A 16,434 Square Foot Office Building Located in the Desirable South Bay Sub-Market of Hawthorne, Ca

A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE DESIRABLE SOUTH BAY SUB-MARKET OF HAWTHORNE, CA

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 2311 W El Segundo blvd | hawthorne, ca 90250 | 1 INVESTMENT ADVISORS BRANDON MICHAELS MATTHEW LUCHS Senior Managing Director of Investments First Vice President Investments Senior Director, National Retail Group National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2727 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] License: CA #01434685 License: CA #01948233 www.BrandonMichaelsGroup.com www. BrandonMichaelsGroup .com VAUGHN BROWN TEAM MEMBERS Invesment Associate Steven Schechter National Retail Group Andrew Leff TABLE OF CONTENTS Tel: (818) 212-2718 Ben Brownstein Fax: (818) 212-2710 Austin Sreden [email protected] Nicole Cottrell Lauren Sackler License: CA #01955613 Zachary Saloff www.BrandonMichaelsGroup.com John Andreasen PROPERTY OVERVIEW Website Instagram 01 www.brandonmichaelsgroup.com @brandonmichaelsgroup

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 FINANCIAL ANALYSIS 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 02 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.

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 COMPARABLES ANALYSIS 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 03 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. AREA OVERVIEW 04

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM 2311 W El Segundo blvd | hawthorne, ca 90250 | 3 01 PROPERTY OVERVIEW

5 4 | property overview • property highlights 2311 W El Segundo blvd | hawthorne, ca 90250 | 5 DOWNTOWN LA

MORNINGSIDE PARK GRAMERCY PARK A 16,434 SQUARE FOOT OFFICE BUILDING LOCATED IN THE DESIRABLE SOUTH BAY SUB-MARKET OF HAWTHORNE, CA

The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale 2311 West El Segundo Boulevard, a 16,434 square foot office building located in the South Bay sub-market od Hawthorne, CA. This two-story low-rise office building has been the long-term home of the County of Los Angeles and serves as a mental health center. The County of Los Angeles has successfully operated at this location for thirty-two years since June 21, 1988. Of current, they are occupying the building on a month to month lease. This creates a unique opportunity for an owner-user Buyer looking to occupy the building for their own use. The investment also lends itself to an investor, with the ability to re-structure the current lease with the county or re-position the asset with a new tenant base.

2311 West El Segundo Boulevard is ideally located just east of Crenshaw Boulevard and just West of S. Western Avenue along El Segundo Boulevard, a main

east/west thoroughfare through the South Bay. The subject property is easily accessible to multiple major freeways including the Interstate 405 San Diego VAN NESS AVE Freeway, the Interstate 105 California Freeway, and the Interstate 110 Freeway. The subject property is less than 1.5 miles from the Tesla/SpaceX campus, Hawthorne Municipal Airport, and the Metro line Park & Ride, 2.5 miles from the new Los Angeles Football Stadium at Hollywood Park in Inglewood, and minutes from Los Angeles International Airport.

The South Bay is experiencing a commercial real estate renaissance and has been seeing an influx of commercial development over the past number of years, with several new projects slated for construction in the immediate future. Inglewood is one of the hottest submarkets in the country, with a new $4.9 DAPHNE AVE billion Los Angeles Football Stadium scheduled to open in Summer 2020, plus 3,000 new residential units, 620,000 square feet of retail, a 300-room luxury hotel, an artificial lake, and a revamped Casino. El Segundo is the home to Smoky Hollow an eclectic mix of creative office, research and development and light industrial with cafés, art splashed on the walls, bike paths and pedestrian walkways. San Pedro is the home to the San Pedro’s Public Market, Promenade & Town Square, a 400-acre waterfront development that includes a 15,000 square-foot food hall with a variety of vendors serving food, beer, wine, and possibly a full bar. The 40-acre space will also include offices, a promenade, 600 feet of courtesy slips and pedestrian paths, container kitchens surrounded by an outdoor garden, playgrounds and recreation areas, waterfront taxis and cruises and a Town Square that will connect the new development to San Pedro historic downtown district. W. EL SEGUNDO BLVD

• 100% Occupied by the County of Los Angeles

• The County of Los Angeles has successfully operated at this location for 22 years

• Month to Month lease creates an excellent opportunity for an Owner-User Buyer

INVESTMENT HIGHLIGHTS INVESTMENT • Direct access to the 405, 105 and 110 freeway and within close proximity to Los Angeles International Airport

• Located within a thriving and revitalizing zone of the South Bay

• Excellent visibility and frontage along El Segundo Boulevard, a main east/west thoroughfare through the South Bay

• Significant development in the surrounding areas

PROPERTY INFORMATION $129 PRICE/SF(LAND)

PRICE: $3,100,000 BUILDING SF: 16,434 SF 6.95% CURRENT CAP RATE LAND SF: 24,000 SF

PRICE/SF (BUILDING): $189 PROPERTY HIGHLIGHTS PROPERTY

PRICE/SF (LAND): $129

CURRENT CAP RATE: 6.95%

32 total parking spaces are available; PARKING: Ratio of 1.95/1,000 SF

APN NUMBER: 2472-016-002

ZONING: HAM1YY

County of Los Angeles - TENANT: South Bay Medical Health Center

LEASE EXPIRATION: Month to Month

SITE SQUARE FOOTAGES PARKING 12 free Surface Spaces are available; The subject property is located near the The total building square footage is 20 free Covered Spaces are available. cross streets of Van Ness Ave and W El 16,434 SF. The total land square footage 32 total parking spaces. The parking Segundo Blvd. is 24,000 SF. ratio is 1.95 per 1,000 SF.

APN NUMBER TRAFFIC COUNTS ZONING

The APN number is 4056-033-017. Daily traffic counts exceed 42,000 The property is zoned HAM1YY. vehicles per day.

14 | property overview • property highlights 2311 W El Segundo blvd | hawthorne, ca 90250 | 15 RENT ROLL PRICING

TENANT SF SF % RENT RENT/SF LEASE START EXPIRATION

County of Los Angeles 16,434 100% $30,434.14 $1.85 6/21/1998 M2M PRICE: $3,100,000

TOTAL 16,434 100% $30,434.14 $1.85 - - BUILDING SF: 16,434 SF

LAND SF: 24,000 SF

PRICE/SF (BUILDING): $189

OPERATING DATA PRICE/SF (LAND): $129 CURRENT EXPENSES PER YEAR PER SF FINANCIAL ANALYSIS FINANCIAL CURRENT CAP RATE: 6.95% Scheduled Lease Income $365,210 Taxes @1.25% $38,750 $2.36

Effective Gross Income $365,210 Insurance $7,897 $0.48

Expenses $149,682 Electrical $1,880 $0.11

Net Operating Income $215,528 Elevator $200 $0.01

HVAC $21,625 $1.32

Janitorial $30,000 $1.83

Repairs & Maintenance $15,009 $0.91

Utilities $34,321 $2.09

TOTAL $149,682 $9.11 / $0.76

18 | property overview • property highlights 2311 W El Segundo blvd | hawthorne, ca 90250 | 19 SALES COMPARABLES 2311 W El Segundo Blvd 1 12540 Crenshaw Blvd

BUILDING PRICE/SF PRICE/SF 2 12954 Hawthorne Blvd ADDRESS PRICE LAND SF ZONING SALES DATE SF (BLDG) (LAND) 1 3 13144 Prairie Ave 2 3 12540 Crenshaw Blvd 1 $15,378,109 29,561 $520.22 87,689 $175.37 M2 2/8/2018 Hawthorne, CA 90250

12954 Hawthorne Blvd

SALES COMPARABLES 2 $1,697,500 6,342 $267.66 15,246 $111.34 C2 5/22/2018 SALES COMPARABLES | PRICE/SF Hawthorne, CA 90250

$380 AVG PRICE/SF (BUILDING) 13144 Prairie Ave 3 $1,350,000 3,847 $350.92 11,613 $116.25 HACM 7/1/2019 Hawthorne, CA 90250

AVERAGE $6,141,870 13,250 $379.60 38,183 $134.32 - - 13,250 AVG SF (BUILDING)

AVAILABLE RENT/SF/ ADDRESS RENTABLE SF RENT/SF/YEAR LEASE TYPE 2311 W El Segundo Blvd SPACES MONTH 1 14626 Crenshaw Blvd 475 - 1,975 SF 14626 Crenshaw Blvd 2 14619-14627 S Western Ave 1 6,000 Available in 3 $1.70 $20.40 MG Gardena, CA 90249 Spaces

7,282 SF 2 14619-14627 S Western Ave 1 2 7,282 Available in 1 $2.25 $27.00 NNN Gardena, CA 90249

RENT COMPARABLES COMPARABLES RENT Space

AVERAGE 6,641 - $1.98 $23.70 -

RENT COMPARABLES | RENT/SF/MONTH $1.98 AVG RENT/SF/MONTH

$23.70 AVG RENT/SF/YEAR

ADDRESS RENTABLE SF SF LEASED RENT/SF/MONTH RENT/SF/YEAR LEASE TYPE 2311 W El Segundo Blvd

1 13100 Yukon Ave 3 13100 Yukon Ave 1 25,760 5,705 $2.00 $24.00 NNN 2 3201-3237 131st St Hawthorne, CA 90250 3 10511 S Western Ave

3201-3237 131st St 2 74,540 2,718 $1.95 $23.40 MG 1 2 Hawthorne, CA 90250 RENT COMPARABLES RENT

10511 S Western Ave 3 4,173 4,173 $2.18 $26.16 MG RENT COMPARABLES | RENT/SF/MONTH Los Angeles, CA 90047

AVERAGE 34,824 4,199 $2.04 $24.52 - $2.04 AVG RENT/SF/MONTH

$24.52 AVG RENT/SF/YEAR

26 | property overview • property highlights 2311 W El Segundo blvd | hawthorne, ca 90250 | 27 HAWTHORNE, NEARBY ATTRACTIONS CALIFORNIA 1 TESLA DESIGN CENTER Incorporated in 1922, the City of Hawthorne currently has a population of nearly 87,000 within a six square mile area. Ideally located near the Los Angeles The Tesla Design Studio remains a public mystery. Working from an airplane hangar surrounded by the sprawling SpaceX campus in Hawthorne, California, the Tesla Design Studio team of international designers, engineers and modelers helped Elon Musk’s sustainable International Airport, connected by rail to the Port of Los Angeles and downtown Los Angeles, and surrounded by the San Diego (I-405), Harbor (I-110), energy company upend the entire automotive industry in just over a decade. Every single product — from its fully electric fleet to charging accessories and apparel, plus solar and battery hardware — starts here. Tesla's Chief of Design, Franz von Holzhausen, is the first to say and Glenn M. Anderson (I-105) Freeways, the City of Hawthorne could easily be termed the "Hub of the South Bay." By virtue of its location, Hawthorne no single team is responsible for the company’s improbable success or its aggressive innovation. Pawel Pietryka, Creative Manager of UI affords easy, quick access to all that Southern California offers; culture, sports, entertainment, mountains, and beaches. Temperatures in the area are Design, is far more precise: this place is like nowhere else. We talked to Pietryka about his team and how working outside your discipline has been the greatest reward in a staid industry. AREA OVERVIEW AREA always among the most pleasant in the Los Angeles basin.

2 LAX AIRPORT The City of Hawthorne possesses a shared vision towards the future to create a great city and build an economy which supports the community's desire In 2018, LAX handled 87,534,384 passengers, making it the world's fourth busiest and the United States' second busiest airport following for a high quality of life. Hartsfield-Jackson Atlanta International Airport. As the largest and busiest international airport on the U.S. West Coast, LAX is a major international gateway to the United States, and also serves a connection point for passengers traveling internationally. The airport holds the record for the world's busiest origin and destination airport, since relative to other airports, many more travelers begin or end their trips Did You Know? in Los Angeles than use it as a connection. It is also the only airport to rank among the top five U.S. airports for both passenger and cargo traffic.

• Jim Thorpe one of the world's greatest athletes lived in Hawthorne • Aircraft pioneer Jack Northrop established his company in Hawthorne 3 LOS ANGELES RAMS SOFI STADIUM • Home of the Beach Boys! Planned to open in July 2020, the stadium will serve as the home to the Los Angeles Rams and Los Angeles Chargers of the National Football League (NFL). It is also scheduled to host Super Bowl LVI in February 2022 and the College Football Playoff National Championship in January 2023. During the 2028 Summer Olympics, the stadium is expected to host the opening and closing ceremonies, as well as soccer. Archery will be held on the grounds outside the stadium. SoFi Stadium will be the third stadium, and second to be in current use, since the 1970 AFL–NFL merger to be shared by two NFL teams (MetLife Stadium, in East Rutherford, New Jersey, is home to the New York Giants and New York Jets, as was its predecessor, Giants Stadium).

4 AUTOMOBILE DRIVING MUSEUM The Automobile Driving Museum is an automotive museum located at 610 Lairport Street, El Segundo, California, USA. The museum is nonprofit 501 organization, founded in 2002 by car collectors Stanley Zimmerman and architect Earl Rubenstein. Its mission is to "collect, preserve, exhibit and ride in historic vehicles." It contains about 130 classic, antique, and vintage automobiles created between 1886 and 2000, of which roughly half are on display at any time. Visitors are permitted to touch and sit in most cars, and on Sunday Car Rides, experience driving around in classic vehicles.

2828 | property | 2311 overviewW El Segundo • property blvd highlights | hawthorne, ca 90250 2311 W El Segundo2311 W El blvd Segundo | hawthorne, blvd | hawthorne, ca 90250 ca 90250 | 29 | 29 DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2019 Total Population: 22,689 339,532 814,652 Population Growth 2019-2024 1.40% 0.51% 0.70% HAWTHORNE, 2019 Total Households: 7,385 105,285 248,880 87,425 33 2019 Owner Occupied Households: 3,732 41,064 107,02 $70,035 $48,881 POPULATION MEDIAN AGE CALIFORNIA 2019 Renter Occupied Households: 3,653 64,221 141,852 AVERAGE HH INCOME MEDIAN HH INCOME WITHIN 5-M RADIUS WITHIN 5-M RADIUS AREA OVERVIEW AREA 2019 Median Household Income $52,895 $47,606 $48,881 EDUCATION 2019 Average Household Income $73,628 $64,782 $70,035 2019 HOUSEHOLDS BY HOUSEHOLD INCOME <$25,000 1,528 26,953 64,918 $25,000 - $50,000 1,992 28,019 61,851 $50,000 - $75,000 1,215 18,045 40,599 107,029 141,852 $75,000 - $100,000 943 12,291 28,319 OWNER OCCUPIED HOUSEHOLDS RENTER OCCUPIED HOUSEHOLDS $100,000 - $125,000 514 8,085 18,576 WITHIN 5-M RADIUS WITHIN 5-M RADIUS 24% 31% 21% 16% $125,000 - $150,000 453 4,600 11,359 BACHELOR’S DEGREE HIGH SCHOOL GRADUATE SOME COLLEGE OR ASSOCIATES DEGREE MASTER’S DEGREE OR HIGHER $150,000 - $200,000 411 4,322 11,922 $200,000+ 328 2,969 11,336

ECONOMY

The economy of Hawthorne, CA employs 42.3k people. The largest industries in Hawthorne, CA are Accommodation & Food Services (5,217 people), Health Care & Social Assistance (5,005 people), and Retail Trade (4,662 people), and the highest paying industries are Mining, Quarrying, & Oil & Gas 814,652 23,548 Extraction ($66,563), Utilities ($54,928), and Finance & Insurance ($50,297). POPULATION WITHIN 5-M RADIUS BUSINESSES WITHIN A 5-M RADIUS

3030 | property | 2311 overviewW El Segundo • property blvd highlights | hawthorne, ca 90250 2311 W El Segundo2311 W El blvd Segundo | hawthorne, blvd | hawthorne, ca 90250 ca 90250 | 31 | 31 BRANDON MICHAELS MATTHEW LUCHS VAUGHN BROWN Senior Managing Director of Investments First Vice President Investments Investment Associate Senior Director, National Retail Group National Retail Group National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2727 Tel: (818) 212-2718 Fax: (818) 212-2710 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] [email protected] License: CA #01434685 License: CA #01948233 License: CA #01955613 www.BrandonMichaelsGroup.com www. BrandonMichaelsGroup .com www.BrandonMichaelsGroup.com

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

32 | property overview • property highlights