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3401 W 109Th Street

3401 W 109Th Street

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OFFERING MEMORANDUM 3401 W 109TH ST INGLEWOOD, CA LISTED BY

NABIL AWADA Senior Associate

DIRECT +1 (310) 844-9362 MOBILE +1 (310) 469-2974 [email protected] Lic No. 02046840 (CA)

CHRIS KEEN Associate

DIRECT +1 (310) 919-5778 MOBILE +1 (310) 904-3373 [email protected] Lic No. 02120400 (CA)

DAVID HARRINGTON EVP & Managing Director

DIRECT +1 (310) 295-1170 MOBILE +1 (310) 497-5590 [email protected] Lic No. 01320460 (CA)

| 2 3401 W 109TH ST INGLEWOOD, CA

TABLE OF CONTENTS

10

PROPERTY OVERVIEW 16

AREA OVERVIEW 24

PROJECTED PRO FORMA FINANCIAL ANALYSIS

3 | 3401 W 109TH ST INGLEWOOD, CA

PROPERTY OVERVIEW

| 4 THE OPPORTUNITY

Matthews Real Estate Investment Services™ is proud to offer 3401 W 109th Street. This 4-unit apartment building is an opportunity to own a value-add asset in the heart of Inglewood. This is an TH opportunity for an investor or owner-user to own a property in 3401 W 109 ST a high-demand rental market with tremendous growth potential. INGLEWOOD, CA Located a short drive away from the future site of the 70,000 seat SoFi Stadium and Entertainment District. Future home of the Rams and Los Angeles Chargers. The stadium is expected to generate more than 3,000 direct and indirect employment opportunities with most of these opportunities targeted to residents. Anchored by the three million square ADDRESS feet stadium, the 298-acre urban village will include two million 3401 W 109th St NUMBER OF UNITS square feet of commercial space, 2,500 modern residences, a Inglewood, CA 4 6,000-seat performing arts venue, and 25 acres of public parks.

The property consists of a desirable mix of (1) four-bed/two- APN BUILDING SF bath and (3) two-bed/one-bath units. Two-bedroom units in the 4031-002-006 ± 4,392 SF immediate area are currently renting from $1,850 to $1,950 per month. As the area continues to experience growth, a buyer can capitalize on the tight rental market and rents in this neighborhood YEAR BUILT LOT SIZE SF by implementing a strategic unit interior renovation plan, which 1961 ± 10,540 SF will upgrade the units and allow the buyer to command top of the market rents.

Rents at the high end of the range result in 35% upside.

5 | PROPERTY HIGHLIGHTS

• 4 Units | Built in 1961. • Gross Building Square Footage of 4,392. • Consists of (1) Four-Bed/Two-Bath Home and (3) Two-Bed/One-Bath units. • Carport in the rear with ample covered parking spaces and surface spaces. • Lot Size of 10,540 Square Feet. • Short distance to Shops, Dining, and a short drive to the new SoFi NFL Stadium & Entertainment District. | 6 7 | | 8 9 | 3401 W 109TH ST INGLEWOOD, CA

AREA OVERVIEW

| 10 INGLEWOOD, CA

Southwest of Los Angeles, Inglewood is a city in the South Bay region of Los Angeles that is a gateway to major commercial centers of the and internationally. Inglewood is in a unique position on the shore of the Pacific Rim with direct access to the Los Angeles International Airport through its Century Boulevard, which is one of the city’ busiest commercial corridors. Proximity to the airport, the Los Angeles and Inglewood Harbors and four major freeways facilitate both domestic and international trade in the city.

Recent years have shown Inglewood taking initiatives towards once again becoming a regional hub for sports and entertainment through renovations of existing structures and new developments.

DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE 2025 Projection 37,140 347,184 851,101 2020 Estimate 37,940 350,570 857,221 2010 Census 38,813 346,088 839,838 HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2025 Projection 11,240 119,235 289,725 2020 Estimate 11,004 115,689 280,283 2010 Census 10,825 109,715 264,204 Growth: 2020 to 2025 2.15% 3.07% 3.37% SUBJECT Growth: 2010 to 2020 1.65% 5.44% 6.09% PROPERTY INCOME 1-MILE 3-MILE 5-MILE 2020 Avg. $81,444 $72,523 $85,082 Household Income

11 | INGLEWOOD ENHANCEMENTS Inglewood is making a strong impression amongst the commercial real estate industry with billion-dollar commercial and residential developments nearing completion and/ or receiving approval to begin construction throughout the city. Once known as the place to be for retailers, the city seems to have every intention of reclaiming that status. These mixed-use projects have positively impacted the economic growth of Inglewood through raising the local housing and commercial market values.

As the city culture continues to grow into a major tourist destination for both sports and entertainment, Inglewood is committed to ensuring a positive impact on the current residents. City leaders are working closely with project developers to ensure the economic growth is mutually beneficial for the planned developments, as well as, current and future Inglewood residents. The city has made agreements with project developers requiring local hire, obtaining affordable housing restrictions within new community developments, as well as securing project supplies and services through local businesses in Inglewood.

| 12 RECENT DEVELOPMENTS

NFL SOFI STADIUM & ENTERTAINMENT DISTRICT AT PARK IN INGLEWOOD The $5 billion, NFL SoFi Stadium & Entertainment District is just miles from the subject property. The stadium is the main piece of a 298-acre sports and entertainment district. The stadium is scheduled to host Super Bowl LVI in February of 2022, the College Football Playoff National Championship in January 2023, and the 2028 Summer Olympics opening ceremonies.

A performing arts venue is also across the street from the stadium holding up to 6,000 seats. To join will also be 1.5 SF of retail and office space and a 300-room hotel. An additional apartment complex will be built to hold 2,500 residential units and 25 acres of park space.

FAIRVIEW HEIGHTS APARTMENTS INGLEWOOD MARKET GETAWAY FAIRVIEW HEIGHTS APARTMENTS • Project Completion: Spring 2022 • Project Completion: Fall 2021 • Location: Intersection of La Brea and Regent Street • Location: Near Crenshaw/ LAX Line in Inglewood • Development Features: • Development Features: mixed-use affordable housing complex • 6-story complex • Two 4-story story buildings • 242 Residential units • 5,000 SF Retail Space • 50,000 SF of Retail space • 101 residential units, including 50 supportive housing units for formerly homeless persons • Parking for 438 cars • Notes: Key component and plays an integral part of the community • Notes: Redefine the culture of downtown Inglewood through mixed- in revitalizing the future of Inglewood used space, creating a modern urbanized community.

TOWNHOUSE PROJECT 6515 CRENSHAW • Project Timeline: 2020 Start • Project Completion: Fall 2021 • Finance: Sale prices starting at $800K • Location: Near Crenshaw/ LAX Line in Inglewood • Location: 2-Neighborhoods in Inglewood community (Parallel & Icon) • Development Features: mixed-use affordable housing complex • Development Features: • Two 4-story story buildings • Housing: 105 Townhomes • 5,000 SF Retail Space • Common Features/ Community Amentities • 101 residential units, including 50 supportive • Clubhouse housing units for formerly homeless persons • Swimming pool and spa • Notes: Key component and plays an integral part of the community in revitalizing the future of Inglewood • Bocce ball court, playgrounds

13 | LOS ANGELES

Los Angeles officially the City of Los Angeles and often known by its initials L.A., is the most populous city in ; the second most populous city in the United States, after ; and the third most populous city in North America, after Mexico City and New York City. With an estimated population of nearly four million people, Los Angeles is the cultural, financial, and commercial center of .

The city of Los Angeles holds many distinctions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, many of them world-class, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s collection of stars (numbering more than 2,614 and growing by one or two a month) to career opportunities like those presented in the expanding tech industry, Los Angeles is the place to be.

Los Angeles is on the leading edge of several growth industries. The Los Angeles metropolitan area, with more than 23,000 art jobs, is the country’s leading artistic center, surpassing the previous champion, New York. In other words, Los Angeles has both a larger concentration and an absolute number of artists than New York. The L.A. five-county area is also a major tech center, with more than 700,000 people at work in health services/biomedical activities and 190,000 people in aerospace. Here are some more facts and figures about Los Angeles: the city, the county, and the region.

Los Angeles County employs A culturally diverse city, with a growing It is the largest and most populous over 913,000 people in several culinary scene, shopping, museums, city in the state of California and the growing industries and a reputation for being the creative cultural, financial, and commercial center of America. center of Southern California.

| 14 ECONOMY

The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent and , together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

L.A. County is an entertainment, manufacturing and international trade behemoth, with a fast- growing high-tech and digital media industry cluster largely centered in West L.A. and, increasingly, With $807 billion in annual output, Los in the Hollywood area and beyond. Angeles County ranks among the world’s largest economies. Its GDP, which would rank No. 19 in the world if it were a standalone MAJOR EMPLOYERS IN LOS ANGELES nation, is larger than Switzerland and Saudi Arabia, and right behind Netherlands and Turkey, underscoring the magnitude of the region’s economy.

15 | TOURISM

Tourism accelerated Los Angeles County’s economic prosperity in 2018 as visitors pumped an all-time high $23.9 billion directly into the L.A. economy, generating a record $36.6 billion in total economic impact. A new economic impact report released today by Los Angeles Tourism 50 MILLION & Convention Board demonstrates the power of tourism in Los Angeles during National Travel 50 Million People who traveled to Los Angeles last & Tourism Week, an annual event established by Congress and organized by the .S. Travel Association to celebrate the impact of travel. year

Tourism supported 534,258 jobs in L.A. County’s Leisure & Hospitality sector, its highest total on record, employing 1 in every 8.5 workers in the county. Reaffirming the strength of the sector, tourism added 9,700 new jobs last year.

$22 BILLION LA visitors spent $22 billion on hotels, restaurants, shopping, attractions and more

525,000 There are 525,000 jobs supported by the Los Angeles tourism industry ATTRACTIONS

Some of the world’s best-known and most iconic landmarks and attractions call Los Angeles home: the ; ; the ; the at the Music Center in Downtown L.A.; the ; the TCL Chinese Theatre; at the California Science Center; the Battleship USS Iowa located 8 YEARS at the Port of Los Angeles in San Pedro; Air Force One at the Library; and LA has celebrated 8 consecutive years of record Universal Studios Hollywood, with its dynamic immersive experience, The Wizarding World of growth Harry Potter™. | 16 ARTS & CULTURE

With various museums and exhibits, Los Angeles is full of inspiring art and diverse cultural experiences. In fact, Los Angeles has more museums and theatres than any other city in the U.S., making it the perfect place to be immersed in arts and culture. Los Angeles is home to more than 105 museums, 225 theaters, 55 magnificent structures by the world’s top architects and 16 of the world’s most beautiful gardens. It also boasts more than 1,500 theatrical productions annually. TOURISM

With famous venues like the at L.A. LIVE, home to the NBA’s and , NHL’s L.A. Kings, and Dodger’s Stadium, where the Los Angeles Dodgers serve as a main attraction sports fans flock to in L.A. Los Angeles is also home to several esteemed universities that have large sports followings such as USC and UCLA.

LOS ANGELES LAKERS LOS ANGELES RAMS (National Basketball Association) (National Football Association) 18,997 Avg. Attendance 71,229 Avg. Attendance

LOS ANGELES DODGERS (Major League Basketball) (National Hockey Association) 49,065 Avg. Attendance 18,000 Avg. Attendance

17 | 3401 W 109TH ST INGLEWOOD, CA

PROJECTED PRO FORMA FINANCIAL ANALYSIS

| 18 INVESTMENT SUMMARY

CURRENT PRO FORMA MARKET 3401 W 109TH ST PRICE PRICE SALE PRICE INGLEWOOD, CA 90303 /UNIT /FOOT CAP RATE GRM CAP RATE GRM CAP RATE GRM

Number of Units: 4 $1,315,000 $328,750 $299.41 4.00% 15.57 4.00% 15.57 6.11% 11.52 Year Built: 1961 APN: 4031-002-006 Gross Sq. Ft.: 4,392 Average S.F. Per Unit: 1,098 Lot Size (Acres): 10,540 Zoning: INR2YY

UNIT MIX

CURRENT MARKET TOTAL UNITS UNIT MIX UNIT MIX % AVG RENT MONTHLY RENT RENT MONTHLY RENT

3 2+1 75% $1,558 $4,675 $2,150 $6,450

1 4+2 25% $2,350 $2,350 $3,050 $3,050

Scheduled Monthly Rent: $7,025 $9,500

Scheduled Yearly Rent: $84,300 $114,000

19 | ANNUAL OPERATING SUMMARY

CURRENT PRO FORMA MARKET Scheduled Gross Income: $84,300 $84,300 Current Rent $114,000 35% Upside Less Vacancy Reserve: $2,529 3.0% $2,529 3.0% $3,420 3.0% Leased Laundry Income: $180 $180 $180 Gross Operating Income: $81,951 $81,951 $110,760 Expenses: $29,301 34.76% $29,301 34.76% $30,453 26.71% * Net Operating Income: $52,650 $52,650 $80,307 Loan Payments: $51,598 $51,598 $51,598 Pre-Tax Cash Flow: $1,052 0.32% $1,052 0.32% $28,709 8.78% ** Plus Principal Reduction: $19,781 $19,781 $19,781 Total Return Before Taxes: $20,833 6.37% $20,833 6.37% $48,490 14.83% ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment

PRO FORMA ANNUAL OPERATING EXPENSES

PRO FORMA * PRO % OF SGI CURRENT PER UNIT PER UNIT MARKET PER UNIT % OF SGI ESTIMATES FORMA Property Taxes 1.250% x Sale Price 20.06% $16,438 $4,109 $16,438 $4,109 $16,438 $4,109 14.4% Off-Site Management 4.0% x GOI 4.00% $3,278 $820 $3,278 $820 $4,430 $1,108 3.9% Insurance $0.35 x GSF 1.88% $1,537 $384 $1,537 $384 $1,537 $384 1.3% Repairs & Maintenance $500 x Units 2.44% $2,000 $500 $2,000 $500 $2,000 $500 1.8% Landscaping Actual 1.17% $960 $240 $960 $240 $960 $240 0.8% Utilities- Water Actual 4.39% $3,600 $900 $3,600 $900 $3,600 $900 3.2% Utilities- Trash Actual 1.30% $1,068 $267 $1,068 $267 $1,068 $267 0.9% General Administration $105 x Units 0.51% $420 $105 $420 $105 $420 $105 0.4% Total Expenses 35.75% $29,301 $7,325 $29,301 $7,325 $30,453 $7,613 26.7%

CURRENT PER UNIT % OF SGI Non-controllable expenses: Taxes, Ins., Reserves: $17,975 $4,494 21.3% Total Expense without Taxes $12,863 $3,216 15.26% RENOVATED 86%

| 20 FINANCING

Loan Amount: $988,000 Terms: 30 Down Payment: 25% $327,000 Interest: 3.25% Yearly Pmt: $51,598 Monthly Pmt: $4,300

RENT ROLL

# UNIT MIX RENT MARKET RENT

A 1 4+2 $2,350 $3,050

B 2 2+1 $1,525 $2,150

C 3 2+1 $1,575 $2,150

D 4 2+1 $1,575 $2,150

Totals $7,025 $9,500 4 Averages $1,756 $2,375

For the purposes of this financial analysis, we are utilizing pro forma financials. A pro forma financial analysis is one that contains estimates and projections of both the income and expens- es to show the possible operational performance of this investment property on an annual basis. 4 1

3 2

3401 W 109TH ST

| 22 SALES COMPARABLES

BUILDING LOT AREA PRICE PER PER CAP SOLD ADDRESS UNITS YR BUILT PRICE GRM UNIT MIX AREA (SF) (SF) UNIT FOOT RATE DATE

3401 W 109th St (1) - 4+2 4 1961 4,392 10,540 $1,315,000 $328,750 $299.41 4.00% 15.57 - Inglewood, CA 90303 (3) - 2+1

10228 Doty Ave 1 4 1963 4,158 6,460 $1,399,000 $349,750 $336.46 4.03% 16.12 In Escrow (4) - 2+1 Inglewood, CA 90303

2 3935 W 108th St (1) - 3+2 4 1961 4,717 7,527 $1,263,500 $315,875 $267.86 4.19% 15.48 12/23/20 Inglewood, CA 90303 (3) - 2+1

3 3860 W 107th St (3) - 3+2 4 1960 3,424 13,584 $1,090,000 $272,500 $318.34 4.90% 13.26 12/17/19 Inglewood, CA 90303 (1) - 1+1

4 3213 Bartdon Ave (2) - 4+2 4 1956 4,474 6,682 $1,250,000 $312,500 $279.39 5.29% 12.27 1/13/19 Inglewood, CA 90303 (2) - 2+1

AVERAGES $312,656 $300.51 4.60% 14.28

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3401 W 109TH ST

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| 24 RENT COMPARABLES

TWO-BEDROOM UNITS

NUMBER OF ADDRESS YEAR BUILT FLOOR PLAN ASKING RENT SQUARE FEET RENT PSF UNITS

3401 W 109th St 4 1961 2+1 $1,558 - - Inglewood, CA 90277

1 3828 W 105th St 2 1922 2+1 $1,995 850 $2.35 Inglewood, CA 90303

2 2216 W 102nd St 2 1947 2+1 $2,250 816 $2.76 Inglewood, CA 90303

11538 Simms Ave 3 4 1952 2+1 $2,200 800 $2.75 Inglewood, CA 90303

10223 Crenshaw Blvd 4 6 1955 2+1 $1,995 808 $2.47 Inglewood, CA 90303

AVERAGES $2,110 819 $2.58

25 | 2 1 3401 W 109TH ST

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| 26 RENT COMPARABLES

FOUR-BEDROOM & THREE-BEDROOM UNITS

NUMBER OF ADDRESS YEAR BUILT FLOOR PLAN ASKING RENT SQUARE FEET RENT PSF UNITS

3401 W 109th St 4 1961 4+2 $2,350 - - Inglewood, CA 90277

1 3533 W 108th Street 3 1927 4+2 $2,850 1,320 $2.16 Inglewood, CA 90303

2 3935 W 108th Street 4 1961 4+2 $3,345 1,839 $1.82 Inglewood, CA 90303

3427 W 110th Street 3 2 1961 3+2 $3,000 1,700 $1.76 Inglewood, CA 90303

11702 Crenshaw Blvd 4 4 1955 3+1.5 $3,050 1,100 $2.77 Inglewood, CA 90303

AVERAGES $3,061 1,490 $2.13

27 | CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs of3401 W 109th Street, Inglewood, CA 90303 (“Property”). The Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material and information in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. 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 Matthews Real Estate Investment Services.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. 3401 W 109TH ST LISTED BY INGLEWOOD, CA

NABIL AWADA CHRIS KEEN DAVID HARRINGTON Senior Associate Associate EVP & Managing Director

DIRECT +1 (310) 844-9362 DIRECT +1 (310) 919-5778 DIRECT +1 (310) 295-1170 MOBILE +1 (310) 469-2974 MOBILE +1 (310) 904-3373 MOBILE +1 (310) 497-5590 [email protected] [email protected] [email protected] Lic No. 02046840 (CA) Lic No. 02120400 (CA) Lic No. 01320460 (CA)

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