Exposition Place Largest Single Parcel of Land on the Expo Line East of Culver City 2905 Exposition Place, Los Angeles, CA 90018

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1 MULTIFAMILY REDEVELOPMENT OPPORTUNITY Exposition Place Largest Single Parcel of Land on the Expo Line East of Culver City 2905 Exposition Place, Los Angeles, CA

2 Exposition Place CRENSHAW BLVD. EXPOSITION BLVD EXPOSITION P L A C E TABLE OF CONTENTS Investment Summary 4 ZIMAS Map 7 Key Investment Features 4 Leimert Park 8 Amenity Map 5 Mass Transit Developments 9 Investment Highlights 6 Land Sale Comparables 11 INVESTMENT ADVISOR MARKETING Lee Shapiro Suzy Foster Executive Vice President Project Manager Kennedy Wilson Brokerage Group Kennedy Wilson Brokerage Group CalBRE # Marketing & Business Development tel: (310) tel: (310) Lshapiro@kennedywilson.com sfoster@kennedywilson.com This document has been prepared by Kennedy Wilson Properties, Ltd. ("Broker") for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the PAGE 2 Kennedy Wilson Brokerage Group

3 CONFIDENTIALITY AGREEMENT & DISCLAIMER CONFIDENTIALITY AGREEMENT: Kennedy Wilson ( Broker ), as exclusive marketing representative of Schwartz Family, LLC ( Seller ), is solely authorized to present this property investment offering (the Offering ). Prior to submitting an offer to purchase 2905 Exposition Place, Los Angeles, CA 90018, also known as Exposition Place, (the Property ), interested parties should perform and rely upon their own investigations, analyses, estimates and projections and otherwise satisfy any concerns regarding material aspects of the proposed transaction including, but not limited to, legal, municipal, environmental, operational, seismic, financial and physical issues, and all other matters affecting or pertaining to the Property. The Seller will be offering the Property including all appurtenances and tenant improvements, solely on an As Is, Where Is basis, without any representations or warranties. No person is authorized to make any representations or warranties on behalf of the Seller regarding the Property. Any and all information regarding the Property provided to any interested party by the Seller or Broker including all information contained in the Offering, is provided without any representation or assurance, expressed or implied, regarding the accuracy, completeness or current status of applicability of such information. Each interested party is expected to undertake such reviews and investigations and make such inquiries as such party may believe to be necessary, appropriate or advisable for the purpose of forming a decision to make an offer to acquire the Property. on assumptions related to the general economy, competition, real estate market trends, and other factors beyond the control of the Seller or Broker. Such analyses, estimates and projections are therefore subject to material variation, and may not be consistent with the views or assumptions held by other professionals. DISCLAIMER: This document has been prepared by Kennedy Wilson for advertising and general information only. Kennedy Wilson does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the accuracy of the information. Kennedy Wilson excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. PHOTOCOPYING OR OTHER DUPLICATION OF THIS OFFERING IS NOT AUTHORIZED. Seller may reject any prospective purchaser or any offer from any prospective purchaser for any reason or for no reason at all, or Seller may elect to cease marketing the Property for sale. The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Receipt and review of this Offering by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except the prospective purchaser s legal counsel and financial advisors, without the prior specific written authorization of the Seller or Broker. Each prospective purchaser shall also agree to and comply with the provisions of the confidentiality agreement executed by such prospective purchaser prior to receipt of this Offering. This Offering is submitted subject to errors, changes, omissions changes in price, market and other conditions. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that prospective purchasers may desire. It should be noted that any and all market analyses, estimates and projections contained in this Offering are provided for general reference purposes only and are based DEGNAN BLVD. RODEO RD. EXPOSITION BLVD. This document has been prepared by Kennedy Wilson Properties, Ltd. ( Broker ) for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the Exposition Place Offering Memorandum PAGE 3

4 Exposition Place OFFERING OVERVIEW Exposition Place: ±2.93 Acres Multifamily Redevelopment Opportunity in Leimert Park As exclusive representative to the Seller, Kennedy Wilson Brokerage Group is pleased to offer for sale the fee simple interest in Exposition Place, the largest single parcel of land on the Expo Line east of Culver City. Exposition Place is the opportunity to acquire a large owner-user property or development site located one block east of the Crenshaw/Exposition metro station just south of Exposition Boulevard. It has excellent access to the Santa Monica (I-10) Freeway and is in close proximity to shops, restaurants, and other amenities. It is in the heart of one of the most dense urban populations in the country with over 427,000 people within 3 miles. The Offering represents an outstanding opportunity to purchase a large parcel of land to retain or develop as a project that will meet pent up market demand for appealing, modern, vertical residential apartment space for a very strong and dense submarket demographic. As there is a short-term lease on the property, which is cancellable at the Seller s election, the timeline for development is near-term, which offers a predicable delivery date and commencement of construction of the development. A Phase II environmental report was performed by Seller that indicated no hazardous conditions exist. In addition, the Seller has filed a request with the City of Los Angeles to rezone the Property from CM to R3, doubling the FAR from 1.5 to 3. Investment Summary Asking Price: Best offer Address: 2905 Exposition Pl., Los Angeles, CA APN: Product Type: Building Area: Land Area: Year Built: 1950 Entitlement Status: Community Plan: Zoning: Current FAR: Height Limitation: Lease: Delivery: Ownership: Land / Warehouse ±10,152 SF ±127,674 SF/±2.93 Acres Unentitled West Adams - Baldwin Hills - Leimert LACM; R3 uses permitted by right (1 unit per each 800 SF of lot area up to 159 MF units) 1.5/1 for construction up to 191,370 SF 1VL; 3 stories up to 45 feet $15,000/month, MTM Vacant upon close of escrow if desired by Buyer Fee Simple Key Investment Features Excellent location; 1 block from the MTA Expo Line s Crenshaw Station Large institutional size and scale Very dense trade area; ±427,000 people within 3 miles High barriers to entry; no competition with product type Easy access to Santa Monica Freeway (US Hwy 10). Midway between Downtown Los Angeles and Santa Monica This document has been prepared by Kennedy Wilson Properties, Ltd. ("Broker") for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the PAGE 4 Kennedy Wilson Brokerage Group

5 AMENITY MAP Prime Site in the Crenshaw District KEY MIDTOWN CROSSING TARGET UNDER DEVELOPMENT EXPO/LA BREA STATION EXPO/CRENSHAW STATION EXPOSITION 905 P L A C E FARMDALE STATION BALDWIN HILLS CRENSHAW PLAZA Baldwin Hills Crenshaw Plaza 2 The Cork 3 Debbie Allen Dance Academy 4 Mt. Calvary Church 5 Museum of African American Art 6 Crenshaw Church of Christ 7 Domino s Pizza 8 Walgreens 9 CVS 10 Pep Boy s Auto Parts 11 Tak s Hardware Store Subway 14 Philip s BBQ 15 Master Burger 16 Johnny s 17 Burger Palace 18 Taco Bell 19 McCarty Christian Church 20 Jefferson Library 21 L.A. Fire Dept. 22 Baldwin Hills Ctr. 23 CVS 24 Rite Aid/Albertson s 25 L.A. Fire Dept. 26 Rancho Cienega Park 27 Jim Gilliam Park 28 Crenshaw Chamber of Commerce 29 Comerica Bank 30 California Bank & Trust EXPO/WESTERN 31 WingStop STATION 32 Wienerschnitzel 33 Lowe s 34 Ralph s 35 CVS 36 Footlocker 37 Starbucks 38 Wilshire Police Station

6 Exposition Place INVESTMENT HIGHLIGHTS Excellent Location in the Midst of Revitalization Dense Trade Area Exposition Place is located in one of the densest submarkets in the western United States. With 44,000 people within one mile and over 467,000 within a three-mile radius, there is extraordinary multifamily demand. This high density accounts for the lack of development sites in the area and underscores the potential for success of projects that are brought to fruition. There is tremendous demand from retailers to service this neglected submarket of Los Angeles, as well as the introduction of a large multi-family development to the growing submarket. N Growth and Revitalization in the Submarket Revitalization in the neighboring Koreatown, Mid-City and Culver City submarkets continues to increase demand as recently built mixed-use and multifamily developments in those areas have created urban infill hubs for entertainment and commercial businesses thanks to large, concentrated populations. Excellent Location in Leimert Park Exposition Place has the virtue of being located adjacent to one of Los Angeles most heavily trafficked thoroughfares - Crenshaw Boulevard - and is immediately South of the Santa Monica (I-10) Freeway. This eminently accessible location is further enhanced by its immediate adjacency (one block) to the Expo/Crenshaw Metro station, which is one of the primary arteries of public transportation in Los Angeles. CRENSHAW DISTRICT SQUARE Encompassing the majority of an entire city block, just east of Crenshaw Blvd., the convenience, accessibility and visibility of the property enhance and support the vision for its potential redevelopment as a multifamily apartment complex. Revitalization and growth continue in the Leimert Park submarket thanks to the convenience of major retailers and restaurants in the area, as well as the development of a new Targetanchored shopping center - Crenshaw District Square - just south of the Property at the corner of Crenshaw Boulevard at Rodeo Road. Conceptual rendering by: RBA Studios This document has been prepared by Kennedy Wilson Properties, Ltd. ("Broker") for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the PAGE 6 Kennedy Wilson Brokerage Group

7 ZONING INFORMATION ZIMAS Map GENERALIZED ZONING OS, GW A, RA GENERALIZED ZONING KEY RE, RS, R1, RU, RZ, RW1 R2, RD, RMP, RW2, R3, RAS, R4, R5 CR, C1, C1.5, C2, C4, C5, CW, ADP, LASED, CEC, USC CM, MR, WC, CCS, UV, UI, UC, M1, M2, LAX, M3, SL P, PB PF HILLSIDE crenshaw blvd. exposition place 9th ave EXPOSITION PL. exposition blvd. Rezoning Request The Seller has filed a request with the City of Los Angeles to rezone the Property from CM to R3, doubling the FAR from 1.5 to 3. R3 uses are permitted by right (1 unit per each 800 SF of lot area up to 159 MF units). This document has been prepared by Kennedy Wilson Properties, Ltd. ( Broker ) for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the Exposition Place Offering Memorandum PAGE 7

8 Exposition Place LEIMERT PARK Exciting Developments in Historical Hub for Arts & Culture For the past several decades Leimert Park has been considered a hub of African American arts and culture. From literature and poetry, to jazz and hip hop, the 1.2 square-mile neighborhood known as Leimert Park possesses a unique creative energy that has given the area a reputation as the black Greenwich Village, as noted by film director and resident John Singleton. Today, as the Metro Crenshaw Line is expected to include a stop in the neighborhood, Leimert Park is at a crucial moment in its history. Business owners and stakeholders struggle to keep the area s cultural heritage, while the hike in real state interest due to the Metro stop may push them out of their neighborhood. The Leimert Park Stakeholders Committee has launched an exciting pivotal strategy to identify and develop an optimal marketing brand to attract commercial and cultural industries to Leimert Park Village. The Committee consists of property owners, businesses, residents, artist, musicians, special event planners and members of the Greater Leimert Park Village Crenshaw Corridor BID and the Empowerment Congress West Area Neighborhood Council. The strategy, entitled the Leimert Park Village Vision Initiative, will drive the economic development of Leimert Park Village over the next 6 years in tandem with the Metro station installation. The goal is to transform Leimert Park Village into a vibrant center of commerce, culture and entertainment. The six objectives to be addressed by the Committee between now and August of 2014 are: 1. Create Building Design and Cultural District Guidelines 2. Develop Pedestrian Oriented Infrastructure and Façade Enhancement Parameters 3. Propose Transit Oriented Development Concepts for the Public Parking Lots in the Village area 4. Asset Map Leimert Park Village Development and New Business Opportunities 5. Develop a Leimert Park Village Brand Marketing and Business Development Strategy 6. Create an Integrated Fund and Resource Development Strategy The current resurgence of Leimert Park has been compared to other redevelopment projects from Old Town Pasadena to South Park in Downtown. Leimert Park was designed by an eminent landscape architecture firm, the Olmsted Brothers, and in its heyday was a model city served by three train lines. It is expected that with community input and cooperation, Leimert Park can be returned to its glory days. This document has been prepared by Kennedy Wilson Properties, Ltd. ("Broker") for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the PAGE 8 Kennedy Wilson Brokerage Group

9 MASS TRANSIT Excellent Access to All Parts of Los Angeles 2905 EXPOSITION P L A C E Expo Line Phase 2 Los Angeles is well-known for its traffic. But soon, Angelenos will have the option to travel between downtown Los Angeles and Santa Monica in approximately 46 minutes even during rush hour. Currently under construction, Phase 2 of the Expo Line will extend light rail service from the current terminus in Culver City to Santa Monica, with 7 new stations serving popular destinations along the Westside. This document has been prepared by Kennedy Wilson Properties, Ltd. ( Broker ) for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the Exposition Place Offering Memorandum PAGE 9

10 Exposition Place MASS TRANSIT The Crenshaw/LAX Transit Project 2905 EXPOSITION P L A C E The Crenshaw/LAX Transit Project is an 8.5-mile light-rail line, with eight stations, including Leimert Park and Hindry. The rail line will run between the Expo Line on Exposition Bl and the Metro Green Line. It will consist of aerial (La Brea Av/ La Cienega Bl and 405 Freeway/ Century Bl) and below-grade segments (Exposition Bl. to 48th St/59th Pl to 67th St/ Los Angeles International Airport South Runways) with all remaining areas at-grade. The Crenshaw/LAX Transit Project will serve the Crenshaw District, Inglewood, Westchester and surrounding area with eight stations, at: Expo/Crenshaw Crenshaw/Martin Luther King Crenshaw/Vernon (Leimert Park) Crenshaw/Slauson Florence/West Florence/La Brea Florence/Hindry Aviation/Century This document has been prepared by Kennedy Wilson Properties, Ltd. ("Broker") for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the PAGE 10 Kennedy Wilson Brokerage Group

11 LAND SALE COMPARABLES Address Zip Zoning Land Area (SF) Price Price/SF Land Sale Date Wilshire Blvd CW/RS 47,755 $7,800,000 $ /18/ W. Olympic Blvd R3 43,821 $4,500,000 $ /4/ S. Virgil Ave CR/R4 33,999 $5,000,000 $ /8/ S. Berendo St R5 34,804 $5,100,000 $ /13/ S. Serrano Ave R4 30,492 $4,600,000 $ /26/ Seward St MR1/R4 57,795 $7,500,000 $ /31/ N. Cherokee Ave C4-2D/R5 49,528 $10,000,000 $ /16/ Wilshire Blvd C2/R4 33,106 $6,500,000 $ /21/ W. Olympic Blvd C2/R4 26,959 $3,400,000 $ /29/2013 Average $6,044,444 $ EXPOSITION P L A C E This document has been prepared by Kennedy Wilson Properties, Ltd. ( Broker ) for advertising and general information only. Broker does not guarantee, warrant or represent that the information contained in this document is correct. Any interested party should undertake their own inquiries as to the Exposition Place Offering Memorandum PAGE 11

12 INVESTMENT ADVISOR MARKETING Lee Shapiro Suzy Foster Executive Vice President Project Manager Kennedy Wilson Brokerage Group Kennedy Wilson Brokerage Group CalBRE # Marketing & Business Development tel: (310) tel: (310)