8-UNIT ASSET NEAR USC 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 8-UNIT ASSET NEAR USC TABLE OF CONTENTS

SECTION 01 Property Overview 02 Financial Analysis 03 Location Overview

CONTACT INFORMATION Johnny Cleator Senior Associate (310) 340-1299 Will James Director (424) 325-2610 Tom Jonsson Director (424) 325-2621

02 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 1 PROPERTY OVERVIEW

Street Address 2110 S. Bonsallo Ave Number of Units 8 Parking 6 Spaces

City Los Angeles Number of Buildings 1 Zoning RD1.5 State CA Number of Stories 2 Unit Mix (8) Single / 1 Bath

Zip Code 90007 Water Master-Metered * This property is subject to City of Los Angeles Affordable Housing restrictions for low and moder- 5124-031-028 Individually Metered APN Electric ate income families. The maximum allowable rent Rentable Square Feet 3,658 SF Gas Individually Metered is released by HCIDLA each year and the current amount is $1,488 per unit as of August 2020. The Lot Size 6,237 SF Construction Wood-Frame Siding covenant on title commenced July 6, 1999 and will remain in effect until July 6, 2039. Buyer to verify Year Built 1920 Roof Flat and complete their own investigation.

03 CONTACT JOHNNY CLEATOR SECTION 1 PROPERTY OVERVIEW

Located in USC Department of Public Safety Patrol Zone The subject property is in safe location, inside the USC Department of Public Safety Patrol Zone.

On-Site Parking There are six (6) surface parking spaces located behind the building with no soft-strory retrofit required.

Spacious Studios Large studios with separate kitchen and bathroom areas.

New Roof The roof of the property was replaced in 2016.

Well-Maintained Property The electrical system has been upgraded and the plumbing is all copper. The exterior staircase behind the building is new.

On-Site Laundry Laundry facilities are located in the basement for tenant use and additional owner income.

Section 8 Tenants With 6 of 8 units being rented to Section 8 tenants, monthly rent payments are guaranteed by the city.

Storage or Additional Income Large basement area could be used for storage or rented out for additional income.

04 CONTACT JOHNNY CLEATOR SECTION 1 PROPERTY OVERVIEW

05 CONTACT JOHNNY CLEATOR SECTION 1 property OVERVIEW

06 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 2 FINANCIAL ANALYSIS

$1,525,000 CURRENT PRO FORMA Price $1,525,000 Cap Rate 4.19% 6.26%

Price per Unit $190,625 GRM 14.10 10.68 Price per Square Foot $416.89 Net Operating Income $63,837 $95,498

07 CONTACT JOHNNY CLEATOR SECTION 2 FINANCIAL ANALYSIS

Down Payment $533,750 (35%) Loan Amount $991,250 Interest Rate 3.50% Amortization / Fixed Period 30-Year / 5-Year Term 360 Month

CURRENT PRO FORMA Debt Service -$53,414 -$53,414 Pre-Tax Cash Flow $10,423 (1.95%) $42,084 (7.88%) Principle Reduction -$19,023 -$19,023 Total Return $29,446 (5.52%) $61,107 (11.45%)

08 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 2 FINANCIAL ANALYSIS

ANNUAL ANNUAL INCOME CURRENT PRO FORMA EXPENSE CURRENT PRO FORMA

Base Rental Income $108,132 $142,848 Taxes (1.20%) $18,300 $18,300

Additional Income $1,200 $1,200 Insurance ($0.65/sq. ft.) $2,378 $2,378

Gross Potential Income $109,332 $144,048 Utilities (2020 actual) $7,739 $7,739

Vacancy Allowance $5,407 (5%) $7,142 (5%) Repairs & Maintenance ($500/unit) $4,000 $4,000

Effective Gross Income $103,925 $136,906 Management Fee (4% of EGI) $4,157 $5,476

Operating Expenses $40,089 (39%) $41,408 (30%) Gardener ($50/month) $600 $600

Net Operating Income $63,837 $95,498 Pest Control ($30/month) $360 $360

Reserves ($200/unit) $1,600 $1,600 Direct Assessments $955 $955 Operating Expenses $40,089 $41,408

09 CONTACT JOHNNY CLEATOR SECTION 2 FINANCIAL ANALYSIS

PRO FORMA UNIT # UNIT TYPE RENT RENT

01 Single / 1 Bath $916 $1,488

02 Single / 1 Bath $743 $1,488 03* Single / 1 Bath $1,250 $1,488 04* Single / 1 Bath $1,245 $1,488 05* Single / 1 Bath $1,221 $1,488 06* Single / 1 Bath $1,250 $1,488 07* Single / 1 Bath $1,236 $1,488 08* Single / 1 Bath $1,150 $1,488 TOTAL $9,011 $11,904

* Section 8 ** This property is subject to City of Los Angeles Affordable Housing restric- tions for low and moderate income families. The maximum allowable rent is released by HCIDLA each year and the current amount is $1,488 per unit as of August 2020. The covenant on title commenced July 6, 1999 and will remain in effect until July 6, 2039. Buyer to verify and complete their own investigation.

10 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

Los Angeles, CA Los Angeles is the largest city in California with an estimated population of nearly 4 million, and is the second- largest city in the United States, after New York City, and the third-largest city in North America. Los Angeles is known for its Mediterranean climate, ethnic and cultural diversity, Hollywood entertainment industry, and its sprawling metropolitan area. Los Angeles lies in a basin in Southern California, adjacent to the Pacific Ocean, with mountains as high as 10,000 feet. The city, which covers about 469 square miles, is the seat of Los Angeles County, the most populous county in the United States. The Los Angeles metropolitan area (MSA) is home to a population of 13.1 million, making it the second-largest metropolitan area in the nation after that of New York. Los Angeles has a diverse economy and hosts businesses in a broad range of professional and cultural fields. It also has the busiest container port in the Americas. In 2017, the Los Angeles metropolitan area had a gross metropolitan product of $1.0 trillion, making it the city with the third-largest GDP in the world, after Tokyo and New York City.

The Entertainment Capital of the World 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. It is the only city in North America to have hosted the Summer Olympics twice - and by 2028 the third time. Downtown L.A. is the largest government center outside of Washington, D.C.

Downtown Los Angeles Downtown Los Angeles (DTLA) is the central business district of Los Angeles, California, as well as a diverse residential neighborhood of some 85,000 people. Downtown, comprising diverse smaller areas such as Chinatown, Little Tokyo and the Arts District, offers renowned art museums, cutting-edge restaurants & hip bars. Modern high-rises mix with architectural landmarks.

11 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

University of Southern California Founded in 1880, the University of Southern California is one of the world’s leading private research universities and the oldest private research university in California. An anchor institution in Los Angeles, a global center for arts, technology, and international business, USC’s diverse curricular offerings provide extensive opportunities for interdisciplinary study and collaboration with leading researchers in highly advanced learning environments. In a comprehensive 2020 ranking, The Wall Street Journal and Times Higher Education ranked USC 18th among more than 1,000 public and private universities. Additionally, of the 150 universities surveyed in the Western U.S., USC ranks No. 3 among the top 25 schools. With more than 64,000 freshmen applications, USC received a record number of applicants for its fall freshman class this year; a 14% increase from the previous year. The University Park campus is in the University Park district of Los Angeles, 2 miles southwest of Downtown Los Angeles. The University Park campus is within walking distance to Los Angeles landmarks such as the Shrine Auditorium, and Los Angeles Memorial Coliseum which is operated and managed by the University.

12 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

13 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

14 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

1. Los Angeles Trade Technical College 10 Min Walk 0.5 Miles From Subject Property

2. Mount Saint Mary’s University 10 Min Walk 0.5 Miles From Subject Property

3. Dignity Health California Hospital 20 Min Walk 1 Mile From Subject Property

4. Hoover Recreation Center 09 Min Walk 0.4 Miles From Subject Property

5. Norwood Street Elementary School 03 Min Walk 0.1 Miles From Subject Property

6. St Vincent’s School 12 Min Walk 0.6 Miles From Subject Property Walk Score: 80 2110 Bonsallo Ave, Los Angeles, CA 90007

15 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

1. USC 07 Min Drive 1.5 Miles From Subject Property

2. STAPLES Center 05 Min Drive 1 Mile From Subject Property

3. LA Live 05 Min Drive 1.2 Miles From Subject Property

4. Natural History Museum 8 Min Drive 2.6 Miles From Subject Property

5. Banc of California Stadium 07 Min Drive 3.1 Miles From Subject Property

6. Expo Park / USC 07 Min Drive 2.3 Miles From Subject Property

16 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

01 02 03

USC STAPLES Center LA Live The University of Southern California is a leading Staples Center is a multi-purpose arena in Downtown L.A. Live is an entertainment complex in the South private research university located in Los Angeles — Los Angeles. It is known as the sports & entertainment Park District. It is adjacent to the Staples Center and a global center for arts, technology and international center of the world and home to four professional Los Angeles Convention Center. It cost approximate- business. sports franchises. ly US$2.5 billion to build.

04 05 06

Natural History Museum Banc of California Stadium Expo Park / USC The Natural History Museum of Los Angeles County Banc of California Stadium is a soccer-specific Expo Park/USC is an at-grade light rail station in the is the largest natural and historical museum in the stadium in the Exposition Park. It is the home of Major Los Angeles County Metro Rail system. It is located at western United States. Its collections include nearly League Soccer’s Los Angeles FC and future home of Exposition Boulevard and Trousdale Parkway, directly 35 million specimens. the National Women’s Soccer League’s Angel City FC. between the USC campus and Exposition Park.

17 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 SECTION 3 LOCATION OVERVIEW

POPULATION 1-Mile 3-Mile 5-Mile

2025 Projection 56,428 657,655 1,333,151

2020 Estimate 55,659 650,813 1,330,189

2010 Census 50,333 599,953 1,285,067 Growth ‘20 - ‘25 1.38% 1.05% 0.22% Growth ‘10 - ‘20 10.58% 8.48% 3.51%

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2025 Projection 18,089 213,153 430,467

2020 Estimate 17,720 210,393 429,292

2010 Census 15,369 191,088 413,660 Growth ‘20 - ‘25 2.08% 1.31% 0.27% Growth ‘10 - ‘20 15.3% 10.1% 3.78

Average Income $48,305 $57,489 $64,572

Median Income $26,315 $38,352 $42,666

18 2110 S. BONSALLO AVE, LOS ANGELES, CA 90007 JAMES CAPITAL ADVISORS, INC. DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto. The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants. A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property. Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property. CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker. RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein. NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

19 www.jamescapitaladvisors.com @jamescapitaladvisors JAMES CAPITAL ADVISORS, INC. CONTACT INFORMATION

LISTING AGENTS

Johnny (310) 340-1299 Cleator [email protected] Senior Associate CA RE Lic. 01951437

Will (424) 325-2610 James [email protected] Director CA RE Lic. 01734419

Tom (424) 325-2621 Jonsson [email protected] Director CA RE Lic. 01755842

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