10500 S Vermont Ave LOS ANGELES, CA 90044

10500 S Vermont Ave 1 ™ OFFERING MEMORANDUM OFFERING LOS ANGELES, CA 90044 CA ANGELES, LOS 10500 S Vermont Ave Vermont S 10500 Listed By ™ J. A. CHARLES WRIGHT Senior Associate Direct 310.295.4374 Mobile 626.290.5965 [email protected] LIC#01985584 (CA) Offering Memorandum 10500 S Vermont Ave LOS ANGELES, CA 90044

Table of Contents

04 06 Property Overview Location Overview 10 14 Financial Overview Rent Comparables

3 PROPERTY04 OVERVIEW

™ 10500 S Vermont Ave 5 roperty Summary roperty P Number of Units: 18 of Units: Number 1964 Built: Year 6061-004-033 APN: 10,794 Sq. Ft.: Gross 600 Unit: Per S.F. Average (SF): 10,058 Size Lot 18 Units Built in 1964 Built 18 Units Lot Corner Foot Square LAC2 on a 10,058 Zoning and Electricity for Gas Separately Metered Required Retrofit Soft-Story Potential Upside Rental Over 47% Building Foot Square Gross – 10,794 One-Bedrooms Large All Units Spaces Parking 18 Tuck-Under Foot Per Price / $247.51 Unit Per Price $147,222 Rents GRM on Current / 13.87 Rate Cap 3.67% roperty Description roperty pportunity P • • • • • • • • • O 10500 S Vermont Avenue is a true value-add opportunity. There is over 47% over 47% is There true value-add opportunity. is a Avenue S Vermont 10500 an owner opportunity requires This in the property. potential Upside Rental in rent-controlled and talented at achieving upside familiar with the area units one-bedroom large construction and Mid-Century apartment buildings. rents. to achieve market floor plan to execute a strategy offer a buyer great and Vermont, located on the corner lot of 105th is conveniently property This as well as the Freeways 105 and 110 access to the offering tenants easy the tenant base, of the abundant amenities for Because Stop. Vermont/Metro with a rent to push the limits of market an owner would have the opportunity building. the touch and design of both the interior and exterior of great the new NFL from Miles 3.0 Park, Jesse Owens from Miles only 1.4 Sitting and the Hawthorne SpaceX from Miles and 3.5 in Inglewood, Stadium Rams developments is in the hub of exciting Avenue S Vermont Airport – 10500 Bay. Los Angeles and the South and gentrification in South LOCATION06 OVERVIEW

™ 10500 S Vermont Ave 7 4.15% 3.29% 313,718 301,334 323,969 5 MILE 1,133,664 1,170,934 $57,116.47 1,088,454 $41,475.86 5.24% 3.86% 99,924 378,173 392,772 108,826 104,895 359,332 3 MILE $39,158.77 $54,356.48 4.16% 51,216 5.80% 15,872 15,226 54,188 14,364 56,444 1 MILE $44,916.39 $32,540.96 emographics INCOME Income Household Average Median Household Income Household Median 2023 Projection 2023 2023 Projection 2023 POPULATION GROWTH POPULATION to 2018 2010 Change: Percent 2018 to 2023 Change: Percent HOUSEHOLDS Census 2010 2018 Estimate 2018 Estimate POPULATION Census 2010 D 10500 S Vermont Ave Apartments are located in up and coming Westmont located in up and coming Westmont Apartments are Ave S Vermont 10500 and Vermont are streets major nearby cross Angeles. The neighborhood of Los to the Northwest, to Inglewood has proximity area The Boulevard. Century area, is a densely populated to the South. This and I-105 to the East, I-110 and abundant with opportunity. never short on renters 3 Park, Recreational Jesse Owens miles from 1.5 is approximately property The miles being built, and 3.5 NFL Stadium Angeles Rams the new Los miles from to major highways, proximity Airport. The and the Hawthorne SpaceX from Angeles city attractions, and Los exciting Stop, Metro Vermont/Athens moving a sound investment owning this property Airport makes International forward to the future. ocation Description L MSA

Downtown LA’s re-emergence has been stimulated by an influx of new residents, restaurants and major league sports. Crowds flock to the sports and entertainment combination of the Staples Center, home to both the Lakers (NBA) and the Kings (NHL), and LA LIVE, which has become a local hotspot. The now Los Angeles Rams (NFL) play a few miles down the road at the Los Angeles Memorial Coliseum, just across the street from the University of Southern California campus. Dodger Stadium, on the other hand, is farther up north towards Echo Park and is home to the Los Angeles Dodgers (MLB).

Hollywood, Beverly Hills, and Santa Monica have all influenced Los Angeles’ claim to fame. Visitors explore the TCL Chinese Theatre and the Hollywood Walk of Fame with the hope of encountering their favorite celebrities’ stars. Beverly Hills boasts the famous Rodeo Drive full of high-end shopping and world-class restaurants. The Santa Monica Pier and beach draw vacationers from all over the world year-round, and especially during the summer months.

The county coastline offers 75-miles of some of the world’s greatest beaches. Each seaside town is unique, offering charm and sophistication. From its near-perfect weather to some of the world’s most iconic landmarks and attractions, Los Angeles holds many distinctions. It is one of the few cities in the world where it’s possible to ski in the morning and surf in the afternoon. 10500 S Vermont Ave 9

Economy Los Angeles is the largest manufacturing center in the western United States due to its due to its States western United center in the manufacturing is the largest Angeles Los comprise together Beach Angeles and Long Los ports of contiguous location. The geographic Hemisphere: the fifth-busiest most significantin the world and the port Western port in the Rim. Pacific is vital to trade within the It & Steel Reliance Net, Health Petroleum, 500 companies Occidental to the Fortune Home city is on the opportunities. The Angeles is teeming with career Los Aluminum, and AECOM expanding tech as a leader in the industries and is emerging growth leading edge of several industry. Top Employers Top FINANCIAL10 OVERVIEW

™ 10500 S Vermont Ave 11 18 600 Market Market 1964 $23,400 $23,400 $280,800 ±10,794 Monthly Rent Monthly ±10,058 SF ±10,058 6061-004-033 $1,300 Market Rent Rent Market $191,112 $15,926 $15,926 Current Current Monthly Rent Monthly Number of Units: Number Year Built: Year APN: Sq. Ft.: Gross Unit: Per S.F. Average Size: Lot $885 Rent Current Avg Avg Current $245.51 $147,222 13.87 / 9.44 13.87 $2,650,000 3.67% / 6.82% 3.67% 100% Unit Mix % Mix Unit Los Angeles, CA 90044 Los 10500 S Vermont Avenue Avenue S Vermont 10500 1+1 Unit Mix Unit

18 nvestment Summarynvestment I nit Mix Price Per Unit: Per Price Offering Price: Offering Address: Property S.F.: Per Price / market): (current Cap / market): GRM (current Total Units Total U Scheduled Yearly Rent: Scheduled Yearly Scheduled Monthly Rent: Scheduled Monthly Annualized Operating Summary Current Market Scheduled Gross Income: $191,112 $280,800 47% Upside Less Vacancy Reserve: 3.0% $5,733 3.0% $8,424 * Gross Operating Income: $185,379 $272,376 Expenses: 46.1% $88,118 32.6% $91,598 * Net Operating Income: $97,261 $180,778 Loan Payments: $81,052 $81,052 Cash-on-Cash Return: 1.3% $16,209 7.8% $99,726 ** Plus Principal Reduction: $23,147 $23,147 Total Return Before Taxes: 3.1% $39,356 9.6% $122,873 ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment

Proforma Annual Operating Expenses

Current Per Unit % of SGI *Taxes 1.250% x Sale Price $33,125 $1,840 17% *Insurance $0.35 x GSF $3,778 $210 2% Off-Site Management 4.0% x GOI $7,415 $412 4% On-Site Management $500 x 12 Months $6,000 $333 3% Repairs & Maintenance $500 x Units $9,000 $500 5% Contract Services $400 x Units $7,200 $400 4% Utilities $900 x Units $16,200 $900 8% General Administration $300 x Units $5,400 $300 2.83% Total Expenses $88,118 $4,895 46.1%

Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $36,903 $2,050 19.3% Total Expense with out Taxes $54,993 $3,055 28.78% 10500 S Vermont Ave 13 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $1,300 $23,400 Market Rent Market $875 $925 $925 $656 $895 $885 $850 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 Rent $15,926 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 1+1 Mix Totals Averages 1 7 2 3 5 6 9 8 4 11 17 12 15 13 16 18 14 10 Unit ent Roll R Rent Comparables

One-Bedroom

• New Laminate Floors • No Parking • Includes Refrigerator and Stove

Address Rent SF

149 E 111th Place $1,200 500

Distance to Subject Property 10500 S Vermont Ave 15

SF 560 Rent $1,400 Address 8939 ½ Hoover Street Street 8939 ½ Hoover New Laminate Floors Laminate New Bathroom and Kitchen Tile in electricity pays only Tenant No Parking No Laundry on-site Distance to Subject Property to Subject Distance One-Bedroom • • • • • One-Bedroom

• Tile floors throughout • Granite Countertops • No Parking

Address Rent SF

9300 S Western Avenue $1,350 550

Distance to Subject Property 10500 S Vermont Ave 17 The Offering Memorandum and its contents are confidential; The Offering Memorandum and its will hold it and treat it in the strictest of confidence; and You or its contents in any fashion or or permit anyone else to disclose this Offering Memorandum disclose will not, directly or indirectly, You of the Seller. manner detrimental to the interest 1. 2. 3. CONFIDENTIALITY & DISCLAIMER STATEMENT DISCLAIMER & CONFIDENTIALITY Los Ave, located at 10500 S Vermont Ave and affairs of 10500 S Vermont pertaining to the business contains select information This Offering Memorandum may not be all-inclusive This Offering Memorandum Estate Investment Services. by Matthews Real 90044 (“Property”). It has been prepared Angeles CA is confidential and in this Offering Memorandum contained information The may desire. purchaser the information a prospective all of contain or or made available It is not to be used for any other purpose prospective purchaser of the Property. for the purpose of a review by a furnished solely based in part upon information Services. The material is Estate Investment Seller or Matthews Real without the written consent of to any other person officers, employees, or agents nor their Owner, it deems reliable. obtained from sources and in part upon financial information supplied by the Seller or any of its contents of this Offering Memorandum to the accuracy or completeness or implied, as express representation or warranty, any makes their form and projections own their make should purchasers Prospective thereto. respect with implied be shall or assumed is legal liability no and their own due diligence. contained herein and conduct without reliance upon the material own conclusions you agree: this Offering Memorandum for the Property, By acknowledging your receipt of of to reject any and all expressions reserve the right, at their sole discretion, Estate Investment Services expressly Owner and Matthews Real or making an Memorandum terminate discussions with any person or entity reviewing this Offering to and Property interest or offers to purchase the and delivered. Property has been fully executed and until a written agreement for the purchase and sale of the offer to purchase the Property unless you agree negotiations, then of the Property or in the future you discontinue such to the acquisition leading If you wish not to pursue negotiations this Property including this Offering Memorandum. to purge all materials relating to provided herein or in or information the Property, rights with respect to this prospective transaction, sole and exclusive A prospective purchaser’s shall be subject to Purchase Agreement and in an executed provided shall be limited to those expressly connection with the sale of the Property Estate Investment Services or or Matthews Real a prospective purchaser have any other claims against Seller In no event shall the terms thereof. or causes or agents for any damages, liability, respective officers, Directors, shareholders, owners, employees, any of their affiliates or any of their or sale of the Property. process or the marketing of action relating to this solicitation state of affairs of the Property or constitute an indication that there has been no This Offering Memorandum shall not be deemed to represent the Memorandum. change in the state of affairs of the Property since the date this Offering Market Positioning & Pricing Analysis

OFFERING MEMORANDUM Listed By J. A. CHARLES WRIGHT Senior Associate Direct 310.295.4374 Mobile 626.290.5965 [email protected] LIC# 01985584 (CA)

10500 S Vermont Ave ™ LOS ANGELES, CA 90044