126 BONITO AVENUE LONG BEACH, CA 90802

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1 LONG BEACH, CA MULTI-FAMILY INVESTMENTS For more information please contact:

2 LONG BEACH, CA Sale Price: $1,575,000 Sale Price/SF: $ Sale Price/Unit: $393,750 Rentable SF: 3,625 SF Lot Size SF: 5,187 SF Units: 4 Floors: 2 Cap Rate: 2.87% Gross Rent Multiplyer: Year Built: 1940 APN: Financial Year: Pro Forma Gross Income: $75,000 Effective Gross Income: $73,332 Operating Expenses: $28,144 Net Operating Income: $45,188 Features: Great investment or owner user 4 plex located in the Alamitos Beach area of Downtown Long Beach. One block to the beach near retro row and walk to downtown. Well maintained with upgraded electrical and new electrical panels, fresh exterior paint, Spanish tile roof, landscape with sprinklers on timers, grass yard and side yard for tenants, newer windows on upper unit. The building has one bedroom front unit, 3-2 bedroom units all with built in china hutch, some with built in bookcase and a lot of Spanish charm with good storage. There are also two storage unit areas along with 3- one car garages rented separately to tenants. Hardwood floors have been refinished in 3 units with carpet over hardwood floor in one upper unit. The units are separately metered for electrical and gas. Value added opportunity with upside potential on the rent. Walking distance to restaurants, cafes, coffee shops, stores and more. INVESTMENT SUMMARY For more information please contact: This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Corporate BRE#

3 126 bonito avenue long beach, CA nd Street 1st Street Broadway Alamitos Ave. New Development Site - DEMOGRAPHICS 1 Mile 3 Miles 5 Miles Population 49, , ,029 Population growth 0.59% 0.68% 0.67% # of Households 23,177 98, ,292 Average Household Income $78,878 $75,312 $83,143 Median Age This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Corporate BRE# Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All rights reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial affiliates fully supports the principles of the equal opportunity act. Each office is independently owned and operated. Coldwell Banker Commercial and the Coldwell Banker Commercial logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial affiliates. All information is deemed reliable

4 MARKET CONDITIONS Submarket Overview The East Long Beach/Los Altos submarket, one of thirty-seven distinct geographic concentrations within Los Angeles, contains 18,551 market rate rental units, or 2.3% of the metro s total inventory of market rate rental apartments. In the ten-year period beginning with Q2 2007, new additions to the submarket totaled 30 units; over the same period, the metro growth rate has been 0.6%. Asking and Effective Rent Asking rents fell by 0.4% during the first quarter of 2017 to an average of $1,572, higher than nineteen of the metro s thirty-seven submarkets. Mean unit prices in the submarket are as follows: studios $1,341, one bedrooms $1,424, two bedrooms $1,811, and three bedrooms $1,892. Over the past four quarters, asking rents have risen a total of 0.9%, up from $1,558. The East Long Beach/Los Altos submarket s current asking rent levels and growth rates compare unfavorably to the metro s averages of $1,778 and 0.1%. Effective rents, which exclude the value of concessions offered to prospective tenants, also declined by 0.4% during the first quarter. The identical rates of change suggest that, although rents drifted downward, landlords managed to avoid increasing the relative value of incentives packages used to attract new tenants. Competitive Inventory, Employment, Absorption Net new household formations in Los Angeles were 8,630 during the first quarter. Absorption of market rate rental units may not immediately reflect quarterly total household formations or losses, but it is prudent to consider longer-term economic and demographic performance as influential upon current occupancy levels. Since the beginning of Q2 2007, household formations in Los Angeles have averaged 0.7% per year, representing the average annual addition of 22,400 households. Over the same time period, the metro experienced an average annual absorption rate of 4,393 units. Although metropolitan absorption totaled 1,277 units during the first quarter, the East Long Beach/Los Altos submarket did not contribute to this demand; in fact, tenant outmigration returned a net total of 36 units to the available stock. The first quarter s negative absorption in the submarket follows 36 units of positive absorption observed in Q Over the last four quarters, submarket absorption totaled negative 37 units; by comparison, the average annual absorption rate recorded since the beginning of Q is nearly flat. The submarket s average vacancy rate drifted upward by 20 basis points during the first quarter to 3.2%, which is 0.5 percentage points lower than the long-term average, and 0.1 percentage points lower than the current metro average. Outlook Reis s new construction observation team reports that no competitive apartment stock will be introduced to the submarket through the end of Between now and year-end, net total absorption will be negative 55 units. Consequently, the vacancy rate will continue to drift upward to finish the year at 3.5%. During 2018 and 2019, no additional competitive stock is expected to be introduced to the submarket inventory. Net new household formations at the metro level during 2018 and 2019 are anticipated to average 1.1% annually, enough to facilitate an absorption rate averaging 4,450 units per year. The East Long Beach/Los Altos submarket, however, will experience negative absorption averaging 70 units per year. The submarket vacancy rate will finish 2018 at 3.8% and will increase 0.5 percentage points to 4.3% by year end Between now and year-end 2017 asking rents are expected to increase 1.1% to a level of $1,590, while effective rents will climb by 0.9% to $1,541. On an annualized basis through 2018 and 2019, asking and effective rents are anticipated to advance by 1.2% and 1.1%, respectively, to finish 2019 at $1,628 and $1,575. Average Asking Rent $1,572 Down 0.4% from year-end Expected to finish 2017 at $1,590. * Information deem reliable but not guaranteed. Sourced from various industry research reports. Average Vacancy Rate 3.2% Drifted upward by 20 basis points. Highest level since year-end 2013 Expected to finish 2017 at 3.5% Powered by subject property or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Corporate BRE#

5 UNIT MIX MONTHLY REPORT Units Floor Plan Approx. SqFt. Avg. Rents Monthly Market Rents Monthly 1 1 bedroom / 1 bath 775 $1,800 $1,800 $2,000 $2, bedrooms / 1 bath 950 $1,500 $4,500 $2,200 $6, ,625 $6,300 $8,600

6 UNIT MIX & ANNUAL SCHEDULED INCOME UNIT MIX & ANNUAL INCOME REPORT Floor Plan Units Actual Total Market Total 1 bedroom / 1 bath 1 $21,600 $21,600 $24,000 $24,000 2 bedrooms / 1 bath 3 $18,000 $54,000 $26,400 $79,200 Total 4 $75,600 $103,200 ANNUALIZED INCOME Actual Market Gross Potential Rent $75,600 $103,200 Less: Vancancy ($2,268) ($3,096) Misc. Income $0 $4,320 Effective Gross Income $73,332 $104,424 Less: Expenses ($28,144) ($29,248) Net Operating Income $45,188 $75,176 Debt Service ($45,116) ($45,116) Net Cash Flow after Debt Service $72 $30,060 Principal Reduction $13,868 $13,868 Total $13,940 $43,928

7 ANNUAL EXPENSE REPORT ANNUALIZED EXPENSES Actual Market Property Management Fee $3,024 $4,128 Replacement Reserves $800 $800 Building Insurance $1,000 $1,000 Maintenance $1,000 $1,000 Repairs $2,000 $2,000 Taxes - Real Estate $19,200 $19,200 Utilities $1,120 $1,120 Total Expenses $28,144 $29,248 Expenses Per RSF $7.76 $8.07 Expenses Per Unit $7,036 $7,312

8 SALES COMPARABLES Address Sale Price Units Price/SF Cap Rate GRM Sale Date 126 Bonito Ave Long Beach, CA Bonito Avenue Long Beach, CA E. 1st Street Long Beach, CA Bonito Avenue Long Beach, CA Grand Avenue Long Beach, CA Gaviota Avenue Long Beach, CA $1,575,000 4 $ % 20.8 N/A $1,750,000 4 $ % /4/2017 $1,095,000 4 $ % /12/2016 $2,050,000 4 $ % /18/2017 $1,825,000 4 $ % /9/2017 $1,080,000 4 $ % /27/2017 Avg. 3.3% Avg Avg. $420,417 Avg. $408.56

9 LOCAL RETAIL MAP subject property The Pike Outlet Marketplace 1st Street Ocean Blvd. Alamitos Ave. Long Beach Convention Center Alamitos Beach