OFFERING MEMORANDUM

14 UNITS IN MID-CITY | ZONED R2 | TOC TIER 2 | STATE ENTERPRISE ZONE

2460 W. Venice Blvd. Mid-City Los Angeles, CA 90019 2460 Venice Blvd. CONFIDENTIALITY AGREEMENT Los Angeles, CA 90019

All materials and information received or derived from KW Encino/Sherman Oaks its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Encino/Sherman Oaks its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Encino/Sherman Oaks will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party.

All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Encino/Sherman Oaks makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Encino/Sherman Oaks does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Encino/Sherman Oaks in compliance with all applicable fair housing and equal opportunity laws.

CESAR GONZALEZ, Broker Associate 818.974.0681 Mobile 310.736.9605 Direct BROKER OF RECORD [email protected] 16820 Ventura Blvd. DRE: 01864871 Encino, CA 91436 DRE: 01811831 EXECUTIVE SUMMARY

2460 Venice Blvd. Los Angeles

Asking Price: $3,925,000.00

Address: 2460 Venice Blvd. Los Angeles, CA 90019

APN: 5073-017-001

Number of Units: 14

Building SF (GBA): 11,336 SF (Per Assessor’s Office, Buyer to Verify)

Lot Size: 12,512 SF (Per Assessor’s Office, Buyer to Verify)

Zoning: R2-1-CPIO | State Enterprise Zone | TOC Tier 2

Year Built: 1951 EXECUTIVE SUMMARY

The Venice Blvd. Apartment Complex is a 14 unit apartment building located in Mid-City area of Los Angeles. The building has a great mix; (5) 2 bed / 1 bath units, (9) 1 bed / 1 bath units. There is parking on an adjacent carport and open parking spaces. All of the tenants are current on rents and there’s a significant upside potential in rents. The property is in a TIER 2; within the Transit Oriented Communities (TOC) and in a State Enterprise Zone as well.

The property is located in Mid-City area of Los Angeles with close proximity to the METRO Expo Line. A short distance to Downtown Culver City and near Downtown Los Angeles and the USC Campus. The building represent a great opportunity for a seasoned investor looking to do a 1031 exchange or looking to get above average return for comparable property in the area. The property is in great condition and most of the units have been recently remodeled. There are separate gas and electric meters as well as a community laundry room.

Mid-City is a neighborhood in Central Los Angeles. Attractions include restaurants and a post office named for singer Ray Charles, who had his recording studio in Mid-City. The neighborhood hosts eleven public and private schools. The Crenshaw/LAX Line from north-south is proposed to serve this area. The 2000 U.S. census counted 52,197 residents in the 3.47-square-mile neighborhood—an average of 15,051 people per square mile, among the highest population densities in Los Angeles County. In 2008, the city estimated that the population had increased to 55,016. The median age for residents was 31, about average for both the city and the county. LOCATION MAP 2460 Venice Blvd. Los Angeles

MIRACLE MILE

Downtown LA

EXPO LINE THE OPPORTUNITY

Perfect 1031 Exchange Property

Located in Designated State Enterprise Zone

Zoned R2-1-CPIO | TOC Tier 2

Located Near the EXPO and Future LAX/Crenshaw METRO Lines

Close to DTLA, USC, Beverly Hills, Culver City

Low Maintenance with a Great Unit Mix of (9)-1bed / 1 bath, (5) - 2 bed / 1 bath

Carport and Parking Spaces

Separate Electric and Gas Meters PROPERTY PHOTOS

2460 Venice Blvd. Los Angeles PROPERTY PHOTOS 2460 Venice Blvd. Los Angeles PARCEL MAP 2460 Venice Blvd. Los Angeles FINANCIAL ANALYSIS

2460 Venice Blvd. Los Angeles

FINANCIAL ANALYSIS RENT ROLL

2460 Venice Blvd. Los Angeles

Unit # Type Current Rent Pro-Forma Rent Occupied Current on Rent Remodeled 1 2+1 1,248.00 2,100.00 Yes Yes Yes 2 1+1 1,500.00 1,500.00 Yes Yes Yes 3 1+1 1,133.00 1,500.00 Yes Yes Yes 4 1+1 1,090.00 1,500.00 Yes Yes Kitchen Only 5 1+1 1,122.00 1,500.00 Yes Yes Kitchen Only 6 1+1 1,051.00 1,500.00 Yes Yes Yes 7 2+1 1,085.00 1,795.00 Yes Yes Yes 8 2+1 2,100.00 1,795.00 Yes Yes Yes 9 1+1 1,118.00 1,500.00 Yes Yes Yes 10 1+1 1,500.00 1,500.00 Yes Yes Yes 11 2+1 963.00 2,100.00 Yes Yes Yes 12 1+1 963.00 1,500.00 Yes Yes Kitchen Only 14 1+1 1,177.00 1,500.00 Yes Yes Yes 15 2+1 1,070.00 2,100.00 Yes Yes Yes Total $17,120.00 $23,390.00 EXPENSES 2460 Venice Blvd. Los Angeles

EXPENSES Assumption Current Pro-Forma Real Estate Taxes 1.196046% $25,314.00 $47,542.83 Utilities Gas $2,400.00 $2,400.00 Water $15,600.00 $15,600.00 Trash $6,720.00 $6,720.00 Insurance $6,000.00 $6,000.00 Repairs & Maintenance 3,200.00 $5,000.00 Trash $2,400.00 $2,400.00 Rent Control Fees $1,450.00 $1,450.00 Pest $300.00 $300.00 Total Expenes $63,384.00 $87,412.83

Expenses per Unit $4,527.43 $6,243.77 Expenses per SF $5.59 $7.71 Percentage of EGI 31.07% 31.83%

NOI $140,620.80 $187,246.77 Less Debt Service -$52,620.00 -$121,058.88 Cash Flow $88,000.80 $66,187.89 Cash on Cash 133.33% 3.31% DSCR 2.67 1.87 FINANCIAL ANALYSIS

2460 Venice Blvd. Los Angeles

Price $3,925,000.00 Down 40% $1,570,000.00 Price/Unit $280,357.14 Loan 60% $2,355,000.00 Price/SF $346.24 Ammortization Years 30 GRM 14.29 Interest Rate 3.125% CAP 3.58% Debt-Service $10,088.24

ANNUALIZED INCOME Current Pro-Forma Gross Rent $207,840.00 $280,680.00 Less Vacancy 3% -$6,235.20 3% -$8,420.40 Laundry Income $2,400.00 $2,400.00 Effective Gross Income $204,004.80 $274,659.60

Units 14 Year Built 1951 Gross SF 11336 Lot SF 12512 APN: 5073-017-001 COMPARABLES 2460 Venice Blvd. Los Angeles

COMPARABLES SALES COMPARABLES 2460 Venice Blvd. Los Angeles

Subject 2460 Venice Blvd. 1401 S. Manhattan Pl. 920 S. Gramercy Dr. 1244 4th Ave. 2627 Brighton Ave. Sub-Area Mid-City Arlington Heights KoreaTown Mid-City Jefferson Park Zip-Code 90019 90019 90019 90019 90018 Year Built 1951 1962 1953 1956 1963 Total Units 14 15 16 20 18 Price $3,925,000 $3,900,000 $4,199,000 $5,100,000 $4,230,000 Unit Mix (5) 2/1 (6) 2/1 (8) 1/1 (15) 1/1 (8) 1/1 (9) 1/1 (9) 1/1 (8) 1/1 (5) 2/2 (10) 2/1

Building Size 11,336 8,675 10,304 16,784 13,084 Lot Size 12,512 13,145 14,998 26,000 14,500 Price/Unit $280,357.14 $260,000 $262,437.50 $255,000 $235,000 Price/SF $346.24 $449.57 $407.51 $303.86 $323.30 CAP Rate 3.58% 4.03% 3.13% 4.00% 3.52% GRM 14.29 13.73 19 14.12 16.3

Subject 2460 Venice Blvd. 1421 S. Fairfax Ave. Sub-Area Mid-City Mid-City Zip-Code 90019 90019 Year Built 1951 1947 Total Units 14 16 Price $3,925,000 $4,780,500 Unit Mix (5) 2/1 (11) 2/1 (9) 1/1 (4) 1/1 (1) Studio Building Size 11,336 13,956 Lot Size 12,512 19,637 Price/Unit $280,357.14 $298,781.25 Price/SF $346.24 $342.54 CAP Rate 3.58% 3.60% GRM 14.29 17 2460 W. Venice Blvd. OFFERING MEMORANDUM Mid-City Los Angeles, CA 90019

CESAR GONZALEZ, Broker Associate BROKER OF RECORD 818.974.0681 Mobile 16820 Ventura Blvd. 310.736.9605 Direct Encino, CA 91436 [email protected] DRE: 01811831 DRE: 01864871