1036

BRANDON S. GRAND AVENUE MICHAELS , CA 90015 GROUP 1 INVESTMENT ADVISORS

BRANDON MICHAELS SAM LIBEROW Senior Managing Director Investments Vice President Investments Senior Director, National Retail Group Director, National Multi Housing Group Tel: (818) 212-2794 Tel: (818) 212-2795 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] License: CA #01434685 License: CA #01933858

BEN BROWNSTEIN Investment Associate National Retail Group Tel: (818) 212-2812 Fax: (818) 212-2710 [email protected] License: CA #01933858

www.BrandonMichaelsGroup.com

OFFICES NATIONWIDE AND THROUGHOUT CANADA WWW.MARCUSMILLICHAP.COM

2 3 COMPLETED

Luxury Hotel and Home to LA APEX II Residences UNDER CONSTRUCTION Lakers, LA Clipprs, $1 Billion luxury Holland Partner LA Sparks, LA condo & hotel, Group - 341 $500 million, twin Kings and the developed by apartments, retail 35-story towers with world’s Most 648 apartments and Fleming’s prime Chinese based 48,000 SF of retail, successful arena Steakhouse Greenland USA 2-acre rooftop park Katsuya and pool deck Tom’s Urban Cleo 205 apartments, The Los Angeles Smashburger 888 SOUTH 19,500 SF of retail Convention Center Ford’s Filling Station HOPE from CIM Group hosts annual events Lucky Strike CIM Group - 34 such as the Los Set to be complete Yard House Hoke Poke Angeles Auto Show, story tower, 526 in 2019, it includes Philz Coffee the Anime Expo, and residential units a Park Hyatt Hotel, Jersey Mike’s Subs many others. 7-story retail podium, 504 condos developed by Being 825 SOUTH based Oceanwide ATELIER HILL 1212 Group 33 story tower with FLOWER 50-story building 363 apartments, with 516 rental 10,000 SF of retail Omni Group is apartments building a pair of MACK URBAN 1036 aboev 5,000 SF high-rises with 730 TOWER of retail

W. PICO BOULEVARD PICO W. apartments LEVEL Mack Urban is 151 condos 33 story tower creating an urban developed by with 300 Trumark Urban The Hanover village with 1,900 S. GRAND AVENUE HOPE STREET completely rental units, small LOS ANGELES, CA 90015 Co. developed furnished units by parks, and the apartment community, which 9TH STREET Onni Group completed in 2015.

7-story 247 rental GRAND AVENUE units by Wolff 11TH STREET Company 201 residential units with retail

7-story featuring 293 The Hanover rental units, 15,000 Co. developed SF of retail by Wolff the apartment Company. community, which completed in 2015.

OLIVE STREET

OLYMPIC BOULEVARD 12TH STREET 12TH

362 apartments by Mack Urban

4 5 HILL STREET $98K RESIDENTS MEDIAN INCOME

DTLA $101K WORKERS EXECUTIVE SUMMARY MEDIAN INCOME

Marcus & Millichap is pleased to present the opportunity to acquire 1036 S. Grand Avenue, a 7,500 SF free-standing retail building located in the booming South Park district of .

South Park is the premiere sports and entertainment destination of Southern California. South Park is the premier district in Downtown Los Angeles, home to the , L.A. Live entertainment and dining complex, and the Los Angeles Convention Center. In addition, South Park is a growing residential community with billions of dollars in new residential, retail, office, and hospitality construction. South Park accounts for 70% of Downtown Los Angeles’ residential construction, with over 20 new projects scheduled to commence by 2018. The booming residential construction in South Park has brought on a number of new and exciting projects, including a brand new Whole Foods and redesign of a flagship Macy’s.

1036 S. Grand is a unique free-standing retail building, located adjacent to multiple new developments including Level, a high-rise fully furnished luxury apartment building, and 1000 Grand by Windsor, a brand new high end apartment community. 1036 S. Grand is a 7,500 SF retail building complete with 25 foot truss ceilings, massive skylights, floor- to-ceiling brick walls, and concrete floors. The building is currently vacant, ideal for an owner-user Buyer or investor who desires to be in the heart of burgeoning South Park in Downtown Los Angeles.

6 7 PLAT MAP ADDRESS 1036 S. Grand Avenue, Los Angeles, CA

SITE LOCATION The subject property is on S. Grand Avenue, just north of W. 11th Street and south of W. Olympic Boulevard.

SQUARE FOOTAGES A free-standing building with bulding square footage of 7,500 SF on a 7,851 SF lot.

FRONTAGE AND ACCESS Approximately 51 feet of frontage on Grand Avenue.

YEAR BUILT PROPERTY OVERVIEW The property was built in 1912.

ZONING 1036 S. Grand Avenue, PROFORMA CAP RATE 7. 23% ADDRESS The zoning is LAR5. Los Angeles, CA 90015 OCCUPANCY Vacant ASKING PRICE $4,980,000 PARKING YEAR BUILT 1912 BLDG SF 7,500 SF Six spaces in the rear of the building. ZONING LAR5 LAND SF 7,851 SF APN 5139-010-007 BUILDING FEATURES PRICE/SF (BLDG) $664.00 Approximately 25 foot truss ceilings, massive skylights, floor to PROPERTY TYPE Retail ceiling brick walls, concrete floors PRICE/SF (LAND) $634.00 TYPE OF OWNERSHIP Fee Simple

8 9 UNIQUE INDUSTRIAL STYLE BUILDING INCLUDING 25 FOOT TRUSS CEILINGS, MASSIVE SKYLIGHTS, FLOOR-TO-CEILING BRICK WALLS, AND CONCRETE FLOORS

10 11 LOCATED IN THE BOOMING SOUTH PARK DISTRICT OF EXCELLENT DEMOGRAPHICS DOWNTOWN LOS ANGELES $98,000 average median household income of residents South Park is the premiere sports and event destination of Southern living in Downtown Los Angeles California, home to Staples Center, L.A. Live entertainment and dining

complex, and the Los Angeles Convention Center 19 million annual visitors to Downtown LA

South Park is a growing residential community with exciting new 79% of residents have earned a college degree or higher shopping, nightlife, and dining amenities including a brand new Whole 500,000+ weekday population Foods and redesign of flagship Macy’s 66% of residents are between the ages of 23-44 South Park has over 5,000 apartment units and 416,000 SF of new retail space currently in development The growth in Downtown has tripled South Park’s population to more than 5,000 people Over 500,000 people work in Downtown LA

UNIQUE FREE-STANDING RETAIL BUILDING BILLIONS OF DOLLARS OF DEVELOPMENT TAKING PLACE IN SOUTH PARK Unique free-standing retail building with 25-foot truss ceilings, massive skylights, floor to ceiling brick walls, and concrete floors Oceanwide Plaza, located at Flower and 11th Street, is a $1 billion project including a Park Hyatt Hotel. Building is currently vacant, making this an ideal opportunity for an Owner-User Buyer or Value-Add Investor Metropolis, located on James M. Wood Boulevard and Francisco St, is a $1 billion project including a Hotel Indigo 1020 S. Figueroa, located on Figueroa Street and W. Olympic Boulevard, is a $700 million development with a W Hotel 1036 S. Grand is adjacent to the brand new Windsor apartments and Ten50, a new 25-story luxury residential tower Over 20 projects scheduled to commence by 2018 in South Park South Park accounts for 70% of Downtown Los Angeles’ residential 800+ construction NEW RESTAURANTS, BARS, RETAIL, $27.1 billion has been invested in new construction since 1999 NIGHTLIFE, AND AMENITIES SINCE 2008 2 million square feet of retail space is currently under construction INVESTMENT HIGHLIGHTS 12 13 FINANCIALS

RENT ROLL

Tenant SF % of Bldg ProForma Rent PF Rent/SF Lease Type

Vacant 7,500 100% $30,000 $4.00 NNN

ANNUALIZED OPERATING DATA

Income and Expense Current Expenses Annual Per SF Scheduled Lease Income: $360,000 Taxes: 1.25% $65,938 $8.79 NNN Charges: $92,775 Insurance $3,000 $0.40 Effective Gross Income: $452,775 Utilities $3,375 $0.45 Expenses: $92,775 Trash $3,000 $0.40 Net Operating Income: $360,000 Repairs & Maintenance $5,250 $0.70 Loan Payment: $209,611 Management $14,400 $1.92 Pre-Tax Cash Flow: 7.5% $150,389 Reserves $1,500 $0.20 Principal Reduction: $60,211 Total Expenses $96,463 $12.86 Total Return Before Taxes: 10.6% $210,600

Pricing Price $4,980,000 ProForma CAP Rate 7. 23% Price/SF (bldg) $664.00 Price/SF (lot) $634.00

14 15 LEASE COMPARABLES

Address Rent/Mo/SF Rent/Yr/SF Lease Type Space Avail Bldg SF 2 1 517 W. , Los Angeles $5.00 $60.00 NNN 3,700 13,569 8 1

2 700 W. 7th Street, Los Angeles $5.00 $60.00 NNN 1,335 400,000

3 120 E. 8th Street, Los Angeles $3.50 $42.00 NNN 2,000 92,800

5 9 4 200 E. 9th Street, Los Angeles $5.00 $60.00 NNN 1,500 24,906

5 713 S. , Los Angeles $3.50 $42.00 MG 3,250 38,040

6 1001 S. Broadway, Los Angeles $4.75 $57.00 NNN 1,657 6,494 10 3 7 1053 S. Broadway, Los Angeles $6.00 $72.00 NNN 1,069 7,904

6 807-809 S Flower Street, Los 8 $3.50 $42.00 NNN 7,350 15,000 4 Angeles 7

9 801 S. Hill Street, Ls Angeles $7.00 $84.00 NNN 2,800 38,864

321 W. Olympic Boulevard, 10 $4.50 $54.00 NNN 1,853 14,886 Los Angeles

Average $4.78 $57.30 2,651 65,246

16 RENT COMPARABLES 17 18

SALES COMPARABLES SALES COMPARABLES (BLDG) 1 3 4 2 $650.00 $700.00 $750.00 $800.00 $850.00 $900.00 1221 S. Hope Street, Los Street, Hope S. 1221 Angeles $882.54 $882.54 464 S. Main Street, 464 S. Street, Los Main Angeles $745.54 $745.54 SALES COMPARABLES PRICE/SF 1033 S. Olive Street, Los Street, Olive S. 1033 Angeles $765.70 $765.70 777 E. Pico Boulevard, Los Boulevard, Pico E. 777 Angeles $758.20 $758.20 Average $788.00 $788.00 $703.33 Property Subject 19 1 2 3 4

1221 S. Hope Street, 464 S. Main Street, 1033 S. Olive Street, 777 E. Pico Boulevard, Address Address Address Address Los Angeles Los Angeles Los Angeles Los Angeles Sales Price $6,800,000.00 Sales Price $4,175,000.00 Sales Price $5,000,000.00 Sales Price $3,700,000.00 Price/SF Bldg $882.54 Price/SF Bldg $745.54 Price/SF Bldg $765.70 Price/SF Bldg $758.20 Bldg SF 7,705 Bldg SF 5,600 Bldg SF 6,530 Bldg SF 4,880 Lot SF 7,754 Lot SF 5,628 Lot SF 7,632 Lot SF 5,445 Price/SF Lot $876.97 Price/SF Lot $741.83 Price/SF Lot $655.14 Price/SF Lot $679.52 Close of Escrow 10/20/2017 Close of Escrow 11/17/2016 Close of Escrow 3/2/2016 Close of Escrow 7/12/2016 CAP Rate 3.74% SALES COMPARABLES (BLDG) SALES COMPARABLES 20 21 SALES COMPARABLES PRICE/SF 1 2

$900.00 $822.65 $800.00 $740.19

$700.00 $657.72 671.89

$600.00 2 1 $500.00

$400.00 427 W. Pico Boulevard, 1317 S. Hope Street, Address Address Los Angeles Los Angeles $300.00 Sales Price $4,300,000.00 Sales Price $4,900,000.00

$200.00 Land SF 5,227 Land SF 7,450 Price/SF Land $822.65 Price/SF Land $657.72 $100.00 Close of Escrow 12/30/2016 Close of Escrow 9/13/2016

$- Zoning R5 Zoning LAR5 427 W. Pico Boulevard, Los 1317 S. Hope Street, Los Average Subject Property Angeles Angeles

22 (LAND) SALES COMPARABLES 23 24

AREA OVERVIEW DTLA 58,702 is to including Oceanwide key the residential new Plaza, developments, andMetropolis. Convention Center. and the LA anddiningcomplex, Parkentertainment South has and been Live Park destination andevent South with thecenter, staples is the sports L.A. thereshapes skyline as the buildinginDowntown tallest LA. Grand Center, that anticipated andthat aproject has highly for years, dramatically been high-rises are the office of gathered,Wilshirea majority the 73-story has opened recently Downtown wherefinancial into district, The divided several canbe different neighborhoods. Target, Zara, H&M,andmore. flagship store, the arriveMacy’s as Whole well Market, of as Foods trendy stores like City major national of yearshaveRecent brands aninflux seen such as the renovated newly 1,958,100 proposed. are being projects 104 retail. SF of Afurther Currently are underconstruction, including1,156 projects Angeles. 55 Los hotel rooms and Downtown the has premiere destination become shopping andentertainment for allof 18,393 underconstruction. population has tripled, andacurrent 67,324 of inventory residential are available units with This residential new has of andretail. to development Live. led anexplosion Downtown’sLA dining andnightlife destination, to of thanks Center the complex Staples andentertainment with the historicbegan adaptive of re-use emergence buildings as andits anentertaining, Downtown has anamazing Angeles seen reemergence renaissance inthe Los Its past years. POPULATION $622.50 AVERAGE CONDO PRICE/SF $101K $98K MEDIAN INCOME RESIDENTS MEDIAN INCOME WORKERS 25 MARKET OVERVIEW RESIDENTIAL RETAIL HOSPITALITY OFFICE With the opening of the first new condos since the recession at The retail scene got two big boosts with the announcement that Foot The new Hotel Indigo opened its doors at Metropolis, the first of almost Brookfield, already the largest property owner in Downtown, Ten50 and Metropolis, sales in the quarter spiked almost 400% to Locker will open a Michael Jordan branded store on Broadway and 2,000 new rooms that will be added in 2017. Across from the Convention expanded into a new area with their $220 million purchase of a 50% 423, while price per square foot increased by 23% to $828. confirmation that the Alamo Drafthouse Cinema is moving forward at Center, TriCal announced plans to redevelop City Lights on Fig into stake in the California Market Center, with over 2 million square feet The BLOC. Several new restaurants opened their doors in Q2 including a 1,000+room hotel, which would be the second such project on that of rentable space in the Fashion District. On the rental side, over 1,000 new units opened in Q2 at Atelier, Rossoblu at City Market South and Astro Doughnuts and Fried Chicken corner. WREN, and G12. While occupancy rates dipped slightly as a result of in the Financial District. Significant new leases this quarter included, Dutch co-working the sudden influx of new inventory, such fluctuations are expected to Now accounting for more than 10% of Downtown’s inventory, the new provider Spaces, who took 51,000 SF at ROW DTLA, and Marsh & continue as more units come online and are leased up Quarter 3 was highlighted by the opening of two flagship fashion Intercontinental Hotel at the has set a new McLennan who will occupy three full floors at the US Bank Tower. boutiques: Nordstrom Rack at FigAt7th, and COS in the historic Olympic standard for DTLA hospitality and luxury. Meanwhile, just a couple With 5 new projects opening in Q3 alone, 2017 has already set a new Theater off Broadway. of blocks away, The Freehand revealed its 250 rooms, including Meanwhile, the creative migration to Downtown continued with record with over 2,700 new units delivered this year. Nevertheless, both private and shared accommodation, along with a stunning new Adidas announcing a new marketing headquarters, tech firm Gimbal demand kept pace, with rents and occupancy rates holding steady restaurant and lobby restoration. relocating from Santa Monica, both to ROW DTLA, Bullitt Studios from quarter to quarter. moving from West Hollywood to City Market South in the Fashion District, and architecture firm Jerde leaving Venice for the historic CalEdison on Bunker Hill $27.1 B TOTAL INVESTMENT IN DOWNTOWN LA FROM 1999-2016 26 27 RESIDENTIAL RETAIL OFFICE

Q3 2017 Q3 2016 1.5 million square feet of retail space under construction Ernst & Young renewed their lease for 120,000 SF at their Apartment Occupancy Rate 87.5% 91.5% namesake tower. A new lease was signed by Vans for a flagship store on Broadway, Apartment Asking rent per SF $2.92% $2.81 adding to the growing roster of shoe stores in the area. Onni Group announced plans to upgrade the Western Pacific Building at Olympic and Broadway into modern creative space. Average Effective Rent Per Unit $2,499 $2,584 Corporation Food Hall opened on Spring St. with eight diverse vendors. Despite relatively flat net absorption, rents continued to rise as Condo Sales 133 89 landlords seek higher value tenants and longer-term deals. Grand Central Market celebrated its 100th anniversary. Condo Price per SF $679 $637 Q3 2017 Q3 2016

Q3 2017 Q3 2016 Vacancy Rate 17.6% 16.8% Vacancy Rate 4.6% 4.0% Class A Rent per SF $3.48 $3.32 Average Rent per Square Foot $2.57 $2.51 Overall Rent per SF $3.47 $3.30 YTD Net Absorption (-74,820) 28,227 YTD Net Absorption (-56,672) 185,142 YTD Leasing Activity 1,946,024 1,665,418

HOSPITALITY

Q3 2017 Q3 2016 YTD Occupancy Rate 81.1% 80.8% YTD Average Daily Rate $217.57 $213.24 YTD RevPAR $176.38 $72.32 RESIDENTIAL INVENTORY

Current Under Total When Residential Units Proposed Inventory Construction Complete 1,355 rooms under construction Market Rate Rental 22,401 7,676 30,077 24,514 The opening of the Hotel Indigo at Metropolis added 350 hotel Condos 6,095 2,156 8,251 4,685 rooms to South Park. Affordable 12,255 71 12,326 692, Revenue per room increased to $167, while average daily rate Total 39,371 9,903 50,654 29,891 reached $215 Estimated Population 67,324 18,393 85,717 MARKET OVERVIEW 28 29 8TH STREET NOTABLE DEVELOPMENTS AMENITIES

Oceanwide Plaza 2018 ENTERTAINMENT & CULTURE 540 Residential units • L.A. Live 183 hotel rooms • Staples Center 180,000 SF retail • Microsoft Theatre Developer: Oceanwide • Regal Cinemas

1020 S. Figueroa RESTAURANTS & BARS Proposed mixed-use development • Cleo Condos and a w Hotel • Tom’s Urban 80,000 SF of retail • Fhe Palm BROADWAY Developer: Hazens • Ford’s Filling Station • Katsuya Avenue of Angeles • Fleming’s Prime Steakhouse a proposed high-design public promenade • Mikkeller Bar fronting the Metropolis project, will connect • Faith & Flower SOUTH PARK LA Live to Figat7th and the 7th Street Retail • Broken Spanish Corridor • Prank Bar

South Park is the premier sports and event Park has a growing number of amenities that RETAIL Metropolis 2018 destination of Southern California, with Staples cater to residents including the brand new Whole • Colors 1,310 residential units Center, the L.A. LIVE entertainment and dining Foods Market and Ralphs. • Holy Grail 350 hotel rooms complex, and the L.A. Convention Center • Brigade LA 65,000 SF retail bringing more than two million annual visitors Oceanwide Plaza and Metropolis, two major • The Well Developer: Greenland USA for professional basketball and hockey games, mixed-use projects, will radically alter the • Nike Vault concerts, conferences and movie premieres. Downtown skyline and reshape the streetscape With the Convention Center slated for a major with a combined 250,000sf of new retail space, HOTELS expansion and modernization, and several new along a pedestrian promenade of stores. • JW Marriott/Ritz Carlton hotels planned, the area’s appeal and excitement • Luxe Hotel will only increase. Across from LA LIVE, Oceanwide Plaza will • Hotel Figueroa feature a 45,000 sf wall of LED billboards South Park is also becoming a full-fledged (part of a special signage district) lighting up METRO residential community in its own right, with a this retail destination and enabling brands • growing cache of shopping and dining amenities. to connect with shoppers on the street to tell Located within walking distance of the Financial their story with interactive digital imagery. NUMBER OF RETAIL UNITS District, Fashion District and Historic Core, the • 3,593 South Park neighborhood has in development South Park continues to be the epicenter of 5,000 residential units and 416,000sf of new retail some of the most exciting and new development space, the most in any part of Downtown. South projects in Downtown LA.

30 31 NOTABLE DEVELOPMENT IN SOUTH PARK DTLA

METROPOLIS 1020 S. FIGUEROA OCEANWIDE PLAZA CIRCA WREN: MACK URBAN’S 1233 GRAND 1212 FLOWER 888 SOUTH HOPE PROJECT

$1 billion project including 308 $700 million 3 high-rise $1 billion project including 308 $500 million high-rise of twin $750 million project dubbed an A 24-story high-rise and an A pair of high-rises with 730 34 story tower with 526 residenial condos and 350-room Hotel Indigo. development with a W Hotel condos and 350-room Hotel Indigo. 35-story towers featuring 648 urban village that will appeal to additional 37-story tower which will apartments by Onni Group. units and 6,200 SF commercial 1000+ condos and 60,000 SF of Developer: Hazens 1000+ condos and 60,000 SF of rental units on top of 48,000 SF of millennials who desire walkability. include 287 residential units and Developer: Onni Group space. retail space. retail space. commercial space. Wren is a seven-story building with retail space. Developer: CIM Group Developer: Greenalnd Developer: Greenland Developer: Hankey Investment 362 apartments. The next phase will Developer: City Century Company and Jamison Services, Inc. be a 38 story mixed-use tower. Developer: Mack Urban

32 33 G12 WREN WILSHIRE GRAND

Wolff Company’s mixed-use 362 apartments by Mack Urban 73-story with 889 room complex InterContinental Hotel

ATELIER eighth + grand 8TH+HOPE

1036 S. GRAND AVENUE

33 story tower with 363 apartments, Brand new 700 units luxury 205 apartments, 19,500 SF of retail 10,000 SF of retail apartments from CIM Group

34 COMPLETED PROJECTS NOTABLE 35 3RD STREET NOTABLE DEVELOPMENTS AMENITIES Wilshire Grand Center 2017 ENTERTAINMENT & CULTURE 45,000 SF retail • LA Central Library Intercontinental Hotel - 900 hotel rooms • Pershing Square 350,000 SF of office Developer: AC Martin RESTAURANTS & BARS • Bottega Louie HILL STREET 6TH STEEET eigth + grand 2016 • Fogo de Chao 700 residential units • Mendocino Farms Whole Foods Market • Faith & Flower Developer: Carmel Partners • Perch • Spear Steak & Seafood House OLIVE STREET • Seven Grand The Bloc 2016 • Little Sister 450,000 SF retail • 71 Above Renovated and upgraded Sheraton Hotel • Tom George FINANCIAL DISTRICT and 32-story office tower Developer: Ratkovich RETAIL • Whole Foods Once a strictly 9-to-5 area for commuters, the purveyor that doubles as a private club, and • Ralphs Financial District has become a vibrant 24-7 Austin-based Alamo Drafthouse Cinema, offering • Macy’s neighborhood. Residents and visitors, pedestrians in-theater dining and drink. • City Target and Metro riders now share the streets and shops • H&M with the massive worker population, giving the The 73-story Wilshire Grand Center promises • Zara district a new vitality that is drawing a new wave to reshape both the skyline and streetscape of • MAC Cosmetics of retailers and restaurants. Figueroa and 7th, one of Downtown’s busiest intersections. Featuring 350,000 SF of Class HOTELS The redeveloped FIGat7th retail complex led A office space, an Intercontinental Hotel, and • The Standard the way with major national brands including 45,000 SF of luxury retail space, the project • Hilton Checkers City Target, H&M and Victoria’s Secret. The also includes major street improvements to • The Biltmore diverse options at its TASTE Food Hall bustle transform this thoroughfare into an inviting • Sheraton with both workers and local residents, making pedestrian shopping corridor. • Westin Bonaventure this a gathering place for the whole Downtown community. One block away, Macy’s, DTLA’s The historic heart of Downtown, Pershing METRO only full-scale department store, recently Square is also slated for a significant upgrade, • 7th/Metro Center Station underwent a flagship remodel at The BLOC, a with an international design competition to radically reimagined open-air shopping plaza reimagine and revitalize this important public NUMBER OF RETAIL UNITS with multilevel podiums, terraces, and courtyards. space. Home to landmarks like the Millennium • 3,309 The Bloc is home to innovative businesses like Biltmore Hotel, the park has attracted such new Wingtip, the San Francisco-based menswear businesses. 36 37 38

DTLA PREMIERE OFFICE CENTER OFFICE trends in everything from art to food to to fashion. food from art trends ineverything with the world-class institutionsin concert organizations andpioneering that are shaping community.engaged civic are They also drivingDTLA’s andcultural social ascendance, broad customer and talent, base, of –representing skilled pool highly creative,and adeep 65,000 today (projected to top are 85,000 fewyears).They passionate, over the next andthe residentialNearly 500,000 population has work grown people inDTLA, to over andpublicspaces. culture, andthe forward-thinking streetscapes its of design trend-setting to that with avibrancy its extends restaurantsinnovation and inDTLA, scene creativeand media.These andentrepreneurial are establishing companies adynamic isit attracting such generation a new as sectors in growth technology, companies of design, Downtown Now has hometo industries longbeen like services. andlegal real finance estate, forgeneration anew repositioned tech andcreative of companies. return to their former glory, retro-fitted with modern technology, andindustrial are spaces into are century, bringing theworkspaces 21st Class Aproperties while historic buildings New ownership, inside andout. evolving and tenants, class andneighborhood in every marketand industrial office is also The DTLA radically transforming space. with buildings historic buildingsSouthern in California office as of well square as 30million feet warehouse of collection best including the It is alsospace. diverse, Classthe most of square Aoffice feet Downtown is the region’s LA with commercial real over 37 biggest estate million market, CLASS AOFFICE SPACE SQUARE FEETOF 37M 60K UNIVERSITIES 4-YEAR DEGREESBY LOCAL Unispace Steinberg Owings &MerrilllSkidmore, Gensler Arquitectonica ARCHITECTURE The Sydell Group Rising Realty Cushman &Wakefield CBRE Brookfield REAL ESTATE GlobalProfessionalsResources Protiviti willis Towers Watson Navigant Boston Consulting Group BUSINESS Wells Fargo ManagementOaktree Capital Ernst &Young NationalCity Bank AmericaBank of FINANCE NOTABLE COMPANIES LIVE WITHIN 10MILES OF DOWNTOWN WORKERS Tarina Tarantino Splendid/Ella Moss Lucky Brand Jeans K-Swiss Hautelook FASHION Sidley AustinSidley Hampton Sheppard, Mullin, Richter & &MyersO’Melveny Lewis Brisbois Bisgaard Smity Dunn Gibson LEGAL Psomas Miyamoto International Jacobs Engineering Group Buro Happold Aecom ENGINEERING 35% RECENTLY SIGNEDOFFICELEASESS Industrious All Def Digital All Def Ignited Spaces Quinn Emanuel American Realty Advisors American Realty Chubb Insurance HDR EngineeringHDR City NationalCity Bank Warner Music Group Tenant 600 Wilshire600 1212 Building 1212 California Market Center 865 Tower865 City NationalCity Plaza City NationalCity Plaza Two California Plaza Two California Plaza The Ford Factory Building 18,853 26,218 42,161 135,003 39,319 66,971 28,266 241,000 257,000 SF 39 DEMOGRAPHICS DTLA POPULATION GROWTH AVERAGE CONDO PRICE PER SF RESIDENTIAL UNITS PROPERTY VALUE A VIBRANT COMMUNITY

$98,000 average median household income of residents 2016 2016 2016 65,185 $653 38,120 66% of residents are between the ages of 23-44 79% of residents have earned a college degree or higher 18,700 $169 11,626 1999 1999 $14.6 b 500,000+ weekday population 1999 $4.8 BILLION 19 million annual visitors

Arts & $1.5 billion Entertainment INVESTMENT IN DOWNTOWN LA RENTAL OCCUPANCY RATE OPEN FOR BUSINESS CONTINUED GROWTH Civic & $4.5 billion 1999-2016 Institutional 95% Hotel Rooms Residential Units Commercial $.9 billion new restaurants, bars, retails, 8,17 7 Current Inventory 38,120 Current Inventory nightlife, and amenities Mixed-Use $6.8 billion 2,756 Under Construction 11,467 Under Construction 2008-2016 4,515 Pipeline 26,907 Pipeline Residential 10 MILLION 800+

Figueroa Corridor/ $10.5 billion VISITORS TO DOWNTOWN ANNUALLY Expo Park $.9 billion 40 41 BRANDON MICHAELS SAM LIBEROW BEN BROWNSTEIN Senior Managing Director Investments Vice President Investments Investment Associate Senior Director, National Retail Group Director, National Multi Housing Group National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2795 Tel: (818) 212-2812 Fax: (818) 212-2710 Fax: (818) 212-2710 Fax: (818) 212-2710 [email protected] [email protected] BRANDON License: CA #01434685 License: CA #01933858 [email protected] www.BrandonMichaelsGroup.com License: CA #01933858 MICHAELS GROUP