Size SF 6,534 Lot Size SF 18,295 Lot Size SF 21,928

Clear Height 13’ Clear Height 20’ Clear Height 16’

Loading (1) Ground Level Door Loading (1) Ground Level Door Loading (2) Ground Level Door

Note: Exclusively listing and representing the Seller.

MARKET COMPARABLES 19

13103 South Broadway LOS ANGELES , CA 90061 SECTION 3 MARKET OVERVIEW 13103 SOUTH BROADWAY WEST RANCHO DOMINGUEZ SUBMARKET INDUSTRIAL OVERVIEW THIRD QUARTER 2020

Vacancies in West Rancho Dominguez remain below metro averages, but there has been a clear movement upward during the past several quarters. Vacancies could rise further, as the forecast calls for negative net leasing for at least the near term as a result of the pandemic. Rent growth on a year-over-year basis, 2.4%, is down from a year ago. Space additions have been manageable in recent years, and there are currently no industrial developments underway. Sales activity continues to be strong in 2020 and the pandemic appears to not be deterring investors from making bets. The submarket is sandwiched between Gardena and Compton in the South Bay, with most industrial inventory located in unincorporated parts of L.A. County. It is a well-located industrial submarket with close proximity to LAX and the twin ports. It also sits along major transportation corridors that run throughout Southern California. Despite its convenient location, the tenant base is mostly comprised of local businesses and distribution facilities. Very few industrial properties in West Rancho Dominguez exceed 200,000 SF, and many lack adequate clear heights, dock ratios, and other amenities necessary for modern logistics operations.

SALE COMPARABLES SUMMARY STATISTICS Sales Attributes Low Average Median High Sale Price $426,000 $6,523,278 $3,639,913 $30,700,500 Price Per SF* $135 $195 $205 $355 Time Since Sale in Months 0.4 5.7 5.8 12.0 Property Attributes Low Average Median High Building SF 1,200 36,657 22,055 210,710 Ceiling Height 10' 17'6" 16' 35' Docks 0 4 1 48 Year Built 1955 1970 1966 2012

22 MARKET OVERVIEW SUBMARKET TRENDS

SALES VOLUME & PRICE PER SF LEASING VACANCY RATE MARKET RENT PER SF $280 $90 12% $1.80 $260 $80 10% $1.60 $240 $70 Sales Volume in Millions $220 $60 8% $1.40 $200 $50 6% $1.20 $180 $40 Market Sale Price/SF Sale Market $160 $30 4% $1.00 $140 $20 2% $0.80 $120 $10 $100 $0 0% $0.60 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Sales Volume West Rancho Dominguez Price/SF Los Angeles Price/SF Specialized Industrial Logistics Flex West Rancho Dominguez Los Angeles Specialized Industrial Logistics Flex West Rancho Dominguez Los Angeles

KEY INDICATORS Current Quarter RBA Vacancy Rate Market Rent Availability Rate Net Absorption SF Deliveries SF Under Construction Logistics 16,251,274 2.0% $1.00 1.9% (22,980) 0 0 Specialized Industrial 8,817,294 1.6% $0.91 2.6% (15,400) 0 0 Flex 486,410 4.4% $1.40 6.1% 0 0 0 Submarket 25,554,978 1.9% $0.98 2.2% (38,380) 0 0

Historical Forecast Annual Trends 12 Month Peak When Trough When Average Average Vacancy Change (YOY) 0.8% 2.9% 1.9% 5.7% 2011 Q1 1.0% 2001 Q4 Net Absorption SF (102 K) 84,207 13,868 630,063 2005 Q4 (414,647) 2003 Q2 Deliveries SF 105 K 107,180 46,465 383,666 2017 Q1 0 2019 Q3 Rent Growth 2.3% 3.8% 3.3% 9.3% 2016 Q2 -5.3% 2009 Q4 Sales Volume $118 M $80.2M N/A $173.4M 2019 Q3 $12.4M 2010 Q1

MARKET OVERVIEW 23 13103 SOUTH BROADWAY

LOS ANGELES, CA 90061

EXCLUSIVELY LISTED BY: DEREK STEPHENS First Vice President National Office and Industrial Properties Group (213) 943-1857 direct (951) 567-3852 mobile [email protected] License: CA 01941251

ZACHARY ZANELLO Associate National Office and Industrial Properties Group (213)943-1842 direct (815) 540-4436 mobile [email protected] License: CA 02076813

Marcus & Millichap 515 South Flower Street Suite 500 Los Angeles, CA 90071