6200 Avalon Boulevard

LOS ANGELES, CA 90003

Exclusively Listed By: DEREK STEPHENS & ZACHARY ZANELLO NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & 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 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 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.

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 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 included for the purpose of providing tenant lessee information about this listing to prospective customers.

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OFFICES THROUGHOUT THE U.S. AND CANADA www.marcusmillichap.com TABLE OF CONTENTS

01 02 OFFERING SUMMARY MARKET COMPARABLES

03 MARKET OVERVIEW

6200 Avalon Boulevard LOS ANGELES, CA 90003

Section 1 Offering Summary 6200 AVALON BOULEVARD THE OFFERING Marcus & Millichap is pleased to offer for sale 6200 Avalon Boulevard, a 22 unit industrial investment opportunity totaling approximately 84,795 square feet in the city of Los Angeles. The Property has historically operated at very high occupancy levels and is currently 100% occupied with month-to-month tenants. The tenant mix is diverse and unit sizes vary from 120 to 15,125 square feet. 6200 Avalon Boulevard offers an investor a rare multi-tenant industrial property in an extremely dense infill location, with current rents estimated to 29% below market.

The Property is located on the southeast corner of Avalon Boulevard and East 62nd Street, approximately 1 mile east of the 110 Freeway. The Property features substan- tial frontage along Avalon Boulevard and resides within the 90003 zip code. Per Co- Star, this neighborhood currently operates with only 0.7% industrial vacancies and virtually no vacant land exists within the immediate vicinity to build competitive product. The Buyer of this Property has the opportunity to acquire rare multi-tenant industrial investment with stable occupancy.

Investment Summary Price: $14,500,000 Rentable Area: 84,795 SF Pice/SF: $171.00 Pro Forma CAP Rate: 5.04% Lot Size: 87,562 SF Year Built: 1950 Clear Height: 16’- 22’ Ground Level Doors 16

Investment Highlights »» Rare 22 Tenant Industrial Investment Opportunity »» Historically High Occupancy Levels and Currently 100% Occupied »» Diverse Tenant Mix with no Single Tenant Occupying Greater Than 18% of the Total Square Footage »» 100% Month-to-Month Tenants with 29% Upside in Rents »» Significant Avalon Boulevard Frontage and Immediate Access to the 110 Freeway »» Close Proximity to Downtown Los Angeles, LAX and the Ports of Los Angeles and Long Beach

6 PROPERTY SUMMARY PROPERTY DESCRIPTION

PROPERTY ADDRESS 6200 Avalon Boulevard Los Angeles, CA 90003 APN: 6007-010-001

Site Description Construction/Mechanical Type of Ownership Fee Simple Year Built 1950

Rentable Square Feet 84,795* Construction Type Mix - Frame/Stucco & Metal

Lot Size Square Feet 87,562 Number of Floors 1

Floor Area Ratio (FAR) 0.97 Mezzanine 6,000 SF Office

Zoning M2 Office Build Out 13.97% - 11,844 SF

Landscaping None Clear Height 16’ - 22’

Parking Spaces N/A Sprinklers Yes

500’ on East 62nd Street /198’ on Avalon Street Frontage Ground Level Doors 16 Boulevard Power 600-2,600a/220-480v 3p 4w Cross Street East 62nd Street

*LA County Tax Assesor has assessed the building at 81,734 SF. Buyer to verify during Due Diligence.

PROPERTY SUMMARY 7 6200 AVALON BOULEVARD PARCEL MAP

8 PROPERTY SUMMARY LOCAL MAP

OPPORTUNITY ZONES Opportunity Fund Tax Benefits

»»Deferral of Capital Gains on Federal Tax through a Qualified Opportunity Fund.

»»Step-up in Basis (up to 15%) Depending on Holding Period.

»»Allows for Real Estate, as well as Securities, Partnership Inter- ests to be Invested in Opportu- 6200 AVALON nity Zones via Opportunity BOULEVARD Funds. SUBJECT PROPERTY

»»No Capital Gains Tax on the Opportunity Zone Investment Itself for Funds that Have Been Held for at Least 10 Years.

QUALIFIED OPPORTUNITY ZONES N Low Income Community Non - LIC Contiguous

PROPERTY SUMMARY 9 6200 AVALON BOULEVARD REGIONAL MAP

A Subject Property to 4.3 Miles A DTLA 4.3 Miles Driving Distance

B 6200 AVALON 1.0 Mile BOULEVARD

SUBJECT PROPERTY Subject Property to 13.2 Miles B 110 Freeway C 1.0 Mile Driving Distance

Subject Property to C LAX 13.2 Miles Driving Distance

Subject Property to Ports of Los Angeles 16.0 Miles D 16.0 Miles Driving Distance D N

10 PROPERTY SUMMARY FINANCIAL OVERVIEW

SUMMARY Price $14,500,000

Building Square Feet 84,795

Price/SF $171.00

Current NOI $528,689

Current CAP Rate 3.65%

Pro Forma NOI $731,285

Pro Forma CAP Rate 5.04%

Lot Size (Acres) 2.01

Lot Size (SF) 87,562

Price/Land SF $165.60

Type of Ownership Fee Simple

PROPERTY SUMMARY 11 6200 AVALON BOULEVARD RENT ROLL % OF LEASE LEASE MONTHLY RENT/ LEASE UTILITIES UNIT TENANT SF TYPE OF BUSINESS TOTAL SF COMMENCE EXPIRE RENT SF TYPE REIMBURSEMENT

1 LA Rug Inc. 15,125 17.83% 1/1/04 MTM $10,518 $0.70 IG Import, Export & Wholesale of Area Rugs

2 A & B Maria Mendoza Lopez 1,330 1.56% 9/1/13 MTM $1,800 $1.35 IG Dancing Room

3 C Guadalupe Caceres Arquello 525 0.62% 4/6/11 MTM $725 $1.38 IG Discount Store

4 D Pedro Rosales 595 0.70% 10/1/13 MTM $825 $1.39 MG Offices $50/Month

5 E Dina Flores dba Dina’s Beauty Salon 700 0.82% 2/1/10 MTM $925 $1.32 IG Beauty Salon

6 L Ruben Garcia dba Lineage Custom Design 3,995 4.71% 11/1/17 MTM $3,150 $0.79 MG Upholstery $0.25/Kwh

7 M Daniela Avila dba JV Cabinets 2,890 3.40% 10/16/17 MTM $1,750 $0.61 MG Wood Working $0.25/Kwh

8 N Zandi dba AZ Imports 3,200 3.77% 1/1/17 MTM $2,750 $0.86 IG Rug Wholesaler

9 P Susan Stracha-Profusion Development 3,315 3.90% 11/1/14 MTM $2,680 $0.81 IG Staging

10 610A Soon Hee Choi Jang-Go Glam Inc. 4,000 4.71% 9/16/15 MTM $4,000 $1.00 MG Sewing Company $0.25/Kwh

11 610B Salvador Hernandez 2,750 3.24% MTM $2,650 $0.96 IG Sewing Company

12 612 Masoud Khalifian 6,750 7.96% 8/1/12 MTM $4,725 $0.70 MG Warehouse/Furniture $0.25/Kwh

13 614 Gonzales (Jalpitas) 8,370 9.87% 11/10/04 MTM $6,150 $0.73 MG Frame & Matress Factory $0.22/Kwh+Water

14 620 Luis Ballestero dba G & A Glass 8,750 10.31% 1/1/03 MTM $6,435 $0.74 MG Furniture & Glass Factory $0.25/Kwh+Water

15 626A Mauricio Almanza dba MA 39 Inc. 4,104 4.83% 3/1/18 MTM $3,500 $0.85 IG

16 626B Victor Guzman - Lanzagorta Fashion and Cutting 5,106 6.02% 3/1/18 MTM $3,800 $0.74 IG Cutting Services

17 626C Prince Shareyar dba Fortune Metal Scrap Co., LLC 1,040 1.22% 5/15/18 MTM $1,200 $1.15 IG Storage

18 626D1 Prince Shareyar dba Fortune Metal Scrap Co., LLC 1,525 1.79% 9/15/18 MTM $1,525 $1.00 IG Storage

19 626D2 Joel Hernandez 1,525 1.79% 9/15/18 MTM $1,525 $1.00 IG Wholesale/Industrial Space

20 628 Cynthia Ann Ciskowski 3,200 3.77% 3/15/11 MTM $2,750 $0.86 IG Lamps Industry

21 2nd Floor Cityreach Network Inc. 5,880 6.93% 9/1/17 MTM $3,500 $0.60 MG Church $150/Month

22 2nd Floor Yanellin Romero 120 0.14% 1/1/15 MTM $500 $4.17 IG Office

Parking Rolando Lemus 0 0% $2,500 $0

TOTAL 84,795 100% $69,883 $23.71

12 PROPERTY SUMMARY PRO FORMA RENT ROLL PRO FORMA PRO FORMA MONTHLY MONTHLY ANNUALIZED UNIT TENANT SF MONTHLY ANNUALIZED $/SF VARIANCE % VARIANCE RENT RENT/SF RENT RENT/ SF RENT

1 LA Rug Inc. 15,125 $10,518 $0.70 $126,216 $0.80 $145,200 $0.10 15%

2 A & B Maria Mendoza Lopez 1,330 $1,800 $1.35 $21,600 $2.10 $33,516 $0.75 55%

3 C Guadalupe Caceres Arquello 525 $725 $1.38 $8,700 $2.40 $15,120 $1.02 74%

4 D Pedro Rosales 595 $825 $1.39 $9,900 $2.40 $17,136 $1.01 73%

5 E Dina’s Beauty Salon 700 $925 $1.32 $11,100 $2.40 $20,160 $1.08 82%

6 L Lineage Custom Design 3,995 $3,150 $0.79 $37,800 $1.15 $55,131 $0.36 46%

7 M JV Cabinets 2,890 $1,750 $0.61 $21,000 $1.15 $39,882 $0.54 90%

8 N AZ Imports 3,200 $2,750 $0.86 $33,000 $1.15 $44,160 $0.29 34%

9 P Profusion Development 3,315 $2,680 $0.81 $32,160 $1.15 $45,747 $0.34 42%

10 610A Go Glam Inc. 4,000 $4,000 $1.00 $48,000 $1.15 $55,200 $0.15 15%

11 610B Salvador Hernandez 2,750 $2,650 $0.96 $31,800 $1.15 $37,950 $0.19 19%

12 612 Masoud Khalifian 6,750 $4,725 $0.70 $56,700 $0.90 $72,900 $0.20 29%

13 614 Gonzales (Jalpitas) 8,370 $6,150 $0.73 $73,800 $0.90 $90,396 $0.17 22%

14 620 G & A Glass 8,750 $6,435 $0.74 $77,220 $0.90 $94,500 $0.16 22%

15 626A MA 39 Inc. 4,104 $3,500 $0.85 $42,000 $1.15 $56,635 $0.30 35%

16 626B Lanzagorta Fashion and Cutting 5,106 $3,800 $0.74 $45,600 $1.15 $70,462 $0.41 55%

17 626C Fortune Metal Scrap Co., LLC 1,040 $1,200 $1.15 $14,400 $1.25 $15,600 $0.10 8%

18 626D1 Fortune Metal Scrap Co., LLC 1,525 $1,525 $1.00 $18,300 $1.25 $22,875 $0.25 25%

19 626D2 Joel Hernandez 1,525 $1,525 $1.00 $18,300 $1.25 $22,875 $0.25 25%

20 628 Cynthia Ann Ciskowski 3,200 $2,750 $0.86 $33,000 $1.15 $44,160 $0.29 34%

21 2nd Floor Cityreach Network Inc. 5,880 $3,500 $0.60 $42,000 $0.60 $42,000 $0 0%

22 2nd Floor Yanellin Romero 120 $500 $4.17 $6,000 $4.17 $6,000 $0 0%

Parking Rolando Lemus 0 $2,500 $0 $30,000 $0 $30,000 $0 0%

TOTAL 84,795 $69,883 $23.71 $838,596 $31.67 $1,077,606 $7.96 29%

Pro Forma rents were obtained upon review of the lease comparables starting on Page 24 while keeping in mind the extremely low market vacancy rate of 0.7% within the 90003 zip code (per CoStar). PROPERTY SUMMARY 13 6200 AVALON BOULEVARD ANNUALIZED OPERATING DATA CURRENT INCOME STATEMENT PRO FORMA INCOME STATEMENT ANNUAL AMOUNT PER SF ANNUAL AMOUNT PER SF OPERATING INCOME OPERATING INCOME Occupied Rent (1) $838,596 $9.89 Occupied Rent $1,077,606 $12.71 Vacant Rent - - Vacant Rent - - CAM Reimbursements $39,007 $0.46 CAM Reimbursements $39,007 $0.46 Gross Potential Income $877,603 $10.35 Gross Potential Income $1,116,613 $13.17 Less: Vacancies - - Less: 2.7% Vacancy Factor (1) ($30,149) ($0.36) Effective Gross Income $877,603 $10.35 Effective Gross Income $1,086,464 $12.81 OPERATING EXPENSES OPERATING EXPENSES Real Estate Taxes (2) $173,427 $2.05 Real Estate Taxes $173,427 $2.05 Real Estate Taxes - Direct Assessments (3) $16,158 $0.19 Real Estate Taxes - Direct Assessments $16,158 $0.19 Property Insurance $16,959 $0.20 Property Insurance $16,959 $0.20 CAM - Repairs & Maintenance $47,437 $0.56 CAM - Repairs & Maintenance $47,437 $0.56 CAM - Utilities $68,605 $0.81 CAM - Utilities $68,605 $0.81 Management Fees $26,328 $0.31 Management Fees $32,594 $0.38 Total Operating Expenses $348,914 $4.11 Total Operating Expenses $355,180 $4.19 Net Operating Income $528,689 $6.23 Net Operating Income $731,285 $8.62

(1) Per the rent roll presented on pages 12-13 (1) Consistent with the Los Angeles Industrial Research Report presented on page 30 (2) 1.196046% of Asking Price (3) Obtained directly from the most recent real estate tax bill

14 PROPERTY SUMMARY 6200 Avalon Boulevard LOS ANGELES, CA 90003

Section 2 Market Comparables 6200 AVALON BOULEVARD SALES COMPARABLES

6200 AVALON BLVD 1 6130 AVALON BLVD 2 615 E 61ST ST 3 5801 S ALAMEDA ST 4 6500-6506 STANFORD AVE

2 1

6200 AVALON BOULEVARD

SUBJECT PROPERTY

N N

16 MARKET COMPARABLES SALES COMPARABLES

Average Price Per SF

210.00

200.00

190.00

180.00

170.00 Avg $163.67 160.00

150.00

140.00

130.00

120.00

110.00

6200 AVALON 6130 AVALON 615 EAST 61ST 5801 SOUTH 6500-6506 BOULEVARD BOULEVARD STREET ALAMEDA STANFORD STREET AVENUE

MARKET COMPARABLES 17 6200 AVALON BOULEVARD SALES COMPARABLES

6200 AVALON BOULEVARD 1 6130 AVALON BOULEVARD 2 615 EAST 61ST STREET Los Angeles, CA 90003 Los Angeles, CA 90003 Los Angeles, CA 90001

Proposed List Price $14,500,000 Sale Price $9,156,500 Sale Price $9,750,000

Pro Forma CAP Rate 5.04% COE 8/16/2017 COE 11/21/2018

Rentable SF 84,795 Rentable SF 55,304 Rentable SF 59,176

Price/Rentable SF $171.00 Price/Rentable SF $165.57 Price/Rentable SF $164.76

Year Built 1950 Year Built 1950 Year Built 1927

Lot Size SF 87,562 Lot Size SF 105,071 Lot Size SF 59,242

18 MARKET COMPARABLES 3 5801 SOUTH ALAMEDA STREET 4 6500-6506 STANFORD AVENUE Los Angeles, CA 90001 Los Angeles, CA 90001

Sale Price $6,825,000 Sale Price $6,800,000

COE 6/20/2018 COE 10/9/2018

Rentable SF 40,000 Rentable SF 44,243

Price/Rentable SF $170.63 Price/Rentable SF $153.70

Year Built 1991 Year Built 1928

Lot Size SF 53,579 Lot Size SF 75,359

MARKET COMPARABLES 19 6200 AVALON BOULEVARD ON MARKET COMPARABLES

6200 AVALON BLVD 1 620 E SLAUSON AVE 2 950 E 60TH ST 3 830 EAST 61ST STREET

3 2

6200 AVALON BOULEVARD

SUBJECT PROPERTY

20 MARKET COMPARABLES ON MARKET COMPARABLES Average Price Per SF

210.00

200.00

190.00

180.00

170.00 Avg $170.77

160.00

150.00

140.00

130.00

120.00

110.00

6200 AVALON 620-640 EAST 912-938 & 950-1000 830 EAST 61ST BOULEVARD SLAUSON AVENUE EAST 60TH STREET STREET

MARKET COMPARABLES 21 6200 AVALON BOULEVARD ON MARKET COMPARABLES

6200 AVALON BOULEVARD 1 620-640 EAST SLAUSON AVENUE 2 912-938 & 950-1000 EAST 60TH STREET Los Angeles, CA 90003 Los Angeles, CA 90011 Los Angeles, CA 90001

Proposed List Price $14,500,000 Sale Price $13,750,000 Sale Price $14,150,000

Pro Forma CAP Rate 5.04% On Market 120 Days On Market 51 Days

Rentable SF 84,795 Rentable SF 71,121 Current CAP Rate 1.52%

Price/Rentable SF $171.00 Price/Rentable SF $193.33 Rentable SF 91,804

Year Built 1950 Year Built 1933 Price/Rentable SF $154.12

Lot Size SF 87,562 Lot Size SF 109,771 Year Built 1923

Lot Size SF 161,996

22 MARKET COMPARABLES 3 830 EAST 61ST STREET Los Angeles, CA 90001

Sale Price $6,800,000

On Market 58 Days

Rentable SF 41,250

Price/Rentable SF $164.85

Year Built 1934

Lot Size SF 47,576

MARKET COMPARABLES 23 6200 AVALON BOULEVARD LEASE COMPARABLES

6200 AVALON BLVD 1 300 E 68TH ST 2 4806 CENTRAL AVE 3 5017-5019 S BROADWAY 6200 AVALON BOULEVARD 4 6800-6818 AVALON BLVD SUBJECT 5 1711-1716 E 58TH PLACE PROPERTY 6 7624 MAIE AVE 2 7 1861 E 66TH ST 3 8 8512 GRAHAM AVE 5

7 1 4 6

24 MARKET COMPARABLES LEASE COMPARABLES

Average Rent Per SF

2.20

2.00

1.80

1.60

1.40 Avg $1.41

1.20

1.00

0.80

0.60

0.40

0.20

0.00 6200 AVALON 300 EAST 4806 CENTRAL 5017-5019 SOUTH 6800-6818 1711-1716 EAST 7624 MAIE 1861 EAST 66TH 8512 GRAHAM BOULEVARD 68TH AVENUE BROADWAY AVALON 58TH PLACE AVENUE STREET AVENUE STREET BOULEVARD

MARKET COMPARABLES 25 6200 AVALON BOULEVARD LEASE COMPARABLES

6200 AVALON BOULEVARD 1 300 EAST 68TH STREET 2 4806 CENTRAL AVENUE Los Angeles, CA 90003 Los Angeles, CA 90003 Los Angeles, CA 90011

Average Rent/SF $0.82 Asking Rent $1,352 Asking Rent $1,712

Monthly Rent $69,883 Date of Lease 12/20/2018 Date of Lease 1/4/2018

Lease Terms MTM Rentable SF 800 Rentable SF 800

Lease Type IG Rent/SF $1.69 Rent/SF $2.14

Year Built 1950 Lease Type MG Lease Type MG

Year Built 1895 Year Built 1924

26 MARKET COMPARABLES 3 5017-5019 SOUTH BROADWAY 4 6800-6818 AVALON BOULEVARD 5 1711-1716 EAST 58TH PLACE Los Angeles, CA 90037 Los Angeles, CA 90003 Los Angeles, CA 90001

Asking Rent $2,196 Asking Rent $1,500 Asking Rent $3,105

Date of Lease 11/7/2018 Date of Lease 2/5/2018 Date of Lease 2/5/2019

Rentable SF 1,200 Rentable SF 1,200 Rentable SF 2,700

Rent/SF $1.83 Rent/SF $1.25 Rent/SF $1.15

Lease Type MG Lease Type MG Lease Type IG

Year Built 1930 Year Built 1937 Year Built 1955

MARKET COMPARABLES 27 6200 AVALON BOULEVARD LEASE COMPARABLES

6 7624 MAIE AVENUE 7 1861 EAST 66TH STREET 8 8512 GRAHAM AVENUE Los Angeles, CA 90001 Los Angeles, CA 90001 Los Angeles, CA 90001

Asking Rent $5,500 Asking Rent $4,700 Asking Rent $4,700

Date of Lease 2/22/2018 Date of Lease 1/1/2019 Date of Lease 7/11/2018

Rentable SF 4,400 Rentable SF 5,000 Rentable SF 7,275

Rent/SF $1.25 Rent/SF $0.94 Rent/SF $1.00

Lease Type MG Lease Type IG Lease Type MG

Year Built 1912 Year Built 1966 Year Built 1948

28 MARKET COMPARABLES 6200 Avalon Boulevard LOS ANGELES, CA 90003

Section 3 Market Overview 6200 AVALON BOULEVARD LOS ANGELES METRO AREA INDUSTRIAL OVERVIEW FIRST HALF 2019 SIZABLE MANUFACTURING SECTOR, MINIMAL 2019 MARKET FORECAST VACANT STOCK INTENSIFY BUYER COMPETITION

Consistent job growth limits space availability. Los Angeles County is home NIPI Rank The lowest vacancy rate among metros in the Index helps to the nation’s second-largest manufacturing workforce thanks to a diverse 1, no change Los Angeles maintain the top spot in the 2019 NIPI. base of expanding manufacturers, including a collection of tech producers and a consortium of logistics firms. Growth by these companies supported strong market demand for industrial space over the past four years. The result was robust leasing velocity that sustained the metro’s vacancy rate at an extremely Employment Organizations expand payrolls by 50,000 workers in 2019 up 1.1% after the metro’s employment base grew by 1.2 percent last low level amid the delivery of more than 19 million square feet of new supply. year. Industrial users’ ability to quickly occupy speculative buildings and recently vacated properties over an extended span should warrant another stretch of el- evated development moving forward, yet construction will slow in 2019 when Construction Delivery volume declines by more than 2.4 million square compared to the previous two years. Warehouse projects account for most of 2.6 million sq. ft. feet on a year-over-year basis. The city of Long Beach wel- the 2.6 million square feet of space slated for finalization this year, with roughly comes four properties totaling nearly 400,000 square feet. half of the supply concentrated in the Santa Clarita and San Gabriel valleys. This tempering of deliveries teamed with a positive outlook for manufacturing job creation maintains stout market demand for space, holding vacancy below Vacancy The county’s vacancy rate adjusts marginally this year, reach- 3 percent for a fifth consecutive year. up 20 bps ing 2.7 percent. In 2018, an increase of 50 basis points was noted. Strong NOI growth heightens competition, value of strategically located buildings and higher-yielding properties. Unwavering investor demand for Rent The average asking rent climbs to $11.64 per square foot, a industrial assets continues to drive up property values throughout the market. up 3.5% moderate uptick following a five-year span of sizable gains. Locally based and out-of-state institutional investors that deploy more than $20 million per deal actively pursue midsized to larger warehouses at mid-4 percent minimum returns. Buyers eyeing post-2000-built properties scan the Investment Distribution centers south of Downtown Los Angeles near San Gabriel Valley, while those willing to accept higher prices comb South Interstate 5 remain an attractive investment play for out-of- Bay markets. Industrial-heavy locales near Interstate 5 provide yields in the 5 state buyers seeking centrally located properties at $20 mil- percent range for Class B and C manufacturing facilities. lion-plus. These larger, pre-1990s-built assets are typically available at pricing below the metro’s average.

30 MARKET OVERVIEW SUBMARKET TRENDS

ASKING RENT AND VACANCY TRENDS EMPLOYMENT VS. RETAIL SALES TRENDS

Vacancy Y-O-Y Rent Growth Employment Growth Retail Sales Growth

8% 16% Year-overYear Rent Change 10% 6% 8% 5%

4% 0% 0% Vacancy Rate Vacancy 2% -8% -5%

0% -16% Year-over-Year Change Year-over-Year -10% 09 10 11 12 13 14 15 16 17 18 19* 09 10 11 12 13 14 15 16 17 18 19*

PRICE PER SQUARE FOOT TRENDS INDUSTRIAL COMPLETIONS Completions Absorption 24% 15,000 12% 10,000

0% 5,000

-12% 0

Year-over-Year Appreciation Year-over-Year -24% Square Feet (thousands) Feet Square -5,000 08 09 10 11 12 13 14 15 16 17 18 09 10 11 12 13 14 15 16 17 18 19*

* Forecast Sources: CoStar Group, Inc.; Real Capital Analytics

MARKET OVERVIEW 31 6200 Avalon Boulevard LOS ANGELES, CA 90003

EXCLUSIVELY LISTED BY:

DEREK STEPHENS National Office and Industrial Properties Group (213) 943-1857 direct [email protected] License: CA 01941251

ZACHARY ZANELLO National Office and Industrial Properties Group (213) 943-1842 direct [email protected] License: CA 02076813

FINANCING BY:

RONALD BALYS Associate Director (213) 943-1878 direct [email protected] License: CA 01947124

Marcus & Millichap 515 South Flower Street Suite 500 Los Angeles, CA 90071