EXCLUSIVE MULTIFAMILY OFFERING West 179th Street Gardena, CA Units Built: 1961 $5,995,000

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1 EXCLUSIVE MULTIFAMILY OFFERING West 179th Street Gardena, CA Units Built: 1961 $5,995,000 South Gardena Location Near Torrance Excellent Curb Appeal Stable Neighborhood Rental Upside with Renovation Well Maintained capri-orient.berkadiarea.com MIKE MCKINNEY a Berkshire Hathaway and Leucadia National Company

2 THE OPPORTUNITY South Gardena location just blocks to Torrance Well maintained properties with excellent curb appeal Excellent unit mix with 32 2-bed units and 2 3-bed units Stable neighborhood with high percentage of home ownership Rental upside with renovation Well maintained properties, solid rental location, and close to employment, schools and transportation, are all key factors to a successful apartment investment and the Villa Capri and The Orient have them all. In addition, there is rental upside with continued interior renovations. PROPERTY DESCRIPTION Berkadia, as the exclusive listing broker, is pleased to present to you the Villa Capri and The Orient apartments. These well maintained properties are identical seventeen-unit apartment buildings situated on adjacent parcels. Built in 1961 the properties over the last ten years have received new exterior paint, lush landscaping, and interior renovations (most units) with granite or formica counter tops, new flooring, new lighting, electrical outlets and switches. Kitchens feature natural wood cabinets, and gas cooking. The front yards were professionally landscaped creating a lush, tropical island feel to the properties. The property has copper plumbing and the hip/composition shake roof is approximately eleven years old. Both buildings are two-stories with a central courtyard and pool. There is combined parking for 34 cars utilizing carport and tuck-under spaces. Utility meters are separate for gas and electric, and a master meter for water. There is a central water heater for each building. Each building also has a laundry room with two washers and two dryers that are owned by the building. Interior heating is provided by gas wall heaters. The Villa Capri and The Orient have an outstanding unit mix. Each building contains sixteen, two-bedroom, one-bath units and one three-bedroom, two-bath. The three-bedroom units have exceptionally large covered balconies. While the property has been very well maintained and some of the units upgraded, there is still upside for an investor to take the property to another level of improvement and higher rents. VILLA CAPRI & THE ORIENT - 34 Units

3 LOCATION DESCRIPTION The Villa Capri and the Orient are located on a quiet street in the southern section of Gardena, just blocks from the City of Torrance. The surrounding properties are well maintained and consist of condominiums, homes and a few apartment buildings. There is a long established church located across the street. The location provides very easy access to the South Bays major freeways; the San Diego, Harbor, Artesia and Century Freeway, allowing residents to quickly access the areas employment centers such as the ports of Long Beach and Los Angeles, Mobile Oil, Los Angeles International Airport, and Kaiser Permanente Hospital. Gardena and the greater South Bay area has a vibrant and diverse economy and employment base and is home to numerous corporate headquarters such as, American Honda, Kubota Tractor, Sunrider International, and Alpine Electronics. Local world-class hospitals such as Torrance Memorial Medical Center and Little Company of Mary are within a close drive of Villa Capri and The Orient. Also within walking distance is Gardena High School, and within a short drive is El Camino Community College and Cal State University Dominguez Hills. The City of Gardena does not have rent control, however, in 1987 the City instituted a Rent Mediation and Arbitration Procedure. Basically, this set out rules for rent increases allowing a requirement of a 60 or 90 day notice of rent increase depending on how large the rent increase is. Tenants receiving a rent increase notice can file a Request for Mediation if so desired. The owner of Villa Capri and The Orient has never been required to attend a rent mediation meeting in their ten years of ownership. capri-orient.berkadiarea.com

4 UNIT AMENITIES Granite or Formica Counter Tops New Flooring New Lighting Natural Wood Cabinets Gas Cooking Large Balcony on Three-Bedroom Units Gas Wall Heaters COMMON AREA AMENITIES Central Courtyards Two Pools 34 Carport and Tuck-Under Parking Spaces Two Laundry Rooms (Owned Equipment) Copper Plumbing Hip/Composition Shake Roof Beautifully Landscaped

5 PROPERTY SUMMARY Units 34 Built 1961 Total SF 26,508 Average SF 780 Parcel Number , 020 Type of Buildings 2 Two-Story, Garden-Style Roofs Asphalt Composition Shake Exterior Frame/Stucco INVESTMENT SUMMARY Price $5,995,000 Price / Unit $176,324 Price / SF $ Current CAP Rate 5.31% Current GRM Pro Forma CAP Rate 5.99% Pro Forma GRM Proposed Loan $4,197,000 Amount Loan Payment $19,437 / Per Month Interest Rate 3.75% Amortization 30-Year UNIT MIX & RENT SCHEDULE Units Type Approx Unit SF Approx Total SF Market Rent Actual Rent 25 2 Bed / 1 Bath $1,350 $1, Bed / 1 Bath $1,350 $1, Bed / 2 Bath $1,750 $1, Bed / 2 Bath $1,750 $1, ,508 $1,374 $1,266 Income Berkadia Pro Forma Actual In Place Scheduled Market Rent $560,400 $516,600 Plus: Laundry $5,395 $5,395 Plus: Late Payment Fees $4,472 $4,472 Net Rental Income $570,267 $526,467 Less: Vacancy 3.00% ($17,108) ($15,794) Total Operating Income (EGI) $553,159 $510,673 Expenses Per Unit Management Fee 4.50% $732 $24,892 $22,980 Utilities $954 $32,446 $32,446 Contracted Services $282 $9,582 $9,582 Real Estate Taxes % $2,106 $71,609 $71,609 Direct Assessments $189 $6,436 $6,436 Insurance $293 $9,946 $9,946 Maintenance & Repairs $400 $13,600 $13,600 Turnover $200 $6,800 $6,800 Replacement Reserves $100 $3,400 $3,400 Resident Manager $450 $15,300 $15,300 Total Expenses $194,011 $192,099 % of Sch Rent: 34.62% 37.19% Per Unit: $5,706 $5,650 Per SF: $7.32 $7.25 Net Operating Income $359,148 $318,574 Less: Debt Service ($233,244) ($233,244) Projected Net Cash Flow $125,904 $85,330 Cash on Cash Return 7.00% 4.75% Debt Coverage Ratio

6 CONTACT INFORMATION INVESTMENT SALES MIKE MCKINNEY CA DRE License # capri-orient.berkadiarea.com South Bay Los Angeles Office 2321 Rosecrans Avenue, Suite 3235 El Segundo, California Phone: Fax: BerkadiaREA.com ApartmentUpdate.com Berkadia Real Estate Advisors is one of the largest real estate multifamily services firms in the country. The company serves apartment owners and investors with experienced investment sales advisors and mortgage bankers working from over 60 office locations coast to coast. Berkadia Real Estate Advisors research group is nationally renowned for their comprehensive market reports, which provide investors, lenders, owners, and real estate editors with accurate and timely multifamily market information. If you would like to receive these free reports or for more information, please visit ApartmentUpdate.com. Berkadia Real Estate Advisors makes no warranty or representation about the content of this brochure. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The presence of molds may adversely affect the property and the health of some. If you have questions or concerns regarding this issue conduct further inspections by a qualified professional.