2433 West Jefferson Boulevard

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Mary Butler
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1 2433 West Jefferson Boulevard OFFERING MEMORANDUM

2 PRICING AND FINANCIAL ANALYSIS 2433 West Jefferson Boulevard

3 PRICING AND FINANCIAL ANALYSIS FINANCIAL OVERVIEW Location 2433 West Jefferson Boulevard Price $1,250,000 Down Payment 100% / Total Rentable Square Feet 4,005 Price/SF $ CAP Rate - Current 5.75% CAP Rate- Pro Forma 6.25% Year Built/Renovated 1908 / 1950 Lot Size 5,208 Type of Ownership Fee Simple Annualized Operating Data Income Current Pro Forma Apartments - Gross Potential Rent $69,600 $75,600 Retail - Gross Potential Rent $31,032 $31,800 Combined Gross Potential Rent $100,632 $107,400 Other Income $4,800 $4,800 Gross Potential Income $105,432 $112,200 Less: Vacancy/Collection Allow. $3,329 $3,540 Effective Gross Income $102,103 $108,660 Less: Combined Expenses $30,264 $30,526 Net Operating Income $71,839 $78,134 Net Cash Flow After Debt Service 5.75% / $71, % / $78,134 Principal Reduction $13,107 Total Return 5.75% / $71, % / $91,241 Expenses Real Estate Taxes $14,898 $14,898 Insurance $2,000 $2,000 Utilities $3,600 $3,600 Repairs & Maintenance $3,000 $3,000 Reserves/Replacements $1,200 $1,200 Trash $1,026 $1,026 Direct Assessment $456 $456 Management $4,084 $4,346 TOTAL EXPENSES $30,264 $30,526 EXPENSES/SF $7.56 $7.62 % of EGI 29.6% 28.1% Scheduled Income Type Rentable SF # of Units Rent Rent/SF Retail $1,300 - $1,350 $ $2.25 Apt 1 Bdr 1 Bath $1,400 - $1,500 $ $2.00 Apt 2 Bdr 1 Bath $1,700 $1.79 Total 4,005

4 PRICING AND FINANCIAL ANALYSIS RENT ROLL Apartments Unit Number Unit Type Unit SF Current Rent Rent/ SF Asking Rent Bdr 1 Bath 540 $1,400 $2.59 $1,400 $ /2 1 Bdr 1 Bath 540 $1,400 $2.59 $1,400 $ th Ave 1 Bdr 1 Bath 750 $1,300 $1.73 $1,500 $ th Ave 2 Bdr 1 Bath 950 $1,700 $1.79 $2,000 $ TOTAL 2,780 $5,800 $6,300 Rent/ SF Retail Suite Tenant GLA % of GLA Lease Commence Lease Expire Annual Rent Rent/ SF Lease Type 1 Vacant** % N/A N/A $16,200 $24.92 NN** 2 Artist Shop** % 1/1/2016 MtM $14,832 $25.79 NN** TOTAL 1, % $31,032 Comments **Owner Pays for Property Tax, Trash and Water Tenants Pay for Gas and Electric Retail Unit 1 Will be Delivered Vacant at COE Square footage of apartment units are estimated

5 PRICING AND FINANCIAL ANALYSIS INCOME AND EXPENSES Total Rentable Square Feet 4,005 Income Current Pro Forma Apartments GROSS POTENTIAL RENT $69,600 $75,600 Storage Garage $4,800 $4,800 GROSS POTENTIAL INCOME $74,400 $80,400 Vacancy/Collection Allow. (% of GPR) 3.0% / $2, % / $2,268 EFFECTIVE GROSS INCOME $72,312 $78,132 Retail GROSS POTENTIAL RENT $31,032 $31,800 GROSS POTENTIAL INCOME $31,032 $31,800 Vacancy/Collection Allow. (% of GPR) 4.0% / $1, % / $1,272 EFFECTIVE GROSS INCOME $29,791 $30,528 COMBINED EFFECTIVE GROSS INCOME $102,103 $108,660 Total Expenses $30,264 $30,526 % of EGI 29.6% 28.1% NET OPERATING INCOME $71,839 $78,134

6 PRICING AND FINANCIAL ANALYSIS EXPENSES Current Per SF Pro Forma Per SF Real Estate Taxes (1.1918%) $14,898 $3.72 $14,898 $3.72 Insurance $2,000 $0.50 $2,000 $0.50 Utilities $3,600 $0.90 $3,600 $0.90 Repairs & Maintenance $3,000 $0.75 $3,000 $0.75 Reserves/Replacements $1,200 $0.30 $1,200 $0.30 Trash $1,026 $0.26 $1,026 $0.26 Direct Assessment $456 $0.11 $456 $0.11 Management $4,084 $1.02 $4,346 $1.09 TOTAL EXPENSES $30,264 $7.56 $30,526 $7.62 % of EGI 29.6% 28.1%

7 PROPERTY DESCRIPTION 2433 West Jefferson Boulevard

PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Turnkey Mixed-Use Opportunity One Mile from the Expo/Crenshaw Metro Line Highly dense rental market of Jefferson Park, just south of

8 PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Turnkey Mixed-Use Opportunity One Mile from the Expo/Crenshaw Metro Line Highly dense rental market of Jefferson Park, just south of rapidly gentrifying West Adams neighborhood Two Retail Spaces and Four Apartment Units Two miles from the USC campus and Baldwin Hills Mall One Retail Unit to be Delivered Vacant Marcus & Millichap, as the exclusive listing agent, is pleased to present this mixed use offering located at 2433 West Jefferson Boulevard in Los Angeles, California. The property consists of two buildings on a corner lot located at West Jefferson Boulevard and 5th Avenue in the heart of the highly dense rental market of Jefferson Park. The buildings have great proximity to the 10 freeway and the Expo/Crenshaw Metro Line. The building adjacent to West Jefferson Boulevard was built in the 1950s and the side by side duplex on 5th Avenue was built in The multifamily portion has an outstanding unit mix. with 2 one bedroom / one bathroom units located above the retail storefront and a side by side duplex on 5th Avenue. The duplex consists of 1 one bedroom / one bathroom unit and 1 two bedroom / one bathroom unit. There is also a renovated vacant garage that can provide extra income as either an office or storage. The garage includes a kitchenette and a full bathroom. All of the apartment units have been renovated by the current owner. The two retail stores are located on the first level of the building adjacent to West Jefferson Boulevard. One unit is vacant and the other is currently rented to a custom tattoo artist. The property is performing well and provides the next owner a turnkey asset with great cash flow. This property provides a great opportunity to acquire a turnkey mixed use asset in the heart of Los Angeles.

9 PROPERTY DESCRIPTION PROPERTY SUMMARY The Offering Property Address 2433 West Jefferson Boulevard Property Type Mixed Use Assessor's Parcel Number Zoning LAC2 Site Description Year Built/Renovated 1908 / 1950 Number of Buildings 2 Number of Stories 2 Total Rentable Square Feet 4,005 Landscaping Minimal Frontage Construction Foundation Framing Exterior Roof Concrete Wood Stucco/Wood Siding Flat/Gable

10 PROPERTY DESCRIPTION PROPERTY PHOTOS

11 PROPERTY DESCRIPTION PROPERTY PHOTOS

12 PROPERTY DESCRIPTION PROPERTY PHOTOS

13 PROPERTY DESCRIPTION AREA MAPS Local Map Regional Map

14 PROPERTY DESCRIPTION SITE PLAN

15 PROPERTY DESCRIPTION AERIAL PHOTO

16 RECENT SALES 2433 West Jefferson Boulevard

17 RECENT SALES RECENT SALES MAP 1) 2) 3) 4) 2433 West Jefferson Boulevard 2624 West Jefferson Boulevard 3500 South Western Avenue 2867 Edgehill Drive 3950 Montclair Street

18 RECENT SALES CAP RATE & GRM AVERAGE CAP RATE Subject 2624 West Jefferson Boulevard 3500 South Western Avenue 2867 Edgehill Drive 3950 Montclair Street AVERAGE GRM Edgehill Drive 3950 Montclair Street

19 RECENT SALES PRICE/SQUARE FOOT AVERAGE PRICE/SQUARE FOOT Subject 2624 West Jefferson Boulevard 3500 South Western Avenue 2867 Edgehill Drive 3950 Montclair Street

RECENT SALES RECENT SALES 2433 West Jefferson Boulevard Offering Price: $1,250,000 Total Rentable SF: 4,005 Price/SF: $312.11 Year Built/Renovated: 1908/1950 CAP Rate: 5.

20 RECENT SALES RECENT SALES 2433 West Jefferson Boulevard Offering Price: $1,250,000 Total Rentable SF: 4,005 Price/SF: $ Year Built/Renovated: 1908/1950 CAP Rate: 5.75% Occupancy: 100% GRM: Subject Property West Jefferson Boulevard Close of Escrow: 3/22/2017 Sale Price: $590,000 Total Rentable SF: 2,000 Price/SF: $ Year Built: 1947 CAP Rate: 4.83% Comments Single Story Retail Sale South Western Avenue Close of Escrow: 10/9/17 Sale Price: $790,000 Total Rentable SF: 2,812 Price/SF: $ Year Built: 1924 CAP Rate: 5.80% Comments Two Story Retail Sale

RECENT SALES RECENT SALES 3 2867 Edgehill Drive Close of Escrow: 11/29/17 Sale Price: $2,000,000

60 Comments Multifamily Sale 4 3950 Montclair Street Close of Escrow: 12/20/17 Sale Price:

21 RECENT SALES RECENT SALES Edgehill Drive Close of Escrow: 11/29/17 Sale Price: $2,000,000 Total Rentable SF: 6,120 Price/SF: $ Year Built: 1923 CAP Rate: 4.54% GRM: Comments Multifamily Sale Montclair Street Close of Escrow: 12/20/17 Sale Price: $1,247,500 Total Rentable SF: 3,937 Price/SF: $ Year Built: 1954 CAP Rate: 4.46% GRM: Comments Multifamily Sale

22 RENT COMPARABLES 2433 West Jefferson Boulevard

23 RENT COMPARABLES RENT COMPARABLES MAP 1) 2) 3) 4) 5) 6) 2433 West Jefferson Boulevard 4307 West 28th Street 2161 West 31st Street 3918 W 27th Street 2244 West Adams Boulevard 3759 West 27th Street 2177 West 27th Street

24 RENT COMPARABLES RENT COMPARABLES 2433 West Jefferson Boulevard Type Rentable SF # of Units Rent Rent/SF Retail $1,300-$1,350 $2.26-$2.25 Apt 1 Bdr 1 Bath $1,400-$1,500 $2.59-$2.00 Apt 2 Bdr 1 Bath $1,700 $1.79 Subject Property Occupancy 100% Year Built/Renovated 1908/1950 Total 4, West 28th Street Type Rent 1 Bdr 1 Bath $1,250 Total West 31st Street Type Rent 1 Bdr 1 Bath $1,350 Total

RENT COMPARABLES RENT COMPARABLES 3 3918 W 27th Street Type

Rent 1 Bdr 1 Bath $1,700 Total 5 3759 West 27th Street Type

renovated with polished concrete floors and granite countertops.

25 RENT COMPARABLES RENT COMPARABLES W 27th Street Type Rent 1 Bdr 1 Bath $1,595 Total West Adams Boulevard Type Rent 1 Bdr 1 Bath $1,700 Total West 27th Street Type Rent 2 Bdr 1 Bath $1,850 Comments Total This unit is fully renovated with polished concrete floors and granite countertops. The building comes with on-site laundry and the unit comes with parking.

RENT COMPARABLES RENT COMPARABLES 6 2177 West

26 RENT COMPARABLES RENT COMPARABLES West 27th Street Type Rent 2 Bdr 1 Bath $1,995 Total

1752 W Sumac Ln ANAHEIM, CA OFFERING MEMORANDUM

1752 W Sumac Ln ANAHEIM, CA OFFERING MEMORANDUM OFFERING MEMORANDUM PROPERTY DESCRIPTION INVESTMENT OVERVIEW Investment Highlights Gated Front with Nice Landscaping, Separate Garage Structure Desirable Unit Mix of Mostly Two Bedroom Units Ample Parking,