Firestone Blvd

OFFERING MEMORANDUM

8321-27 Firestone Blvd. Downey, CA 90241

Erik Sjolund • (310) 663-8164 • 439 N Canon Drive, Penthouse, Beverly Hills, CA 90210 • (310) 420-0077 • Reyn Hornwood BRE: 01948362 www.BeachandUrban.com BRE: 01955792 Table of Contents

Exclusively Presented By SECTION NUMBER Erik Sjolund BEACH&URBAN Offering Overview 1 Investment Real Estate BRE 02023478 Property Photo’s 2 Cell: (310) 663-8164 [email protected] Submarket Info 3

Reyn Hornwood Beach & Urban 4 BEACH&URBAN Investment Real Estate BRE 01955792 Cell: (310) 420-0077 [email protected]

8321-27 Firestone Blvd, Downey CA 90241 Offering Overview - 1

BEACH&URBAN Property Information Property Highlights • Great Firestone Blvd Location Pricing & Value Metrics: • Located a Block from LA’s Famous Porto’s PRICE $1,999,000 Bakery & Café www.PortosBakery.com $/SQFT $251 Current Cap 5.93 % • Ample Parking Behind Structure Current NOI $108,624 • High Traffic Count: 30,000+ CPD Market Cap 6.75% Market NOI $176,388 Value-Add Retail Opportunity – Firestone Blvd Charming Strip-Retail Commercial Asset located on the bustling and revitalized Firestone Blvd! The property’s location is second to none in the city for retail property. Located between Downey Ave & Brookshire Ave on the North side of Firestone Blvd. This very busy ADDITIONAL PROPERTY INFORMATION part of the boulevard see’s an average traffic count of 30,000 cars per day. Due to the superb location, the properties retail space is Assessors Parcel Number (APN) 6254-020-014 highly sought after for local brick & mortar businesses. The property is walking distance from LA’s famous Porto’s Bakery & Café (approx. 1 Year Built 1922 block). Total Rentable Square Footage 7,940 The property is split into 4 retail units: Hookah Hub Lounge, Alma’s Lot Sizing 0.23+-AC. | 10,117 SQFT Beauty Shop, Tita’s Bridal Gallery and The Pride by Her Nail Solon. Current rental rates are approximately 30-50% below market rates. A Zoning C3 new investor may have an opportunity to reposition the asset to Occupancy 100% maximize their return. Located in such a premium location, this asset will surely see strong growth in rents as time goes on.

8321-27 Firestone Blvd, Downey CA 90241 Rent Roll & Expenses

Current Rent Roll:

8321 - 8327 Firestone Blvd, Downey CA

Square % Of Lease Term Rental Rate Market Rate Suite # Tenant Name Feet Property Begin End Monthly PSF Annually PSF Monthly PSF Lease Type

8327 Tita's Bridal Gallery 1,044 13% 1/1/1014 12/31/2018 $1,365 $1.31 $16,380 $15.69 $ 1,827 $1.75 Gross 8325 Alma's Beauty Shop 2,476 31% 1/1/2014 12/31/2019 $2,600 $1.05 $31,200 $12.60 $ 4,333 $1.75 Gross 8323 Hookah Hub Loungue 3,620 46% 1/1/2014 1/1/2020 $3,800 $1.05 $45,600 $12.60 $ 7,059 $1.95 Gross 8321 The Pride by Her Nail Solon 800 10% 1/1/2017 1/1/2020 $1,287 $1.61 $15,444 $19.31 $ 1,480 $1.85 Gross

Total: Total: Average: Total: Average: Total: Average: Annual: 7,940 $9,052 $1.25 $108,624 $15.05 $14,699 $1.83 $176,388

Expenses:

Downey Retail Trends: ($M) Consumer Demand $1,585.5+ Expense Amount Current Market Consumer Supply $1,570.9+ Real Estate Taxes (New) $ 25,000 Gross Income: $ 108,624 $ 176,388 Property Insurance $ 6,000 Total Expenses: $ 38,831 $ 41,500 Retail Opportunity $14.6+ Trash & Water $ 2,400 Maintenance (5% of GSI) $ 5,431 Net Income: $ 69,793 $ 134,888

Total: Cap Rate: 3.49% 6.75% $ 38,831

8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s - 2

BEACH&URBAN Property Photo’s

8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s

PROPERTY REAR

8321-27 Firestone Blvd, Downey CA 90241 Property Photo’s

8321-27 Firestone Blvd, Downey CA 90241 Submarket Info - 3

BEACH&URBAN California DOWNEY POPULATION

Median Age 34.3 years old TYPE OF 113,407 HOUSEHOLDS 51.1 AGE DISTRIBUTION Non-Family 21.4% 65+ 10.5% Households 45-64 23.5% 48.9 25-44 30.0% 78.6% 15-24 15.1% Under 15 21.0% Total Family Households: 32,738 Households 0 5% 10% 15% 20% 25% 30%

EMPLOYMENT & ECONOMY BY ETHNICITY Unemployed Hispanic 73.0% 3.6% EMPLOYMENT White 15.6% Population 16 Asian 6.7% and Older: 88,241 Employed 96.4% Black 3.8% Median Household Other 0.7% Income $62,897 4.2% American Indian 0.2%

Source: Economic Development Department From last year May 2017 0 10% 20% 30% 40% 50% 60% 70% 80%

Source: American Fact Finder May 2016

OCCUPATION HOUSING 30.3% Management, Business, Professional & Arts Vacant 4.1% Median Existing 18.2% Services Occupations Own Home Sales 27.8% Sales & Office 48.7% Price $522,000 No Change from Last Year 8.2% Construction & Maintenance Rent 47.2% 15.5% Production & Transportation

0 5% 10% 15% 20% 25% 30% 35%

LARGEST EMPLOYERS Employer Number of Percent of Employees Total Employment Housing Units by Kaiser Permanente 4,500 8.2% Housing Type: 34,133 Downey Unified School District 2,450 4.5% 59.4% Single Family Detached Stonewood Shopping Center 1,765 3.2% Office of Education, County of Los Angeles 1,685 3.1% 32.5% Multi-Family 5 Units+ Rancho Los Amigos Medical Center 1,410 2.6% 3.8% Multi-Family 2 to 4 Units PIH Health 1,100 2.0% 3.6% Single Family Attached City of Downey 833 1.5% 0.7% Mobile Home Coca Cola Bottling Company 800 1.5% County of Los Angeles, Internal Services Dept. 712 1.3% Lakewood Health Center 314 0.6% Unless otherwise specified, data source is American Fact Finder 2015 Population Estimate, Education, Housing & Economic Source 2016 Comprehensive Annual Finance Report FY 2017-2018 Community Profile TRANSIT & EDUCATION THE ENVIRONMENT SCHOOLS IN DOWNEY Downey residents and businesses divert an estimated 30,073 tons 13 Public Elementary Schools of recyclables away from landfills in 2016. 4 Public Middle Schools 3 Public High Schools Keep Downey Beautiful program; 11 city-wide public clean-up events, 3 WASC - Accrediated Private Elementary/ Secondary Schools 3 smart gardening / composting workshops, and 3 hazardous waste and Source: Western Association of Schools and Colleges electronic disposal round-ups per year.

On average 15% of full time City of Downey employees participate in POPULATION ride sharing programs with 5% commuting using low emission vehicles or non-vehicle transportation such as walking, biking or public transportation. 3+ Yrs consecutive enrollment in school: 33,081 2,017 21,313 8,418 1,333 Weekly Farmer’s Market that promotes local organic farms and goods. 100%

Christmas tree recycling program 80%

COMMUNITY EVENTS 60% Private 35+ Events 40% Public

20%

0 % Nursery K-12 22College Graduate/ Undergraduate Professional

EDUCATIONAL ATTAINMENT Population over 25 Years of Age: 84,934

19.1% Bachelor’s Degree or Higher 32.7% Some OTHER AMENITIES College 1 Public Library 3 Hospitals 12 Parks (112.05 Acres) 25.7% HS Diploma 1 Public Swimming Pool open during the summer 4 Summer Camps 3 Walking Trails 1 Skateboard Park 22.5% Less than HS Diploma 1 Off-leash dog park 12 Tennis Courts 11 Playgrounds 0 5 10 15 20 25 30 35 4 Soccer Fields 4 Outdoor Sand Volleyball Courts 6.5 Outdoor Basketball Courts 2 Handball Courts 10 Ball Diamonds 10 Picnic Shelters COMMUNITY ENGAGEMENT 3 Activity Rooms (Shelters & Activity Rooms are for public use) 1 Gymnasium; indoor basketball and volleyball courts REGISTERED VOTERS 1 Community and Senior Center Facility No Party (provides activities, meals and social services) City of Downey has Democratic Pref 2 Golf Courses (1 City Operated and 1 County Operated) 58,973 registered voters 51.25% 23.44% 2 Public Ponds 2 Access Points to bike route trail heads Downey has approximately 196 American 1 Civic Theatre 1 Space Science Museum/ Learning Center Neighborhood Watch Groups Independent 1 Cemetery 2 Bocce Ball Courts 2.18% Public Meeting Agendas, 2 middle and 9 elementary school ASPIRE after school educational supporting documents, and videos program sites of City Council Meetings Republican 3 STEAMWorks after school program sites - 1 Middle & 2 Elementary are at www.downeyca.org 20.85% 32,017 Dial-A-Ride trips for seniors and persons with disabilities Other 128,414 Miles Traveled with 195,521 boardings on the Source: LA County Registrar/ Recorder 2.28% DowneyLINK Fixed Route Transit System Market Overview DOWNEY, CA - Gateway to Los Angeles

Downey is a city located in southeast Los Angeles County, California, United States, 13 mi southeast of downtown Los Angeles. It is considered part of the Gateway Cities. The city is the birthplace of the Apollo space program, and is the hometown of Richard and Karen Carpenter. It is also the home of the oldest still operational McDonald's restaurant in the world. As of the 2010 census, the city had a total population of 111,772.

Vultee Aircraft was Downey's largest employer during World War II, producing 15% of all of America's military aircraft by 1941. The company was a pioneer in the use of women in manufacturing positions, and was the first aircraft company to build airplanes on a powered assembly line. Vultee became a part of North American Aviation, (later North American Rockwell, then Rockwell International which was then bought by the Boeing company) whose facilities were the birthplace of the systems for the Apollo Space Program as well as the Space Shuttle. For over 70 years, Downey's Rockwell NASA plant produced and tested many of the 20th century's greatest aviation, missile, and space endeavors. By the early 1970s, the facilities encompassed some 1,700,000 square feet of enclosed area over more than 200 acres. But, by the post-Cold War 1990s, Downey was brutally hit by cutbacks in the defense budget. Rockwell International, who once had over 30,000 employees, had less than 5,000 in 1992. The seventy-year history of airplane and space vehicle manufacturing in Downey came to an end when the Rockwell plant closed in 1999. The former North American Rockwell plant was demolished, and the site now features the Columbia Memorial Space Center, Downey Landing shopping center, a Kaiser Permanente hospital, a city recreation fields park, and the former movie studio site of Downey Studios.

8321-27 Firestone Blvd, Downey CA 90241 Market Overview Oldest McDonald’s Restaurant 10207 Lakewood Blvd, Downey

The oldest operating McDonald's restaurant is a drive-up hamburger stand at 10207 Lakewood Boulevard at Florence Avenue in Downey, California. It was the third McDonald's restaurant and opened on August 18, 1953. It was also the second restaurant franchised by Richard and Maurice McDonald, prior to the involvement of Ray Kroc in the company. The restaurant is now the oldest in the chain still in existence and is one of Downey's main tourist attractions. Along with its sign, it was deemed eligible for addition to the National Register of Historic Places in 1984, although it was not added because the owner objected.

The first franchisee was Occidental Petroleum executive Neil Fox, who opened a restaurant at 4050 North Central Avenue in Phoenix, Arizona, in May, for a flat fee of $1,000. His restaurant was the first to employ the McDonald brothers' Golden Arches standardized design, created by Southern California architect Stanley Clark Meston and his assistant Charles Fish. Fox's use of the "McDonald's" name evidently came as a surprise to the brothers, but all subsequent franchises (except for the third location in North Hollywood, CA, which operated as Peak's,) used the "McDonald's" brand. (Although there was also a "Peak's" that had been franchised by McDonald Brothers on Foothill Blvd. in Pasadena, Golden Arches and all, at the foot of Hastings Ranch).

Fox's brothers-in-law and business partners, Roger Williams and Bud Landon, were the franchisees for the fourth McDonald's, and used their expertise in siting gasoline stations in choosing the Downey location. Like the McDonald brothers' other franchisees, they were required to use Meston's design. The purchase of the chain from the McDonald brothers by Ray Kroc did not affect the Downey restaurant, as it was franchised under an agreement with the McDonald brothers, not with Kroc's company McDonald's Systems, Inc., which later became McDonald's Corporation. As a result, the restaurant was not subject to the modernization requirements that McDonald's Corporation placed on its franchisees. Its menu came to differ from that of other McDonald's restaurants, and lacked items such as the Big Mac that were developed in the corporation. In part due to these differences, as well as a corporate McDonald's opening in the mid 1970s less than a half mile away, the restaurant came to suffer poor sales, and was finally acquired by McDonald's Corporation in 1990, when it was the only remaining McDonald's that was independent of the chain. With low sales, damage from the 1994 Northridge earthquake, and the lack of a drive-up window and indoor seating, the restaurant was closed, and McDonald's planned to demolish it and incorporate some of its features in a modern "retro" restaurant nearby. However, it was listed on the National Trust for Historic Preservation's 1994 list of the 11 Most Endangered Historic Places. With both the public and preservationists demanding the restaurant be saved, McDonald's spent two years restoring the restaurant and reopened it. Customers today can visit the restored restaurant and an adjoining gift shop and museum.

8321-27 Firestone Blvd, Downey CA 90241 Market Overview Oldest McDonald’s Restaurant 10207 Lakewood Blvd, Downey

8321-27 Firestone Blvd, Downey CA 90241 Map of Surroundings

8321-27 Firestone Blvd, Downey CA 90241 Beach & Urban - 4

BEACH&URBAN About Us

Reyn Hornwood CO-FOUNDER/PRESIDENT

Reyn Hornwood is a Co-Founder of Beach & Urban Commercial. He specializes in multifamily investment sales in Southern California. A Southern California native, Mr. Hornwood combines his sub-market knowledge with economic trends. He prides himself on having a strong commitment to service and unmatched client advisory.

Prior to Starting Beach & Urban Commercial, Mr. Hornwood was a consistent top producer at Lyon Stahl in Manhattan Beach. He was promoted to Senior Associate in just under 2 years. Prior to Brokerage, Reyn worked for a Los Angeles County based Developer, Harvard Investment Group, specializing in site acquisition, development and redevelopment of value add portfolios. Reyn's background and extensive multi-family experience are particularly helpful to his clients seeking "value added" or repositioning opportunities or when selling complex multi-family projects. Since 2010, Reyn has been successfully advising his clients on the acquisition, disposition and Section 1031 tax-deferred exchanges of commercial properties. He's demonstrated unrivaled knowledge of the market as well as an unsurpassed commitment to maximizing the value of our portfolio.

Reyn studied International Development Studies and History at the University California, Los Angeles (UCLA). He currently resides in the South Bay with his wife Nancy and sons Hudson and Luke.

When not helping his clients with their investment real estate goals and objectives, Reyn works with Hope Worldwide and sits on the board for Hope for the Hurting. He also is an active contributor to Children's Ministry, acting as the current Co-Director, where kids learn elementary truths about the Bible. He and his wife also coach financial workshops in conjunction with Financial Peace University, helping individuals and couples create a plan for their money and futures.

8321-27 Firestone Blvd, Downey CA 90241 About Us

ERIK SJOLUND CO-FOUNDER/PRESIDENT

Erik Sjolund is a Co-Founder of Beach & Urban Commercial. Prior to the inception of Beach & Urban, Mr. Sjolund was a Senior Associate & Top Producer at Lyon Stahl Investment Real Estate in Manhattan Beach. Since entering the brokerage side of real estate in 2012, Mr. Sjolund has been involved in more than 100 commercial and multi-family transactions. His professional experience includes an intimate knowledge of investment property sales & asset valuation. Erik has helped many of his clients complete both sides of their 1031 exchange, and he specializes in helping clients cash out of, or trade assets for better cash flow. Specifically multi-family/apartment/residential income properties, and residential & commercial re-development opportunities. Erik demonstrates a paramount responsibility to current client relationships and continues to contribute to new business generated in Los Angeles, Riverside, Orange & San Diego and surrounding Southern California Counties.

Prior to joining Lyon Stahl, Mr. Sjolund was employed at Z57, a real estate marketing firm focused on integrating online marketing into other more traditional marketing avenues. While at Z57 he refined his digital and creative skills while working on unique client based marketing campaigns. Erik has brought extensive digital marketing & design experience that has been invaluable to marketing assets on behalf of his clientele. Born in Torrance, Erik currently resides in Beverly Hills.

8321-27 Firestone Blvd, Downey CA 90241 About Us

Beach & Urban Commercial is a leading commercial real estate team based in Beverly Hills, California. Founded by partners Erik Sjolund & Reyn Hornwood. Although the B&U team works on commercial properties of all type (Mixed- Use, Industrial, NNN), our team's main expertise is the acquisition, disposition and 1031 exchange of apartment assets throughout Southern California's Coastal and Metropolitan hubs.

The Beach & Urban Team's culture has been core to its success. Founders, Mr. Sjolund & Mr. Hornwood were both born and raised in Southern California. With their "Get it done the right way, but as fast as possible" and "Go Win!" attitudes, they have been trusted by hundreds of private client investors to value, sell and exchange investment properties throughout the region. Our team has been able to establish a reputation of working not just harder, but smarter. We believe in integrity and transparency with our clients, we do not believe in telling investors what they want to hear. By looking at investments in an honest & conservative fashion, and providing this full transparency to our clients, we have a proven track record of creating win - win investment scenarios while maintaining our industry leading integrity. Beach & Urban Commercial is a top quality firm, with top quality personal service. Our team is dedicated to protecting our clients with their most valuable tangible assets.

8321-27 Firestone Blvd, Downey CA 90241 Disclaimer

The information contained in this Broker Offering Memorandum (“OM”) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of this BOV, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms. This OM has been prepared to provide summary, unverified information to establish a preliminary estimate of value for the subject property (“Property”). The information in this OM has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for 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 or 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 occupancy of the Property. The OM has selected information relating to the Property and does not purport to be an all - inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this OM in any manner. The Property owner (“Owner”) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

Exclusively Presented by:

Reyn Hornwood BRE 01955792 Erik Sjolund BRE 01948362 (310) 420-0077 (310) 663-8164 [email protected] [email protected]

8321-27 Firestone Blvd, Downey CA 90241