3939 E. 1st St. Los Angeles, CA Offering Memorandum

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1 3939 E. 1st St. Los Angeles, CA Offering Memorandum

2 Table Of Contents Property Overview... 3 Location Overview... 8 Financial Analysis Demographics Presented by: Korena Ellis Senior Associate BRE: D: M: E: kellis@rosanopartners.com The information contained in the presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property. Rosano Partners // Marketing & Value Presentation 2

3 Property Overview 3939 E. 1st St. Los Angeles, CA Rosano Partners // Marketing & Value Presentation 3

Property Overview Property Overview / Financial Summary PRICE $1,250,000 LOT SF 60,800 PRICE / LOT SF $20.56 PRO FORMA INCOME $106,800 Gross PRO FORMA GRM 11.70 PRO FORMA CAP RATE 6.

4 Property Overview Property Overview / Financial Summary PRICE $1,250,000 LOT SF 60,800 PRICE / LOT SF $20.56 PRO FORMA INCOME $106,800 Gross PRO FORMA GRM PRO FORMA CAP RATE 6.51% 1 2 Property Overview / Investment Highlights 3 4 Structures on 60,800 SF 2 Income producing SFR and 2 Rehabs Great East LA Neighborhood Rehab Opportunity Residential Zoning; LCR2* Between Gage and Eastern 1) APN: : 44,866 SF 2) APN: : 13,151 SF 3) APN: : 2,783 SF Property Overview / Property Descriptions FOUR ON A 60,800 SF LOT with under market rents! This is a magical and amazing historical property in unincorporated East LA. Two income producing SFRs, one structure that used to be a medical clinic in the 1940s with a former pagoda built beside it (may be possible to rehab into a loft type rental or home.) One SFR that needs rehab with the entrance off 1st. This is a very interesting property. Great for an owner user to occupy with extended family. May be possible to add more structures. The property is governed by LA County and its zoning is R2 residential. Property is sold AS IS, seller will not pay for termite or give any credits for condition. DO NOT DISTURB TENANTS! Rosano Partners // Marketing & Value Presentation 4

Property Pictures *Picture credit of www.lacounty.

5 Property Pictures *Picture credit of Rosano Partners // Marketing & Value Presentation 5

6 Property Pictures 116 Bonnie Beach Place Los Angeles, CA Bonnie Beach Place Los Angeles, CA Rosano Partners // Marketing & Value Presentation 6

7 Property Pictures / Back Lot Rosano Partners // Marketing & Value Presentation 7

8 Location Overview 3939 E. 1st St. Los Angeles, CA Rosano Partners // Marketing & Value Presentation 8

Location Overview / Location Description S Location Overview / Location Descriptions East LA is conveniently situated to Downtown Los Angeles, just East of Boyle Heights, with the Metro Gold Line

9 Location Overview / Location Description S Location Overview / Location Descriptions East LA is conveniently situated to Downtown Los Angeles, just East of Boyle Heights, with the Metro Gold Line running through it. The population density is 17,000 people per square mile, largely due to its low ratio of apartment buildings to SFRs. Though slow to gentrify, it has been dubbed one of Los Angeles s up and coming areas, because of its affordability and proximity to Downtown LA. Rosano Partners // Marketing & Value Presentation 9

10 Location Overview / Map S Rosano Partners // Marketing & Value Presentation 10

11 Location Overview / Map S Rosano Partners // Marketing & Value Presentation 11

Location Overview / LA County LA County Facts Population: 10,017,068 4,057.88 Sq Mi Land Area 2,419.6 Persons/Sq Mi 29.5% Bachelors Degree or Higher 3,462,202 Housing Units 47.

12 Location Overview / LA County LA County Facts Population: 10,017,068 4, Sq Mi Land Area 2,419.6 Persons/Sq Mi 29.5% Bachelors Degree or Higher 3,462,202 Housing Units 47.3% Homeownership Rate $56,241 Median Household Income LA County Industry Los Angeles is the largest major manufacturing center in the United States. 500,000 Manufacturing Workers Los Angeles and Long Beach ports support international trade. LA County Demographics African American American Indian Asian Native Hawaiian Hispanic or Latino White Alone Other Rosano Partners // Marketing & Value Presentation 12

Location Overview / LA County Economy Top 5 Companies

- $40,893 MM DirecTV - $27,226 MM Millions $45,000

MM Revenues $25,000 $20,000 $15,000 Edison International

Walt Disney DirecTV Occidental Petroleum Company Names

13 Location Overview / LA County Economy Top 5 Companies Headquartered in LA County Walt Disney Co. - $40,893 MM DirecTV - $27,226 MM Millions $45,000 $40,000 $35,000 $30,000 Occidental Petroleum - $24,216 MM Revenues $25,000 $20,000 $15,000 Edison International - $12,760 MM $10,000 $5,000 Health Net - $11,901 MM $0 Walt Disney DirecTV Occidental Petroleum Company Names Edison International Health Net Rosano Partners // Marketing & Value Presentation 13

14 Financials 3939 E. 1st St. Los Angeles, CA Rosano Partners // Marketing & Value Presentation 14

15 Financial Analysis / Setup Pricing Summary Annualized Operating Data Offering Price: $1,250,000 Pro Forma Down Payment: 25% $312,500 Gross Proforma Rent $106,800 Other income $0 Number of Units: 4 $106,800 Price/Unit: $312,500 Less: Vacancy Allowance $2,136 2% Proforma Gross Income $104,664 Proforma Cap: 6.51% Less Expenses: $23,325 Net Operating Income: $81, % * Proforma GRM: Debt Service ($53,709) Cash Flow After Debt Service/ CoC Return $27, % Principal Reduction $0 Price / Bldg sq/ft: $ Total Return Before Taxes: $27,630 9% ** Price / Land sq/ft: $20.56 NOTES: * As a percent of Effective Gross Income. ** As a percent of Down Payment. Property Description Leasable Area (sq/ft): 6,648 Annualized Expenses Unit Mix Lot Size (sq/ft): 60,800 GPR % Current Pro Forma # Units Unit Ty Current RentMarket Rents Year Built: 1913 Real Estate Taxes 1.250% $15,625 $15,625 Financing Insurance Water and Trash $3,000 $3, % $2,000 $2,000 Loan Amount: $937,500 Electricity 0.00% $0 $0 Amortization: 30 Maintenance/Repairs 0.94% $1,000 $1,000 Interest Rate: 4.00% Miscellaneous 0.47% $500 $500 Monthly Payment: ($4,476) Gardner 1.12% $1,200 $1,200 Yearly Payment: ($53,709) Financial Summary: Total Expenses $23,325 $23,325 Monthly/SF $0.29 $0.29 This information has been secured from sources we believe to be reliable, however we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify all information. Rosano Partners // Marketing & Value Presentation 15

16 Financial Analysis / Rent Roll & 5 Year Analysis Unit Current Current Rent/ Market Market Price/ Unit # Unit Type SF Rent SF Rent SF Loft 2,548 $1,600 $0.63 $3,100 $ Loft 1,422 $1,500 $1.05 $2,000 $ loft(needs rehab) 1,418 Vacant $0.00 $2,000 $ (needs rehab) 1,260 Vacant $0.00 $1,800 $1.43 $8,900 5 Year Pro-Forma Cash Flow & Valuation Year 1 Year 2 Year 3 Year 4 Year 5 GROSS PPROFORMA INCOME* $106,800 $111,072 $115,515 $120,135 $124,941 Vacany** $0 $0 $0 $0 $0 EFFECTIVE GROSS INCOME $106,800 $111,072 $115,515 $120,135 $124,941 Expenses*** $23,325 $23,558 $23,794 $24,032 $24,272 NET OPERATING INCOME $83,475 $87,514 $91,721 $96,104 $100,669 DEBT Annual Debt Service $53,709 $53,709 $53,709 $53,709 $53,709 Interest $37,500 $35,352 $34,703 $33,943 $33,183 Principal $16,209 $18,358 $19,006 $19,766 $20,526 Loan Oustanding $883,791 $867,582 $848,576 $829,570 $809,043 BEFORE TAX CASH FLOW $29,766 $33,805 $38,012 $42,394 $46,960 Cap Rate on Purchase Price Return on Investment 6.68% 7.00% 7.34% 7.69% 8.05% 9.53% 10.82% 12.16% 13.57% 15.03% ASSUMPTIONS: *Rental Increases **Vacancy Trend ***Variable Expense Increase 4.00% 2.00% 1.00% Rosano Partners // Marketing & Value Presentation 16

17 Demographics 3939 E. 1st St. Los Angeles, CA Rosano Partners // Marketing & Value Presentation 17

Demographics / Traffic Report Count Avg Daily Volume Miles from Street Cross Street Cross Str Dist Year Volume Type Subject Prop 1 E 1st St Dickerson Ave 0.04 W 2008 9,443 ADT.

18 Demographics / Traffic Report Count Avg Daily Volume Miles from Street Cross Street Cross Str Dist Year Volume Type Subject Prop 1 E 1st St Dickerson Ave 0.04 W ,443 ADT.06 2 E 1st St Dickerson Ave 0.03 W ,895 MPSI.07 3 E 1st St S Sunol Dr 0.01 W ,494 MPSI.10 4 Michigan Ave Nevada Ave 0.02 W ,359 MPSI.13 5 Michigan Ave N Bonnie Beach Pl 0.07 SW ,184 MPSI.16 6 E 1st St N Herbert Ave 0.02 E ,434 MPSI.21 7 E 3rd St S Downey Rd 0.02 W ,511 MPSI.22 8 San Carlos St N Sunol Dr 0.07 SE ,261 MPSI.23 9 S Downey Rd E 3rd St 0.02 N ,725 MPSI Pomona Fwy S Sunol Dr 0.11 W ,191 MPSI.24 Rosano Partners // Marketing & Value Presentation 18

19 Demographics / Market Comparison Report Popula'on Growth Household Growth 4.00% 3.00% 2.00% 3.09% 2.96% 4.00% 2.00% 3.09% 3.00% 1.00% 0.73% 0.59% 0.00% % % % 1 Mile County % 1 Mile County % % % % % % % % % % Rosano Partners // Marketing & Value Presentation 19

20 Demographics / Market Comparison Report 2015 Med Household Inc 2015 Med Age $60,000 $56, $50, $40,000 $34, $30,000 1 Mile 32 1 Mile $20,000 County County $10, $0 1 Mile County 27 1 Mile County Rosano Partners // Marketing & Value Presentation 20

21 Demographics / Market Comparison Report 2015 Employed vs Unemployed 1 Mile County 9.54% 8.31% Employed Employed Unemployed Unemployed 90.46% 91.69% 2015 Renter vs Owner 1 Mile County 34.45% 65.55% Rent Own 47.59% 52.41% Rent Own Rosano Partners // Marketing & Value Presentation 21

22 Presented by: Korena Ellis Senior Associate BRE: D: M: E: The information contained in the presentation is confidential, furnished solely for the purpose of a review by a prospective purchaser of the Property, and is not to be used for any other purpose or made available to any other person without the express written consent of the Seller or Advisor. Prospective purchasers should also conduct their own due diligence, including, but not limited to, engineering and environmental inspections, to determine the condition of the Property and the existence of any potentially hazardous material located at the Property or used in the construction of maintenance of the building(s) at the Property.

423 W Ventura St Fillmore, CA Offering Memorandum

423 W Ventura St Fillmore, CA 93015 Offering Memorandum Table Of Contents Property Overview... 3 Location Overview... 5 Sales Comparables... 11 Financials... 16 Demographics... 19 Presented by: Chantale