South Pasadena, Ca Affiliated Business Disclosure and Confidentiality Agreement

RAMONA 1831 RAMONA AVENUE | SOUTH PASADENA, CA AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

CBRE, Inc. operates within a global family of This Memorandum contains selected information contents, and no legal commitment or obligation shall companies with many subsidiaries and/or related pertaining to the Property and does not purport to be a arise by reason of your receipt of this Memorandum or entities (each an “Affiliate”) engaging in a broad range representation of the state of affairs of the Property or use of its contents; and you are to rely solely on your of commercial real estate businesses including, but not the owner of the Property (the “Owner”), to be all- investigations and inspections of the Property in limited to, brokerage services, property and facilities inclusive or to contain all or part of the information evaluating a possible purchase of the real property. management, valuation, investment fund management which prospective investors may require to evaluate a The Owner expressly reserved the right, at its sole and development. At times different Affiliates may purchase of real property. All financial projections and discretion, to reject any or all expressions of interest or represent various clients with competing interests in the information are provided for general reference offers to purchase the Property, and/or to terminate same transaction. For example, this Memorandum purposes only and are based on assumptions relating discussions with any entity at any time with or without may be received by our Affiliates, including CBRE to the general economy, market conditions, notice which may arise as a result of review of this Investors, Inc. or Trammell Crow Company. Those, or competition and other factors beyond the control of Memorandum. The Owner shall have no legal other, Affiliates may express an interest in the property the Owner and CBRE, Inc. Therefore, all projections, commitment or obligation to any entity reviewing this described in this Memorandum (the “Property”) may assumptions and other information provided and Memorandum or making an offer to purchase the submit an offer to purchase the Property and may be made herein are subject to material variation. All Property unless and until written agreement(s) for the the successful bidder for the Property. You hereby references to acreages, square footages, and other purchase of the Property have been fully executed, acknowledge that possibility and agree that neither measurements are approximations. Additional delivered and approved by the Owner and any CBRE, Inc. nor any involved Affiliate will have any information and an opportunity to inspect the Property conditions to the Owner’s obligations therein have obligation to disclose to you the involvement of any will be made available to interested and qualified been satisfied or waived. Affiliate in the sale or purchase of the Property. In all prospective purchasers. In this Memorandum, certain instances, however, CBRE, Inc. will act in the best documents, including leases and other materials, are By receipt of this Memorandum, you agree that this interest of the client(s) it represents in the transaction described in summary form. These summaries do not Memorandum and its contents are of a confidential described in this Memorandum and will not act in purport to be complete nor necessarily accurate nature, that you will hold and treat it in the strictest concert with or otherwise conduct its business in a way descriptions of the full agreements referenced. confidence and that you will not disclose this that benefits any Affiliate to the detriment of any other Interested parties are expected to review all such Memorandum or any of its contents to any other entity offeror or prospective offeror, but rather will conduct its summaries and other documents of whatever nature without the prior written authorization of the Owner or business in a manner consistent with the law and any independently and not rely on the contents of this CBRE, Inc. You also agree that you will not use this fiduciary duties owed to the client(s) it represents in the Memorandum in any manner. Memorandum or any of its contents in any manner transaction described in this Memorandum. detrimental to the interest of the Owner or CBRE, Inc. Neither the Owner or CBRE, Inc, nor any of their This is a confidential Memorandum intended solely for respective directors, officers, Affiliates or If after reviewing this Memorandum, you have no your limited use and benefit in determining whether representatives make any representation or warranty, further interest in purchasing the Property, kindly return you desire to express further interest in the acquisition expressed or implied, as to the accuracy or this Memorandum to CBRE, Inc. of the Property. completeness of this Memorandum or any of its

© 2017 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

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PRISCILLA NEE Senior Vice President +1 310 550 2508 [email protected] Lic. 01435254

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TABLE OF CONTENTS

I. ASSET OVERVIEW

II. FINANCIALS

III. SALES COMPARABLES

IV. RENT COMPARABLES

V. MARKET OVERVIEW

TABLE OF CONTENTS 3 ASSET OVERVIEW 1831 RAMONA AVENUE | SOUTH PASADENA THE OFFERING

CBRE, Inc. is proud to exclusively present 1831 Ramona Avenue, located one block north of Huntington Drive and one block west of Fremont Avenue in the city of South Pasadena. 1831 Ramona Avenue offers an investor the rare opportunity to own an excellent piece of real estate in one of the healthiest and most coveted rental submarkets within the West San Gabriel Valley 1831 Ramona Avenue is a 10 unit multifamily property, constructed in 1963 on a ±11,117 square foot lot, with a total building size of ±9,888 square feet. The two-story property is separately metered for gas and electric, and offers a central water heater, an on-site laundry room, an enclosed trash area, and 17 carport and tuckunder parking spaces. 1831 Ramona Avenue boasts an excellent unit mix of one one-bedroom/one-and-one-half- bathroom unit, eight two-bedroom/one-and-three-quarters-bathroom units, and one three- bedroom/two-bathroom unit. The spacious units offer carpet and vinyl flooring, a gas stove, dishwasher in select units, wall units for cooling, central heat, and ample closet and storage space. While the current ownership has diligently maintained the property, the current ownership has not been aggressive in increasing rents, with rents at the property easily ±46% below market. A new owner is presented with the opportunity to immediately increase rents to market with standard turnover expenses, or further increase rental income with complete unit renovations (examples detailed on page 8). 1831 Ramona Avenue is located in a premier part of South Pasadena, within close proximity to shops, eateries, and markets on Fremont Avenue and Fair Oaks Avenue, and just blocks from South Pasadena High School, South Pasadena Middle School, and Marengo Elementary School. South Pasadena’s School District is one of the most highly regarded school districts in the state, and in the top 2.2% of schools within the nation. 1831 Ramona Avenue is also in close proximity to South Pasadena Public Library, medical and financial institutions along Huntington Drive and Fair Oaks Avenue, and the Mission District, housing a plethora of cafes and restaurants. Adjacent to San Marino and Pasadena, the property is situated minutes from Huntington Hospital, California Institute of Technology, the Shops on Lake Avenue, Old Town Pasadena, Pasadena Community College, California State University of Los Angeles, and the 110 Freeway, offering ease of access to neighboring cities and entertainment destinations in the region. Given the property’s excellent real estate fundamentals, which include its superb, non-rent controlled location, large building envelope, excellent unit mix, and outstanding school district, 1831 Ramona Avenue is an unmatched investment for an investor seeking growth, stability, and a hedge against inflation.

ASSET OVERVIEW 5 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

INVESTMENT HIGHLIGHTS COMMON AREA AMENITIES

+ Well Maintained, Neatly Landscaped

+ ± 11,117 SF R3 Lot

SUPERB LOCATION CURRENT RENTS ±46% + Separately Metered for Gas and Electric Walking Distance to Shops on Fremont Ave & Fair UNDER MARKET Oaks Ave Area Not Subject to Rent Control + Central Water Heater Adjacent to San Marino and Pasadena Restrictions; Further Upside with Complete Unit Renovations Minutes from Local Schools, PCC, CalTech, Old + On-Site Laundry Facility Town Pasadena, and 110 Freeway + Enclosed Trash Area

+ 11 Tuckunder and 6 Carport Parking Spaces

± 9,888 SF BUILDING ON WELL PARKED ±11,117 SF RM LOT 11 Tuckunder UNIT AMENITIES Lot Zoned RM 6 Carport + Carpet & Vinyl Flooring

+ Appliances - Gas Stoves - Dishwasher in Select Units

WELL AMENITIZED EXCELLENT UNIT MIX + Central Heat One (1+1.) On-Site Laundry Facility Eight (2+1.75’s) Central Heat and Wall Units for Cooling + Wall Units for Cooling One (3+2) Units with Gas Stoves and Dishwasher in Select Units + Ample Closet and Storage Space

COVETED SCHOOL DISTRICT SEPARATELY METERED FOR Blue Ribbon Schools GAS AND ELECTRIC 2013 API Score of 920 Water, Sewer, Trash – Landlord Gas, Electric – Tenant ASSET OVERVIEW 6 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

ADDRESS PRICE 1831 RAMONA AVENUE $4,100,000 SOUTH PASADENA, CA 91030

BUILDING SIZE LOT SIZE YEAR BUILT ±9,888 SF ±11,117 SF 1963

OCCUPANCY ZONING

100% RM Residential Medium Density

# OF UNITS # OF BUILDINGS # OF STORIES 10 1 2

PARKING PARKING RATIO 11 Tuckunder 1.7:1 6 Carport

Water, Sewer, Trash – Landlord UTILITIES: Gas, Electric – Tenant

Central Water Heater MECHANICAL: Central Heat, Wall Units for Cooling

CONSTRUCTION: Wood Frame, Stucco, Flat Roof

APN: 5319-021-008

ASSET OVERVIEW 7 1831 RAMONA AVENUE | SOUTH PASADENA

INTERIOR UNIT RENOVATION PLAN

1831 Ramona Avenue offers an investor the opportunity to immediately increase rental income by approximately ±46% upon the expiration of any in-place leases. Most of the tenancies are on a month-to-month basis and can be increased with proper 30 or 60 day notice. The property is located in an area that is not restricted by rent control, allowing an investor to better hedge against inflation and maintain closer-to-market rents. Additionally, by carrying out complete interior renovations, an investor will be able to significantly increase value and improve rental income.

INTERIOR RENOVATIONS

• Laminate Wood Floors with New Base Boards - $2.30/SF • Solid Wood Shaker Kitchen Cabinets - $1,800 • Quartz Kitchen Countertops with Undermount SS Sink - $900 • Bathroom Vanity, Sink and Quartz Countertops - $450 • Tile Floors in Kitchen and Bathroom - $750 • Smooth Ceilings & Recessed Lighting - $1,500 • Sliding Closet Doors - $350/Set • New SS Appliances (Stove, Refrigerator, Dishwasher, Built-In Microwave) - $1,600 - $1,900 • Ceiling Fans - $150 Each

*Costs are for estimation purposes only, and are not guaranteed. *Example of possible renovation, not actual unit

ASSET OVERVIEW 8 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

ASSET OVERVIEW 9 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

ASSET OVERVIEW 10 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

ASSET OVERVIEW 11 1831 RAMONA AVENUE | SOUTH PASADENA

PROPERTY DESCRIPTION

ASSET OVERVIEW 12 1831 RAMONA AVENUE | SOUTH PASADENA

ASSET OVERVIEW 13 1831 RAMONA AVENUE | SOUTH PASADENA

ASSET OVERVIEW 14 1831 RAMONA AVENUE | SOUTH PASADENA

PARCEL MAP

ASSET OVERVIEW 15 FINANCIALS 1831 RAMONA AVENUE | SOUTH PASADENA

IMMEDIATE UPSIDE POTENTIAL

1831 Ramona Avenue offers an investor the opportunity to immediately increase rental income by approximately ±46% as all rental agreements are on a month-to-month basis and can be increased with proper 30 or 60 day notice. The property is located in an area that is not restricted by rent control, allowing an investor to better hedge against inflation and maintain closer-to-market rents.

±46% POTENTIAL UPSIDE IN RENTS

Number Average Total Monthly Total Annual Market Total Monthly Total Annual Unit Type Actual Rent Actual Rent/SF Market Rent of Units Unit SF Actual Rent Actual Rent Rent/SF Market Rent Market Rent

1 1B/1.5B 800 $1,180 $1.48 $1,180 $14,160 $1,650 $2.06 $1,650 $19,800

8 2B/1.75B 985 $1,300-1,485 $1.32-$1.51 $11,275 $135,300 $2,100 $2.13 $16,800 $201,600

1 3B/2B 1,208 $1,810 $1.50 $1,810 $21,720 $2,400 $1.99 $2,400 $28,800

10 9,888 $14,265 $171,180 $20,850 $250,200

FINANCIALS 17 1831 RAMONA AVENUE | SOUTH PASADENA

FINANCIAL OVERVIEW

Monthly Annual Actual Monthly Annual Market Unit Type Unit SF Actual Rent Actual Rent Rent/SF Market Rent Market Rent Rent/SF 1 2B/1.75B 985 $1,520 $18,240 $1.54 $2,100 $25,200 $2.13 2 2B/1.75B 985 $1,485 $17,820 $1.51 $2,100 $25,200 $2.13 3 2B/1.75B 985 $1,485 $17,820 $1.51 $2,100 $25,200 $2.13 4 2B/1.75B 985 $1,300 $15,600 $1.32 $2,100 $25,200 $2.13 5 1B/1.5B 800 $1,180 $14,160 $1.48 $1,650 $19,800 $2.06 6 2B/1.75B 985 $1,310 $15,720 $1.33 $2,100 $25,200 $2.13 7 2B/1.75B 985 $1,400 $16,800 $1.42 $2,100 $25,200 $2.13 8 2B/1.75B 985 $1,350 $16,200 $1.37 $2,100 $25,200 $2.13 9 2B/1.75B 985 $1,425 $17,100 $1.45 $2,100 $25,200 $2.13 10 3B/2B 1,208 $1,810 $21,720 $1.50 $2,400 $28,800 $1.99 10 9,888 $14,265 $171,180 $20,850 $250,200

R E N T R O L L 18 1831 RAMONA AVENUE | SOUTH PASADENA

FINANCIAL OVERVIEW

Total Number of Units: 10 Total Area (Gross): 9,888 SF

Income Current Per Unit Pro Forma Per Unit GROSS POTENTIAL RENT $171,180 $17,118 $250,200 $25,020 Other Income Laundry Income $2,220 $222 Estimated at $185/Month $2,220 $222 Total Other Income $2,220 $222 $2,220 $222 GROSS POTENTIAL INCOME $173,400 $17,340 $252,420 $25,242 Vacancy/Collection Allowance (GPR) $5,202 3% $520 $12,621 5% $1,262 EFFECTIVE GROSS INCOME $168,198 $16,820 $239,799 $23,980

Expenses % of EGI % of EGI Real Estate Taxes 1.11% $45,523 27.07% $4,552 Actual Ad Valorem Rate $45,523 18.98% $4,552 Direct Assessments $3,084 1.83% $308 Actual per 2015/2016 Tax Bill $3,084 1.29% $308 Insurance $3,058 1.82% $306 Actual 2016 Expense $3,058 1.28% $306 Water, Sewer & Trash $10,500 6.24% $1,050 Estimated at $875/Month $10,500 4.38% $1,050 Gas $3,000 1.78% $300 Estimated at $250/Month $3,000 1.25% $300 Electric $840 0.50% $84 Estimated at $70/Month $840 0.35% $84 Landscaping $900 0.54% $90 Estimated at $75/Month $900 0.38% $90 Off-Site Management Fee $6,728 4.00% $673 Estimated at 4% of EGI $9,592 4.00% $959 Repairs & Maintenance $6,000 3.57% $600 Estimated at $600/Unit/Year $6,000 2.50% $600 Business License & Fees $175 0.10% $18 Estimated at $175/Year $175 0.07% $18 Reserves & Replacements $2,000 1.19% $200 Estimated at $200/Unit/Year $2,000 0.83% $200 TOTAL EXPENSES $81,808 48.64% $8,181 $84,672 35.31% $8,467 Expense per SF $8.27 $8.56

NET OPERATING INCOME $86,390 $8,639 $155,127 $15,513 EXPENSES 19 1831 RAMONA AVENUE | SOUTH PASADENA Price: $4,100,000 Proposed Financing Down Payment: $2,825,000 69% First Loan Amount: $1,275,000 31% Number of Units: 10 Actual Interest Rate: 3.75% Cost Per Unit: $410,000 Term/Amortization: 5 Year Fixed/30 Year Amortized Current GRM: 23.95 Index: LIBOR Market GRM: 16.39 Underwriting Interest Rate: 4.250% *DCR based on Underwriting Interest Rate Current CAP: 2.11% Market CAP: 3.78% Approximate Year Built: 1963 Approximate Lot Size: 11,117 SF Approximate Building Size: 9,888 SF Cost per Net RSF: $414.64

ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $ 173,400 $ 252,420 Less Vacancy Rate Reserve: $ (5,202) 3% $ (12,621) 5% Effective Gross Income: $ 168,198 $ 239,799 Less Expenses: $ (81,808) 48.64% $ (84,672) 35.31% Net Operating Income: $ 86,390 $ 155,127 Less Loan Payments: $ (70,857) $ (70,857) Debt Coverage Ratio:* 1.15 2.19 Net Cash Flow After Debt Service: $ 15,534 0.55% $ 84,270 2.98% Estimated Principal Reduction: $ 23,699 $ 23,699 Total Return Before Taxes: $ 39,233 1.39% $ 107,969 3.82% ANNUALIZED RENT ROLL Current Rents Market Rents ANNUALIZED EXPENSES No. of Unit Approx. Monthly Monthly Monthly Monthly Current Exp. % of EGI Units Type Square Feet Rent/Unit Income Rent/Unit Income Real Estate Taxes $ 45,523 27.07% Actual Ad Valorem Rate 1 1B/1.5B 800 $1,180 $1,180 $1,650 $1,650 Direct Assessments $ 3,084 1.83% Actual per 2015/2016 Tax Bill 8 2B/1.75B 985 $1,300-1,485 $11,275 $2,100 $16,800 Insurance $ 3,058 1.82% Actual 2016 Expense 1 3B/2B 1,208 $1,810 $1,810 $2,400 $2,400 Water, Sewer & Trash $ 10,500 6.24% Estimated at $875/Month Gas $ 3,000 1.78% Estimated at $250/Month Electric $ 840 0.50% Estimated at $70/Month Landscaping $ 900 0.54% Estimated at $75/Month Off-Site Management Fee $ 6,728 4.00% Estimated at 4% of EGI 10 Total SF 9,888 Repairs & Maintenance $ 6,000 3.57% Estimated at $600/Unit/Year Total Scheduled Rent: $14,265 $20,850 Business License & Fees $ 175 0.10% Estimated at $175/Year Total Other Income: $185 $185 Reserves & Replacements $ 2,000 1.19% Estimated at $200/Unit/Year Monthly Scheduled Gross Income: $14,450 $21,035 TOTAL EXPENSES $ 81,808 48.64% Annual Scheduled Gross Income: $173,400 $252,420 Per Net SQFT: $ 8.27 Utilities Paid by Tenant: Gas & Electric Per Unit: $ 8,181 FINANCIAL SUMMARY 20 SALES COMPARABLES 1831 RAMONA AVENUE | SOUTH PASADENA SALES COMPARABLES

SALES COMPARABLES 22 1831 RAMONA AVENUE | SOUTH PASADENA SALES COMPARABLES – ACTIVE/UNDER CONTRACT

# OF CAP LOT # ADDRESS PRICE UNIT MIX $/UNIT $/SF GRM SQ FT COMMENTS UNITS RATE SIZE

Currently on market. This 2008 Huntington Dr property consists of bungalow South Pasadena, CA style units, wall units for 4 - 1B/1B 1 $1,500,000 5 $300,000 $541.91 2.91% 20.34 2,768 9,457 heating and cooling, large Year Built: 1923 1 - 2B/1B inner courtyard area, and a Status: Under Contract detached structure with five List Date: 05/19/17 parking garages.

Currently on market. This 1143 Diamond Ave property has newer roofs, South Pasadena, CA newer plumbing, and recently 2 $4,500,000 8 8 - 2B/1B $562,500 $557.28 2.00% 28.19 8,075 11,323 renovated units. Units offer Year Built: 1928 laminate wood flooring, Status: Active ceramic tile, gas stoves and List Date: 05/12/17 garage parking spaces.

1728 Grevelia St Currently on market. Units South Pasadena, CA offer carpet, hardwood and 3 6 - 1B/1B vinyl flooring, a stove, a $3,160,000 8 $395,000 $459.30 2.79% 22.54 6,880 9,212 Year Built: 1951 2 - 2B/1B range/oven, wall units for Status: Under Contract cooling, and carport parking List Date: 04/03/17 spaces.

Average $3,053,333 $419,167 $519.50 2.57% $23.69

SALES COMPARABLES 23 1831 RAMONA AVENUE | SOUTH PASADENA SALES COMPARABLES

# OF CAP LOT # ADDRESS PRICE UNIT MIX $/UNIT $/SF GRM SQ FT COMMENTS UNITS RATE SIZE Financing: N/A. This property consists of bungalow style 1712 Gillette units. Units offer large living South Pasadena, CA rooms, hardwood flooring, 4 $1,990,000 6 6 - 1B/1B $331,667 $541.35 3.26% 18.09 3,676 14,119 in-unit washers and dryers, Year Built: 1965 wall units for cooling, tiled Sold Date: 06/12/17 kitchens, ample storage space, and garage/carport parking spaces.

Financing: All Cash. Units 1127 Magnolia St offer private patios or 1 - Studio South Pasadena, CA balconies, laminate 3 - 1B/1B 5 $3,880,000 9 $431,111 $461.47 2.97% 19.56 8,408 9,943 hardwood floor, granite 4 - 2B/2B Year Built: 1965 kitchen countertop, new 1 - 3B/2B Sold Date: 06/2/17 cabinets in select units and on-site laundry facilities.

Financing: $3,900,000 - East 265 Monterey Rd West Bank. Units offer private South Pasadena, CA 12 - 1B/1B balconies, walk-in closets, 6 $9,500,000 32 8 - 2B/1B $296,875 $325.53 2.50% 22.25 29,183 36,674 ample storage, wall units for Year Built: 1955 12 - 2B/2B heating and cooling, and Sold Date: 01/25/17 laminate hardwood flooring.

Financing: All Cash. Units 1720 Ellincourt Dr offer new double pane South Pasadena, CA windows, new electrical 7 $4,150,000 10 10 - 2B/1B $415,000 $411.99 3.00% 21.12 10,073 14,185 subpanels, hardwood flooring Year Built: 1955 and granite countertops. Sold Date: 02/3/17 Select Units offer private patio.

Financing: All Cash. 50% 609 Prospect Ave 5 - Studio townhouse style units. The South Pasadena, CA 4 - 1B/1B building has controlled 8 $10,575,000 30 7 - 1B/2B $352,500 $388.74 2.26% 22.97 27,203 23,243 access, a gated pool, 40 Year Built: 1961 3 - 2B/1B assigned subterranean Sold Date: 02/1/17 11 - 2B/2B parking spaces, an elevator, and an on-site laundry facility.

Average $4,995,556 $344,184 $401.75 2.64% $20.86

SALES COMPARABLES 24 1831 RAMONA AVENUE | SOUTH PASADENA SALES COMPARABLES

# OF CAP LOT # ADDRESS PRICE UNIT MIX $/UNIT $/SF GRM SQ FT COMMENTS UNITS RATE SIZE Financing: All Cash. This property is separately metered 1636 Huntington Dr for gas and electric, and South Pasadena, CA offers copper plumbing, 8 - 1B/1B 9 $4,225,000 12 $352,083 $382.15 2.77% 20.83 11,056 17,526 individual water heaters, a 4 - 2B/1B Year Built: 1950 newer pitched roof, dual pane Sale Date: 7/21/16 vinyl windows, an on-site laundry facility, and newer hardwood floors. Financing: $2,500,000 – Citizens Business Bank. This property is separately metered 711-715 Brent Ave for gas and electric, and South Pasadena, CA offers copper plumbing, 10 $5,410,000 24 24 - Studio/1B $225,417 $375.69 1.73% 22.41 14,400 17,980 individual water heaters, a Year Built: 1928 newer pitched roof, dual pane Sale Date: 5/31/16 vinyl windows, newer exterior paint, an on-site laundry facility, and renovated units with hardwood floors.

Financing: $715,000 - 1744-1750 Huntington Dr Chase. This property is South Pasadena, CA 3 - 1B/1B separately metered for gas 11 $1,700,000 5 $340,000 $389.46 2.50% 20.32 4,365 9,017 2 - 2B/1B and electric. Financials for this Year Built: 1940 property are not available at Sale Date: 4/14/16 this time.

Financing: Assumed - $1,490,000. This property was previously marketed and 350 Pasadena Ave sold in August 2015 for South Pasadena, CA 3 - 1B/1B $3,200,000. This property is 12 $3,530,000 10 $353,000 $339.39 2.78% 20.15 10,401 14,547 7 - 2B/1B separately metered for gas Year Built: 1954 and electric, has a central Sale Date: 2/16/16 water heater, on-site laundry facility, and 10 parking spaces. Average $4,995,556 $344,184 $401.75 2.64% $20.86

SALES COMPARABLES 25 RENT COMPARABLES 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

RENT COMPARABLES 27 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF

Units offer carpet and tile floors, a stove, dishwasher, refrigerator, patio/balcony, 410 Raymondale Dr 1B/1B 750 $1,700 $2.27 1 53 1959 39,756 98% wall A/C unit, central heat, South Pasadena, CA 2B/1B N/A $1,900 N/A and ceiling fans. Amenities: pool & laundry on-site. Parking: one covered space.

Units offer carpet and tile floors, a new kitchen with 333 Raymondale Dr 2 1B/1B $1,645 granite countertops, a stove, (1690-96 Amberwood Dr) 20 1953 25,568 N/A N/A 95% 2B/1B $1,795 microwave, fireplace, South Pasadena, CA balcony, and wall units for heating and cooling.

Units offer carpet flooring, a stove, fireplace, and wall 3 204 Cedar Crest Ave 8 1946 3,006 1B/1B 751 $1,695 $2.26 88% units for heating and cooling. South Pasadena, CA Amenities: laundry on site. Parking: one-car garage.

Units are renovated and offer carpet and tile floors, a stove, microwave, granite 4 1690 Amberwood Dr 20 1953 25,568 2B/1B 1,200 $2,295 $1.91 95% countertops, fireplace, and South Pasadena, CA wall units for heating and cooling. Amenities: laundry on-site. Parking: covered. Units offer carpet, laminate, and vinyl floors, a stove, dishwasher, garbage 1601-1627 Amberwood Dr disposal, ceiling fan, balcony, 5 34 1952 51,904 2B/1B 1,232 $2,125 $1.72 94% South Pasadena, CA fireplace, and wall units for heating and cooling. Amenities: laundry on-site. Parking: carport.

RENT COMPARABLES 28 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF Units offer laminate and tile floors, a stove, dishwasher, granite countertops, balcony, 1800 State St 1B/1B 750 $1,750 $2.33 wall A/C units, and central 6 96 1960 88,961 99% South Pasadena, CA 2B/1B 1,000 $2,150 $2.15 heat. Amenities: controlled access, pool, gym, & laundry on-site. Parking: one or two carport spaces. Units offer hardwood, carpet, and tile floors, a stove, microwave, and dishwasher, 7 1760 State St 1B/1B 800 $1,595 $2.00 granite countertops, wall A/C 42 1957 39,919 98% South Pasadena, CA 2B/2B 1,000 $2,050 $2.05 units, and central heat. Amenities: controlled access, pool, & laundry on-site. Parking: one space. Units have been renovated and offer laminate and carpet floors, a stove, 8 1810 Hardison Pl refrigerator, and dishwasher, 10 1965 10,430 2B/2B 1,000 $2,450 $2.45 90% South Pasadena, CA granite countertops, and wall units for heating and cooling. Amenities: laundry on-site. Parking: one space.

Units offer carpet and tile floors, a stove, granite 9 1768-1798 Grevelia St countertops, ceiling fan, and 24 1948 18,970 1B/1B N/A $1,845 N/A 96% South Pasadena, CA wall units for heating and cooling. Amenities: laundry on-site. Parking: covered.

Units are renovated and offer hardwood and tile floors, a stove, granite countertops, 1750 Grevelia St 10 20 1949 19,111 1B/1B N/A $1,695 N/A 95% ceiling fans, wall units for South Pasadena, CA heating and cooling, and a balcony. Amenities: laundry on-site. Parking: covered.

RENT COMPARABLES 29 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF

Units are renovated. 715 Prospect Ave 11 19 1963 20,426 3B/2B 1,475 $2,700 $1.83 95% Amenities: laundry on-site. South Pasadena, CA Parking: carport.

Units offer laminate floors, granite countertops, central 12 711 Orange Grove Ave 29 1969 37,115 2B/2B 1,200 $2,400 $2.00 100% air and heat, and a balcony. South Pasadena, CA Amenities: pool & laundry on-site. Parking: one space.

Units offer hardwood, carpet, and tile floors, a stove, dishwasher, granite 13 1807 Fremont Ave 1B/1B $1,595 14 1968 12,508 N/A N/A 93% countertops, and wall units South Pasadena, CA 2B/1.5B $2,195 for heating and cooling. townhouse Amenities: laundry on-site. Parking: carport/two spaces.

Units are renovated and offer hardwood and tile floors, a 14 1711 Oxley St stove, ceiling fans, and wall 6 1958 4,988 2B/1B 1,000 $1,950 $1.95 83% South Pasadena, CA units for heating and cooling. Amenities: laundry on-site. Parking: one carport.

MTM lease. Units offer carpet and tile floors, a gas range, refrigerator, high 1701 Oxley St ceilings, decorative fireplace, 15 (1104 Brent Ave) 13 1930 10,144 1B/1B 650 $1,575 $2.42 92% ceiling fans, and wall units South Pasadena, CA for heating and cooling. Amenities: laundry on-site. Parking: none.

RENT COMPARABLES 30 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF Units are renovated and offer hardwood floors, a stove, dishwasher, refrigerator, 511 El Centro St washer and dryer hookups, 16 5 1905 3,235 3B/2B 1,300 $2,400 $1.85 80% South Pasadena, CA wall units for heating and cooling, and a balcony/backyard area. Parking: off-street.

Units offer laminate floors, granite countertops, a stove, 17 640 Arroyo Dr 5 1954 3,622 2B/1B N/A $2,050 N/A 80% refrigerator, ceiling fans, and South Pasadena, CA wall units for heating and cooling.

Units offer laminate and tile floors, a stove, refrigerator, granite countertops, patio, 18 316 Pasadena Ave Studio/1B 480 $1,075 $2.23 13 1962 10,849 92% and wall units for heating South Pasadena, CA 2B/2B N/A $1,975 N/A and cooling. Amenities: laundry on-site. Parking: carport.

Units are townhouse style and offer laminate and tile floors, new quartz 19 1428 Lyndon St 6 1960 5,341 2B/1B 900 $2,395 $2.66 83% countertops, new stainless South Pasadena, CA steel appliances, and central air and heat. Parking: two spaces.

Units offer carpet and tile floors, a stove, dishwasher, 1818 Ramona Ave granite countertops, ceiling 20 16 1968 19,997 1B/1.5B 825 $1,595 $1.93 94% South Pasadena, CA fan, and central air and heat. Amenities: laundry on-site. Parking: covered.

RENT COMPARABLES 31 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF

Units offer laminate and tile floors, a renovated kitchen with stainless steel appliances 909 Summit Dr 21 8 1924 4,822 1B/1B 600 $1,650 $2.75 88% including a stove, South Pasadena, CA refrigerator, dishwasher, and washer and dryer in unit. Parking: carport.

Units are renovated and offer laminate floors, forced air, 22 1119 Huntington Dr 9 1938 7,737 4B/3B 2,000 $3,994 $2.00 89% and large patio. Amenities: South Pasadena, CA pool, laundry on site. Parking: carport.

Units are townhouse style and offer laminate and tile floors, a stove, granite 23 1120 Huntington Dr 2B/1B 24 1928 22,252 927 $1,595 $1.72 96% countertops, and wall units South Pasadena, CA (townhouse) for heating and cooling. Amenities: laundry on-site. Parking: uncovered.

Units offer laminate floors, a small refrigerator, wall unit 24 1619 Huntington Dr Studio/1B N/A $895 N/A 6 1907 3,754 83% for cooling, and a portable South Pasadena, CA 2B/2B 1,500 $2,245 $1.50 heater. Amenities: laundry on-site.

Units offer renovated hardwood floors, new 1744 Huntington Dr 25 5 1940 4,365 1B/1B 9,016 $1,850 N/A 80% kitchen and new bath. South Pasadena, CA Parking: one-car and two-car garage spaces available.

RENT COMPARABLES 32 1831 RAMONA AVENUE | SOUTH PASADENA RENT COMPARABLES

# OF YEAR BLDG UNIT # ADDRESS UNIT TYPE RENT RENT/SF OCC. COMMENTS UNITS BUILT SF SF

Units offer hardwood floors, a dishwasher, fireplace, 26 2036 Huntington Dr 1B/1B 800 $1,650 $2.06 crown molding, washer and 8 1920 8,474 100% South Pasadena, CA 2B/1B 950 $2,000 $2.11 dryer, individual tank-less water heaters, and dual entrances.

RENT COMPARABLES 33 MARKET OVERVIEW

34 OVERVIEW SOUTH PASADENA, CA

South Pasadena is a suburban city located in the West San Gabriel Valley, and is bordered by the city of Pasadena to the north, the cities of Pasadena and San Marino to the east, the city of Alhambra and the city of Los Angeles community of Monterey Hills to the south, and the city of Los Angeles community of Highland Park to the west. The city of South Pasadena is situated approximately six miles from Downtown Los Angeles,

Called the “City of Trees”, South Pasadena has more than 100 acres of parks, and more than 21,000 trees line its streets. Providing a charming, quaint allure, the City of South Pasadena gives off a small-town feel, while also serving its residents with numerous eclectic amenities. From nationally recognized brands, to small mom-and-pop shops, South Pasadena’s residents enjoy a wide array of retail shops, restaurants, and entertainment establishments.

The City is served by the Arroyo Seco Parkway (CA 110), the first freeway in the Western United States, and has exits on Orange Grove Avenue, as well as Fair Oaks Avenue. South Pasadena has its own city-wide community transit system, which also connects with the Mission Gold Line Station, allowing for access to Downtown Los Angeles. Known for its stunning homes, unique small businesses, and renowned schools, South Pasadena is a highly desirable location in the San Gabriel Valley.

35 SCHOOL DISTRICT SOUTH PASADENA, CA

From academics to athletics, South Pasadena prides itself on its  South Pasadena High School is one of Newsweek’s top 1,300 highly revered schools. The school district consists of five schools, (5%) public high schools in the country including Arroyo Vista, Marengo, and Monterey Hills Elementary  Monterey Hills Elementary School is among the few public elementary schools in California to receive a distinguished Schools, South Pasadena Middle School, and South Pasadena GreatSchools rating of 9 out of 10 st High School, all of which are distinguished in their own right.  Marengo and Arroyo Vista Elementary Schools have placed 1 and 2nd in the state, and in the top ten nationally in the Arroyo Vista, Marengo, and Monterey Hills elementary schools, as Knowledge Bowl Math Competition well as South Pasadena Middle School and South Pasadena High School, have all been recognized as California Distinguished Schools, and both Arroyo Vista Elementary School and South Pasadena Middle School have been recognized as national Blue Ribbon Schools.

Overall, the school district performs on a very high level, repeatedly exceeding State benchmarks. In 2013, South Pasadena School District had an API score of 920.

In athletics, South Pasadena High School teams consistently rank among the top in their leagues. As the only high school in the city, the campus boasts several main academic buildings, a library, a performing arts auditorium, a swimming pool, three sets of tennis courts, two indoor gymnasiums, a state-of-the-art 400-m outdoor track, and three athletic fields.

MARKET OVERVIEW 36 LANDMARKS SOUTH PASADENA, CA

Incorporated in 1888, much of the history of the City is associated with the Cawston Ostrich Farm, America’s first ostrich farm, which currently serves as a South Pasadena Cultural Landmark. South Pasadena was one of the first suburbs of Los Angeles, and being so, has many historical sites. Many of these sites are within five major districts which include Oaklawn, Ramona Avenue, El Centro, Oak – Laurel, and Mission West. The Mission West area is also part of the original U.S. Route 66. On that same route, located on Fair Oaks Avenue, sits the Fair Oaks Pharmacy and Soda Fountain, which has been a South Pasadena landmark since 1915.

The Rialto Theater in downtown South Pasadena was built in 1925 and is one of the last remaining single screen cinemas in the country. It is on the National Register of Historic Places and has also been featured in many films and commercials.

With its tree-lined streets, the city has also been the back-drop for many movies, including The Terminator and Gone with the Wind, as well as major television series including Modern Family, Desperate Housewives, and CSI, providing the city with added revenue.

37 ECONOMY SOUTH PASADENA, CA

South Pasadena has a very strong and diverse local economy that is The City of South Pasadena has many local stores and destinations well connected with the greater Los Angeles regional economy. for shopping and dining. Most of these lie along the city’s major Some of the major employers include: thoroughfares, which include Fair Oaks Avenue, Mission Street, and Huntington Drive. Most of the large franchises and grocery chains located in the city are included in the aforementioned areas, and include Bristol Farms, Vons, Pavilions, and Trader Joe’s.

Much of the business district in South Pasadena, also known as the historic district, is populated by smaller merchants who have been in business for many years. These include smaller restaurants like Mike & Anne’s and Tokoro Japanese, as well as specialty retail stores such as Bikram Yoga and Heirloom Bakery & Café.

38 DEVELOPMENT SOUTH PASADENA, CA

Downtown Revitalization Project Mission Place Project

The South Pasadena Downtown Revitalization Project is an The Mission Place Project is a development project planned for a estimated $40 million revitalization project that will change the property that is owned by the South Pasadena Unified School landscape of South Pasadena from Oxley Street to Hope street. District. The nearly 100,000 square foot project will be a mixed- The project includes the redevelopment of five buildings, as well as use development that will include 91 residential units and 7,400 two key parcels at 1503 and 1507 El Centro Street. The square feet of retail space. development project will cover a three block area that will include The development is currently in its early planning phase and is pedestrian paths, gathering spaces, a town plaza, restaurants, projected to bring in between $300,000 and $400,000 annually retails stores, office space, affordable housing up to 60 units, and to the school district. 427 parking spaces. The site of the project is a vacant lot that is currently underutilized. The project has been completely designed and entitled, and Donald Getman, an architect working on the project said that the Genton Property Group has been chosen as the developer. project, which is one block from a Metro Gold Line stop, is “transit Currently, the developer is in talks to reach an agreement with oriented”, and designed to fit the aesthetic of Mission Street. store owners within the development site.

MARKET OVERVIEW 39 DEMOGRAPHIC PROFILE SOUTH PASADENA, CA

– POPULATION

2000 Population 24,222 2010 Population 25,619 2016 Population 26,592 2021 Population 27,630

– AGE 2016 Median Age 42.1 2016 Average Age 40.7 MARKET– RACE OVERVIEW AND ETHNICITY 2016 Population 26,592 White 13,542 50.9% African American 829 3.1% – HOUSEHOLDS Asian 8,747 32.9% Native Hawaiian/Pacific Islander 12 0.0% 2016 Households 10,819 American Indian/Alaska Native 114 0.4% 2021 Households 11,221 Some Other Race 1,612 6.1% 2010 Households 10,468 2 or More Races 1,735 6.5% 2000 Households 10,436 2016 Hispanic Population 5,124 19.3% Percent HH Change: 2010 to 2016 3.4% Not Hispanic/Latino, White 10,770 40.5% Percent HH Change: 2016 to 2021 3.7% Average Household Size 2.4

MARKET OVERVIEW 40 DEMOGRAPHIC PROFILE SOUTH PASADENA, CA

– EDUCATION 27.90% 34.50% HS-Assoc. 2016 Population Age 25 and Over 18,807 High School thru Associates 6,481 34.5% Bach Bachelor's Degree 6,183 32.9% Grad Graduate Degree 5,247 27.9% 32.90%

– INCOME – JOB TYPE 2016 Median Household Income $82,510 2016 Average Household Income $116,210MARKET2016 OVERVIEW Employed Population 14,630 2016 Per Capita Income $47,280 Blue Collar 1,241 8.5% White Collar 11,914 81.4% Service & Farm 1,474 10.1%

8.50%

10.10%

Blue Collar White Collar Service & Farm 81.40%

MARKET OVERVIEW 41 DEMOGRAPHIC PROFILE SOUTH PASADENA, CA

– TRAVEL TIME TO WORK – UNITS IN STRUCTURE

2016 Travel Time Population 14,231 2016 Housing Units 11,479 < 15 Minutes 2,567 18.0% 1 Unit Detached 5,265 45.9% 15 - 29 Minutes 4,891 34.4% 1 Unit Attached 862 7.5% 30 - 44 Minutes 3,029 21.3% 2 Units 324 2.8% 45 - 59 Minutes 1,449 10.2% 3 to 4 Units 841 7.3% 60+ Minutes 1,454 10.2% 5 to 19 Units 2,520 22.0% Average Travel Time 32 20 to 49 Units 1,428 12.4% 50+ Units 231 2.0% Mobile Home 7 0.1% – HOUSEHOLDS Other 0 0.0% 2016 Owner-Occupied Housing Units 4,981 Value < $20,000 16 0.3% Value $20,000 - $39,999 7 0.1% – PLACE OF WORK Value $40,000 - $59,999 16 0.3% Value $60,000 - $79,999 12 0.2% Total Businesses 1,239 Value $80,000 - $99,999 5 0.1% Daytime Employment (Total Employees) 9,435 Value $100,000 - $149,999 3 0.1% Value $150,000 - $199,999 19 0.4% Value $200,000 - $299,999 36 0.7% Value $300,000 - $399,999 134 2.7% Value $400,000 - $499,999 264 5.3% Value $500,000 - $749,999 946 19.0% Value $750,000 - $999,999 1,257 25.2% Value $1,000,000+ 2,265 45 .5% 2016 Median Home Value $956,576 2016 Average Home Value $1,001,209

MARKET OVERVIEW 42 CONTACT

PRISCILLA NEE SARA KHERADMANDAN Senior Vice President Client Services Coordinator +1 310 550 2508 +1 310 550 2527 [email protected] [email protected] Lic. 01435254

Capital Markets | Investment Properties