A1489 15-Unit Value AddSOUTH Opportunity CANFIELD in Beverlywood 1489 S. CANFIELD A Executive Summary 01

Property Description 09

Financial Summary 12

Market Comparables 15

AVENUE • LOS ANGELES, CA 90035 Marketing Overview 31 EXECUTIVE SUMMARY THE OFFERING

Marcus & Millichap, as the exclusive listing agent, is pleased to present the opportunity to acquire 1489 South Canfi eld Avenue – a 15-unit apartment community located just south of Pico Boulevard between Doheny Drive and Robertson Boulevard, in Beverlywood.

Originally constructed in 1964, this mid-sized apartment community offers an astute investor an excellent opportunity to enhance the asset as one of the fi fteen units will be delivered vacant at close of escrow. The building is situated on a large 11,910 square foot parcel and consists of one three story structure above covered parking. The asset boasts large fl oor plans and a mix that consists of one studio unit that is approximately 500 square feet, two one- bedroom / one-bathroom units averaging 950 square feet, eleven two-bedroom / two-bathroom units averaging 1,300 square feet, and one three-bedroom / two-bathroom unit approximately 1,600 square feet. The ability to offer tenants condo-sized units affords an investor with the unique opportunity to implement an interior capital improvement strategy that is expected to achieve signifi cant rent premiums over more traditionally sized product available in the marketplace.

Although the property has been well maintained by the current ownership, 1489 South Canfi eld is ideally positioned to create one of Beverlywood’s premier rental communities in a location that continues to benefi t from superior demographics, high-walkability ratings, and some of the lowest historical vacancy rates in the City of Los Angeles. Additionally, 1489 South Canfi eld has undergone major capital improvements including: upgraded copper piping throughout, high effi ciency utility systems, and completed retrofi t requirements mandated by the City of Los Angeles Ordinance 183893 (buyer to verify). 1489 South Canfi eld also features 19 parking spaces, an elevator, an entry lobby, and on-site laundry facilities.

1489 South Canfi eld Avenue is located between some of Los Angeles’ premier submarkets including Beverly Hills, Century City, Pico-Robertson, and Mid-City West. In addition to the approximately 60% projected upside in rental income, the property is perfectly situated within the submarket offering residents the opportunity to complete most errands by foot while also offering a short commute to some of Los Angeles’ most renowned restaurants, prominent entertainment and nightlife options, as well as Los Angeles’ most popular employment hubs. This dynamic location offers residents a true premier Los Angeles lifestyle within the comfort of large, condo quality apartments units.

Executive Summary // 1 INVESTMENT HIGHLIGHTS

THE OPPORTUNITY: 1489 South Canfi eld is a 15-unit value add opportunity located in Beverlywood – a prime rental submarket of Los Angeles known for historically high rental rates and extremely low vacancy rates.

IMMEDIATE UPSIDE IN RENTAL INCOME: With current rents approximately 60% below today’s market rents, 1489 South Canfi eld is being offered with one unit that will be delivered vacant allowing an investor to commence value-add renovations immediately upon close of escrow.

RARITY OF THE OFFERING: The property is located in a submarket with very few purchasing opportunities, and even fewer mid-sized apartment buildings. Only 7 multifamily properties of 15 units or greater have sold in Beverlywood in the last 10 years.

DIVERSE UNIT MIX: The unit mix consists of (1) studio, (2) one-bedroom/one-bathroom units, (11) two-bedroom/two-bathroom units, and (1) three-bedroom/two-bathroom unit.

COMPLETED SEISMIC RETROFITTING: Current ownership has completed the mandatory earthquake retrofi tting at the building allowing investors to focus on revenue generating improvements going forward.

WELL LOCATED: The property is located on South Canfi eld Avenue just south of Pico Boulevard between Doheny Drive and Robertson Boulevard.

STRONG EMPLOYMENT: This specifi c location adjacent to Beverly Hills allows residents to be within close proximity of Los Angeles’ major employment centers including Century City, Beverly Hills, Westwood, West Hollywood, and Hollywood.

UTILITIES: 1489 South Canfi eld is separately metered for both gas and electricity.

GREAT WALKABILITY: Due to its premier location, 1489 South Canfi eld features a 90 WalkScore indicating the area is exceptionally livable and a “Walker’s Paradise” - daily errands do not require a car.

2 // 1489 S. Canfi eld

VALUE ADDD FACADE & LANDSCAPING IMPROVEMENTS First impressions are key to the decision making process for prospective residents and one of the best ways to set the right tone is OPPORTUNITYU with exterior/facade improvements and freshly landscaped grounds. Additionally, introducing new landscaping concepts like hardscape and drought resistant plants will also help reduce 1489 South Canfi eld is an excellent candidate for value-add operational costs of landscape maintenance renovations that will allow investors to capitalize on the high and utilities (via less watering). end demand for premium fi nishes in the immediate market. The property features 1 unit that will be delivered vacant which allows an investor to commence renovations immediately after close of escrow. INTERIOR RENOVATIONS Upgraded Flooring Modern Light Fixtures Stainless Steel Appliances Stone Countertops Contemporary Window Treatments Recessed Lighting Modern Plumbing Fixtures Designer Paint Scheme

COMMON AREA & SYSTEMS UPGRADE New Exterior Paint Scheme Modern Exterior Lighting Fixtures Modern Address Numbering Elevator Cab Enhancements Remodeled Laundry Room Upgraded Interior Lighting Improve Resident Common Area at Rear of Building Enhanced Controlled Access Entry with New 4 // 1489 S. Canfi eld Call Box, Lighting, and Upgraded Mailboxes 174 23 7 Total Multifamily Multifamily Properties Multifamily Properties 15 Units Properties in 15 Units or Greater in or Greater That Have Sold in Beverlywood Beverlywood Beverlywood in the Last 10 Years RARITY OF OFFERING

Beverlywood

1489 South Canfi eld represents a rare opportunity for private investors to acquire an apartment building in Beverlywood—a highly sought after submarket which is primarily composed of low density single family homes (ranging $1.5-$4M in value). Additionally, most of the apartment building stock in Beverlywood is comprised of smaller buildings (fewer than 15 units in size) and presents investors with less than one buying opportunity per year to acquire an apartment building 15 units or larger.

Executive Summary // 5 THREE PREMIER COMMUNITIES... ONE LOCATION

1489 South Canfi eld is located blocks away from three of the most desirable neighborhoods in CAFES Los Angeles—Beverly Hills, Pico-Robertson, and Century City. Due to its ideal location and walkability, residents enjoy unparalleled access to a wide array of employment, entertainment, and cultural experiences that few other neighborhoods in Los Angeles can match.

As part of its historical charm, Beverly Hills continues to raise the bar in terms of being one of the most luxurious neighborhoods in Los Angeles. Beverly Hills is known for its high-end shopping, 5-star hotels and restaurants, and acts as the home to LA’s elite.

Century City is only a few blocks west from the subject property, and serves as one of the major BEVERLY HILLS employment hubs of Los Angeles. Century City GOLF COURSES is also home to the revamped Century City Mall, which is currently undergoing a nearly $1 billion renovation, and stations many of the worlds Fortune 500 companies.

As one of the strongest rental markets in Los Angeles, Pico-Robertson is a cultural melting pot that consists of an eclectic mix of restaurants, religious places of worship, and recreational parks. Situated between Beverly Hills and Century City, Pico-Robertson offers renters the opportunity to be within a short drive of major employment hubs such as Century City as well as other high-end retail and dining that Beverly Hills has to offer.

6 // 1489 S. Canfi eld CULTURAL CENTURY CITY

SHOPPING DINING PICO-ROBERTSON

Executive Summary // 7 TERMS OFFERING SUMMARY

INTEREST OFFERED: ADDRESS: 1489 S. Canfi eld Avenue, Los Angeles, CA 90035 100 percent fee-simple interest in 1489 South Canfi eld Avenue, a 15-unit ASSESSOR’S PARCEL NUMBER: 4305-006-043 apartment community located at 1489 S. NUMBER OF UNITS: 15 Canfi eld Avenue, Los Angeles, CA 90035 YEAR BUILT: 1964 PARCEL SIZE: 0.27 Acres TERMS OF THE SALE: NUMBER OF STORIES: Three Stories The property is being off ered free and clear of any debt. GROSS SQUARE FEET: 19,900 SF

LIST PRICE: $7,450,000 PROPERTY TOURS: CURRENT CAP RATE: 2.78% Prospective purchasers are encouraged to visit the subject property prior to MARKET CAP RATE: 5.49% submitting off ers. Please do not contact PRICE/UNIT: $496,667 the on-site management or staff without PRICE/GROSS SF: $374 prior approval. All property tours must be coordinated through the listing agents.

8 // 1489 S. Canfi eld PROPERTY DESCRIPTION

Executive Summary // 9 1489 SOUTH CANFIELD Property Address 1489 South Canfi eld Avenue, Los Angeles, CA 90035 Assessor's Parcel Number 4305-006-043 Land Use Apartments Buildings One Stories Three Stories with On Grade Tuckunder Parking Zoning LAR3 Year Built 1964

SITE DESCRIPTION Units 15 Gross Square Footage 19,900 Parcel Size 0.27 Acres Density 55 DU/Acre Parking 19 Total Spaces (7 Covered Single, 2 Open Single, 5 Partially Covered Tandem) DESCRIPTION UTILITIES Water Master Metered Sewer Master Metered Electric Separately Metered Gas Separately Metered

CONSTRUCTION Foundation Concrete Framing Wood Frame PROPERTY Exterior Stucco Roof Flat Composite Parking Surface Concrete Topography Flat

MECHANICAL HVAC AC Wall Units / Ceiling Radiant Heating Fire Protection Fire Alarm System; Smoke Detectors in Units Water Heaters Central Boiler with a Storage Tank Laundry Common Area Laundry Facility Elevators One Plumbing Fully Upgraded to Copper

10 // 1489 S. Canfi eld Property Description // 11 FINANCIAL ANALYSIS

12 // 1489 S. Canfi eld FINANCIAL SUMMARY 1489 S. Canfi eld Avenue • Los Angeles, CA 90035

FINANCIAL INDICATORS CURRENT MARKET Price $7,450,000 # of Unit Average Avg. Average Monthly Average Avg. Average Monthly Loss-to- Unit Type Units Size (SF) Rental Range Rent Rent/SF Income Rental Range Rent Rent/SF Income Lease Down 66% $4,938,000 Studio (Renovated) 1 500 $1,795 - $1,795 $1,795 $3.59 $1,795 $1,850 - $1,850 $1,850 $3.70 $1,850 3% Current CAP 2.78% 1 Bed/1 Bath 2 950 $1,211 - $1,849 $1,530 $1.61 $3,060 $2,300 - $2,300 $2,300 $2.42 $4,600 33% Market CAP 5.49% 2 Bed/2 Bath 9 1,300 $1,564 - $2,321 $1,841 $1.42 $16,565 $3,400 - $3,400 $3,400 $2.62 $30,600 46% Price/Unit $496,667 2 Bed/2 Bath (Renovated, W/D in Unit) 2 1,300 $2,995 - $3,500 $3,248 $2.50 $6,495 $3,500 - $3,500 $3,500 $2.69 $7,000 7% Price/Gross SF $374 3 Bed/2 Bath 1 1,600 $2,115 - $2,115 $2,115 $1.32 $2,115 $4,000 - $4,000 $4,000 $2.50 $4,000 47% Current GRM 20.67 Totals/Weighted Averages: 1,220 $2,002 $1.64 $30,031 $3,203 $2.63 $48,050 38% Market GRM 12.92 Current Occupancy: 93.33% Annual Current: $360,369 Annual Market: $576,600 Current GIM 20.63 Market GIM 12.90 Ownership Fee Simple

BUILDING DATA ANNUALIZED OPERATING DATA Current Market ANNUALIZED OPERATING DATA Current Market No. of Units 15 Market Rent $576,600 $576,600 FIXED EXPENSES Gain (Loss)-to-Lease 37.50% (216,231) 0.00% - Real Estate Taxes 1.193027% 88,881 88,881 Year Built 1964 Gross Potential Rental Income $360,369 $576,600 Direct Assessments Per Assessor 2,004 2,004 Year Renovated - Less: Vacancy 3.00% (10,811) 3.00% (17,298) Insurance $0.35/SF 6,965 6,965 Lot Size (acres) 0.27 Less: Non-Revenue Units 0.00% - 0.00% - Utilities $780/unit 11,700 11,700 Lot Size (SF) 11,910 Less: Bad Debt 0.00% - 0.00% - Reserves $250/unit 3,750 3,750 Gross SF 19,900 Less: Concession Loss 0.00% - 0.00% - VARIABLE EXPENSES Total Rental Income $349,558 $559,302 General & Administrative $75/unit 1,125 1,125 Net Rentable SF 18,300 Laundry Income $20/unit/mo. 3,600 $20/unit/mo. 3,600 Contract Services $597/unit 8,952 8,952 4305-002-043 APN Oil Royalties $4/unit/mo. 756 $4/unit/mo. 756 Repairs & Maintenance $350/unit 5,250 5,250 Effective Gross Income $353,914 $563,658 Turnover $250/unit 3,750 3,750 ASSUMABLE FINANCING Less: Expenses 41.40% (146,533) 27.49% (154,922) Management Fee 4.0% of EGI 14,157 22,546 Loan Amount $2,550,000 Net Operating Income $207,382 $408,736 Total Expenses $146,533 $154,922 Unpaid Loan Balance $2,512,000 Less: Debt Service (145,560) (145,560) Expenses/Unit $9,769 $10,328 Interest Rate 3.97% Pre-Tax Cash Flow 1.25% $61,821 5.33% $263,175 Expenses/Gross SF $7.36 $7.79 % of EGI 41.4% 27.5% Monthly Payment ($12,130) Loan-to-Value 34% Amortization (Years) 30 Proposed/Assumption Assumption Debt Service Coverage Ratio 1.42 Initial Monthly Payment Date 3/1/2017 Initial Interest Rate Adjustment Date 2/1/2022 NOTES/ASSUMPTIONS Adjustable Interest Rate 6-Month LIBOR + 2.25% (1) Unit sizes are estimated. Buyers should conduct their own due diligence regarding unit sizes. Maturity Date 2/1/2047 (2) Current rents are as of June 2018 and refl ect 3% renewal increases on 11 of the 15 units that have scheduled increases between now and June.

Lender JP Morgan Chase Bank Financial Analysis // 13 Prepayment Penalty 4% of Unpaid Loan Balance RENT ROLL

CURRENT SCHEDULED GROSS INCOME MARKET

UNIT STATUS UNIT TYPE UNIT SIZE (SF) RENT RENT/SF RENT RENT/SF RENT RENT/SF LOSS-TO-LEASE 101 Occupied 2 Bed/2 Bath 1,300 $2,321.36 $1.79 $2,321 $1.79 $3,400 $2.62 ($1,079) 102 Occupied 3 Bed/2 Bath 1,600 $2,115.46 $1.32 $2,115 $1.32 $4,000 $2.50 ($1,885) 103 Occupied Studio (Renovated) 500 $1,795.00 $3.59 $1,795 $3.59 $1,850 $3.70 ($55) 201 Occupied 2 Bed/2 Bath 1,300 $1,580.85 $1.22 $1,581 $1.22 $3,400 $2.62 ($1,819) 202 Occupied 1 Bed/1 Bath 950 $1,849.26 $1.95 $1,849 $1.95 $2,300 $2.42 ($451) 203 Occupied 2 Bed/2 Bath 1,300 $1,873.66 $1.44 $1,874 $1.44 $3,400 $2.62 ($1,526) 204 Occupied 2 Bed/2 Bath 1,300 $2,243.45 $1.73 $2,243 $1.73 $3,400 $2.62 ($1,157) 205 Occupied 2 Bed/2 Bath 1,300 $2,095.39 $1.61 $2,095 $1.61 $3,400 $2.62 ($1,305) 206 Occupied 2 Bed/2 Bath (Renovated, W/D in Unit) 1,300 $2,995.00 $2.30 $2,995 $2.30 $3,500 $2.69 ($505) 301 Vacant 2 Bed/2 Bath (Renovated, W/D in Unit) 1,300 $0.00 $0.00 $3,500 $2.69 $3,500 $2.69 $0 302 Occupied 1 Bed/1 Bath 950 $1,210.60 $1.27 $1,211 $1.27 $2,300 $2.42 ($1,089) 303 Occupied 2 Bed/2 Bath 1,300 $1,563.88 $1.20 $1,564 $1.20 $3,400 $2.62 ($1,836) 304 Occupied 2 Bed/2 Bath 1,300 $1,583.37 $1.22 $1,583 $1.22 $3,400 $2.62 ($1,817) 305 Occupied 2 Bed/2 Bath 1,300 $1,564.94 $1.20 $1,565 $1.20 $3,400 $2.62 ($1,835) 306 Occupied 2 Bed/2 Bath 1,300 $1,738.54 $1.34 $1,739 $1.34 $3,400 $2.62 ($1,661) UNITS OCCUPIED UNITS OCCUPANCY % RENTABLE SF RENT RENT/SF RENT RENT/SF RENT RENT/SF LOSS-TO-LEASE 15 14 93.3% 18,300 $26,531 $1.56 $30,031 $1.64 $48,050 $2.63 ($18,019)

NOTES/ASSUMPTIONS (1) Unit sizes are estimated. Buyers should conduct their own due diligence regarding unit sizes. (2) Current rents are as of June 2018 and refl ect 3% renewal increases on 11 of the 15 units that have scheduled increases between now and June.

14 // 1489 S. Canfi eld MARKET COMPARABLES SALES COMPARABLES MAP

1489 South Canfi eld Avenue (Subject)

1 1480 South Canfi eld

2 1475 South Canfi eld

3 1117 South Bedford Street

4 1467 S. Rexford Drive

5 918 South Bedford Street

6 1132 S. Oakhurst Drive

7 210 S. Hamilton Drive

8 1206 S. Holt Avenue 9 1115 S. Wooster Street 7 10 1128 S. Rexford Drive

11 328 S. Rexford Drive 12 12 321 South Doheny Drive 11 5

9 3 10 6 8

4 2 1

1489 South Canfi eld

16 // 1489 S. Canfi eld SALES COMPARABLES YEAR # OF BLDG. SALE COE CAP COE PRICE/ PRICE/ ADDRESS BUILT UNITS SF PRICE RATE GRM UNIT SF COE UNIT MIX 1489 South Canfi eld 1964 15 19,900 $7,450,000 2.78% 20.67 $496,667 $374 - (1) Studio, (2) 1Bed/1 Bath, (11) 2 Bed/2 Bath, (1) 3 Bed/2 Bath

Los Angeles, CA 90035

1 1480 South Canfi eld 1964 15 22,464 $7,310,000 3.11% 19.00 $487,333 $325 11/3/2017 (3) 1 Bed / 1 Bath, (9) 2 Bed / 2 Bath, (3) 3 bed / 2 Bath

Los Angeles, CA 90035

2 1475 South Canfi eld 1964 15 18,685 $6,000,000 2.85% 19.70 $400,000 $321 11/4/2017 (14) 2 Bed / 2 Bath, (1) 3 Bed / 3 bath

Los Angeles, CA 90035

3 1117 South Bedford Street 1961 15 19,212 $6,900,000 2.90% 19.70 $460,000 $359 2/28/2018 (14) 2 Bed / 2 Bath, (1) 3 Bed / 3 bath

Los Angeles, CA 90035

4 1467 S. Rexford Drive 1967 15 23,429 $8,041,000 3.27% 18.85 $536,067 $343 3/30/2016 (3) 1 Bed/1 Bath, (7) 2 Bed/2 Bath, (5) 3 Bed/2.5 Bath

Los Angeles, CA 90035

5 918 South Bedford Street 1956 7 6,221 $3,000,000 2.55% 19.89 $428,571 $482 9/7/2017 (2) 1 Bed/1 Bath, (5) 2 Bed / 2 Bath

Los Angeles, CA 90035

6 1132 S. Oakhurst Drive 1959 10 10,372 $3,572,500 N/A N/A $357,250 $344 11/21/2016 (2) Studio, (8) 2 Bed/2 Bath

Los Angeles, CA 90035

7 210 S. Hamilton Drive 1957 10 9,022 $6,550,000 2.65% 20.21 $655,000 $726 5/4/2017 (6) 1 bed / 1 bath, (4) 2 Bed / 2 bath

Beverly Hills,CA 90211

8 1206 S. Holt Avenue 1963 8 11,092 $3,225,000 N/A N/A $403,125 $291 8/29/2016 (8) 2 Bed/2 Bath

Los Angeles, CA 90035

9 1115 S. Wooster Street 1963 12 8,916 $3,765,000 3.63% 17.92 $313,750 $422 7/5/2016 (1) Studio, (10) 1 Bed/1 Bath, (1) 2 Bed/2 Bath

Los Angeles, CA 90035

10 1128 S. Rexford Drive 1967 6 6,240 $2,319,000 3.00% 25.00 $386,500 $372 6/13/2016 (3) 1 Bed/1 Bath, (3) 2 Bed/2 Bath

Los Angeles, CA 90035

11 328 S. Rexford Drive 1956 8 6,413 $6,150,000 3.94% 20.50 $768,750 $959 6/21/2017 (8) 1 bed / 1 bath

Beverly Hills, CA 90212

12 321 South Doheny Drive 1954 7 6,531 $3,700,000 2.05% 25.62 $528,571 $567 8/15/2017 (1) 1 Bed / 1 Bath, (6) 2 Bed / 2 Bath

Beverly Hills, CA 90211 Market Comparables // 17 SALES COMPARABLES

1489 S. CANFIELD AVENUE 1480 S. CANFIELD AVENUE 1475 SOUTH CANFIELD AVENUE 1 2

1489 S. CANFIELD AVENUE, LOS ANGELES, CA 90035 1480 S. CANFIELD AVENUE, LOS ANGELES, CA 90035 1475 SOUTH CANFIELD AVENUE, LOS ANGELES, CA 90035

Sale Date: - Sale Date: 11/3/2017 Sale Date: 11/4/2017 Sale Price: $7,450,000 Sale Price: $7,310,000 Sale Price: $6,000,000 Units: 15 Units: 15 Units: 15 Price Per Unit: $496,667 Price Per Unit: $487,333 Price Per Unit: $400,000 Year Built: 1964 Year Built: 1964 Year Built: 1964 Price Per SF: $374 Price Per SF: $325 Price Per SF: $321 COE Cap Rate: 2.78% COE Cap Rate: 3.11% COE Cap Rate: 2.85% COE GRM: 20.67 COE GRM: 19.00 COE GRM: 19.70

UNIT MIX UNIT MIX UNIT MIX 1 Studio 3 1 Bed/1 Bath 14 2 Bed/2 Bath 2 1 Bed/ 1 Bath 9 2 Bed/2 Bath 1 3 Bed/1 Bath 11 2 Bed/2 Bath 3 3 Bed/2 Bath 1 3 Bed/2 Bath

18 // 1489 S. Canfi eld SALES COMPARABLES

1117 SOUTH BEDFORD STREET 1467 S. REXFORD DRIVE 918 SOUTH BEDFORD STREET 3 4 5

1117 SOUTH BEDFORD STREET, LOS ANGELES, CA 90035 1467 S. REXFORD DRIVE, LOS ANGELES, CA 90035 918 SOUTH BEDFORD STREET, LOS ANGELES, CA 90035

Sale Date: 2/28/2018 Sale Date: 3/30/2016 Sale Date: 9/7/2017 Sale Price: $6,900,000 Sale Price: $8,041,000 Sale Price: $3,000,000 Units: 15 Units: 15 Units: 7 Price Per Unit: $460,000 Price Per Unit: $536,067 Price Per Unit: $428,571 Year Built: 1961 Year Built: 1967 Year Built: 1956 Price Per SF: $359 Price Per SF: $343 Price Per SF: $482 COE Cap Rate: 2.90% COE Cap Rate: 3.27% COE Cap Rate: 2.55% COE GRM: 19.70 COE GRM: 18.85 COE GRM: 19.89

UNIT MIX UNIT MIX UNIT MIX 14 2 Bed/2 Bath 3 1 Bed/1 Bath 2 1 Bed/1 Bath 1 3 Bed/2 Bath 7 2 Bed/12 Bath 5 2 Bed/2 Bath 5 3 Bed/2 Bath

Market Comparables // 19 SALES COMPARABLES

1132 S. OAKHURST DRIVE 210 S. HAMILTON DRIVE 1206 S. HOLT AVENUE 6 7 8

1132 S. OAKHURST DRIVE, LOS ANGELES, CA 90035 210 S. HAMILTON DRIVE , BEVERLY HILLS, CA 90211 1206 S. HOLT AVENUE, LOS ANGELES, CA 90035

Sale Date: 11/21/2016 Sale Date: 5/4/2017 Sale Date: 8/29/2016 Sale Price: $3,572,500 Sale Price: $6,550,000 Sale Price: $3,225,000 Units: 10 Units: 10 Units: 8 Price Per Unit: $357,250 Price Per Unit: $655,000 Price Per Unit: $403,125 Year Built: 1959 Year Built: 1957 Year Built: 1963 Price Per SF: $344 Price Per SF: $726 Price Per SF: $291 COE Cap Rate: N/A COE Cap Rate: 2.65% COE Cap Rate: N/A COE GRM: N/A COE GRM: 20.21 COE GRM: N/A

UNIT MIX UNIT MIX UNIT MIX 2 Studio 6 1 Bed/1 Bath 8 2 Bed/2 Bath 8 2 Bed/2 Bath 4 2 Bed/2 Bath

20 // 1489 S. Canfi eld SALES COMPARABLES

1115 S. WOOSTER STREET 1128 S. REXFORD DRIVE 328 S. REXFORD DRIVE 9 10 11

1115 S. WOOSTER STREET, LOS ANGELES, CA 90035 1128 S. REXFORD DRIVE, LOS ANGELES, CA 90035 328 S. REXFORD DRIVE, BEVERLY HILLS, CA 90212

Sale Date: 7/5/2016 Sale Date: 6/13/2016 Sale Date: 6/21/2017 Sale Price: $3,765,000 Sale Price: $2,319,000 Sale Price: $6,150,000 Units: 12 Units: 6 Units: 8 Price Per Unit: $313,750 Price Per Unit: $386,500 Price Per Unit: $768,750 Year Built: 1963 Year Built: 1967 Year Built: 1956 Price Per SF: $422 Price Per SF: $372 Price Per SF: $959 COE Cap Rate: 3.63% COE Cap Rate: 3.00% COE Cap Rate: 3.94% COE GRM: 17.92 COE GRM: 25.00 COE GRM: 20.50

UNIT MIX UNIT MIX UNIT MIX 1 Studio 3 1 Bed/1 Bath 8 1 Bed/1 Bath 10 1 Bed/1 Bath 3 2 Bed/2 Bath 1 2 Bed/2 Bath

Market Comparables // 21 SALES COMPARABLES

321 SOUTH DOHENY DRIVE 12

321 SOUTH DOHENY DRIVE, BEVERLY HILLS, CA 90211

Sale Date: 8/15/2017 Sale Price: $3,700,000 Units: 7 Price Per Unit: $528,571 Year Built: 1954 Price Per SF: $567 COE Cap Rate: 2.05% COE GRM: 25.62

UNIT MIX 1 1 Bed/1 Bath 6 2 Bed/2 Bath

22 // 1489 S. Canfi eld RENT COMPARABLES

1489 S. Canfi eld Avenue (Subject) 9 1479 S Beverly Drive

1 231 South Tower Drive 10 8648 W. Olympic Blvd

2 133 South Crescent Drive 11 438 S. Palm Drive 3 1467 S. Rexford Drive 12 309 S. Doheny Drive 4 1453 S. Beverly Drive 13 1240 S. Sherbourne Drive 5 909 S. Wooster Street 14 468 S. Roxbury Drive 6 1245 Smithwood Drive 15 929 S. Bedford Street 7 337 South Doheny Drive 16 1419 Cardiff Avenue 8 1210 S. Shenandoah St. 17 1529 S Beverly Drive

2

1 12 7 5 15 10 11 14

6 8 16 13 4 9 3

17 1489 South Canfi eld

Market Comparables // 23 RENT COMPARABLES

STUDIO 1 BED/1 BATH 2 BED/2 BATH 3 BED/2 BATH YEAR RENT / RENT / RENT / RENT / PROPERTY UNITS BUILT RENT SIZE SF RENT SIZE SF RENT SIZE SF RENT SIZE SF 1489 South Canfi eld Avenue 15 1964 Avg. In Place: $1,795 500 $3.59 $1,530 950 $1.61 $1,841 1,300 $1.42 $2,115 1,600 $1.32 (Renovated) Los Angeles, CA 90035 $3,248 1,300 $2.50 (Renovated, W/D in Unit)

1 231 South Tower Drive 12 1941 $1,795 400 $4.49 ------Beverly Hills, CA 90211 ------2 133 South Crescent Drive 12 1941 $1,895 450 $4.21 ------Beverly Hills, CA 90212 ------3 1467 S. Rexford Drive 15 1967 - - - $2,950 949 $3.11 $3,500 1,332 $2.63 $3,950 1,872 $2.11 Los Angeles, CA 90035 ------4 1453 S. Beverly Drive 6 1946 - - - $2,300 600 $3.83 ------Los Angeles, CA 90035 ------5 909 S. Wooster Street 5 1957 - - - $2,200 700 $3.14 ------Los Angeles, CA 90035 ------6 1245 Smithwood Drive 14 1965 - - - $2,500 ------Los Angeles, CA 90035 ------7 337 South Doheny Drive 7 1956 - - - $3,000 650 $4.62 ------Beverly Hills, CA 90211 ------8 1210 S. Shenandoah St. 15 1982 ------$3,850 1396 $2.76 - - - Los Angeles, CA 90035 ------9 1479 S Beverly Drive 6 1994 ------$3,600 1300 $2.77 - - - Beverly Hills, CA 90212 ------10 8648 W. Olympic Blvd 8 1990 - - - $3,500 1400 $2.50 Los Angeles, CA 90035 ------11 438 S. Palm Drive 6 1940 - - - $2,400 1000 $2.40 $3,450 1,300 $2.65 - - - Beverly Hills, CA 90212 ------12 309 S. Doheny Drive 5 1969 ------$3,800 - - $4,795 - - Beverly Hills, CA 90211 ------13 1240 S. Sherbourne Drive 15 1956 ------$3,200 1,400 $2.29 - - - Los Angeles, CA 90035 ------14 468 S. Roxbury Drive 29 1963 - - - $2,800 985 $2.84 $3,795 1,500 $2.53 - - - Beverly Hills, CA 90212 ------15 929 S. Bedford Street 12 1965 ------$4,600 1,700 $2.71 Los Angeles, CA 90035 ------16 1419 Cardiff Avenue 5 1965 ------$3,850 1,100 $3.50 Los Angeles, CA 90035 ------17 1529 S Beverly Drive 5 2009 ------$5,450 1800 $3.03 Los Angeles, CA 90035 ------

AVERAGE: $1,845 425 $4.35 $2,593 814 $3.32 $3,587 1,375 $2.59 $4,529 1,618 $2.84 High: $1,895 450 $4.49 $3,000 1000 $4.62 $3,850 1,500 $2.77 $5,450 1,872 $3.50 Low: $1,795 400 $4.21 $2,200 600 $2.40 $3,200 1,300 $2.29 $3,850 1,100 $2.11 24 // 1489 S. Canfi eld RENT COMPARABLES

SUBJECT: 1489 S. Canfi eld Avenue, Los Angeles, CA 90035

Unit Type Avg. Asking Rent Unit Size (SF) Avg. Rent/SF Studio (Renovated) $1,795 500 $3.59 1 Bed/1 Bath $1,530 950 $1.61 2 Bed/2 Bath $1,841 1,300 $1.42 2 Bed/2 Bath (Renovated, W/D in Unit) $3,248 1,300 $2.50 3 Bed/2 Bath $2,115 1,600 $1.32 Year Built: 1964 Units: 15

1 231 South Tower Drive, Beverly Hills, CA 90211

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF Studio $1,795 400 $4.49 Year Built: 1941 Units: 12

2 133 South Crescent Drive, Beverly Hills, CA 90212

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF Studio $1,895 450 $4.21 Year Built: 1941 Units: 12

Market Comparables // 25 RENT COMPARABLES

3 1467 S. Rexford Drive, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,950 949 $3.11 2 Bed/2 Bath $3,500 1,332 $2.63 3 Bed/2 Bath $3,950 1,872 $2.11 Year Built: 1967 Units: 15

4 1453 S. Beverly Drive, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,300 600 $3.83 Year Built: 1946 Units: 6

5 909 S. Wooster Street, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,200 700 $3.14 Year Built: 1957 Units: 5

26 // 1489 S. Canfi eld RENT COMPARABLES

6 1245 Smithwood Drive, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,500 - - Year Built: 1965 Units: 14

7 337 South Doheny Drive, Beverly Hills, CA 90211

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $3,000 650 $4.62 Year Built: 1956 Units: 7

8 1210 S. Shenandoah St., Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 2 Bed/2 Bath $3,850 1396 $2.76 Year Built: 1982 Units: 15

Market Comparables // 27 RENT COMPARABLES

9 1479 S Beverly Drive , Beverly Hills, CA 90212

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 2 Bed/2 Bath $3,600 1300 $2.77 Year Built: 1994 Units: 6

10 8648 W. Olympic Blvd, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 2 Bed/2 Bath $3,500 1400 $2.50 Year Built: 1990 Units: 8

11 438 S. Palm Drive, Beverly Hills, CA 90212

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,400 1000 $2.40 2 Bed/2 Bath $3,450 1,300 $2.65 Year Built: 1940 Units: 6

28 // 1489 S. Canfi eld RENT COMPARABLES

12 309 S. Doheny Drive, Beverly Hills, CA 90211

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 2 Bed/2 Bath $3,800 - - Year Built: 1969 Units: 5

13 1240 S. Sherbourne Drive, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 2 Bed/2 Bath $3,200 1,400 $2.29 Year Built: 1956 Units: 15

14 468 S. Roxbury Drive, Beverly Hills, CA 90212

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 1 Bed/1 Bath $2,800 985 $2.84 2 Bed/2 Bath $3,795 1,500 $2.53 Year Built: 1963 Units: 29

Market Comparables // 29 RENT COMPARABLES

15 929 S. Bedford Street , Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 3 Bed/2 Bath $4,600 1,700 $2.71 Year Built: 1965 Units: 12

16 1419 Cardiff Avenue, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 3 Bed/2 Bath $3,850 1,100 $3.50 Year Built: 1965 Units: 5

17 1529 S Beverly Drive, Los Angeles, CA 90035

Unit Type Asking Rent Unit Size (SF) Avg. Rent/SF 3 Bed/2 Bath $5,450 1800 $3.03 Year Built: 2009 Units: 5

30 // 1489 S. Canfi eld MARKET OVERVIEW DEMOGRAPHIC SNAPSHOT 1489 South Canfi eld Avenue is located in Beverlywood, an affl uent submarket situated in the heart of Los Angeles County. Given the high median single family home price in Beverlywood, there is a sizable aff ordability gap between the monthly housing payment on a median priced home and the average asking rents in the area. This signifi cant gap serves as a constant occupancy driver for apartment communities in Beverlywood, as most residents cannot aff ord to buy a home.

Beverlywood (90035 Zip Code) City of Los Angeles Los Angeles County Total Population 30,018 3,979,984 10,258,387 Total Households 13,642 1,393,254 3,408,882 Median Household Income $72,674 $52,318 $59,287 Average Household Income $115,737 $85,838 $90,205 Median Age 37.6 35.3 36.1 Vacancy (Q1 2018) 3.3% 3.9% 3.7% Median Home Price (Q1 2018) $1,367,700 $663,500 $600,200 Monthly Housing Payment on Median-Priced Home* $7,092 $3,441 $3,112 Average Asking Rent (Q1 2018) $2,107 $1,808 $1,726 Aff ordability Gap $4,985 $1,633 $1,386 Percentage Gap 236.6% 90.3% 80.3% Minimum Qualifying Income for a Median Priced Home** $257,899 $125,127 $113,164 % of Population Who Can Aff ord Median-Priced Home Less than 13%*** 18.7% 23.9%

*Assumes 20% down, 4.25% interest rate, 30 year loan, 1.5% taxes and insurance for home payment **Minimum qualifying income is based on a 0.33 coverage ratio. ***12.88% of the population in the 90035 zip code earns more than $200,000 annually. Sources: Marcus & Millichap Research Services, Experian, Inc., CoStar Group, Inc., California Association of Realtors, Trulia, Freddie Mac, Zillow

32 // 1489 S. Canfi eld BEVERLYWOOD (90035) at a glance 3.3% 17.8% 40.9% Average Vacancy Rate Projected Median Household Of the Population is Between Income Growth by 2022 Ages 20 and 44 36.4% 64% Of Households Earn More Than Of the Population Holds a $100,000 Annually College Degree or Higher

*Source: Experian, Inc.

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The information contained in the preceding Marketing Brochure is proprietary and strictly confi dential. 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, unverifi ed 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 fi nancial 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 fi nancial 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 verifi ed, 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.

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