BRANDON MICHAELS S. GRAND AVENUE LOS ANGELES, CA GROUP

Transcription

1 1036 S. GRAND AVENUE LOS ANGELES, CA BRANDON MICHAELS GROUP 1

2 INVESTMENT ADVISORS BRANDON MICHAELS Senior Managing Director Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # SAM LIBEROW Vice President Investments Director, National Multi Housing Group Tel: (818) Fax: (818) License: CA # BEN BROWNSTEIN Investment Associate National Retail Group Tel: (818) Fax: (818) License: CA # OFFICES NATIONWIDE AND THROUGHOUT CANADA 2 3

3 COMPLETED UNDER CONSTRUCTION The Los Angeles Convention Center hosts annual events such as the Los Angeles Auto Show, the Anime Expo, and many others. W. PICO BOULEVARD 7-story 247 rental units by Wolff Company $500 million, twin 35-story towers with 648 apartments and 48,000 SF of retail, 2-acre rooftop park and pool deck 1212 FLOWER Omni Group is building a pair of high-rises with 730 apartments Home to LA Lakers, LA Clipprs, LA Sparks, LA Kings and the world s Most successful arena Set to be complete in 2019, it includes a Park Hyatt Hotel, 7-story retail podium, 504 condos developed by Being based Oceanwide Group MACK URBAN TOWER Mack Urban is creating an urban village with 1,900 rental units, small parks, and Fleming s prime Steakhouse Katsuya Tom s Urban Cleo Smashburger Ford s Filling Station Lucky Strike Yard House 151 condos developed by Trumark Urban 11TH STREET Luxury Hotel and Residences $1 Billion luxury condo & hotel, developed by Chinese based Greenland USA 1036 S. GRAND AVENUE LOS ANGELES, CA The Hanover Co. developed the apartment community, which completed in APEX II Holland Partner Group apartments, retail HOPE STREET 201 residential units with retail GRAND AVENUE 9TH STREET 888 SOUTH HOPE CIM Group - 34 story tower, 526 residential units 205 apartments, 19,500 SF of retail from CIM Group Hoke Poke Philz Coffee Jersey Mike s Subs LEVEL 33 story tower with 300 completely furnished units by Onni Group ATELIER 33 story tower with 363 apartments, 10,000 SF of retail 825 SOUTH HILL 50-story building with 516 rental apartments aboev 5,000 SF of retail 7-story featuring 293 rental units, 15,000 SF of retail by Wolff Company. The Hanover Co. developed the apartment community, which completed in OLIVE STREET 362 apartments by Mack Urban 12TH STREET OLYMPIC BOULEVARD 4 5 HILL STREET

4 DTLA EXECUTIVE SUMMARY $98K RESIDENTS MEDIAN INCOME $101K WORKERS MEDIAN INCOME Marcus & Millichap is pleased to present the opportunity to acquire 1036 S. Grand Avenue, a 7,500 SF free-standing retail building located in the booming South Park district of Downtown Los Angeles. South Park is the premiere sports and entertainment destination of Southern California. South Park is the premier district in Downtown Los Angeles, home to the Staples Center, L.A. Live entertainment and dining complex, and the Los Angeles Convention Center. In addition, South Park is a growing residential community with billions of dollars in new residential, retail, office, and hospitality construction. South Park accounts for 70% of Downtown Los Angeles residential construction, with over 20 new projects scheduled to commence by The booming residential construction in South Park has brought on a number of new and exciting projects, including a brand new Whole Foods and redesign of a flagship Macy s S. Grand is a unique free-standing retail building, located adjacent to multiple new developments including Level, a high-rise fully furnished luxury apartment building, and 1000 Grand by Windsor, a brand new high end apartment community S. Grand is a 7,500 SF retail building complete with 25 foot truss ceilings, massive skylights, floorto-ceiling brick walls, and concrete floors. The building is currently vacant, ideal for an owner-user Buyer or investor who desires to be in the heart of burgeoning South Park in Downtown Los Angeles. 6 7

5 PLAT MAP ADDRESS 1036 S. Grand Avenue, Los Angeles, CA SITE LOCATION The subject property is on S. Grand Avenue, just north of W. 11th Street and south of W. Olympic Boulevard. SQUARE FOOTAGES A free-standing building with bulding square footage of 7,500 SF on a 7,851 SF lot. FRONTAGE AND ACCESS Approximately 51 feet of frontage on Grand Avenue. PROPERTY OVERVIEW YEAR BUILT The property was built in ADDRESS ASKING PRICE $4,980,000 BLDG SF LAND SF 1036 S. Grand Avenue, Los Angeles, CA ,500 SF 7,851 SF PRICE/SF (BLDG) $ PRICE/SF (LAND) $ PROFORMA CAP RATE 7.23% OCCUPANCY Vacant YEAR BUILT 1912 ZONING LAR5 APN PROPERTY TYPE Retail TYPE OF OWNERSHIP Fee Simple ZONING The zoning is LAR5. PARKING Six spaces in the rear of the building. BUILDING FEATURES Approximately 25 foot truss ceilings, massive skylights, floor to ceiling brick walls, concrete floors 8 9

6 UNIQUE INDUSTRIAL STYLE BUILDING INCLUDING 25 FOOT TRUSS CEILINGS, MASSIVE SKYLIGHTS, FLOOR-TO-CEILING BRICK WALLS, AND CONCRETE FLOORS 10 11

7 INVESTMENT HIGHLIGHTS LOCATED IN THE BOOMING SOUTH PARK DISTRICT OF DOWNTOWN LOS ANGELES South Park is the premiere sports and event destination of Southern California, home to Staples Center, L.A. Live entertainment and dining complex, and the Los Angeles Convention Center South Park is a growing residential community with exciting new shopping, nightlife, and dining amenities including a brand new Whole Foods and redesign of flagship Macy s South Park has over 5,000 apartment units and 416,000 SF of new retail space currently in development The growth in Downtown has tripled South Park s population to more than 5,000 people Over 500,000 people work in Downtown LA UNIQUE FREE-STANDING RETAIL BUILDING Unique free-standing retail building with 25-foot truss ceilings, massive skylights, floor to ceiling brick walls, and concrete floors Building is currently vacant, making this an ideal opportunity for an Owner-User Buyer or Value-Add Investor 800+ NEW RESTAURANTS, BARS, RETAIL, NIGHTLIFE, AND AMENITIES SINCE 2008 BILLIONS OF DOLLARS OF DEVELOPMENT TAKING PLACE IN SOUTH PARK Oceanwide Plaza, located at Flower and 11th Street, is a $1 billion project including a Park Hyatt Hotel. Metropolis, located on James M. Wood Boulevard and Francisco St, is a $1 billion project including a Hotel Indigo 1020 S. Figueroa, located on Figueroa Street and W. Olympic Boulevard, is a $700 million development with a W Hotel 1036 S. Grand is adjacent to the brand new Windsor apartments and Ten50, a new 25-story luxury residential tower Over 20 projects scheduled to commence by 2018 in South Park South Park accounts for 70% of Downtown Los Angeles residential construction $27.1 billion has been invested in new construction since million square feet of retail space is currently under construction EXCELLENT DEMOGRAPHICS $98,000 average median household income of residents living in Downtown Los Angeles 19 million annual visitors to Downtown LA 79% of residents have earned a college degree or higher 500,000+ weekday population 66% of residents are between the ages of

8 FINANCIALS RENT ROLL Tenant SF % of Bldg ProForma Rent PF Rent/SF Lease Type Vacant 7, % $30,000 $4.00 NNN ANNUALIZED OPERATING DATA Income and Expense Current Scheduled Lease Income: $360,000 NNN Charges: $92,775 Effective Gross Income: $452,775 Expenses: $92,775 Net Operating Income: $360,000 Loan Payment: $209,611 Pre-Tax Cash Flow: 7.5% $150,389 Principal Reduction: $60,211 Total Return Before Taxes: 10.6% $210,600 Expenses Annual Per SF Taxes: 1.25% $65,938 $8.79 Insurance $3,000 $0.40 Utilities $3,375 $0.45 Trash $3,000 $0.40 Repairs & Maintenance $5,250 $0.70 Management $14,400 $1.92 Reserves $1,500 $0.20 Total Expenses $96,463 $12.86 Pricing Price $4,980,000 ProForma CAP Rate 7.23% Price/SF (bldg) $ Price/SF (lot) $

9 LEASE COMPARABLES Address Rent/Mo/SF Rent/Yr/SF Lease Type Space Avail Bldg SF W. 7th Street, Los Angeles $5.00 $60.00 NNN 3,700 13, W. 7th Street, Los Angeles $5.00 $60.00 NNN 1, , E. 8th Street, Los Angeles $3.50 $42.00 NNN 2,000 92,800 RENT COMPARABLES E. 9th Street, Los Angeles $5.00 $60.00 NNN 1,500 24, S. Broadway, Los Angeles $3.50 $42.00 MG 3,250 38, S. Broadway, Los Angeles $4.75 $57.00 NNN 1,657 6, S. Broadway, Los Angeles $6.00 $72.00 NNN 1,069 7, S Flower Street, Los Angeles $3.50 $42.00 NNN 7,350 15, S. Hill Street, Ls Angeles $7.00 $84.00 NNN 2,800 38, W. Olympic Boulevard, Los Angeles $4.50 $54.00 NNN 1,853 14,886 Average $4.78 $ ,651 65,

10 SALES COMPARABLES SALES COMPARABLES (BLDG) $ $ $ $ $ $ S. Hope Street, Los Angeles $ S. Main Street, Los Angeles SALES COMPARABLES PRICE/SF $ S. Olive Street, Los Angeles $ E. Pico Boulevard, Los Angeles $ Average $ Subject Property

11 SALES COMPARABLES (BLDG) 1 Address 1221 S. Hope Street, Los Angeles Sales Price $6,800, Price/SF Bldg $ Bldg SF 7,705 Lot SF 7,754 Price/SF Lot $ Close of Escrow 10/20/ Address 464 S. Main Street, Los Angeles Sales Price $4,175, Price/SF Bldg $ Bldg SF 5,600 Lot SF 5,628 Price/SF Lot $ Close of Escrow 11/17/2016 CAP Rate 3.74% 3 4 Address 1033 S. Olive Street, Los Angeles Sales Price $5,000, Price/SF Bldg $ Bldg SF 6,530 Lot SF 7,632 Price/SF Lot $ Close of Escrow 3/2/2016 Address 777 E. Pico Boulevard, Los Angeles Sales Price $3,700, Price/SF Bldg $ Bldg SF 4,880 Lot SF 5,445 Price/SF Lot $ Close of Escrow 7/12/

12 SALES COMPARABLES (LAND) $ $ $ $ $ $ $ $ $ $- $ W. Pico Boulevard, Los Angeles SALES COMPARABLES PRICE/SF $ S. Hope Street, Los Angeles $ Average Subject Property 1 Address 427 W. Pico Boulevard, Los Angeles Sales Price $4,300, Land SF 5,227 Price/SF Land $ Close of Escrow 12/30/2016 Zoning R5 2 Address 1317 S. Hope Street, Los Angeles Sales Price $4,900, Land SF 7,450 Price/SF Land $ Close of Escrow 9/13/ Zoning LAR5 2 1

13 DTLA Downtown Los Angeles has seen an amazing reemergence in the past years. Its renaissance began with the adaptive re-use of historic buildings and its emergence as an entertaining, dining and nightlife destination, thanks to the Staples Center and entertainment complex of LA Live. This has led to an explosion of new residential development and retail. Downtown s population has tripled, and a current inventory of 67,324 residential units are available with 18,393 under construction. $98K RESIDENTS MEDIAN INCOME $101K WORKERS MEDIAN INCOME AREA OVERVIEW Downtown has become the premiere shopping and entertainment destination for all of Los Angeles. Currently 55 projects are under construction, including 1,156 hotel rooms and 1,958,100 SF of retail. A further 104 projects are being proposed. Recent years have seen an influx of major national brands such as the newly renovated Macy s flagship store, the arrive of Whole Foods Market, as well as trendy stores like City Target, Zara, H&M, and more. Downtown can be divided into several different neighborhoods. The financial district, where a majority of the office high-rises are gathered, has recently opened the 73-story Wilshire Grand Center, a project that has been highly anticipated for years, and that dramatically reshapes the skyline as the tallest building in Downtown LA. South Park is the sports and event destination with the staples center, L.A. Live entertainment and dining complex, and the LA Convention Center. South Park has been and is key to the new residential developments, including Oceanwide Plaza, and Metropolis. 58,702 $ POPULATION AVERAGE CONDO PRICE/SF 24 25

14 MARKET OVERVIEW RESIDENTIAL RETAIL HOSPITALITY OFFICE With the opening of the first new condos since the recession at Ten50 and Metropolis, sales in the quarter spiked almost 400% to 423, while price per square foot increased by 23% to $828. On the rental side, over 1,000 new units opened in Q2 at Atelier, WREN, and G12. While occupancy rates dipped slightly as a result of the sudden influx of new inventory, such fluctuations are expected to continue as more units come online and are leased up With 5 new projects opening in Q3 alone, 2017 has already set a new record with over 2,700 new units delivered this year. Nevertheless, demand kept pace, with rents and occupancy rates holding steady from quarter to quarter. The retail scene got two big boosts with the announcement that Foot Locker will open a Michael Jordan branded store on Broadway and confirmation that the Alamo Drafthouse Cinema is moving forward at The BLOC. Several new restaurants opened their doors in Q2 including Rossoblu at City Market South and Astro Doughnuts and Fried Chicken in the Financial District. Quarter 3 was highlighted by the opening of two flagship fashion boutiques: Nordstrom Rack at FigAt7th, and COS in the historic Olympic Theater off Broadway. The new Hotel Indigo opened its doors at Metropolis, the first of almost 2,000 new rooms that will be added in Across from the Convention Center, TriCal announced plans to redevelop City Lights on Fig into a 1,000+room hotel, which would be the second such project on that corner. Now accounting for more than 10% of Downtown s inventory, the new Intercontinental Hotel at the Wilshire Grand Center has set a new standard for DTLA hospitality and luxury. Meanwhile, just a couple of blocks away, The Freehand revealed its 250 rooms, including both private and shared accommodation, along with a stunning new restaurant and lobby restoration. Brookfield, already the largest property owner in Downtown, expanded into a new area with their $220 million purchase of a 50% stake in the California Market Center, with over 2 million square feet of rentable space in the Fashion District. Significant new leases this quarter included, Dutch co-working provider Spaces, who took 51,000 SF at ROW DTLA, and Marsh & McLennan who will occupy three full floors at the US Bank Tower. Meanwhile, the creative migration to Downtown continued with Adidas announcing a new marketing headquarters, tech firm Gimbal relocating from Santa Monica, both to ROW DTLA, Bullitt Studios moving from West Hollywood to City Market South in the Fashion District, and architecture firm Jerde leaving Venice for the historic CalEdison on Bunker Hill $27.1 B TOTAL INVESTMENT IN DOWNTOWN LA FROM

15 RESIDENTIAL RETAIL OFFICE MARKET OVERVIEW Q Q Apartment Occupancy Rate 87.5% 91.5% Apartment Asking rent per SF $2.92% $2.81 Average Effective Rent Per Unit $2,499 $2,584 Condo Sales Condo Price per SF $679 $637 RESIDENTIAL INVENTORY Residential Units Current Inventory Under Construction Total When Complete Proposed Market Rate Rental 22,401 7,676 30,077 24,514 Condos 6,095 2,156 8,251 4,685 Affordable 12, , , Total 39,371 9,903 50,654 29,891 Estimated Population 67,324 18,393 85, million square feet of retail space under construction A new lease was signed by Vans for a flagship store on Broadway, adding to the growing roster of shoe stores in the area. Corporation Food Hall opened on Spring St. with eight diverse vendors. Grand Central Market celebrated its 100th anniversary. Q Q Vacancy Rate 4.6% 4.0% Average Rent per Square Foot $2.57 $2.51 YTD Net Absorption (-74,820) 28,227 HOSPITALITY Q Q YTD Occupancy Rate 81.1% 80.8% YTD Average Daily Rate $ $ YTD RevPAR $ $ ,355 rooms under construction The opening of the Hotel Indigo at Metropolis added 350 hotel rooms to South Park. Revenue per room increased to $167, while average daily rate reached $215 Ernst & Young renewed their lease for 120,000 SF at their namesake tower. Onni Group announced plans to upgrade the Western Pacific Building at Olympic and Broadway into modern creative space. Despite relatively flat net absorption, rents continued to rise as landlords seek higher value tenants and longer-term deals. Q Q Vacancy Rate 17.6% 16.8% Class A Rent per SF $3.48 $3.32 Overall Rent per SF $3.47 $3.30 YTD Net Absorption (-56,672) 185,142 YTD Leasing Activity 1,946,024 1,665,

16 8TH STREET NOTABLE DEVELOPMENTS AMENITIES Oceanwide Plaza Residential units 183 hotel rooms 180,000 SF retail Developer: Oceanwide ENTERTAINMENT & CULTURE L.A. Live Staples Center Microsoft Theatre Regal Cinemas SOUTH PARK BROADWAY 1020 S. Figueroa Proposed mixed-use development Condos and a w Hotel 80,000 SF of retail Developer: Hazens Avenue of Angeles a proposed high-design public promenade fronting the Metropolis project, will connect LA Live to Figat7th and the 7th Street Retail Corridor RESTAURANTS & BARS Cleo Tom s Urban Fhe Palm Ford s Filling Station Katsuya Fleming s Prime Steakhouse Mikkeller Bar Faith & Flower Broken Spanish Prank Bar South Park is the premier sports and event destination of Southern California, with Staples Center, the L.A. LIVE entertainment and dining complex, and the L.A. Convention Center bringing more than two million annual visitors for professional basketball and hockey games, concerts, conferences and movie premieres. With the Convention Center slated for a major expansion and modernization, and several new hotels planned, the area s appeal and excitement will only increase. South Park is also becoming a full-fledged residential community in its own right, with a growing cache of shopping and dining amenities. Located within walking distance of the Financial District, Fashion District and Historic Core, the South Park neighborhood has in development 5,000 residential units and 416,000sf of new retail space, the most in any part of Downtown. South Park has a growing number of amenities that cater to residents including the brand new Whole Foods Market and Ralphs. Oceanwide Plaza and Metropolis, two major mixed-use projects, will radically alter the Downtown skyline and reshape the streetscape with a combined 250,000sf of new retail space, along a pedestrian promenade of stores. Across from LA LIVE, Oceanwide Plaza will feature a 45,000 sf wall of LED billboards (part of a special signage district) lighting up this retail destination and enabling brands to connect with shoppers on the street to tell their story with interactive digital imagery. South Park continues to be the epicenter of some of the most exciting and new development projects in Downtown LA. Metropolis ,310 residential units 350 hotel rooms 65,000 SF retail Developer: Greenland USA RETAIL Colors Holy Grail Brigade LA The Well Nike Vault HOTELS JW Marriott/Ritz Carlton Luxe Hotel Hotel Figueroa METRO Pico Station NUMBER OF RETAIL UNITS 3,

17 NOTABLE DEVELOPMENT IN SOUTH PARK DTLA METROPOLIS 1020 S. FIGUEROA OCEANWIDE PLAZA CIRCA WREN: MACK URBAN S PROJECT 1233 GRAND 1212 FLOWER 888 SOUTH HOPE $1 billion project including 308 condos and 350-room Hotel Indigo condos and 60,000 SF of retail space. Developer: Greenalnd $700 million 3 high-rise development with a W Hotel Developer: Hazens $1 billion project including 308 condos and 350-room Hotel Indigo condos and 60,000 SF of retail space. Developer: Greenland $500 million high-rise of twin 35-story towers featuring 648 rental units on top of 48,000 SF of commercial space. Developer: Hankey Investment Company and Jamison Services, Inc. $750 million project dubbed an urban village that will appeal to millennials who desire walkability. Wren is a seven-story building with 362 apartments. The next phase will be a 38 story mixed-use tower. Developer: Mack Urban A 24-story high-rise and an additional 37-story tower which will include 287 residential units and retail space. Developer: City Century A pair of high-rises with 730 apartments by Onni Group. Developer: Onni Group 34 story tower with 526 residenial units and 6,200 SF commercial space. Developer: CIM Group 32 33

18 1036 S. GRAND AVENUE NOTABLE COMPLETED PROJECTS G12 WREN WILSHIRE GRAND Wolff Company s mixed-use complex ATELIER 33 story tower with 363 apartments, 10,000 SF of retail 362 apartments by Mack Urban eighth + grand Brand new 700 units luxury apartments 73-story skyscraper with 889 room InterContinental Hotel 8TH+HOPE 205 apartments, 19,500 SF of retail from CIM Group 34 35

19 NOTABLE DEVELOPMENTS AMENITIES FINANCIAL DISTRICT Once a strictly 9-to-5 area for commuters, the Financial District has become a vibrant 24-7 neighborhood. Residents and visitors, pedestrians and Metro riders now share the streets and shops with the massive worker population, giving the district a new vitality that is drawing a new wave of retailers and restaurants. The redeveloped FIGat7th retail complex led the way with major national brands including City Target, H&M and Victoria s Secret. The diverse options at its TASTE Food Hall bustle with both workers and local residents, making this a gathering place for the whole Downtown community. One block away, Macy s, DTLA s only full-scale department store, recently underwent a flagship remodel at The BLOC, a radically reimagined open-air shopping plaza with multilevel podiums, terraces, and courtyards. The Bloc is home to innovative businesses like Wingtip, the San Francisco-based menswear purveyor that doubles as a private club, and Austin-based Alamo Drafthouse Cinema, offering in-theater dining and drink. The 73-story Wilshire Grand Center promises to reshape both the skyline and streetscape of Figueroa and 7th, one of Downtown s busiest intersections. Featuring 350,000 SF of Class A office space, an Intercontinental Hotel, and 45,000 SF of luxury retail space, the project also includes major street improvements to transform this thoroughfare into an inviting pedestrian shopping corridor. The historic heart of Downtown, Pershing Square is also slated for a significant upgrade, with an international design competition to reimagine and revitalize this important public space. Home to landmarks like the Millennium Biltmore Hotel, the park has attracted such new businesses. 6TH STEEET OLIVE STREET 3RD STREET HILL STREET Wilshire Grand Center ,000 SF retail Intercontinental Hotel hotel rooms 350,000 SF of office Developer: AC Martin eigth + grand residential units Whole Foods Market Developer: Carmel Partners The Bloc ,000 SF retail Renovated and upgraded Sheraton Hotel and 32-story office tower Developer: Ratkovich ENTERTAINMENT & CULTURE LA Central Library Pershing Square RESTAURANTS & BARS Bottega Louie Fogo de Chao Mendocino Farms Faith & Flower Perch Spear Steak & Seafood House Seven Grand Little Sister 71 Above Tom George RETAIL Whole Foods Ralphs Macy s City Target H&M Zara MAC Cosmetics HOTELS The Standard Hilton Checkers The Biltmore Sheraton Westin Bonaventure METRO 7th/Metro Center Station NUMBER OF RETAIL UNITS 3,

20 DTLA PREMIERE OFFICE CENTER OFFICE FINANCE Downtown LA is the region s biggest commercial real estate market, with over 37 million square feet of Class A office space. It is also the most diverse, including the best collection of historic office buildings in Southern California as well as 30 million square feet of warehouse and industrial space. The DTLA office market is also radically transforming with buildings in every class and neighborhood evolving inside and out. New ownership, tenants, and workspaces are bringing Class A properties into the 21st century, while historic buildings return to their former glory, retro-fitted with modern technology, and industrial spaces are repositioned for a new generation of tech and creative companies. Downtown has long been home to industries like real estate, finance and legal services. Now it is attracting a new generation of companies in growth sectors such as technology, design, and media. These creative and entrepreneurial companies are establishing a dynamic innovation scene in DTLA, with a vibrancy that extends to its trend-setting restaurants and culture, and the forward-thinking design of its streetscapes and public spaces. Nearly 500,000 people work in DTLA, and the residential population has grown to over 65,000 today (projected to top 85,000 over the next few years). They are passionate, creative,and highly skilled representing a deep pool of talent, broad customer base, and engaged civic community. They are also driving DTLA s social and cultural ascendance, in concert with the world-class institutions and pioneering organizations that are shaping trends in everything from art to food to fashion. 37M SQUARE FEET OF CLASS A OFFICE SPACE 60K 4-YEAR DEGREES BY LOCAL UNIVERSITIES NOTABLE COMPANIES Bank of America City National Bank Ernst & Young Oaktree Capital Management Wells Fargo BUSINESS Boston Consulting Group Navigant willis Towers Watson Protiviti Resources Global Professionals REAL ESTATE Brookfield CBRE Cushman & Wakefield Rising Realty The Sydell Group ARCHITECTURE Arquitectonica Gensler Skidmore, Owings & Merrilll Steinberg Unispace ENGINEERING Aecom Buro Happold Jacobs Engineering Group Miyamoto International Psomas LEGAL Gibson Dunn Lewis Brisbois Bisgaard Smity O Melveny & Myers Sheppard, Mullin, Richter & Hampton Sidley Austin FASHION Hautelook K-Swiss Lucky Brand Jeans Splendid/Ella Moss Tarina Tarantino 35% OF DOWNTOWN WORKERS LIVE WITHIN 10 MILES RECENTLY SIGNED OFFICE LEASESS Tenant Building SF Warner Music Group The Ford Factory 257,000 City National Bank Two California Plaza 241,000 HDR Engineering Two California Plaza 28,266 Chubb Insurance City National Plaza 66,971 American Realty Advisors City National Plaza 39,319 Quinn Emanuel 865 Tower 135,003 Ignited Spaces California Market Center 42,161 All Def Digital 1212 Building 26,218 Industrious 600 Wilshire 18,

21 DEMOGRAPHICS DTLA POPULATION GROWTH ,185 18,700 AVERAGE CONDO PRICE PER SF $653 $169 RESIDENTIAL UNITS ,120 11,626 PROPERTY VALUE $14.6 b $4.8 BILLION A VIBRANT COMMUNITY $98,000 average median household income of residents 66% of residents are between the ages of % of residents have earned a college degree or higher 500,000+ weekday population 19 million annual visitors Arts & Entertainment Civic & Institutional $1.5 billion $4.5 billion INVESTMENT IN DOWNTOWN LA % RENTAL OCCUPANCY RATE OPEN FOR BUSINESS CONTINUED GROWTH Hotel Rooms Residential Units Commercial Mixed-Use Residential $.9 billion $6.8 billion 10 MILLION 800+ new restaurants, bars, retails, nightlife, and amenities ,177 Current Inventory 2,756 Under Construction 4,515 Pipeline 38,120 Current Inventory 11,467 Under Construction 26,907 Pipeline Figueroa Corridor/ Expo Park $.9 billion $10.5 billion VISITORS TO DOWNTOWN ANNUALLY 40 41

22 BRANDON MICHAELS Senior Managing Director Investments Senior Director, National Retail Group Tel: (818) Fax: (818) License: CA # SAM LIBEROW Vice President Investments Director, National Multi Housing Group Tel: (818) Fax: (818) License: CA # BEN BROWNSTEIN Investment Associate National Retail Group Tel: (818) Fax: (818) License: CA # BRANDON MICHAELS GROUP