REAL ESTATE DEVELOPMENT

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1 Exclusive Listing / Multi-family Opportunity 1217 CEDAR AVENUE Long Beach, California / 14 Units OFFERED BY JMSred

2 Table of Contents Property Highlights Property Description Property Location Property Photos Executive Summary Financial Summary Income and Expenses

3 Property Highlights Turn-key property Substantially upgraded by current owner Upside from below-market rents Individually metered for gas and electricity Excellent location in vibrant downtown Long Beach List Price: $2,200,000 3 of 10

4 PROPERTY DESCRIPTION 1217 Cedar is a 14 unit, 2 story apartment complex located in the up and coming Drake Park neighborhood of Long Beach, California. With an attractive mix of 6 one-bedroom apartments and 8 studios, the property has been substantially improved by its current owner who has owned it for 5 years. During that time, the current owner has invested over $150,000 in capital expenditures in the building, doing major upgrades on 11 of the 14 units, and increasing the annual rent roll from under $100,000 in 2013 to over $150,000 currently. The building was constructed in 1923 and has a rentable area of approximately 6,500 SQ/FT and is built on a 7,050 SQ/FT lot, was just repainted, and is in turn-key condition. It has an on-site laundry with two washers and two dryers that enhances rentability and generates revenues. The units are individually metered for gas and electric. The property is being offered at a price of $2,200,000, which is an attractive multiple of current gross rents (11.83 X on market rents) and a Cap Rate on current rents of 4.62% (5.82% on market rents). 4 of 10

5 PROPERTY LOCATION Location Overview Long Beach is a city in Southern California located on the Pacific Coast of the United States, in the southeastern corner of Los Angeles County, and bordering Orange County. Downtown Long Beach is approximately 22 miles south of downtown Los Angeles. As of 2010, Long Beach s population was 462,257. It is the 36th most populous city in the United States and the 7th most populous in California. Long Beach is also the 3rd largest city in the Los Angeles metropolitan area and the 3rd largest in Southern California behind Los Angeles and San Diego. Drake Park, Long Beach CA Long Beach has ample public transportation including the Metro line going directly to Los Angeles and new installments of Metro development in continuous progress. The Port of Long Beach is the second busiest container port in the United States and is among the world s largest shipping ports. Manufacturing sectors include those in aircraft, automotive parts, electronic equipment, audiovisual equipment, petrochemicals, precision metals, and home furnishings. From the Museum of Latin American Art (MOLAA) to the Pacific Island Ethnic Art Museum (PIEAM), Long Beach is known for its love of the Arts. With murals on public walls and in other outdoor community spaces, there s always something to marvel at. Many music venues are a short distance away in Los Angeles or surrounding cities and there s always something to do in town or neighboring areas. 5 of 10

6 PROPERTY LOCATION Great Long Beach Area Los Angeles County 1217 Cedar Ave, Long Beach CA of 10

7 PROPERTY PHOTOS 7 of 10

8 EXECUTIVE SUMMARY Property Overview No. of Units Unit Mix Year Built Laundry Parking Exterior Lot Size Net Rentable SF Utility Metering 14 (8) Studio 400 SF (6) 1BR/1BA 550 SF 1923 (2) On-site Street parking Wood frame and stucco 7,050 SF 6,500 SF Separately metered for gas and electricity Amenities Overview 11 of 14 units recently renovated with modern wood-like flooring and granite countertops Southmost fence along property line fully replaced in early 2018 On-site laundry with double washer/dryer capacity New paint on exterior and interior common spaces Classic 1920 s style architecture Courtyard-style landscape and outdoor community areas Keyed front and back entrances 8 of 10

9 FINANCIAL SUMMARY OFFERING PRICE $2,200,000 COST/UNIT $157,143 SGI:CURRENT $161,292 SGI:MARKET $190,080 COST/SQ FT $ GRM/CURRENT GRM/MARKET NOI:CURRENT $101,594 CAP:CURRENT 4.62% CAP:MARKET 5.82% Scheduled Income No. Units No. BR/BA Monthly Rent/Unit CURRENT RENTS Monthly Income Monthly rent/unit MARKET RENTS Monthly Income (2) Studio $800 $1,600 $1,000 $2,000 (2) Studio $850 $1,700 $1,000 $2,000 (1) Studio $900 $900 $1,000 $1,000 (3) Studio $950 $2,850 $1,000 $3,000 (2) 1BR/1BA $850 $1,700 $2,500 (1) 1BR/1BA $975 $975 (2) 1BR/1BA $1,100 $2,200 $2,500 (1) 1BR/1BA $1,200 $1,200 Total Scheduled Rent Annualized Scheduled Gross Rent $13,125 $157,500 $15,500 $186,000 9 of 10

10 INCOME and EXPENSES Annualized Operating Data Scheduled Rental Income Plus: Laundry Income Plus: Security Deposit Income Plus: Other Income Scheduled Gross Income Less: Vacancy Reserve 3.00% Less: Operating Expenses Net Operating Income NOI Cap Rate CURRENT RENTS $157,500 $2,200 $1,572 $- $161,292 $4,839 $54,860 $101, % MARKET RENTS $186,000 $2,200 $1,860 $- $190,080 $5,702 $56,299 $128, % Gross Rent Multiple Annualized Expenses Taxes 1.25% of sale price $27,500 Maintenance & Repairs 2017 actual $7,700 Utilities 2017 actual $6,935 Management Fee 5.00% $8,065 Insurance 2017 actual $3,700 Laundry/Appliance Expense 2017 actual $960 Total Expenses $54,860 Expenses as % of SGI 34.00% 10 of 10

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