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PROPERTY VIDEO

MANCHESTER PLAZA 520-536 E AVE LOSOFFERING ANGELES, MEMORANDUM CA 90003 EXCLUSIVELY LISTED BY

JOE NELSON GARY CHOU BROKER OF RECORD Senior Associate EVP & Senior Director Kyle Matthews License No. 1972189 (CA) D: +1 (424) 220-7244 D: +1 (310) 919-5827 M: +1 (818) 497-8411 M: +1 (714) 928-8016 [email protected] [email protected] License No. 02012421 (CA) License No. 01911222 (CA)

2 OFFERING MEMORANDUM TABLE OF 04 06 10 19 CONTENTS INVESTMENT FINANCIAL TENANT AREA HIGHLIGHTS OVERVIEW OVERVIEWS OVERVIEW

LOS ANGELES, CA 3 INVESTMENT HIGHLIGHTS

» INVESTMENT HIGHLIGHTS • E-Commerce Resistant National Tenants include PLS Check Cashing (300+ locations), Wingstop (1,400+ locations) and Dental Dreams (70+ locations) • Brand New 10-Year NNN Leases with Scheduled Rent Increases Provides a Strong Hedge Against Inflation • Full 2020 Renovation Features Brand New Roof & 15 Year Warranty, Newly Sealed & Striped Parking Lot, Brand New HVAC System (All 4-Units), Brand New Interior Gas & Water Lines, and Brand New Storefronts & Façades (full renovation details on Page 6) • Prime Signalized Intersection with ± 65,000 Vehicles Per Day Passing the Property • Each Tenant Pays a Management Fee (10% of CAM) and Property Features Very Landlord-Friendly Leases

» LOCATION HIGHLIGHTS • The Forum & The Rams Newly Constructed Sofi Stadium are located on Manchester Avenue Directly 4.5 Miles East of the Property • 8.3 Miles from International Airport, the World’s 3rd Busiest Airport • 5.75 Miles to the Staples Center and 8.0 Miles to • ±14,000 Households within a 1-Mile Radius of the Property, and ±278,000 Households within a 3-Mile Radius • ±471,750 People within a 3-Mile Radius of the Property, and ±1,085,500 People within a 5-Mile Radius • Manchester/Avalon Bus Station Positioned Directly in front of the Property, Operating Daily and Providing Easy Transit to and from the Property

$5,956,011 $700.71 $327,581 5.50% PRICE PRICE PSF NOI CAP RATE

4 OFFERING MEMORANDUM INVESTMENT HIGHLIGHTS

» TENANT HIGHLIGHTS

• PLS CHECK CASHING: • Founded in 1997 and one of the largest and most recognized organizations in the industry • Over 300 locations in 12 states and open 24 hours a day, 7 days a week • Provides money solutions including check cashing, wire transfers, personal/business loans, auto & transit services, prepaid phones & cards, & much more

• WINGSTOP: • Wingstop (NASDAQ: WING) was founded in 1994 in Garland, TX • The restaurant chain now has over 1,400 locations worldwide • Wingstop has seen 16 years of same store sales growth, 16% system-wide sales growth, and 20% adjusted EBITDA growth with a 406% total shareholder return since IPO as of 12/28/2019.

• DENTAL DREAMS: • Dental Dreams first launched in 2001 and prides themselves on bringing top quality dentistry to all members of the communities they serve, regardless of their form of payment including Medicaid and other government programs. • Dental Dreams operates over 70 dental practices in 11 states with over 1,800 employees. • Dental Dreams operates Dental Dreams, CanAm Dental, Healthy Smiles, Family Smiles, & Family Dental all under the Dental Dreams parent organization.

• 1,000 SF VACANCY: • Remaining 1,000 SF Vacancy with exceptional leasing potential. Currently marketed at $39/SF, and pro forma underwriting & pricing based on $35/SF. • Space is currently in vanilla box form with new ADA compliant bathroom

LOS ANGELES, CA 5 INVESTMENT HIGHLIGHTS

» 2020 RENOVATION HIGHLIGHTS 1. Electrical System: New electrical service to building 120/240 delta high leg 800 Amp service. Each unit (4 total) is separately metered and (1) CAM meter. All exterior and interior electric complies with Title 24 energy code. The total cost for the new electrical service was approximately $170,000.

2. HVAC System: New rooftop HVAC units installed in Units 2,3,4 (unit 1-PLS was responsible for their own new HVAC).

3. ADA Compliance: New ADA compliance survey done at the property. All work is completed per the architect’s requirements and recommendations.

4. Asphalt/Concrete: New concrete sidewalk in front of Unit 2 & 3 and new concrete trench drain in parking lot. Asphalt was replaced adjacent to building sidewalk. Remainder of lot has been sealed and striped in accordance with ADA requirements.

5. Roof: The old roof was removed to the plywood decking. All damaged decking was replaced. A new 60 mil TPO roof with 15/5 Roof warranty. Title 24 Cool Roof compliant, new scuppers, and new downspouts.

6. Storefront: All storefront systems have been replaced with new “clear” anodized aluminum storefront per required codes. Currently in permitting process to install additional storefront in Unit 3.

7. Façade: The façade above Units 2&3 was raised by approximately 2’ and stucco was refinished.

8. Gas & Water Lines: New interior gas and water lines installed to all units.

9. Unit 3 – 1,000 SF Vacancy: Vanilla box condition with new ADA bathroom.

6 OFFERING MEMORANDUM FINANCIAL02 OVERVIEW MANCHESTER PLAZA

LOS ANGELES, CA 7 INCOME & EXPENSES

ANNUAL $/SF/Yr MONTHLY $/SF/Mo Income Rental Income $325,555 $38.30 $27,130 $3.19 Admin Fee Income $2,026 $0.24 $169 $0.02 Expense Reimbursements $94,500 $11.12 $7,875 $0.93 Effective Gross Revenue $422,081 $49.66 $35,173 $4.14

Expenses Real Estate Taxes $70,000 $8.24 $5,833 $0.69 Insurance $2,500 $0.29 $208 $0.02 CAM & Property Management $22,000 $2.59 $1,833 $0.22 Total Operating Expenses $94,500 $11.12 $7,875 $0.93 Net Operating Income $327,581 $38.54 $27,298 $3.21

*Expenses are estimated to reflect actual Year 1 expenses. Leases are NNN and all expenses pass through to the tenants including property management. Tenants pay a percentage of CAM to landlord as an Admin Fee. Units are separately metered and tenants pay tenant utilities and insurance directly.

DEBT QUOTE

Loan quote provided by Barrington Capital based on market conditions at this time. Actual LTV: 65% rates and terms will vary based on market conditions at closing. Please contact: RATE: 3.75% Jesse Lillard AMORTIZATION: 25 Years (956) 564-2922 [email protected]

8 OFFERING MEMORANDUM MANCHESTER AVE ± 46,000 VPD

METRO STATION

TENANT ROSTER Unit Tenant Square Feet OCCUPIED 520 Dental Dreams 3,000 AVAILABLE 522 Vacant 1,000 S. AVALON BLVD

528 Wingstop 1,348 ± 25,000 VPD

538 PLS 3,152

Total SF 8,500

520 522 528 538

for Kids and Adults

1,000 SF PL$ AVAILABLE

LOS ANGELES, CA 9 RENT ROLL

Contract Rental Rate Rent PSF Lease Lease % of Recovery Rent Increase Unit Tenant GLA Rent Increases Options Start End GLA Structure Percentages Year Month $ PSF/Yr. $ PSF/Mo.

NNN + Mgmt + Dental 2.50% Annually for Three, 520 07/11/2020 01/31/2030 3,000 35.29% $99,000.00 $8,250.00 $33.00 $2.75 Admin Fee 10% of 2.50% Annually Dreams 10-Years and Options 5-Year CAM

NNN + Mgmt + 522 Vacant N/A N/A 1,000 11.76% $35,000.00 $2,916.67 $35.00 $2.92 Admin Fee 10% of N/A N/A N/A CAM***

Year 6 - 8.20% Year 6 - $39.60/sf NNN + Mgmt + Opt. 1 - 10.00% Opt. 1 - $43.56/sf Three, 528 Wingstop 01/1/2021* 12/31/2030* 1348 15.86% $49,336.80 $4,111.40 $36.60 $3.05 Admin Fee 5% of Opt. 2 - 10.00% Opt. 2 - $47.91/sf 5-Year CAM Opt. 3 - 10.00% Opt. 3 - $52.70/sf

NNN + Mgmt + Year 6 - 12.20% Year 6 - $50.64/sf Two, 538 PLS 01/27/2020 01/31/1930 3,152 37.08% $142,218.24 $11,851.52 $45.12 $3.76 Admin Fee 10% of Opt. 1 - 6.60% Opt. 1 - $54.00/sf 5-Year CAM Opt. 2 - 7.41% Opt. 2 - $58.00/sf

Vacant Total 1,000 11.76% $35,000.00 $2,916.67 $35.00 $2.92

Occupied Total 7,500 88.24% $290,555.04 $24,212.92 $114.72 $9.56

Total 8,500 100% $325,555.04 $27,129.59 $149.72 $12.48

*Wingstop space delivered to tenant June 2020 and rent commencment date is TBD, estimated to be 1/1/2021 **Assumes vacancy is filled shortly before or after sale. Space is currently listed for lease at $39.00/sf ***Pricing assumes 1,000 sf vacancy is leased at $35/sf providing opportunity for buyer to increase value though leasing

10 OFFERING MEMORANDUM 03TENANT OVERVIEWS MANCHESTER PLAZA

LOS ANGELES, CA 11 DENTAL DREAMS - CANAM DENTAL WINGSTOP Dental Dreams first launched in 2001 and prides themselves on What began as a small buffalo-style chicken wing restaurant in bringing top quality dentistry to all members of the communities they Garland, Texas, continues to soar to great heights. Today there serve, regardless of their form of payment. Dental Dreams operates are more than 1,400 restaurants open across the , over 70 dental practices in 11 states with over 1,800 employees. Mexico, Colombia, Panama, Singapore, Indonesia, Malaysia, UK and Dental Dreams operates under the names Dental Dreams, CanAm the United Arab Emirates. Wingstop quickly became a fan favorite Dental, Healthy Smiles, Family Smiles, & Family Dental which are when they first opened their doors in 1994. Their proprietary all a part of the Dental Dreams parent organization. Their industry- recipes, outstanding food and superior customer service created a leading dentists have access to state-of-the-art technology to be demand that could only be satisfied by more locations. And in 1997 able to provide all the benefits modern technology allows. All forms we began offering franchises. Today they are one of the fastest- of insurance are accepted at CanAm Dental, including Medi-Cal, growing concepts in the country, attracting top entrepreneurs and Denti-Cal, and Liberty Dental for both Children and Adults. operators with the drive and passion to own their own business.

12 OFFERING MEMORANDUM PLS PLS is a company committed to making life a little easier for people by giving them helpful everyday money solutions and more. They listen to their customers’ needs and welcome them with what matters most—things like value, respect, service, peace of mind and 24/7 convenience. At PLS, they believe that providing people with value, service and respect is just as important as offering helpful solutions. Founded in 1997 with this principle in mind, PLS is determined to make a difference in their customers’ lives.

Since opening PLS has grown to over 300 locations in 12 states—expanding their impact across the country. It’s led PLS to be one of the largest and most recognized organizations in the industry.

LOS ANGELES, CA 13 14 OFFERING MEMORANDUM DOWNTOWN PASADENA N LOS ANGELES

± 5.75 MILES AWAY FREMONT MC KINLEY AVE HIGH SCHOOL ELEMENTARY SCHOOL

± 4 MILES AWAY ± 8 MILES AWAY

SOUTH PARK MANCHESTER/ ELEMENTARY SCHOOL AVALON METRO STATION

E. MANCHESTER AVE ± 46,000 VPD

AVALON BLVD SUBJECT ± 25,000 VPD PROPERTY

LOS ANGELES, CA 15 CITY OF INDUSTRY ANAHEIM E COMMERCE DOWNEY

HUNTINGTON PARK SOUTH GATE

RUSSELL ELEMENTARY SCHOOL

THE NEW CHARLES DREW MIDDLE SCHOOL

E. MANCHESTER AVE ± 46,000 VPD

SUBJECT PROPERTY AVALON BLVD ± 25,000 VPD

16 OFFERING MEMORANDUM INTERSTATE S 105 LONG BEACH ± 246,000 VPD RANCHO PALOS VERDES

NINETYTHIRD STREET ELEMENTARY SCHOOL

DYMALLY HIGH SCHOOL

AVALON BLVD ± 25,000 VPD

SUBJECT PROPERTY

E. MANCHESTER AVE ± 46,000 VPD

LOS ANGELES, CA 17 VENICE ± 8.4 MILES AWAY SANTA MONICA W EL SEGUNDO MARINA DEL REY

INTERSTATE 110 ± 310,000 VPD

± 4.2 MILES AWAY FREMONT HIGH SCHOOL

± 4.2 MILES AWAY

E. MANCHESTER AVE ± 46,000 VPD

SUBJECT PROPERTY

AVALON BLVD ± 25,000 VPD

18 OFFERING MEMORANDUM 6 MILES

4 MILES SUBJECT PROPERTY 2 MILES

LOS ANGELES, CA 19 04AREA OVERVIEW MANCHESTER 1,130,702 291,809 2020 5-MILE 2020 5-MILE PLAZA POPULATION ESTIMATE HOUSEHOLDS ESTIMATE

507,877 PROPERTY DEMOGRAPHICS 2020 3-MILE POPULATION 1-MILE 3-MILE 5-MILE POPULATION ESTIMATE 2025 Projection 68,486 522,658 1,157,823 2020 Estimate 66,025 507,877 1,130,702 2010 Census 61,850 484,968 1,092,569 Growth 2020-2025 3.73% 2.91% 2.40% Growth 2010-2020 6.75% 4.72% 3.49%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2025 Projection 16,206 129,806 298,910 2020 Estimate 15,659 126,221 291,809 2010 Census 14,782 120,784 281,879 Growth 2020-2025 3.49% 2.84% 2.43% Growth 2010-2020 5.93% 4.50% 3.52%

126,221 INCOME 1-MILE 3-MILE 5-MILE 2020 3-MILE 2020 Avg. $52,396 $53,730 $60,332 HOUSEHOLDS ESTIMATE Household Income

20 OFFERING MEMORANDUM LOS ANGELES

Los Angeles officially the City of Los Angeles and often known by its initials place to be. It is the only city in North America to have hosted the Summer L.A., is the most populous city in ; the second most populous city Olympics twice - and by 2028 the third time. Downtown L.A. is the largest in the United States, after New York City; and the third most populous city government center outside of Washington, D.C. Los Angeles has the only in North America, after Mexico City and New York City. With an estimated remaining wooden lighthouse in the state (located in San Pedro’s Fermin population of nearly four million people, Los Angeles is the cultural, Park) and the largest historical theater district on the National Register of financial, and commercial center of . The city is known Historic Places (located Downtown on Broadway). for its Mediterranean climate, ethnic diversity, the entertainment industry, Los Angeles is on the leading edge of several growth industries. The Los and its sprawling metropolis. Angeles metropolitan area, with more than 23,000 art jobs, is the country’s The City of Los Angeles holds many distinctions. L.A. is the entertainment leading artistic center, surpassing the previous champion, New York. In capital of the world, a cultural mecca boasting more than 100 museums, other words, Los Angeles has both a larger concentration and an absolute many of them world-class, and a paradise of idyllic weather. From tourist number of artists than New York. The L.A. five-county area is also a major attractions like the Walk of Fame’s collection of stars (numbering more tech center, with more than 700,000 people at work in health services/ than 2,614 and growing by one or two a month) to career opportunities biomedical activities and 190,000 people in aerospace. Here are some more like those presented in the expanding tech industry, Los Angeles is the facts and figures about Los Angeles: the city, the county, and the region.

Los angeles county employs A culturally diverse city, with a growing culinary It is the largest and most populous city over 100,000 people alone scene, shopping, museums, and a reputation in the state of California and the cultural, for being the creative center of America. financial, and commercial center of Southern California.

LOS ANGELES, CA 21 LOS ANGELES ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

L.A. County is an entertainment, manufacturing and international trade behemoth, with a fast-growing high-tech and digital media industry cluster largely centered in West L.A. and, increasingly, in the Hollywood area and beyond. With $807 billion in annual output, Los Angeles County ranks among the world’s largest economies. Its GDP, which would rank No. 19 in the world if it were a standalone nation, is larger than Switzerland and Saudi Arabia, and right behind Netherlands and Turkey, underscoring the magnitude of the region’s economy.

22 OFFERING MEMORANDUM TOURISM 50 MILLION 50 Million People who traveled to Los Angeles last year Tourism accelerated Los Angeles County’s economic prosperity in 2018 as visitors pumped an all-time high $23.9 billion directly into the L.A. economy, generating a record $36.6 billion in total economic impact. A new economic impact report released today by $22 BILLION Los Angeles Tourism & Convention Board demonstrates the power LA visitors spent $22 billion on hotels, restaurants, shopping, attractions and more of tourism in Los Angeles during National Travel & Tourism Week, an annual event established by Congress and organized by the U.S. Travel Association to celebrate the impact of travel. 525,000 There are 525,000 jobs supported by the Los Angeles tourism industry Tourism supported 534,258 jobs in L.A. County’s Leisure & Hospitality sector, its highest total on record, employing 1 in every 8.5 workers in the county. Reaffirming the strength of the sector, tourism added 8 YEARS 9,700 new jobs last year. LA has celebrated 8 consecutive years of record growth

ATTRACTIONS ARTS & CULTURE Some of the world’s best-known and most iconic landmarks With various museums and exhibits, Los Angeles is full of inspiring and attractions call Los Angeles home: the Hollywood Sign; art and diverse cultural experiences. In fact, Los Angeles has more ; the Getty Center; the Walt Disney Concert museums and theatres than any other city in the U.S., making it the Hall at the Music Center in Downtown L.A.; the Hollywood Walk perfect place to be immersed in arts and culture. Los Angeles is home of Fame; the TCL Chinese Theatre; Space Shuttle Endeavour at to more than 105 museums, 225 theaters, 55 magnificent structures by the California Science Center; the Battleship USS Iowa located the world’s top architects and 16 of the world’s most beautiful gardens. at the Port of Los Angeles in San Pedro; Air Force One at the It also boasts more than 1,500 theatrical productions annually. The Ronald Reagan Library; and Universal Studios Hollywood, with city also has one of the premier contemporary art museums in the its dynamic immersive experience, The Wizarding World of world, the Broad, located in Downtown L.A., and also one of the largest Harry Potter™. collections of cars in the nation at the Peterson Automotive Museum.

SPORTS With famous venues like the Staples Center at L.A. LIVE, home to the NBA’s Los Angeles Lakers and Los Angeles Clippers, NHL’s L.A. Kings, and Dodger’s Stadium, where the Los Angeles Dodgers serve as a main attraction sports fans flock to in L.A. Los Angeles is also home to several esteemed universities that have large sports followings such as USC and UCLA.

LOS ANGELES, CA 23 CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs of 520-536 Manchester Avenue, Los Angeles, CA 90003 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. MANCHESTER PLAZA

520-536 E MANCHESTER AVE LOS ANGELES, CA 90003

EXCLUSIVELY LISTED BY

JOE NELSON Senior Associate

D: +1 (424) 220-7244 M: +1 (818) 497-8411 [email protected] License No. 02012421 (CA)

GARY CHOU EVP & Senior Director

D: +1 (310) 919-5827 M: +1 (714) 928-8016 [email protected] License No. 01911222 (CA)

BROKER OF RECORD Kyle Matthews License No. 1972189 (CA)

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