11551 Venice Boulevard

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1 PROPERTY HIGHLIGHTS Prime Mar Vista Location Owner User Opportunity Turnkey Investment Opportunity Blocks from the 405 & 10 Freeways Nearby to multiple parks, schools, churches and temples Minutes to shops, restaurants and myriad of other retail offerings Venice Boulevard 1

2 Great 1960 s building is well located in a strong rental pocket of Palms. Located just south of McLaughlin Ave on Venice Blvd. This property offers rental upside ease of management and a possible owner user opportunity. This is a perfect building for the new investor or as an addition to an existing portfolio. Property has been well Maintained with upgraded units including washer/dryers in units. INVESTMENT SUMMARY Price: $1,575,000 Year Built: 1956 Units: 4 Price/Unit: $393,750 Approx. RSF 3,700 Cost per RST $ Current GRM: Current Cap: 3.80% Lot Size: 6,621sf Floors: 2 Parking Spaces: 4 PROPOSED FINANCING First Loan $960,000 New Loan Amount: Loan Term 30 VIR Interest Rate: Contact: Scott Brody Phone: (310) % UNIT MIX & MONTHLY SCHEDULED Unit No. Unit Type Current Rent $1,848 $2, $1,804 $2, $1,965 $2, $1,985 $2,350 Monthly Total: $7,602 $9,100 Annual Total: $91,224 $109,200 Total: $91224 $109,200 ANNUALIZED OPERATING DATA Description Actual Scheduled Potential Rent $91,224 Less: Vacancy (912) Effective Gross Operating Income $90,311 Less: Expenses ($30,780) Net Operating Income $59,531 Less Loan Payments: (58,730) Pre-Tax Cash Flow: 1,161 ESTIMATED EXPENSES Description Actual Property Taxes (New) $18,000 Insurance $2,100 Gardening $1,200 Utilities $3,000 Maintenance/Repairs $1,500 Rubbish $1,500 Pest Control $480 Management $3,000 Total Expenses $30,780 Expenses Per RSF $8.32 Expenses Per Unit $7, SCHEDULED INCOME Current Rents Actual Monthly Gross Income: $7,602 Annual Gross Income $91, 224 Market Rents Market Monthly Gross Income: $9,100 Annual Gross Income: $109,200 PRO FORMA SUMMARY Market Rent All expenses are approximate. 2

3 Recent Sale Comparable S Mar Vista Fourplex Venice Boulevard Los Angeles, CA Sale Price $1,575,000 # Units Unit Type Units Bed / 1 Bath Price/Unit $400,000 Price/SqFt $432 Cap Rate 4.80% Year Built 1956 GRM Lamanda Street Los Angeles, CA Sale Price $1,900,000 # Units Unit Type Units 4 1 Three Bedroom Two Bath Price/Unit $475,000 1 Two Bedroom One Bath Price/SqFt $ Two Bedroom One Bath Cap Rate N/A 1 One Bedroom One Bath Sale Date 2/5/2018 Year Built 1956 GRM 17.3 NOTES 2 Vacant Units with projected rents Beethoven Street Los Angeles, CA Sale Date 6/13/2017 Sale Price $1,915,000 # Units Unit Type Units 4 1 Three Bedroom Two Bath Price/Unit $478,750 1 Two Bedroom One Bath Price/SqFt $ One Bedroom One Bath Cap Rate 3.3% 1 Studio/Efficiency Year Built 1985 GRM

4 Beethoven Street Los Angeles, CA Sale Price $1,980,000 # Units Unit Type Units 4 1 Two Bedroom One Bath Price/Unit $495,000 1 Studio/Efficiency Price/SqFt $ One Bedroom One Bath Cap Rate N/A 1 One Bedroom One Bath Sale Date 9/5/2017 Year Built 1964 GRM Inglewood Boulevard Los Angeles, CA Sale Price $2,250,000 # Units Unit Type Units 4 1 Three Bedroom Three Bath Price/Unit $562,500 1 Three Bedroom Three Bath Price/SqFt $ Three Bedroom Three Bath Cap Rate N/A 1 Three Bedroom Three Bath Sale Date 7/11/2017 Year Built 1940 GRM 14.6 NOTES 2 Vacant Units with projected rents. 4

5 Gross Rent Multiplier % 3.80% 3.70% 3.60% 3.50% 3.80% Cap Rate % 3.30% 3.30% % 3.10% 0 Subject % Subject 2 Price Per Sq. Ft. Price Per Unit $900 $600,000 $800 $700 $600 $500,000 $400,000 $500 $400 $300,000 $300 $200,000 $200 $100 $100,000 $0 Subject $0 Subject

6 AR AREA MARKET OVERVIEW 12 Mo. Delivered Units Mo. Absorption Units 126 Vacancy Rate 3.7% 12 Mo. Asking Rent Growth 3.1% The Greater Culver City Submarket encompasses the municipality of Culver City as well as the large planned community of Playa Vista. Greater Culver City has been one of LA's hot spots for multifamily development in this cycle. Thousands of units have delivered in recent years in Playa Vista, as an influx of tech companies to the area has driven a corresponding jump in the number of wellpaid workers seeking housing. Now, with most available parcels in Playa Vista fully built out, development has shifted to Culver City proper. Demand for the submarket's new product has been strong, and vacancies have compressed swiftly following a supply- driven expansion in This robust demand is driving healthy rent growth as well as continued new development. Sales volume in 2017 continued to outpace the submarket's historical average, although declined from 2016 totals, when several of the largest sales ever recorded took place. KEY INDICATORS Current Quarter Units Vacancy Rate Asking Rent Effective Rent Absorption Units Delivered Units Under Constr Units 4 & 5 Star 7, % $3,297 $3, ,134 3 Star 8, % $2,198 $2,179 (10) & 2 Star 21, % $1,659 $1,651 (20) 0 0 Submarket 37, % $2,357 $2, ,179 Annual Trends 12 Month Historical Average Forecast Average Peak When Trough When Vacancy Change (YOY) 0% 3.7% 4.5% 4.7% % Absorption Units , (181) Delivered Units , Demolished Units Asking Rent Growth (YOY) 3.1% 2.7% 1.2% 9.8% % Effective Rent Growth (YOY) 3.4% 2.7% 1.2% 9.7% % Sales Volume $142 M $208.4 M N/A $395.1 M $66.7 M

7 Vacancy AR Greater Culver City occupies a particular economic sweet spot in LA: the intersection of entertainment and tech. The area's older industrial product is rapidly being converted to creative office space to accommodate these types of tenants. This trend is especially pronounced in Playa Vista, as evidenced by Google's lease of the 319,000 SF airplane hangar where Howard Hughes assembled the Spruce Goose seaplane. Google's space alone could eventually house more than 5,000 employees, and Google is not the only tech giant with a significant footprint in the area. Redevelopment projects and new creative offices have landed tenants including Microsoft, Facebook, Electronic Arts, and YouTube. Advertising, talent agencies, and other assorted supporting businesses are likewise pouring into Playa Vista. This is one of the metro's premier hot spots for employment growth, and the influx of so many well-paid tech workers is having an outsized effect on local apartment demand. Demographics are another reason to believe demand will remain stable. The population of the submarket increased by 5% from , substantially faster than the metro's growth rate. Nearly two-thirds of submarket residents rent, ensuring a steady source of demand. Incomes are also increasing: Median household income improved by 9% from , nearly double the metro rate. Greater Culver City, and particularly the trendy Playa Vista neighborhood, is drawing the coveted affluent Millennial demographic. The percentage of year-olds in the submarket making more than $100,000 a year has jumped 5% in recent years. A third reason for optimism would be infrastructure, with the recently completed Expo Line extension complementing the region's excellent freeway access. This area's residents have not traditionally used public transportation in large numbers, but the submarket has also been underserved. Given the enthusiasm that younger renters have shown for living near rail stations along more established lines in Koreatown and Hollywood, it is easy to imagine the Expo Line pulling in a similar demographic of renters in Culver City. ABSORPTION, NET DELIVERIES & VACANCY 7

8 AR Vacancy VACANCY RATE VACANCY BY BEDROOM 8

9 Rent AR Average rents in Greater Culver City stand well above the metro average but offer a discount to rents in the tech-heavy beachside communities of Santa Monica and Venice Beach to the west. Rent growth has remained relatively healthy despite inventory growth of more than 5% since the start of These steady gains in the face of major supply pressures help explain why developers have been so bullish on the submarket. From a growth standpoint, the older, more modest inventory in Culver City proper is performing even better than the modern high-end developments in Playa Vista. The vacancy rate in the 1 & 2 Star properties that make up the bulk of submarket inventory has held steady at around 3% for several years, helping spur rent growth to around 4% annually over the last three years. The ability of older product to post continued healthy gains testifies to the economic, geographic, and demographic advantages of Greater Culver City. DAILY ASKING RENT PER SF 9

10 Rent AR ASKING RENT PER UNIT & RENT GROWTH ASKING RENT PER UNIT BY BEDROOM 10

11 Construction AR Greater Culver City's 38,000 units represent about 4.5% of the metro's stock. Thanks to the recent burst of new construction, about 25% of inventory comprises 4 & 5 Star units, far above the average for LA as a whole. While the flashy new developments at Playa Vista draw attention and headlines, the bulk of the submarket's inventory comprises older, smaller communities. North of Venice Boulevard, Culver City's leafy streets are lined with block after block of decades-old low-rise complexes with fewer than 20 units. For most of this cycle, development was dominated by the Irvine Co.'s massive Villas at Playa Vista, which totaled 1,500 units in three separate communities. Developments of this magnitude are exceedingly rare in land-constrained LA, but it leased up quickly. The 491- unit Malibu, the 309-unit Montecito, and the 703-unit Sausalito were all fully stabilized as of early Another major nearby development, the 420-unit Runway Playa Vista, took a bit longer to lease up but was stablized by midyear This is encouraging news for Greystar Real Estate, which has two projects along the Venice-Washington Boulevard corridor in downtown Culver City. Greystar's 135-unit project at Washington Blvd., expected to deliver in 2018, and the 118-unit Access Culver City, which completed in April 2016, are both mid-rises with street-level retail, mirroring the type of development recently popular in metro hot spots like West Hollywood and Downtown's South Park. These communities are larger than typical Culver City inventory and are near the expanded Expo Metro line. With most available land in Playa Vista fully built out, development has shifted to Culver City proper and to the Del Rey neighborhood where the submarket borders Marine del Rey. Several major projects are still under development, including the 300-unit, city-owned Ivy Station, and California Landmark Group's 230-unit G8, both projected to deliver in late DELIVERIES & DEMOLITIONS 11

12 Construction All-Time Annual Avg. Units 136 Delivered Units Past 4 Qtrs 138 AR Delivered Units Next 4 Qtrs Proposed Units Next 4 Qtrs PAST 4 QUARTERS DELIVERIES, UNDER CONSTRUCTION, & PROPOSED PAST & FUTURE DELIVERIES IN UNITS 12

13 Sales AR Investment activity in Greater Culver City exploded in the second half of 2016, but has subsided somewhat since then. The newest, most modern assets are commanding prices never seen before in Greater Culver City. Equity Residential paid $45.2 million ($480,000/unit) in September 2016 for C on Pico, a 4 Star 94-unit complex built in R.W. Selby & Company then made a splash in November when it acquired a three-property portfolio that included two neighboring Greater Culver City communities at and Idaho Ave. The two projects together house 125 units and traded for about $680,000/unit. The year ended, fittingly, with a new record price per unit, as Verbena Road Holdings LTD purchased the recently completed Harlow as part of a massive nine-complex, $430 million portfolio acquisition. The 131-unit Harlow, which delivered in January 2016, was valued at $94.5 million, or more than $720,000/unit. Investment activity remained healthy in 2017, although the huge institutional sales that characterized 2016 have not materialized. Most sales through the last year consisted of private buyers trading smaller communities, and the average price per unit on those sales declined from a high above $400,000/unit in 2016 to around $265,000/unit in One major outlier was Greystar's September acquisition of the 4-Star, 140-unit Forty55 Lofts as part of their $4.4 Billion takeover of the 49- property Monogram Residential Trust portfolio. Forty55 Lofts were valued at about $64 million, or around $460,000/unit. One of the most significant deals in the submarket's history occurred in early 2016, when Texas-based Invesco Real Estate acquired the mixed-use Runway Playa Vista complex at the heart of the planned community for an eye-popping $475 million. This is another strong indication of Playa Vista's growing reputation as a premier live/work/play destination. The development includes more than 200,000 SF of retail space, 33,000 SF of office space, and 420 apartments. SALES VOLUME & MARKET SALE PRICE PER UNIT 13

14 AR Sales Past 12 Months Sale Comparables Avg. Price/Unit (thous.) Average Price (mil.) Average Vacancy at Sale 122 SALE COMPARABLE LOCATIONS $187 $ % SALE COMPARABLES SUMMARY STATISTICS Sales Attributes Low Average Median High Sale Price $220,500 $2,848,930 $2,375,000 $8,350,000 Price Per Unit $19,511 $187,182 $300,500 $800,000 Cap Rate 2.3% 3.6% 3.7% 4.5% Vacancy Rate at Sale 0% 5.8% 0% 100% Time Since Sale in Months Property Attributes Low Average Median High Property Size in Units Number of Floors Average Unit SF ,281 Year Built Star Rating