Exclusive Multifamily Offering

E XC L U S I V E MULTIFAMILY OFFERING

1922-1928 EAST 120TH STREET LOS ANGELES, CA 90059

12 UNITS BUILT: 1991

PRICE: $3,300,000

a Berkshire Hathaway and Jefferies Financial Group company INVESTMENT ADVISOR

BRENT SPRENKLE SENIOR MANAGING DIRECTOR [email protected] OFFICE: (310) 470-4892 CA BRE #01290116

SOUTH BAY LOS ANGELES OFFICE 2321 ROSECRANS AVENUE, SUITE #3235 EL SEGUNDO, CA 90245 OFFICE: (424) 239-5900 FAX: (424) 239-5901 THE PROPERTY 4

THE LOCATION 10

FINANCIALS 16

MARKETING POSITION 22

MARKET OVERVIEW 32

DEMOGRAPHIC 50

MULTIFAMILY REPORT 64 TABLE OF TEAMS AND 70 SERVICES CONTENTS The Property

4 5

5 INVESTMENT HIGHLIGHTS

• Great Unit Mix - All 3 and 4 Bedroom Apartments

• Modern Construction - Built in 1991

• Substantial Rental Upside - Average Rent: $1,555/Month T he P roperty

• Steps to Martin Luther King Hospital

• Adjacent to Newly Constructed Single-Family Homes

• Large Units Averaging Over 1,100 Square Feet Each

6 The Property BERKADIA PROPERTY SUMMARY

PROPERTY INFORMATION UNIT MIX / BED TYPE SIZE Address 19221928 E 120th St, Los Angeles, CA 8 THREE BD / ONE BA 1,050 Number of Units 12 4 FOUR BD / TWO 1,250 Average Residential Unit SF 1,117 Total 12 / 13,536 Year Built 1991 Total Acreage 0.48 Number of Buildings / Stories One / TwoStories Parcel Number 6150005018, 6150005019 Gas and Electric Separate Metered T he P roperty

The Property BERKADIA 7 PROPERTY DESCRIPTION

The 120th Street Apartments is a 1991-construction apartment community consisting of two detached properties on two parcels. The properties contain a unique unit mix consisting of eight units that are three-bedrooms with one bathroom and four units that are four-bedrooms with two bathrooms.

All entrances are secured and there is ample on-site parking. Units are separately metered for gas and electricity. Units average over 1,100 square feet (Buyer to independently T he P roperty verify), and the average lease rate is only $1.39 per square foot, which is $1,555 per month, which will provide an excellent opportunity for a new owner to increase lease rates.

The property consists of two detached two-story walk up buildings situated on two separate parcel numbers on lots totaling approximately 20,976 square feet. There are 10 tandem carports in the rear of the property that will accommodate 20 vehicles. In addition, there are 4 uncovered tandem parking spaces that will accommodate an additional 8 vehicles. In total there are approximately 28 parking spaces at the property. Each of the two structures has a small laundry facility.

8 The Property BERKADIA PROPERTY BOUNDARY AERIAL T he P roperty

The Property BERKADIA 9 POINT OF INTEREST AERIAL T he P roperty

10 The Property BERKADIA T he P roperty

The Property BERKADIA 11 The Location

12 13

13 LOCATION MAP T he L ocation

1922-1928 E 120th Street Los Angeles, CA 90059

14 The Location BERKADIA LOCATION DESCRIPTION - WILLOWBROOK

The community of Willowbrook is located about 10 miles south of Los Angeles, just west of Lynnwood, near the intersection of interstates 105 and 110. The neighborhood is home to the 42-acre Martin Luther King Jr. Medical Campus, which is anchored by the 131-bed Martin Luther King, Jr. Community Hospital, the brand-new outpatient center, a public health center, a psychiatric urgent care center, and a recuperative car center. The hospital’s emergency room sees about 90,000 patients each year, making it one of the busies in the country. In addition, the campus is underway on a new 52,000-square-foot medical office building, expected to create 200 construction jobs and open in 2020.

The private, non-profit, historically black graduate school, Charles R. Drew University of Medicine and Science (CDU), was founded in 1966 in Willowbrook. In fall 2018, the university served over 650 enrolled students with nearly 500 faculty and staff members.

The Willowbrook / Rosa Parks rail station is LA Metro’s fourth-busiest train stop, making it a major transportation hub. The station also serves numerous buses and offers transfer service to the Green Line light rail. In August 2018, the first major development of the Metro’s New Blue project began. The $109 million station redesign includes a larger passenger platform, a new station entrance, self-cleaning restrooms, a bike hub, a customer service window, and a public plaza. Work on the project is expected to wrap up by the end of 2020.

Los Angeles County parks located in the neighborhood, offering numerous recreation opportunities, include George Washington Carver Park, Earvin “Magic” Johnson County Recreation Area, Enterprise County Park, and Athens Park. In March 2019, work began ocation on a six-phase renovation project of 120-acre Magic Johnson Park, which will include a community center, wetlands, and walking

trails. Expected to complete in the fall of 2020, the first $70 million phase will include a 20,000-square-foot event center T he L intended for community gatherings and weddings, an outdoor wedding pavilion, a splash pad, kid’s play area, improved lighting, walking paths, and parking lots. Future changes over the next two decades are expected to add an amphitheater, a state-of-the-art sports complex, equestrian facilities, and a 1.7-mile horse path.

The Location BERKADIA 15 PROPERTY NEIGHBORHOOD DESCRIPTION

NEIGHBORHOOD SHOPPING DEMAND DRIVER LOS ANGELES, CA FROM THE FROM THE 0.2mi PROPERTY 0.5mi PROPERTY 1922-1928 E 120TH STREET Kenneth NEIGHBORHOOD QUICK FACTS Hahn SF SHOPPING TOTAL JOBS 167.2k DESTINATION 3.1k SUPPORTED Plaza ACRE + TOTAL MEDICAL 30 STORES 42 CAMPUS

399.4k Food-4-Less | Rite Aid | DD’s Discounts | Planet Fitness Martin Luther King, Jr. Medical Center Campus Population (Within Three Miles)

NEIGHBORHOOD CONVENIENCES DEMAND DRIVER T he L

52% FROM THE PROPERTY ocation Renter Occupied Housing Units 2.3mi (Within Three Miles) JOBS 800 SUPPORTED

$ SF 495.1k 176k FACILITY Median Housing Unit Value Within a three-mile radius of the property Koos Manufacturing Inc. (Within Three Miles)

$ 35.7k PRIMARY EDUCATION DEMAND DRIVER Median Household Income STUDENTS FROM THE (Within Three Miles) 23.0k SERVED 4.8mi PROPERTY

SCHOOLS JOBS 36 AND CENTERS 1.4k SUPPORTED 5.1% City Unemployment Rate JOBS STUDENTS SUPPORTED ENROLLED (July 2019) 3.6k 16.7k

Carver ES | Willowbrook MS | Centennial HS California State University Dominguez Hills

16 The Location BERKADIA ocation T he L

The Location BERKADIA 17 Financials

18 19

19 F inancials

20 Financials BERKADIA 1922-1928 E 120th Street

Estimated Current Current Projected Projected Unit # Unit Description Section 8 Unit SF Rate Rent Per SF Market Rate Rent Per SF

1922-1 Three Bedroom, One Bath 1,050 $1,400.00 $1.33 $2,100.00 $2.00 No 1922-2 Four Bedroom, Two Bath 1,250 $2,200.00 $1.76 $2,300.00 $1.84 Yes 1922-3 Three Bedroom, One Bath 1,050 $1,060.00 $1.01 $2,100.00 $2.00 Yes 1922-4 Three Bedroom, One Bath 1,050 $1,540.00 $1.47 $2,100.00 $2.00 No 1922-5 Four Bedroom, Two Bath 1,250 $1,643.00 $1.31 $2,300.00 $1.84 Yes 1922-6 Three Bedroom, One Bath 1,050 $2,000.00 $1.90 $2,100.00 $2.00 Yes 1928-1 Three Bedroom, One Bath 1,050 $1,395.00 $1.33 $2,100.00 $2.00 No 1928-2 Four Bedroom, Two Bath 1,250 $1,600.00 $1.28 $2,300.00 $1.84 No 1928-3 Three Bedroom, One Bath 1,050 $1,550.00 $1.48 $2,100.00 $2.00 No 1928-4 Three Bedroom, One Bath 1,050 $1,278.00 $1.22 $2,100.00 $2.00 No 1928-5 Four Bedroom, Two Bath 1,250 $1,448.00 $1.16 $2,300.00 $1.84 Yes 1928-6 Three Bedroom, One Bath 1,050 $1,540.00 $1.47 $2,100.00 $2.00 Yes

Estimated Current Rent Range Projected NumberPercent of PercentageNumber Unit Description SF Rate Per SF Market Rate VacantUnits ofVacant Total

Totals: Three Bedroom, One Bath 8,400.00 $11,763.00 $1.01 - $1.90 $16,800.00 0.00%8 66.67%0 F inancials Four Bedroom, Two Bath 5,000.00 $6,891.00 $1.16 - $1.76 $9,200.00 0.00%4 33.33%0 13,400 $18,654.00 $26,000.00 0.00%12 0

Estimated Current Current Projected Projected % Estimated Rental Unit Description SF Rate Rent Per SF Market Rate Rent Per SF Upside Range Averages: Three Bedroom, One Bath 1,050.00 $1,470.38 $1.40 $2,100.00 $2.00 42.82% $1,060 - $2,000 Four Bedroom, Two Bath 1,250.00 $1,722.75 $1.38 $2,300.00 $1.84 33.51% $1,448 - $2,200

The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All square footage and project market rental rates are estimated. Buyer to independently investigate. Financials BERKADIA 21 Estimated Current Current Avg. Market Current Market Est. Total Units Unit Type Unit SF Rental Range Rent Rent Rent/SF Rent/SF Net SF 8 3 Bed / 1 Bath 1,050 $1,060 - $2,000 $1,470 $2,100 $1.40 $2.00 8,400 4 4 Bed / 2 Bath 1,250 $1,448 - $2,200 $1,723 $2,300 $1.38 $1.84 5,000 12 1,117 $1,555 $2,167 $1.39 $1.94 13,400 Gross SF 13,536

Current Market Trailing 12 (Tax Income Pro Forma Pro Forma Adjusted)

Scheduled Market Rent $223,848 $312,000 $230,563 Less: Vacancy Actual is 0.00% 3.00% ($6,715) ($9,360) ($6,917) Net Rental Income $217,133 $302,640 $223,647

Plus: Misc. Income $2,237 $2,237 $2,237 Plus: Laundry Income $2,697 $2,697 $2,697 F inancials Total Operating Income (EGI) $222,067 $307,574 $228,581

Estimated Expenses Percentage Per Unit Administrative $70 $840 $840 $840 Repairs & Maintenance $800 $9,600 $9,600 $9,600 Management Fee 5.00% $933 $11,192 $15,600 $11,192 Utilities (Water, Sewer, Electric & Gas) $824 $9,889 $9,889 $9,889 Contracted Services $400 $6,998 $6,998 $6,998 Base Property Taxes 1.162% $3,195 $38,335 $38,335 $38,335 Property Tax Direct Assessments $558 $6,691 $6,691 $6,691 Insurance $350 $4,200 $4,200 $4,200 Replacement Reserve $200 $2,400 $2,400 $2,400 Total Estimated Expenses $90,146 $94,554 $90,146

% of Scheduled Rent: 40.27% 30.31% 39.10% Per SF: $6.66 $6.99 $6.66 Per Unit: $7,512 $7,879 $7,512

Net Operating Income $131,920 $213,020 $138,434

22 Financials BERKADIA Less: Debt Service ($110,036) ($110,036) ($110,036) Projected Net Cash Flow $21,884 $102,984 $28,398 Total Economic Loss 3.0% 3.0% 3.0% Cash-on-Cash Return (Based on Asking Price) 1.63% 7.69% 2.12% Debt Service Coverage 1.20 1.94 3.15% 3.50% 1.26

Cap Rate Cap Rate T-12GRM Tax GRM Cap Rate Analysis Price $/Unit $/Foot Current Market CurrentAdjusted Pro Forma Asking Price $3,300,000 $275,000 $243.79 4.00% 6.46% 14.424.19% 10.41

Total Loan Down Monthly Debt All Financing LTV Amount Payment Payment Constant $1,980,000 $1,339,800 60% ($9,170) 5.6% F inancials

New First Mortgage (to be originated at purchase) LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs) 60% $1,980,000 3.75% 30 ($9,170) 1.00% 0

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions. © 2019 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

Financials BERKADIA 23 Marketing Position

24 25

25 COMPARABLE RENTAL PROPERTIES

CURRENT RENT / UNITS TYPE UNIT SF RENT SF 8 3 Bedroom / 1 Bath 1,050 $1,470 $1.40 4 4 Bedroom / 2 Bath 1,250 $1,723 $1.38 12 Weighted Average 1,117 $1,555 $1.39

SUBJECT: 1922-1928 E 120TH STREET

M arketing P osition 1663 W 11TH PLACE LOS ANGELES, CA 90059

Units: 12 Built: 1991

MARKET RENT / UNITS TYPE UNIT SF RENT SF 2 4 Bedroom / 2 Bath 1,200 $2,500 $2.08 Weighted Average 1,200 $2,500 $2.08

1. 314 W MAGNOLIA STREET 314 W MAGNOLIA STREET COMPTON, CA 90220

Units: 6 Built: 1939

26 Marketing Position BERKADIA COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 3 3 Bedroom / 1 Bath 760 $2,100 $2.76 Weighted Average 760 $2,100 $2.76

2. 9414 S CENTRAL AVENUE 9414 S CENTRAL AVENUE LOS ANGELES, CA 90002

Units: N/A Built: 1987

MARKET RENT / UNITS TYPE UNIT SF RENT SF 3 3 Bedroom / 1 Bath 1,000 $1,850 $1.85 M arketing P osition 35 Weighted Average 1,000 $1,850 $1.85

3. EVERGREEN 10800 S MAIN STREET LOS ANGELES, CA 90061

Units: 35 Built: 1992

Marketing Position BERKADIA 27 COMPARABLE RENTAL PROPERTIES

MARKET RENT / UNITS TYPE UNIT SF RENT SF 2 3 Bedroom / 1 Bath 1,000 $2,450 $2.45 Weighted Average 1,000 $2,450 $2.45

4. 423 E 82ND STREET 423 E 82ND STREET M arketing P osition LOS ANGELES, CA 90003

Units: 4 Built: 1966

MARKET RENT / UNITS TYPE UNIT SF RENT SF 4 3 Bedroom / 1 Bath 900 $2,075 $2.31 4 Weighted Average 900 $2,075 $2.31

5. 11000 S BROADWAY 11000 S BROADWAY LOS ANGELES, CA 90061

Units: 4 Built: 1990

28 Marketing Position BERKADIA SUBJECT: 1922-1928 E 120TH STREET 1922-1928 E 120TH STREET LOS ANGELES, CA 90059

1. 314 W MAGNOLIA STREET 314 W MAGNOLIA STREET COMPTON, CA 90220

2. 9414 S CENTRAL AVENUE 9414 S CENTRAL AVENUE LOS ANGELES, CA 90002

3. EVERGREEN 10800 S MAIN STREET LOS ANGELES, CA 90061 4. 423 E 82ND STREET 423 E 82ND STREET LOS ANGELES, CA 90003 5. 11000 S BROADWAY 11000 S BROADWAY LOS ANGELES, CA 90061 M arketing P osition

Marketing Position BERKADIA 29 M arketing P osition

30 Marketing Position BERKADIA COMPARABLE SALE PROPERTIES

SUBJECT: 1922-1928 E 120TH 1. ALAMEDA TERRACE 2. . 11308 S FIGUEROA STREET 3. 1639 E 92ND STREET STREET 11919 S FIGUEROA STREET 11308 S FIGUEROA STREET 1639 E 92ND STREET 1922-1928 E 120TH STREET LOS ANGELES, CA 90061 LOS ANGELES, CA 90061 LOS ANGELES, CA 90002 LOS ANGELES, CA 90059

Built: 1991 Built: 1991 Built: 1987 Built: 1941 Units: 12 Units: 34 Units: 9 Units: 11 Price / Unit: $275,000 Price / Unit: $81,809 Price / Unit: $213,889 Price / Unit: $213,229 Price / SF: $243.79 Price / SF: $47.73 Price / SF: $223 58 Price / SF: $209 52 Avg SF: 1,117 Sold for: $2,781,500 Sold for: $1,925,000 Sold for: $2,245,521 M arketing P osition Price: $3,300,000 Closed: 09/09/2019 Closed: 07/30/2019 Closed: 06/27/2019 Cap Rate: 4 00% Cap Rate: N/A Cap Rate: 7 01% Cap Rate: N/A GRM: 14.42 GRM: N/A GRM: N/A GRM: N/A

Marketing Position BERKADIA 31 COMPARABLE SALE PROPERTIES

M 4. 9221 KALMIA STREET 5. 8500 BYRD AVENUE 6. 1040 W 91ST STREET arketing 9221 KALMIA STREET 8500 BYRD AVENUE 1040 W 91st STREET LOS ANGELES, CA 90002 INGLEWOOD, CA 90305 LOS ANGELES, CA 90044 P osition Built: 1947 Built: 1951 Built: 1963 Units: 20 Units: 9 Units: 11 Price / Unit: $104,443 Price / Unit: $265,000 Price / Unit: $230,000 Price / SF: $209 52 Price / SF: $275 12 Price / SF: $297.79 Sold for: $2,088,865 Sold for: $2,385,000 Sold for: $2,530,000 Closed: 06/27/2019 Closed: 05/16/2019 Closed: 02/28/2019 Cap Rate: N/A Cap Rate: 4 50% Cap Rate: N/A GRM: N/A GRM: N/A GRM: N/A

32 Marketing Position BERKADIA SUBJECT: 1922-1928 E 120TH STREET 1922-1928 ET 120TH STREET LOS ANGELES, CA 90059

1. ALAMEDA TERRACE 11919 S FIGUEROA STREET LOS ANGELES, CA 90061

2. 11308 S FIGUEROA ST 11308 S FIGUEROA STREET LOS ANGELES, CA 90061

3. 1639 E 92ND STREET 1639 E 92ND STREET LOS ANGELES, CA 90002 4. 9221 KALMIA STREET 9221 KALMIA STREET, LOS ANGELES, CA 90002

5. 8500 BYRD AVENUE 8500 BYRD AVENUE INGLEWOOD, CA 90305

6. 1040 W 91ST STREET 1040 W 91ST STREET LOS ANGELES, CA 90044 M arketing P osition

Marketing Position BERKADIA 33 Market Overview

34 35

35 LOS ANGELES | CALIFORNIA

Best Place to Live

Los Angeles ranked among the top 40 “Best Large Cities to Live in” - NerdWallet

Best City to Launch Career

M arket O Los Angeles ranked among the “Best Cities to Launch Your Career” - Bankrate

vervie w INTRODUCTION As one of the world’s most significant economic and cultural centers, Los Angeles is the second-most-populated city in the United States and the largest city in California. Encompassing more than 480 square Manufacturing Hub miles, the city is seated in Los Angeles County and is an integral part of the Los Angeles-Long Beach-Anaheim Metropolitan Statistical Area Los Angeles ranked as the No. 1 “Manufacturing City in the Nation” (MSA). The city of Los Angeles spans over 80 different communities and - The Kyser Center for Economic Research neighborhoods, extending north to the San Fernando Valley, south to the port complex, east to the San Gabriel Valley border, and west to the dynamic LAX area.

Accounting for nearly half of the state’s economy, the region boasts a gross metropolitan product exceeded by that of only fifteen nations. The MSA’s economy is highly diversified, with leading industries including Entertainment Capital professional management, financial services, entertainment, and tourism. The region boasts the largest manufacturing industry in the country and Los Angeles County was named the “Entertainment Capital of the serves as the entertainment capital of the United States. Los Angeles United States” County is home to the headquarters of 11 Fortune 500 companies, - The Kyser Center for Economic Research including Walt Disney Company and Live Nation Entertainment Inc.

~ 36 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

DEMOGRAPHICS

ST ND 1 61% OF RESIDENTS WORK IN 2 LARGEST CITY WHITE-COLLAR MOST POPULATED IN CALIFORNIA CITY IN THE UNITED POSITIONS CITYWIDE STATES w vervie M arket O

4.1m 846.0k 401.5k 839.4k $66.7k

From 2019 to 2024, the The city’s median 32% of city residents 29% of Los Angeles 57% of housing units in city of Los Angeles’ household income age 25 or older hold a households earn Los Angeles are renter population is forecast is projected to reach bachelor's degree or $100,000 or more occupied, compared to $66,709 by 2024, to grow 5.1%, reaching higher, compared to 31% annually 31% nationally up % from 2019 4,124,009 residents nationally 12.7

Market Overview BERKADIA 37 LOS ANGELES | CALIFORNIA

INDUSTRY BREAKDOWN

AVERAGE ANNUAL WAGE BY OCCUPATION

With breakthrough technology companies and research organizations, the home of the largest Management $ entertainment industry in the world, and a strong tourism industry, Los Angeles County has one 133.7k of the most diverse, dynamic economies in the country.

Healthcare Practitioners $ The metro division added approximately 59,100 jobs during the 12-month period ending in & Technical 94.8k August 2019, 25,200 of which were in the education and health services sector.

Business & Financial Construction $ Industry Breakdown Operations 81.4k Trade, Transportation, & Utilities 4% M arket O Education, Training, $ 19% & Library 69.3k Education & Health Services 18% Sales & Related vervie w $ 45.4k

Office & Administrative $ LOS ANGELES, CA, Financial Activities Support 42.7k Professional & Business Services METRO DIVISION 5% Transportation & $ 14% Material Moving 39.4k EMPLOYMENT BY

SECTOR Government Production $ 38.3k Other Services 12% 4%

Personal Care & Service $ Manufacturing 29.7k Information 8% Leisure & Hospitality 5% Food Preparation & $ 12% Serving Related 27.8 k Source: BLS Occupational Employment Statistics Survey Source: BLS Current Employment Statistics Survey

38 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

EMPLOYMENT TRENDS

AUGUST 2019 4.7% the city’s monthly unemployment rate was down 30 basis points Y-o-Y LOS ANGELES COUNTY LARGEST EMPLOYERS Los Angeles County 107,400 Los Angeles Unified School District 66,520 University of California Los Angeles 65,600 City of Los Angeles 61,900 U.S. Government 43,600 w vervie Kaiser Permanente 37,400 State of California 29,800 University of Southern California 27,650

Northrop Grumman Corporation 16,600 M arket O Providence Health & Services 15,000

Source: Los Angeles Almanac; LAUSD; USC

AUGUST 2019 59,100 jobs were created in the metro division, a 1.3% annual increase

Market Overview BERKADIA 39 LOS ANGELES | CALIFORNIA

TRADE & LOGISTICS

PORT OF LOS ANGELES 1.2 million $58 billion Total Jobs Supported Annual Wages by the Two Ports and Tax Revenues

$431.4 billion Worldwide Trade Value

Los Angeles is one of the world’s leading trade and logistics centers. Based on a recent report, the Los Angeles Customs District ranked first in the nation in terms of total worldwide trade handled, totaling more than $431.4 billion. The Port of Los Angeles and the Port of Long Beach M arket O provide access to major U.S. markets and the Pacific Rim and handle over 40% of all inbound containers for the entire United States. Combined, the ports support more than 1.2 million direct and indirect jobs and generate over $58 billion annually in wages and tax revenues. vervie w MANUFACTURING

NORTHROP GRUMMAN CORP. No. 1 65 Manufacturing Center Manufacturing Firms in the Country along the 605 Corridor

344,600 Jobs Supported

Los Angeles’ unique geography, strong infrastructure, and skilled workforce make it an ideal location for manufacturing companies. With more than 344,600 jobs supported in the sector, Los Angeles serves as the top manufacturing center in the country. Approximately 65 plants are situated along the city’s I-605 Corridor, providing easy access to the growing industrial hub. Companies like Northrop Grumman Corp., Edelbrock LLC, and Belkin International Inc. help make up the industry’s strong focus on aerospace, fabricated metals, and food processing.

40 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

ARTS & ENTERTAINMENT

$ PARAMOUNT PICTURES 198 billion 1,500 Economic Impact Theater Productions Metrowide

792,600 Jobs Supported Metrowide

As the “Entertainment Capital of the World,” Los Angeles is home to major production studios, including Disney, Paramount, Universal, and Warner Brothers. Each year, the city boasts more than 1,500 theatrical productions throughout its 225 theaters, making arts and culture major drivers in the region. Over 792,600 jobs are supported directly and indirectly in the creative economy, helping generate an economic impact of $198 billion. There are more artists, writers, filmmakers, actors, dancers, and musicians living in Los Angeles than any other city in the world. w vervie PROFESSIONAL & BUSINESS SERVICES

AVERY DENNISON 11 $212.2 billion

Fortune 500 Combined M arket O Headquarters Annual Revenue

637,700 Jobs Supported

According to the Global Financial Centres Index, Los Angeles is home to one of the most competitive financial centers in the world, contributing to one of the most dynamic business economies. Los Angeles’ historic Financial District, referred to as the “Wall Street of the West,” is home to corporate skyscrapers, law firms, and real estate companies. Approximately 637,700 jobs are supported by major businesses including Amgen, Avery Dennison, and Mattel. Of the more than 50 Fortune 500 companies in California, 11 are headquartered in Los Angeles County.

Market Overview BERKADIA 41 LOS ANGELES | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

CROSSROADS HOLLYWOOD LOS ANGELES STADIUM IN NEW CITY OF CHAMPIONS DISTRICT M arket O vervie w $1 billion $2.6 billion Redevelopment Project Investment

1.4 million 1.5 million SF Mixed-Use Development SF of Commercial Space

The site of the historic Crossroads of the World complex is set to undergo A 70,000-seat sport stadium and multiuse development is currently under a major revitalization project. Crossroads Hollywood will be an eight-acre, 1.4 construction in Inglewood’s new City of Champions district, approximately 10 million-square-foot, mixed-use development. The project will be comprised of miles north of Torrance. The stadium will be the new home of the NFL’s Rams nine buildings including up to 308 hotel rooms; 950 residential units, including and Chargers franchises. At three million square feet, it will be the largest 84 affordable units; 185,000 square feet of commercial space; 95,000 square stadium in professional football. The $2.6 billion, 300-acre, multipurpose feet of office sp ace; an d 2, 494 un derground pa rking sp aces. Th e pr oposed facility will also include a 6,000-seat performance venue, more than 1.5 million realignment of Las Palmas Avenue and Sunset Boulevard will promote square feet of retail and office space, 2,500 homes, a 300-room hotel, and 25 pedestrian safety and enhance connectivity. The $1 billion project has an acres of parks. Combined team annual revenue is estimated to generate $700 estimated 48-month construction timeline, with expected completion in million to the region. The new stadium is expected to be completed in time for 2022. the 2020 NFL season.

42 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

METRO PURPLE LINE VERMONT CORRIDOR w vervie $6.3 billion $270 million Investment Office Tower

22,000 2,990 M arket O Construction Jobs Jobs Supported

Construction on the Metro’s Purple Line continues. The project’s first p hase Along Vermont Avenue in Los Angeles’ Koreatown, a three-site development is is nearing completion and will open to the public in 2023. In February 2018, underway. Site one of the Vermont Corridor will include a $270 million, 21-story officials broke ground on the $2.5 billion second phase, which will run 2.5 miles tower that will house government offices and nearly 2,200 employees. The west from Wilshire Boulevard and La Cienega Avenue to Century City. The final second site will be converted into 172 units of residential housing. Additionally, section from Century City to the VA campus is expected to break ground in the building will feature street-level retail and a rooftop deck. Site three includes 2019. In total, the Purple Line extension project will cost about $6.3 billion. demolishing the existing parks and recreation office and replacing it with a six- At build-out, the nine-mile extension will add seven more stops, generating story structure with senior housing units and a 13,200-square-foot community 78,000 new daily trips. With an expected completion date in 2026, the Purple center. In total, the sites will support more than 2,990 employees and provide Line will be fully operational for the 2028 Summer Olympics. over 2,100 parking spaces. All three sites are expected to be completed by 2023.

Market Overview BERKADIA 43 LOS ANGELES | CALIFORNIA

CONSTRUCTION AND DEVELOPMENT

BROADWAY TRADE CENTER LAX MODERNIZATION PROGRAM M arket O vervie w 1.1 million $14 billion SF Renovation Investment

1,500 121,000 Jobs Created Construction Jobs

Plans are underway to renovate the early 20th century Broadway Trade Center Known as the largest public-works program in the history of the city of Los into a 15-story multiuse property in Downtown Los Angeles. The 1.1 million- Angeles, the $14 billion LAX modernization program began in 2009 and has a square-foot renovation will feature retail space on the ground floor, restaurants, projected completion date of 2023. The Tom Bradley International Terminal was multiple bars, a spa, a private club, office space capable of accommodating up completed in September 2013 and features new aircraft gates and concourses, to 3,000 workers, more than 150 hotel rooms, and underground parking for 400 retail shops and other amenities. Other projects that were recently completed to 600 vehicles. The renovated property will showcase a rooftop activity area include new taxiways and taxi lanes, infrastructure upgrades, and renovation with a movie screen and Olympic-size swimming pool. The project is expected improvements to all terminals. The future $5.5 billion Landside Access to be completed by late 2019. Modernization Program (LAMP) will generate additional terminal renovations and provide the growing number of airport passengers convenient connections to public transportation from the airport.

44 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

RENT AND OCCUPANCY

EFFECTIVE $ OCCUPANCY RENT 1,742 RATE 98.2%

in September 2019, up 12.1% in 3Q19, down 10 bps Y-o-Y annually

South LA has historically been a depressed part of Los Angeles, with rents SOUTH LOS ANGELES ranking near the bottom of the metro. Apartment occupancy is near historical APARTMENT SUBMARKET highs, and the area’s extremely low rents relative to other central parts of the 100% Occupancy & Ask Rent $2,000 metro should continue to drive demand given the serious housing affordability issues across metro Los Angeles. Effective m onthly r ent i n t he s ubmarket 98% $1,600 appreciated 12.1% annually to $1,742 in S eptember 2019, significantly outpacing the growth rate of all other metro Los Angeles submarkets during the same w vervie time period. Rent growth is forecast to continue its upward trend through 96% $1,200 the fourth quarter, appreciating 11.9% year over year to $1,764 per month by December 2019. The average occupancy rate in the South LA submarket remained high throughout the post-recession cycle predominantly due to 94% $800 limited supply-side pressure. At 98.2% occupancy in September 2019, the M arket O South Los Angeles apartment submarket had the highest average occupancy 92% $400 rate among Greater Los Angeles’ 20 submarkets. $1,128 $1,197 $1,297 $1,386 $1,468 $1,577 $1,764 The impending arrival of an NFL stadium in Inglewood is expected to reshape 90% $0 2013 2014 2015 2016 2017 2018 2019 the southern portion of the submarket. The 70,000-seat football stadium at OT ent Occupancy the former Hollywood Park racetrack could generate 4,000 jobs and jump- start development in this area. A new neighborhood shopping complex is springing up on the land surrounding the stadium that may further bolster both employment and apartment demand. Transportation improvements are also in the works as LA Metro officials are discussing options for a new rail line to the area. The Clippers appear increasingly likely to depart Downtown LA for Inglewood as well. The stadium complex will be a centerpiece of Los Angeles’ 2028 Olympic Games, so the South Los Angeles submarket should continue to feel the positive effects o f t his n ew d evelopment f or y ears t o come.

Market Overview BERKADIA 45 LOS ANGELES | CALIFORNIA

EDUCATION

HIGHER ANNUAL EDUCATION 625k GRADUATES 60k students metrowide produced by metro Los Angeles universities each year

With over 120 colleges and universities that provide jobs and drive economic growth, the region CITY OF LOS ANGELES is a hub for higher education and generates sustained demand for off-campus housing. The HIGHER EDUCATION M arket O universities alone produce 60,000 graduates annually, the highest number of any county in the nation. Los Angeles Community College District 147,630 University of Southern California 47,500 The University of California Los Angeles (UCLA) is world-renowned for its high-quality academic, research, and athletic programs. UCLA offers over 125 undergraduate majors and 150 graduate University of California Los Angeles 45,920

vervie w degree programs. The university is one of the largest employers in the region, supporting California State University Northridge 38,720 approximately 65,600 jobs countywide. With an enrollment of 45,920 students, UCLA generates $284.4 million in taxes and a $5.7 billion economic impact for Southern California. California State University Los Angeles 27,690 Loyola Marymount University 9,700 The University of Southern California (USC) has an enrollment of over 47,500 students and Mount Saint Mary’s University 2,970 employs more than 27,650 residents. USC has the largest private-university graduate program in the nation in science, engineering, and health. In 2019, the University of Southern California was Source: listed college websites; California Community Colleges Chancellor’s Office ranked No. 22 among national universities by U.S. News and World Report.

46 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

LIFESTYLE AND ENTERTAINMENT

LOS ANGELES HAHN BEACHES 20-min PARK 401 drive from South LA acres in the Baldwin Hills Mountains

South Los Angeles has no shortage of places for people to get outdoors KOREATOWN and enjoy the world-famous Southern California weather. One of the most popular outdoor gathering places is Kenneth Hahn State Recreation Area. At 401-acres, Hahn Park is one of the largest urban parks and open spaces in the Greater Los Angeles area featuring walking and hiking trails with some of the best scenic vistas and a lake for fishing. Some of the best beaches, surfing, and boating in the world at Venice Beach, Marina Del Rey, and the w vervie Santa Monica Pier are located within a 20-minute drive of the property.

South LA is centrally located to many of the new trendsetting neighborhoods. K-town is being driven by Millennials and younger people looking for an urban lifestyle, and the city has much to offer i n terms o f e ntertainment, M arket O restaurants, and cultural amenities. Mama Lion, The Venue, and The Walker Inn are among K-town’s most visible and cool venues.

Several projects underway will boost the entertainment quotient in the near term in the South LA area. These projects include the world’s most expensive stadium complex, the Los Angeles Stadium and Entertainment District in Inglewood, estimated to reach $2.6 billion and the $1.5 billion Middle Harbor Project at the Port of Long Beach.

Market Overview BERKADIA 47 LOS ANGELES | CALIFORNIA

TRANSPORTATION

MTA LAX PASSENGERS 383.8m AIRPORT 87.5 m rail and bus passengers in 2018 passengers served in 2018

Los Angeles boasts an extensive freeway network with major routes, LOS ANGELES INTERNATIONAL AIRPORT including the Santa Ana Freeway (I-5), San Diego Freeway (I-405), Foothills

M arket O Freeway (I-210), Santa Monica and San Bernardino freeways (I-10), Harbor Freeway (I-110), Long Beach Freeway (I-710), and San Gabriel River Freeway (I-605).

The Metropolitan Transportation Authority (MTA) provides local bus and

vervie w rail service linking communities of Long Beach, Downtown L.A., Hollywood, Pasadena, and the San Fernando Valley. MTA offers over 1,500 square miles of service area and employs more than 9,200 residents.

The Los Angeles International Airport (LAX) supports 408,000 local jobs and has an annual economic impact of $60 billion. LAX served over 87.5 million passengers in 2018, making it the third-busiest airport in the nation and seventh-busiest airport in the world.

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Apartment Data Services; Moody’s; Core- Logic; Wikipedia; Axiometrics; California Association of Realtors; City of Los Angeles CAFR; State of California Employ- ment Development Department Forbes; California Division of Tourism; Los Angeles County Metropolitan Transportation Authority; Los Angeles County; Los Angeles Times; Los Angeles Economic Development Corporation; Los Angeles Area Chamber of Commerce; Los Angeles World Airports; Port of Los Angeles; Los Angeles Unified School District; Los Angeles Convention and Visitors Bureau; City of Los Angeles; Los Angeles Business Journal; Los Angeles Daily News; Los Angeles Downtown News; UCLA; USC; CSU-Northridge; CSU-L.A.; Los Angeles Community College District; Mt. St. Mary’s College; Occidental College; Southern California Association of Governments; Airports Council International

48 Market Overview BERKADIA LOS ANGELES | CALIFORNIA

BY THE NUMBERS

TOTAL POPULATION MEDIAN AGE 2010 3,792,621 2010 34.7 2019* 3,925,551 2019* 37.0 2024* 4,124,009 2024* 38.5

Growth Rate (2019 - 2024) 5.1%

TOTAL HOUSEHOLDS MEDIAN HOME PRICE 2010 1,318,168 August - 2018 $346,000 2019* 1,372,257 August - 2019 $397,500

2024* 1,448,536 Growth Rate Y-o-Y 14.9%

Growth Rate (2019 - 2024) 5.6% ZIP Code: 90059 w vervie

MEDIAN INCOME EMPLOYMENT GROWTH (MD)

2010 $49,419 August - 2018 4,484,900 M arket O

2019* $59,207 August - 2019 4,544,000 2024* $66,709 Growth Rate Y-o-Y 1.3%

Growth Rate (2019 - 2024) 12.7%

RENT SHARE OF WALLET RENT VS. OWN National - 2019 27.2% Average Mortgage Payment** $1,863 South Los Angeles Submarket - 2019 35.3% Effective Rent $1,742

National - 2019* 27.6% Difference $121 South Los Angeles Submarket - 2024* 37.5% *Projected **30-yr fixed; 20% down; 4.0% interest rate; 0.79% CA property *Projected taxes; $1,000 annual homeowner’s insurance Annual Rent / Median Household Income

Market Overview BERKADIA 49 Demographic

50 51

51 DEMOGRAPHICS Site Map 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

52 Demographic BERKADIA DEMOGRAPHICS Study Area Map 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

Demographic BERKADIA 53 DEMOGRAPHICS Demographic Report 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % 2000 Census 36,549 369,452 918,690 9,519,061 12,365,353 281,421,872 2010 Census 41,720 388,216 945,692 9,818,605 12,828,837 312,471,327 2019 Estimate 43,778 399,403 969,248 10,078,770 13,258,217 332,230,239 2024 Projection 45,656 416,823 1,009,877 10,532,649 13,945,456 352,150,978

Population Growth 2000-2010 14.2% 14.2% 14.2% 3.2% 3.8% 11.0%

POPULATION Population Growth 2019-2010 4.9% 4.9% 4.9% 2.7% 3.4% 6.3% Population Growth 2024-2019 4.3% 4.3% 4.3% 4.5% 5.2% 6.0%

D emographic 2000 Census 8,832 87,295 232,974 3,133,678 4,068,951 106,741,406 2010 Census 9,262 91,186 239,270 3,241,204 4,233,985 118,092,823 2019 Estimate 9,793 93,904 245,387 3,338,252 4,392,923 125,636,242 2024 Projection 10,231 98,037 255,741 3,498,167 4,634,625 133,146,162

Household Growth 2000-2010 4.9% 4.5% 2.7% 3.4% 4.1% 10.6% Household Growth 2019-2010 5.7% 3.0% 2.6% 3.0% 3.8% 6.4% Household Growth 2024-2019 4.5% 4.4% 4.2% 4.8% 5.5% 6.0%

Owner Occupied Housing Units 10,413 98,692 257,635 3,536,141 4,647,220 140,911,802 HOUSEHOLDS Vacant Housing Units 621 6.0% 4,788 4.9% 12,248 4.8% 197,889 5.6% 254,297 5.5% 15,275,560 10.8% Occupied Housing Units 9,793 94.0% 93,904 95.1% 245,387 95.2% 3,338,252 94.4% 4,392,923 94.5% 125,636,242 89.2% Owner-Occupied 4,040 38.8% 42,770 43.3% 106,466 41.3% 1,592,748 45.0% 2,218,862 47.7% 81,937,171 58.1% Renter-Occupied 5,753 55.2% 51,135 51.8% 138,920 53.9% 1,745,504 49.4% 2,174,061 46.8% 43,699,071 31.0%

Est. Pop. 25+ by Educational Attainment 25,616 239,619 592,645 6,721,429 8,861,229 223,057,570 Less than 9th Grade 6,724 26.2% 63,918 26.7% 149,902 25.3% 884,677 13.2% 1,070,527 12.1% 12,436,374 5.6% Some High School, No Diploma 5,514 21.5% 43,271 18.1% 97,808 16.5% 613,671 9.1% 759,344 8.6% 16,244,505 7.3% High School Graduate (or GED) 7,073 27.6% 63,849 26.6% 154,700 26.1% 1,400,092 20.8% 1,769,900 20.0% 60,918,560 27.3% Some College, No Degree 3,920 15.3% 41,017 17.1% 104,701 17.7% 1,294,485 19.3% 1,731,926 19.5% 46,227,755 20.7% Associate Degree 1,104 4.3% 11,356 4.7% 31,431 5.3% 464,400 6.9% 631,102 7.1% 18,545,275 8.3%

EDUCATION Bachelor's Degree 1,027 4.0% 12,397 5.2% 40,294 6.8% 1,345,975 20.0% 1,883,163 21.3% 42,544,483 19.1% Graduate/Professional Degree 255 1.0% 3,810 1.6% 13,809 2.3% 718,129 10.7% 1,015,267 11.5% 26,140,618 11.7%

54 Demographic BERKADIA DEMOGRAPHICS Demographic Report 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Population by Age 0 - 4 3,198 7.3% 31,511 7.6% 75,103 7.4% 713,271 6.8% 932,230 6.7% 21,449,798 6.1% 5 - 14 6,157 14.1% 51,707 12.4% 125,438 12.4% 1,286,890 12.2% 1,683,042 12.1% 38,833,869 11.0% 14 - 18 3,163 7.2% 25,380 6.1% 59,538 5.9% 502,232 4.8% 662,106 4.7% 17,285,526 4.9% 18 - 22 3,146 7.2% 27,098 6.5% 62,347 6.2% 531,357 5.0% 707,564 5.1% 20,984,634 6.0% 22 - 25 2,498 5.7% 19,914 4.8% 46,316 4.6% 399,839 3.8% 532,052 3.8% 14,341,277 4.1% 25 - 35 7,438 17.0% 68,114 16.3% 159,014 15.7% 1,368,189 13.0% 1,808,877 13.0% 44,570,552 12.7% AGE 35 - 45 5,824 13.3% 56,996 13.7% 136,596 13.5% 1,396,911 13.3% 1,817,316 13.0% 42,415,449 12.0% 45 - 55 4,855 11.1% 48,525 11.6% 120,383 11.9% 1,346,123 12.8% 1,767,344 12.7% 42,356,580 12.0% 55 - 65 4,025 9.2% 42,261 10.1% 105,561 10.5% 1,292,862 12.3% 1,740,201 12.5% 44,518,626 12.6% 65 - 75 2,258 5.2% 29,152 7.0% 74,318 7.4% 1,011,491 9.6% 1,360,910 9.8% 38,135,596 10.8% 75 - 85 908 2.1% 12,464 3.0% 34,763 3.4% 518,541 4.9% 707,289 5.1% 21,166,941 6.0% 85+ 308 0.7% 3,700 0.9% 10,500 1.0% 164,943 1.6% 226,525 1.6% 6,092,130 1.7% CY Estimated HH by HH Income 9,793 93,904 245,387 3,338,252 4,392,923 125,636,242 < $15,000 2,145 21.9% 14,506 15.4% 35,963 14.7% 350,472 10.5% 422,210 9.6% 13,994,162 11.1% $15,000 - $24,999 1,299 13.3% 12,685 13.5% 32,977 13.4% 309,189 9.3% 373,588 8.5% 12,018,203 9.6% $25,000 - $34,999 1,397 14.3% 11,522 12.3% 30,055 12.2% 288,380 8.6% 357,164 8.1% 11,700,753 9.3%

$35,000 - $49,000 1,280 13.1% 14,940 15.9% 38,343 15.6% 393,333 11.8% 493,872 11.2% 16,039,272 12.8% D emographic $50,000 - $74,999 1,662 17.0% 17,361 18.5% 44,120 18.0% 537,633 16.1% 698,221 15.9% 22,183,411 17.7% $75,000 - $99,999 979 10.0% 10,424 11.1% 27,459 11.2% 403,395 12.1% 541,058 12.3% 15,728,922 12.5% $100,000 - $149,999 749 7.6% 8,976 9.6% 25,369 10.3% 508,009 15.2% 704,341 16.0% 18,103,749 14.4%

INCOME $150,000 - $199,999 209 2.1% 2,600 2.8% 7,489 3.1% 266,855 8.0% 389,934 8.9% 9,039,122 7.2% > $200,000 73 0.7% 891 0.9% 3,612 1.5% 280,986 8.4% 412,535 9.4% 6,828,648 5.4% 2019 Median Household Income $ 35,661 $ 35,661 $ 35,661 $ 64,608 $ 69,129 $ 59,496 2024 Median Household Income $ 40,260 $ 40,260 $ 40,260 $ 72,567 $ 77,728 $ 66,798 2019 Average Household Income $ 47,801 $ 54,546 $ 57,242 $ 94,119 $ 99,251 $ 83,143 2024 Average Household Income $ 53,553 $ 61,121 $ 64,158 $ 105,514 $ 111,336 $ 93,632

Pop. 16+ by Employment Status 32,884 301,113 735,773 7,955,128 10,489,117 265,928,221 Labor Force 19,548 59.4% 181,274 60.2% 450,616 61.2% 5,105,389 64.2% 6,769,899 64.5% 167,973,139 63.2% In Armed Forces 6 0.0% 6 0.0% 46 0.0% 3,479 0.0% 5,226 0.0% 1,126,419 0.4% FORCE

Civilian, Employed 17,870 54.3% 167,110 55.5% 418,245 56.8% 4,831,596 60.7% 6,436,957 61.4% 159,679,719 60.0% Civilian, Unemployed 1,672 5.1% 14,158 4.7% 32,325 4.4% 270,314 3.4% 327,716 3.1% 7,167,001 2.7% Not in Labor Force 13,336 40.6% 119,839 39.8% 285,157 38.8% 2,849,739 35.8% 3,719,218 35.5% 97,955,082 36.8% LABOUR Unemployment Rate 8.6% 8.6% 8.6% 8.6% 8.6% 8.6%

Demographic BERKADIA 55 DEMOGRAPHICS Demographic Report 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Employed Population 16+ by Industry 17,870 167,110 418,245 4,831,596 6,436,957 159,679,719 Agriculture/Mining 1,602 9.0% 13,647 8.2% 32,632 7.8% 307,327 6.4% 406,645 6.3% 13,219,075 8.3% Manufacturing 2,817 15.8% 26,782 16.0% 64,864 15.5% 484,635 10.0% 692,268 10.8% 16,478,350 10.3% Wholesale & Retail Trade 2,685 15.0% 27,613 16.5% 69,443 16.6% 676,402 14.0% 904,286 14.0% 22,495,828 14.1% Transpotation/Utilities 1,703 9.5% 15,560 9.3% 37,122 8.9% 274,806 5.7% 328,826 5.1% 8,160,424 5.1% Information 291 1.6% 2,374 1.4% 6,265 1.5% 208,211 4.3% 241,493 3.8% 3,328,383 2.1% Finance/Insurance/Real Estate 557 3.1% 5,457 3.3% 14,759 3.5% 294,664 6.1% 432,856 6.7% 10,513,873 6.6% Professional/Management/Scientific 2,079 11.6% 16,399 9.8% 41,896 10.0% 613,390 12.7% 845,927 13.1% 17,979,262 11.3% Education/Health/Social Services 2,512 14.1% 28,375 17.0% 72,313 17.3% 995,213 20.6% 1,300,909 20.2% 36,912,880 23.1%

D emographic Arts/Ent./Accomodation/Food Services 1,865 10.4% 15,404 9.2% 39,654 9.5% 531,762 11.0% 706,288 11.0% 15,265,112 9.6% Other Services 1,267 7.1% 10,702 6.4% 26,885 6.4% 291,240 6.0% 379,273 5.9% 7,813,494 4.9% EMPLOYMENT Public Administration 493 2.8% 4,798 2.9% 12,412 3.0% 153,946 3.2% 198,186 3.1% 7,513,038 4.7%

Employed Civilian Pop. 16+ by Occupation 17,870 167,110 418,245 4,831,596 6,436,957 159,679,719 White Collar 6,169 34.5% 64,958 38.9% 173,922 41.6% 2,904,233 60.1% 3,960,805 61.5% 97,452,767 61.0% Services 4,626 25.9% 38,678 23.1% 93,789 22.4% 922,018 19.1% 1,200,903 18.7% 28,557,177 17.9% Blue Collar 7,076 39.6% 63,474 38.0% 150,533 36.0% 1,005,345 20.8% 1,275,249 19.8% 33,669,775 21.1%

Owner-Occupied Housing Units by Value 4,040 42,770 106,466 1,592,748 2,218,862 81,937,171 Less than $50,000 127 3.1% 922 2.2% 2,910 2.7% 29,124 1.8% 39,843 1.8% 5,407,441 6.6% $50,000 - $99,999 52 1.3% 481 1.1% 1,922 1.8% 19,505 1.2% 28,221 1.3% 8,075,752 9.9% $100,000 - $199,999 153 3.8% 882 2.1% 2,816 2.6% 30,529 1.9% 42,919 1.9% 19,362,217 23.6% $200,000 - $299,999 381 9.4% 3,303 7.7% 6,326 5.9% 45,740 2.9% 58,815 2.7% 14,516,910 17.7% $300,000 - $399,999 805 19.9% 6,821 15.9% 13,087 12.3% 75,479 4.7% 95,265 4.3% 9,609,711 11.7% VALUE $400,000 - $499,999 831 20.6% 9,439 22.1% 19,108 17.9% 113,462 7.1% 146,274 6.6% 6,648,836 8.1% $500,000 - $749,999 1,418 35.1% 17,148 40.1% 44,487 41.8% 431,966 27.1% 568,861 25.6% 8,880,941 10.8% $750,000 $1,000,000 197 4.9% 2,648 6.2% 10,390 9.8% 268,085 16.8% 398,859 18.0% 4,093,737 5.0%

HOUSING $1,000,000 or more 76 1.9% 1,126 2.6% 5,419 5.1% 578,858 36.3% 839,805 37.8% 5,341,626 6.5%

Median Housing Unit Value $ 460,374 $ 495,089 $ 539,693 $ 797,158 $ 831,002 $ 250,602 Average Housing Unit Value $ 465,880 $ 504,418 $ 542,823 $ 933,213 $ 946,431 $ 369,830

56 Demographic BERKADIA DEMOGRAPHICS Demographic Report 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02

Los Angeles-Long 1 miles 3 miles 5 miles Los Angeles National Key Demographics Beach et al, CA Count % Count % Count % Count % Count % Count % Estimated Population by Ethnicity 43,778 399,403 969,248 10,078,770 13,258,217 332,230,239 America 276 0.6% 2,752 0.7% 7,709 0.8% 154,130 1.5% 236,023 1.8% 21,317,431 6.4% American 167 0.4% 1,349 0.3% 3,488 0.4% 111,259 1.1% 177,705 1.3% 18,364,679 5.5% Native American 51 0.1% 561 0.1% 1,337 0.1% 19,899 0.2% 26,545 0.2% 2,423,637 0.7% Hawaiian 58 0.1% 842 0.2% 2,884 0.3% 22,972 0.2% 31,773 0.2% 529,115 0.2% Hispanic 29,846 68.2% 300,303 75.2% 712,159 73.5% 4,828,376 47.9% 5,894,353 44.5% 58,622,851 17.6% Mexican 24,199 55.3% 243,572 61.0% 568,323 58.6% 3,632,258 36.0% 4,537,778 34.2% 34,696,189 10.4% Puerto Rican 127 0.3% 1,167 0.3% 3,324 0.3% 45,877 0.5% 58,308 0.4% 8,451,161 2.5% Cuban 35 0.1% 625 0.2% 2,909 0.3% 40,227 0.4% 49,286 0.4% 2,076,079 0.6% Dominican 3 0.0% 162 0.0% 544 0.1% 4,781 0.0% 5,583 0.0% 1,722,554 0.5% Central American 3,665 8.4% 37,234 9.3% 97,459 10.1% 710,079 7.0% 763,652 5.8% 4,624,035 1.4% South American 94 0.2% 2,165 0.5% 5,797 0.6% 120,597 1.2% 155,100 1.2% 3,224,497 1.0% Other Hispanic 1,722 3.9% 15,377 3.8% 33,803 3.5% 274,557 2.7% 324,646 2.4% 3,828,336 1.2% Asian 154 0.4% 1,571 0.4% 22,457 2.3% 1,388,016 13.8% 1,977,680 14.9% 16,305,631 4.9% Chinese 31 0.1% 229 0.1% 1,951 0.2% 430,426 4.3% 530,095 4.0% 3,895,676 1.2% Japanese 1 0.0% 163 0.0% 5,771 0.6% 103,712 1.0% 139,037 1.0% 821,235 0.2% Korean 14 0.0% 109 0.0% 3,792 0.4% 215,306 2.1% 307,329 2.3% 1,461,396 0.4%

SC Asian 2 0.0% 101 0.0% 756 0.1% 102,111 1.0% 159,476 1.2% 3,976,104 1.2% D emographic

ETHNICITY SE Asian 83 0.2% 819 0.2% 9,402 1.0% 486,189 4.8% 774,139 5.8% 5,333,718 1.6% Other Asian 24 0.1% 148 0.0% 785 0.1% 50,272 0.5% 67,604 0.5% 817,502 0.2% European 90 0.2% 556 0.1% 3,946 0.4% 1,067,893 10.6% 1,661,557 12.5% 110,433,692 33.2% British 9 0.0% 89 0.0% 644 0.1% 166,218 1.6% 273,540 2.1% 17,033,605 5.1% Dutch - 0.0% 16 0.0% 92 0.0% 20,514 0.2% 34,218 0.3% 2,380,363 0.7% French 9 0.0% 70 0.0% 322 0.0% 44,617 0.4% 69,314 0.5% 4,721,038 1.4% German 15 0.0% 101 0.0% 786 0.1% 194,518 1.9% 322,170 2.4% 29,007,808 8.7% Italian 11 0.0% 52 0.0% 436 0.0% 111,348 1.1% 171,304 1.3% 10,615,755 3.2% Polish 3 0.0% 9 0.0% 92 0.0% 50,401 0.5% 71,309 0.5% 5,556,881 1.7% Scandinavian 12 0.0% 24 0.0% 248 0.0% 71,580 0.7% 119,271 0.9% 6,771,906 2.0% Scotch/Irish 17 0.0% 125 0.0% 876 0.1% 194,675 1.9% 314,024 2.4% 24,056,204 7.2% Other European 14 0.0% 68 0.0% 449 0.0% 214,022 2.1% 286,407 2.2% 10,290,132 3.1% Middle Eastern 11 0.0% 120 0.0% 525 0.1% 211,712 2.1% 259,122 2.0% 2,091,493 0.6% Other Ethnicity 11,578 26.4% 81,241 20.3% 194,347 20.1% 1,986,911 19.7% 2,584,291 19.5% 76,605,683 23.1% Unclassified 1,823 4.2% 12,861 3.2% 28,105 2.9% 441,732 4.4% 645,191 4.9% 46,853,458 14.1%

Demographic BERKADIA 57 DEMOGRAPHICS Median Household Income 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

58 Demographic BERKADIA DEMOGRAPHICS Median Housing Value 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

Demographic BERKADIA 59 DEMOGRAPHICS Population Density 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

60 Demographic BERKADIA DEMOGRAPHICS % Population Change: 2010-2019 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 Legend Map D emographic

Demographic BERKADIA 61 DEMOGRAPHICS Shopping Centers 1922 E 120th St, Compton, CA 90222 0 - 1 mi, 0 - 3 mi, 0 - 5 mi | 33.923036, -118.23826 2019-Oct-02 # Name Cross St Dist. (mi) GLA Traffic Map NWC Imperial Hwy. & Long 1 Plaza Mexico 1.45 400,000 Beach Blvd. E. Compton Blvd. & Alameda 2 Compton Town Center 2.17 196,442 St. Alameda St. & Greenleaf 3 Gateway Towne Center 3.32 497,043 Blvd. SEC Alameda St. & Florence 4 La Alameda 3.47 226,846 Ave. Atlantic Ave. & Firestone 5 Azalea 3.71 223,000 Blvd. Vermont Entertainment NEC W. Vermont & 6 4.04 190,000 Village Manchester Aves. Crenshaw Imperial SEC Crenshaw Blvd. & 7 4.94 236,209 D emographic Plaza Imperial Hwy. The Hawthorne SEC Crenshaw Blvd. & The 8 4.95 328,500 Exchange Century (105) Frwy 9 SouthBay Pavilion Del Amo & Avalon Blvd. 5.63 1,013,577 The Marketplace at Century Blvd. @ Hollywood 10 5.71 452,334 Hollywood Park Park Los Angeles Premium 11 I-405 & E Del Amo Blvd. 5.83 566,000 Outlets SWC Western & W. Slauson 12 Chesterfield Square 6.14 300,000 Avenues Lakewood Blvd. & Imperial 13 Promenade at Downey 6.23 594,196 Hwy. Downey Landing Lakewood, Bellflower 14 6.46 376,165 Shopping Center Blvds.& Stuart & Grey Rds. Hawthorne & El Segundo 15 Hawthorne Plaza 6.50 834,772 Blvds. Bixby Knolls Shopping NEC Atlantic Ave. & San 16 6.51 245,286 Center Antonio Dr. Firestone Blvd. & Lakewood 17 Stonewood Center 6.85 935,000 Blvd. Lakewood Blvd. & Hardwick 18 Lakewood Square 7.33 187,497 St. 19 Lakewood Center Lakewood & Del Amo Blvds. 7.54 2,166,115 E. Telegraph Road, I-5 @ the 20 Citadel Outlets 7.55 474,799 Atlantic Blvd. Exit

62 Demographic BERKADIA D emographic

Demographic BERKADIA 63 Multifamily Report

64 65

65 MULTIFAMILY QUARTERLY REPORT OCCUPANCY AND RENT TRENDS MARKET AT A GLANCE

L.A. SOUTH APARTMENT RENT GROWTH AND OCCUPANCY OUTPACE COUNTY OCCUPANCY RATE 97.1 % Los Angeles South apartment fundamentals eclipsed the county by a significant margin in the last 12 months. Average Up 40 bps since 2Q18 apartment occupancy of 97.1% was recorded in the second quarter of this year compared to 96.6% occupancy in the county. Effective rent advanced 4.5% since mid-2018 in Los Angeles South, while rent grew 3.2% countywide. Much of the difference was due to greater headroom for rent growth in Los Angeles South, where effective rent averaged 17% less than EFFECTIVE $ effective rent across the county. The South Bay submarket, with its proximity to employment hubs in Silicon Beach, was RENT 1,885 an attractive alternative to the neighboring, higher-rent Santa Monica/Marina del Rey and Palms/Mar Vista submarkets. Up 4.5% since 2Q18 Renters occupied more than 1,200 additional apartments in the South Bay submarket since June 2018. Like the rest of the county, apartment deliveries are expected to crest in the near term. By mid-2020, 1,849 additional apartments are scheduled to come online in Los Angeles South. During the same period, four apartment communities representing 1,145 TOTAL units are scheduled to break ground in Los Angeles South. INVENTORY 356,530 M ultifamily R eport

97.5% $2,000 OCCUPANC AND RENT TRENDS

97.0% $1,800

96.5% $1,600

96.0% $1,400

95.5% $1,200

95.0% $1,000 314 115 315 116 316 117 317 118 318 119

Occupancy ate ffective ent

66 Multifamily Report BERKADIA MULTIFAMILY QUARTERLY REPORT DELIVERIES AND DEMAND

LA - SOUTH 5,000 DEVERES AND DEMAND DELIVERIES 1,289 U.S. SARE OF AET Units YTD

LA - SOUTH 2,500 NET ABSORPTION 1,028 Units YTD 0 LA - METRO U.S. DELIVERIES 8,719 ANNUAL RENT Units YTD -2,500 27.2 % LA - METRO 2014 2015 2016 2017 2018 2019 share of wallet NET eliveries emand ABSORPTION 6,138 Year to date

ECONOMIC TRENDS

2018 UNEMPLOYMENT* 2019 More than 27,000 households formed in Los Angeles County 4.7% -10 BPS 4.6% since April 2018, creating additional needs for basic services. METRO SARE OF AET CHANGE Household incomes simultaneously grew 4.2%, increasing discretionary income for some households. These factors 2018 EMPLOYMENT* 2019 helped generate hiring among health care and hospitality R eport M ultifamily 4.50m 1.1% 4.55m providers. The health care and social assistance subsector CHANGE contributed most of the 19,500 new jobs in the education and health services sector from April 2018 to April 2019. Payrolls in REGION 2018 EXISTING SFH SALES** 2019 the leisure and hospitality sector expanded 1.8% year over year ANNUAL RENT 62.5k -13.8% 53.9k with 9,600 new hires. Overall job growth of 1.1% was recorded CHANGE countywide since April 2018 as 50,200 jobs were created. 38.8% Several major capital and infrastructure projects underway share of wallet 2018 MEDIAN SFH PRICE** 2019 supported the construction industry, which grew 5.7% with $574.9k 2.9% $591.4k 8,300 new jobs. These projects included the $14 billion CHANGE Los Angeles International Airport modernization program, renovation of the former Northrop Grumman facility in El 2018 10-YEAR TREASURY** 2019 Segundo into 550,000 square feet of creative office space, 2.91% -80 BPS 2.07% and the $4.9 billion stadium complex at Los Angeles Stadium CHANGE and Entertainment District, which is 70% complete. *April; **June

Multifamily Report BERKADIA 67 MULTIFAMILY QUARTERLY REPORT SUBMARKET BREAKDOWN

OCCUPANCY AVG RENT AVG RENT NET DELIVERED CHANGE ABSORPTION UNITS SUBMARKET NAME 2Q18 2Q19 2Q18 2Q19 2Q18 2Q19 2Q19 ANNUAL 2Q19 ANNUAL East Los Angeles 94.8% 97.3% 1.8% 6.0% $1,512 $1,603 134 1,362 138 138 Long Beach 95.9% 96.4% 2.7% 3.8% $1,917 $1,990 835 906 571 571 South Bay 95.9% 96.5% 3.8% 1.5% $2,558 $2,597 369 1,204 316 855 South Los Angeles 98.1% 97.7% 6.0% 6.8% $1,513 $1,616 727 -435 0 51 South San Gabriel Valley 96.6% 97.3% 3.8% 4.4% $1,574 $1,643 112 79 0 0 Southeast Los Angeles 97.2% 97.1% 3.3% 4.1% $1,714 $1,784 212 31 57 72 TOTALS 96.7% 97.1% 3.9% 4.5% $1,804 $1,885 2,389 3,147 1,082 1,687

© 2019 Berkadia Real Estate Advisors LLC Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC Document sources: Axiometrics; Berkadia Research; Federal Reserve Bank of St. Louis; Moody’s M ultifamily R eport

68 Multifamily Report BERKADIA R eport M ultifamily

Multifamily Report BERKADIA 69 INVESTMENT ADVISOR

BRENT SPRENKLE SENIOR MANAGING DIRECTOR [email protected] OFFICE: (310) 470-4892 CA BRE #01290116

SOUTH BAY LOS ANGELES OFFICE 2321 ROSECRANS AVENUE, SUITE #3235 EL SEGUNDO, CA 90245 OFFICE: (424) 239-5900 FAX: (424) 239-5901 DISCLAIMER AND CONFIDENTIALITY AGREEMENT

The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purpose or made available to any other person without the express written consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees to keep all material contained herein confidential.

This information package has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this information package has been obtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property.

Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.

All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional.

The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia® exclusive listings, please visit our website at www.Berkadia.com

Berkadia®, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is an industry leading commercial real estate company providing comprehensive capital solutions and investment sales advisory and research services for multifamily and commercial properties. Berkadia® is amongst the largest, highest rated and most respected primary, master and special servicers in the industry.

Berkadia® is a trademark of Berkadia Proprietary Holding LLC

Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. Tax credit syndication business is conducted exclusively by Berkadia Affordable Tax Credit Solutions. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. SOUTH BAY LOS ANGELES OFFICE 2321 ROSECRANS AVENUE, SUITE #3235 EL SEGUNDO, CA 90245 OFFICE: (424) 239-5900 FAX: (424) 239-5901

ALBUQUERQUE, NM DALLAS, TX MEMPHIS, TN SALT LAKE CITY, UT AMBLER, PA DC METRO MIAMI, FL SAN ANTONIO, TX ATLANTA, GA DENVER, CO MIDVALE, UT SAN DIEGO, CA AUSTIN, TX DETROIT, MI MURRIETA, CA SAN FRANCISCO, CA BATON ROUGE, LA EL SEGUNDO, CA NASHVILLE, TN SEATTLE, WA BIRMINGHAM, AL FRESNO, CA NEW YORK, NY SHREWSBURY, NJ BOCA RATON, FL HOUSTON, TX NEWPORT NEWS, VA ST. LOUIS, MO BOSTON, MA IRVINE, CA ORLANDO, FL TAMPA, FL CAMAS, WA JACKSONVILLE, FL PASADENA, CA TEMPE, AZ CHARLESTON, SC KANSAS CITY, MO PHILADELPHIA, PA TUCSON, AZ CHATTANOOGA, TN LAS VEGAS, NV PHOENIX, AZ WOODLAND HILLS, CA CHICAGO, IL LEXINGTON, KY PORTLAND, OR HYDERABAD - INDIA CLEVELAND, OH LOS ANGELES, CA RALEIGH, NC COLORADO SPRINGS, CO MARBLEHEAD, MA RICHMOND, VA

a Berkshire Hathaway and Jefferies Financial Group company