3658 MIDVALE AVE LOS ANGELES, CA OFFERING MEMORANDUM 2 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM TABLE OF CONTENTS

04 | PROPERTY OVERVIEW 06 | FINANCIAL ANALYSIS 09 | AREA OVERVIEW

EXCLUSIVELY LISTED BY

KYLE MIRRAFATI ASSOCIATE VICE PRESIDENT - MULTIFAMILY

Direct +1.310.295.4269 Mobile +1.949.533.4650 [email protected] License No. 01911204 (CA)

DAVID HARRINGTON EVP & MANAGING DIRECTOR - MULTIFAMILY

Direct +1.310.295.1170 Mobile +1.310.497.5590 [email protected] License No. 01320460 (CA)

LOS ANGELES, CA 3 I SECTION OPPORTUNITY PROPERTY OVERVIEW » Prime Palms Neighborhood of Los Angeles | Steps from Downtown Culver City » Healthy Rental Income | 4.83% CAP & 13.74 GRM » Great Unit Mix of Majority 2- & 3-Bedroom Units NO. OF UNITS » Delivered with 2 Vacant Units 7 » New Copper Plumbing, Roof, & Resurfaced Driveway » High Density Rental Market with Strong Demographics YEAR BUILT 1958

PROPERTY DESCRIPTION APN » 4252-027-012 7 Legal Units, Built in 1958 | Updated Certificate of Occupancy » Unit Mix: (2) – 3Bed/2Bath ; (4) – 2Bed/1Bath ; (1) – Bachelor » Renovated Property | New Flooring, Granite Counter Tops, Bathrooms, Kitchens, Etc.. GROSS SF » Upgraded Systems | New Copper Plumbing, Roof, Driveway, Water Heaters. 6,350 » 11 Total Parking Spaces | 6 Carport Parking Spaces, 1 Tuck Under, and 2 Tandem Spots » Soft Story has been Completed AVG SF PER UNIT » Individually Metered for Electric and Gas 907 » On-Site Laundry for Additional Income | Leased on Month to Month » Centrally Located along the 10 & 405 Freeway Accessing the Entire Los Angeles LOT SIZE » Steps from All the Major Shops, Theaters, Restaurants, Bars in Culver City 7,990 » 6,350 Rentable SqFt on a 7,990 SqFt Lot with LAR3 Zoning | TOC Tier 1

4 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM LOCATION MAP

LOS ANGELES, CA 5 II FINANCIAL ANALYSIS SECTION

INVESTMENT SUMMARY Offering Price: $2,600,000 3658 Midvale Ave, Property Address: Los Angeles, CA 90034 Price Per Unit: $371,429 Price Per S.F.: $409.45 Cap (current/market): 4.83% / 5.01% GRM (current /market): 13.74 / 13.37

PROPERTY DESCRIPTION Number of Units: 7 Year Built: 1958 APN: 4252-027-012 Gross Sq. Ft.: 6,350 Average S.F. Per Unit: 907 Lot Size: 7,990 Zoning: LAR3

UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 4 2+1 57% $2,091 $8,365 $2,200 $8,800 2 3+2 29% $3,075 $6,150 $3,000 $6,000 1 Bachelor 14% $1,150 $1,150 $1,300 $1,300 Scheduled Monthly Rent: $15,665 $16,100 Scheduled Yearly Rent: $187,980 $193,200

6 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income: $187,980 $193,200 3% Upside Less Vacancy Reserve: 3.0% $5,639 3.0% $5,796* Laundry Income: $1,200 $1,200 Gross Operating Income: $183,541 $188,604 Expenses: 30.9% $58,057 30.2% $58,259* Net Operating Income: $125,484 $130,345 Loan Payments: $100,362 $100,362 Cash-on-Cash Return: 3.1% $25,122 3.7% $29,982** * As a percent of Scheduled Gross Income ** As a percent of Down Payment

PRO FORMA ANNUAL OPERATING EXPENSES CURRENT PER UNIT % OF SGI *Taxes 1.190% x Sale Price $30,940 $4,420 16% *Insurance $0.45 x GSF $3,175 $454 2% Off-Site Management 4.0% x GOI $7,342 $1,049 4% Repairs & Maintenance $500 x Units $3,500 $500 2% Contract Services Actual 2019 $3,550 $507 2% Utilities Actual 2019 $8,150 $1,164 4% General Administration $200 x Units $1,400 $200 0.74% Total Expenses $58,057 $8,294 30.9%

CURRENT PER UNIT % OF SGI Non-controllable expenses: Taxes, Insurance $34,115 $4,874 18.1% Total Expense with out Taxes $27,117 $3,874 14.43%

FINANCING Loan Amount $1,784,000 Terms: 30 Down Payment: 31% $816,000 Interest: 3.85% Yearly Pmt: $100,362 Monthly Pmt: $8,364 Debt Coverage: 1.25

LOS ANGELES, CA 7 III SECTION RENT ROLL RENT ROLL Unit Mix Rent Market Rent

1 2+1 (Vacant) $2,200 $2,200

2 2+1 $2,170 $2,200

3 3+2 $3,150 $3,000

4 2+1 $2,200 $2,200

5 2+1 $1,795 $2,200

6 3+2 (Vacant) $3,000 $3,000

7 Bachelor $1,150 $1,300

Totals 7 $15,665 $16,100

Averages $2,238 $2,300

8 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM IV AREA OVERVIEW PROPERTY DEMOGRAPHICS SECTION POPULATION 1-MILE 3-MILE 5-MILE 2025 Projection 55,194 294,938 808,966 2020 Estimate 54,254 288,486 791,040 2010 Census 53,308 277,879 760,071 Growth 2020-2025 1.73% 2.24% 2.27% RENT VS. OWN Growth 2010-2020 1.77% 3.82% 4.07%

RENT 88% HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2025 Projection 25,643 130,728 362,722 OWN 12% 2020 Estimate 25,182 127,791 354,311 2010 Census 24,695 122,868 339,891 Growth 2020-2025 1.83% 2.30% 2.37% #9 BEST NEIGHBORHOODS Growth 2010-2020 1.97% 4.01% 4.24% TO LIVE IN LA INCOME 1-MILE 3-MILE 5-MILE 2020 Avg. $104,584 $133,409 $130,209 Household Income

PALMS NEIGHBORHOOD

Palms is located on the Westside of Los Angeles, south of Beverly Hills, Rancho Park, and Beverlywood and just north of Culver City. Small in size it covers only a two-square mile area marked by signs on Venice, Robertson, and Palms boulevards. With 45,475 people in that small plot of land, it is currently one of the most densely populated areas in Los Angeles County. A community with well-established roots in California history, Palms has become a good location for ambitious post grads and young families looking to make their home in Los Angeles. Palms provides a central hub for residents — closely located to the growing cultural center of Culver City, near freeways for commuters, and only five miles from the bustling UCLA campus.

In general, the Palms area has a healthy community life; there are two libraries, four public parks, a public pool, and an organization that works to involve veterans in community events. There is even an annual “Bike Rodeo”, a community event that promotes bike safety for kids and families. There are plenty of retail outlets on Motor Ave – including the Anonymous LA boutique which offers everything from locally made fashion items to hats and candles – as well as larger shopping venues such as the National Sepulveda Shopping Center at 3010 Sepulveda Blvd.here is a variety of dining options within Palms, with even more diverse options when venturing over to Culver City.

LOS ANGELES, CA 9 CHRISTOPHER COLUMBUS TRANS HWY

INTERSTATE 10

VENICE CROSSROADS SHOPPING CENTER downtown culver city

MOTOR AVE

culver medical plaza OVERLAND AVE

VENICE BLVD

SUBJECT PROPERTY

BAMBOO CULVER BLVD TENANTS ALONG CULVER BLVD

VENICE BLVD

10 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM CHRISTOPHER COLUMBUS TRANS HWY

INTERSTATE INTERSTATE 10 405

VENICE CROSSROADS SHOPPING CENTER INTERSTATE 10 downtown INTERSTATE 10 INTERSTATE culver city 10 INTERSTATE 405

MOTOR AVE SUBJECT culver medical PROPERTY plaza OVERLAND AVE downtown VENICE BLVD culver city

1 MILE SUBJECT 3 MILE PROPERTY

BAMBOO CULVER BLVD TENANTS ALONG CULVER BLVD INTERSTATE VENICE BLVD 405

VENICE BLVD

LOS ANGELES, CA 11 CULVER CITY, CA ECONOMY Culver City is quickly becoming a major hub for new media ventures, as Amazon recently Culver city continues to be sought after by both people and businesses looking to call announced plans to lease 280,000 square feet of space at the Culver Studios, which is home. Culver City’s studios, officially nicknamed “The Heart of the Screenland” have just a few blocks from the Apple site. produced hundreds of award winning films.

Culver city is a hip, modern, and progressive community that sits right between the beach While media is still king in Culver City and has a heavy presence, start-ups including and downtown Los Angeles. Culver City combines unique restaurants and entertainment Criteo, MeUndies, and Steelhouse all make their homes in town and more are likely to with a rapidly expanding multimedia hub. Culver City is an ideal retail location on Los follow. Angeles’ Westside, just minutes from LAX, Marina Del Rey, Santa Monica, and Downtown Los Angeles. Surrounded by nearly 295,000 households within a five mile radius, and a TOP EMPLOYERS network of high-volume freeways (the 405 (San Diego) and the 10 (Santa Monica), Culver City offers great opportunity for businesses.

A daytime population of 60,000 creates tremendous demand for retail and personal services in the City’s business districts. Culver City captures more than twice its share of Los Angeles County employment and 3x its share of sales tax revenues.

12 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM PLATFORM This luxury shopping complex has brought nearly 20 high-end eateries and shops to Culver City, with outposts of Blue Bottle Coffee and Van Leeuwen, as well as mindful-living staples like Sweetgreen and SoulCycle, and the meat-centric butcher/restaurant the Cannibal. The colorful complex sits just across the street from the Culver City Metro stop, making it both a convenient stop on the way to Santa Monica and a destination in its own right.

CULVER HOTEL Culver City‘s historic Culver Hotel was once the part-time residence to Old Hollywood, from and to and . Charlie Chaplin supposedly sold the hotel to for a buck, while tales of apparitions surround the Neo-Renaissance–designed hotel. Locals and tourists alike can drop in for a nightcap at the hotel‘s lobby bar, while overnight guests can lie their heads at one of the 46 newly renovated rooms.

KENNETH HAHN STATE RECREATION AREA Griffith may get all of the attention, but Kenneth Hahn is impressive in both size and topography for a park in the middle of the Westside. On top of the usual list of amenities, the Culver City-adjacent park contains a lotus pond, fishing lake and sand volleyball court. But the urban oasis really establishes itself with more than seven miles of walking and hiking trails through the Baldwin Hills, with views of almost every corner of the LA Basin—from the South Bay and the Pacific Ocean to Downtown and the San Gabriel Mountains.

LOS ANGELES, CA 13 HBO AMAZON STUDIOS HBO has agreed to lease a five-story office building under construction on Amazon has recently moved into Culver City, making a statement that the Venice Boulevard in Culver City as the premium cable network cements tech empire is moving to Culver City. The full Culver Studios redevelopment, plans to abandon its longtime corporate offices in Santa Monica. HBO’s referred to as the “innovation plan,” will grow the existing campus from new home — beginning in 2021 — will be part of the Ivy Station mixed- roughly 358,000 square feet of studios and media production space to an use development, a $350-million project that will include apartments, over 720,850-square-foot complex with production space, sound stages, restaurants and shops. The site is adjacent to the of the and offices designed by Gensler. Metro Expo Line.

New additions to the studio site will include five new office buildings and two The area is turning into a central hub for entertainment studios. News of new parking structures with over 1,900 parking spaces for studio workers. the eventual move comes as HBO undergoes a major revamp as its new Amazon will lease four of the five new office buildings. corporate bosses prepare to launch a streaming service later this year to compete with Apple, Netflix Inc., Amazon.com Inc. and Walt Disney Co.

APPLE GOOGLE Apple announced plans to boost its L.A. presence, saying it expects to have more than 1,000 employees in Culver City, Calif., over the next three years, Google recently locked down nearly 585,000 SF of office space at Westside including its growing entertainment team. The move is part of the tech giant’s Pavilion with a 14-year lease. The development is scheduled to be complete broader initiative to create 20,000 jobs in the U.S. by 2023 and includes a in 2022 and will be known as One Westside, a first-ofits-kind conversion new $1 billion facility in North Austin, Texas. from shopping mall to creative office. The multiple year commitment made by Google, a company with an already long list of office space on the Earlier this year Apple agreed to lease a new 128,000-square-foot office Westside, further demonstrates the value and high demand for space in West building in Culver City, set to open in late 2019, after HBO nixed plans to Los Angeles. move to the site. Apple is expected to move its Worldwide Video group, led by Zack Van Amburg and Jamie Erlicht, to the new facility. Lincoln Property Co. is developing the four-story project, which will feature floor-to-ceiling windows on its upper levels. Apple also has other office space in Culver City.

14 MATTHEWS REAL ESTATE INVESTMENT SERVICESTM LOS ANGELESAREA OVERVIEW Los Angeles officially the City of Los Angeles and often known by its initials L.A., is the the place to be. It is the only city in North America to have hosted the Summer Olympics most populous city in California; the second most populous city in the United States, twice - and by 2028 the third time. Downtown L.A. is the largest government center after New York City; and the third most populous city in North America, after Mexico outside of Washington, D.C. Los Angeles has the only remaining wooden lighthouse in City and New York City. With an estimated population of nearly four million people, Los the state (located in San Pedro’s Fermin Park) and the largest historical theater district Angeles is the cultural, financial, and commercial center of Southern California. The city on the National Register of Historic Places (located Downtown on Broadway). is known for its Mediterranean climate, ethnic diversity, the entertainment industry, and Los Angeles is on the leading edge of several growth industries. The Los Angeles its sprawling metropolis. metropolitan area, with more than 23,000 art jobs, is the country’s leading artistic The City of Los Angeles holds many distinctions. L.A. is the entertainment capital of center, surpassing the previous champion, New York. In other words, Los Angeles has the world, a cultural mecca boasting more than 100 museums, many of them world- both a larger concentration and an absolute number of artists than New York. The L.A. class, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s five-county area is also a major tech center, with more than 700,000 people at work in collection of stars (numbering more than 2,614 and growing by one or two a month) to health services/biomedical activities and 190,000 people in aerospace. Here are some career opportunities like those presented in the expanding tech industry, Los Angeles is more facts and figures about Los Angeles: the city, the county, and the region.

Los Angeles County employs A culturally diverse city, with a growing culinary It is the largest and most populous city in the over 100,000 people alone scene, shopping, museums, and a reputation for state of California and the cultural, financial, and being the creative center of America. commercial center of Southern California.

LOS ANGELES, CA 15 LOS ANGELES ECONOMY

The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

L.A. County is an entertainment, manufacturing and international trade behemoth, with a fast-growing high-tech and digital media industry cluster largely centered in West L.A. and, increasingly, in the Hollywood area and beyond. With $807 billion in annual output, Los Angeles County ranks among the world’s largest economies. Its GDP, which would rank No. 19 in the world if it were a standalone nation, is larger than Switzerland and Saudi Arabia, and right behind Netherlands and Turkey, underscoring the magnitude of the region’s economy.

16 MATTHEWS REAL ESTATE INVESTMENTLOS ANGELES, SERVICES CA TM TOURISM 50 MILLION 50 Million People who traveled to Los Angeles last year Tourism accelerated Los Angeles County’s economic prosperity in 2018 as visitors pumped an all-time high $23.9 billion directly into the L.A. economy, generating a record $36.6 billion in total economic impact. A new economic $22 BILLION impact report released today by Los Angeles Tourism & Convention Board LA visitors spent $22 billion on hotels, restaurants, shopping, attractions and more demonstrates the power of tourism in Los Angeles during National Travel & Tourism Week, an annual event established by Congress and organized by the U.S. Travel Association to celebrate the impact of travel. 525,000 Tourism supported 534,258 jobs in L.A. County’s Leisure & Hospitality sector, There are 525,000 jobs supported by the Los Angeles tourism industry its highest total on record, employing 1 in every 8.5 workers in the county. Reaffirming the strength of the sector, tourism added 9,700 new jobs last year. 8 YEARS LA has celebrated 8 consecutive years of record growth

ATTRACTIONS ARTS & CULTURE Some of the world’s best-known and most iconic landmarks and attractions With various museums and exhibits, Los Angeles is full of inspiring art and diverse call Los Angeles home: the Hollywood Sign; Griffith Observatory; the cultural experiences. In fact, Los Angeles has more museums and theatres than Getty Center; the Walt Disney Concert Hall at the Music Center in any other city in the U.S., making it the perfect place to be immersed in arts Downtown L.A.; the Hollywood Walk of Fame; the TCL Chinese Theatre; and culture. Los Angeles is home to more than 105 museums, 225 theaters, Space Shuttle Endeavour at the California Science Center; the Battleship 55 magnificent structures by the world’s top architects and 16 of the world’s USS Iowa located at the Port of Los Angeles in San Pedro; Air Force One most beautiful gardens. It also boasts more than 1,500 theatrical productions at the Ronald Reagan Library; and Universal Studios Hollywood, with its annually. The city also has one of the premier contemporary art museums in dynamic immersive experience, The Wizarding World of Harry Potter™. the world, the Broad, located in Downtown L.A., and also one of the largest collections of cars in the nation at the Peterson Automotive Museum. SPORTS With famous venues like the Staples Center at L.A. LIVE, home to the NBA’s Los Angeles Lakers and Los Angeles Clippers, NHL’s L.A. Kings, and Dodger’s Stadium, where the Los Angeles Dodgers serve as a main attraction sports fans flock to in L.A. Los Angeles is also home to several esteemed universities that have large sports followings such as USC and UCLA.

LOS ANGELES, CA 17 CONFIDENTIALITY AGREEMENT & DISCLAIMER This Offering Memorandum contains select information pertaining to the business and affairs located at 3658 Midvale Ave, Los Angeles, CA (“Property”). The Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material and information in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. 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 Matthews Real Estate Investment Services.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

18 MATTHEWS REAL ESTATE INVESTMENTLOS ANGELES, SERVICES CA TM

EXCLUSIVELY LISTED BY OFFERING MEMORANDUM KYLE MIRRAFATI ASSOCIATE VICE PRESIDENT - MULTIFAMILY

Direct +1.310.295.4269 Mobile +1.949.533.4650 [email protected] License No. 01911204 (CA)

DAVID HARRINGTON EVP & MANAGING DIRECTOR - MULTIFAMILY

Direct +1.310.295.1170 Mobile +1.310.497.5590 [email protected] License No. 01320460 (CA)

3658 MIDVALE AVE LOS ANGELES, CA