MIDVALE APARTMENTS Midvale Ave Los Angeles, CA OFERRING MEMORANDUM

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1 OFERRING MEMORANDUM

2 Exclusively 2 Listed By MIDVALE APARTMENTS KYLE MIRRAFATI Senior Associate - Multifamily Direct Mobile kyle.mirrafati@matthews.com License No (CA) DAVID HARRINGTON EVP & National Director - Multifamily Direct Mobile david.harrington@matthews.com License No (CA) MATTHEWS REAL ESTATE

3 OFERRING MEMORANDUM Table of Contents 04 PROPERTY SUMMARY 06 LOCATION OVERVIEW 10 FINANCIAL OVERVIEW

4 4 MIDVALE APARTMENTS MATTHEWS REAL ESTATE INVESTMENT SERVICES

5 5 Property Summary 3658 Midvale Ave is located near the corner of Midvale Avenue and Charnock Road in the Palms area of West Los Angeles. The property is just east of the 405 Freeway and just south of the 10 Freeway. This property is in a very convenient Westside location. Residents can walk to downtown Culver City, which is home to a variety of dining, entertainment and shopping options. Its close Proximity to Culver City Expo line connects Residents to Downtown LA and Santa Monica. The Palms area is 1.95 Square Miles and has a population of over 45,000 residents. This is among the highest densities for the City of Los Angeles. The median age for residents in the Palms area is 31, which is about average for the County. However, the percentage of residents from ages 19 to 34 is among the county s highest, which bodes well for apartment owners and operators. Property Description 7 Units, Built in 1958 In the Palms Area on the Westside of Los Angeles Four 2bed / 1bath; Two 3bed / 2bath; One Bachelor Select Units with Laminate Floors and Granite Counter Tops Laundry Facility On-Site 10 Parking Spaces Over 14% of Upside Potential Near Venice Boulevard and Adjacent to Culver City 6,350 Gross Square Feet of Building 0.18 Acre Lot with LAR3 Zoning Opportunity Westside LA Location Near Downtown Culver City Great Units Mix of 2 and 3 Bedroom Units Select Units with Upgraded Flooring and Countertops High-Density Rental Market with Strong Demographics OFERRING MEMORANDUM

6 6 MIDVALE APARTMENTS Location Overview Palms is a highly diverse, densely populated community in the Westside regional of Los Angeles. Palms is a highly sought after primarily residential area, with a large number of apartment buildings, and ribbons of commercial zoning. Palms is strategically located just northwest of Culver City, south of Cheviot Hills and Beverlywood, southeast of Rancho Park, west of Mid-City and northeast of Mar Vista. Palms ranks #9 on the list of Los Angeles County s cities with the highest population density. Palms has highly populated with ambitious post grads and young families looking to make their home in Los Angeles. Palms is just a skip away from the glistening pristine beaches of Venice and Santa Monica, offering a diverse spread of both commercial and residential zone. Palms lies just 11 miles of the center of Los Angeles. Palms provides a central hub for residents - closely located to the growing cultural center of Culver City, near freeways for commuters, and only fives miles from the bustling UCLA campus. MATTHEWS REAL ESTATE INVESTMENT SERVICES

7 7 TRANSPORTATION Residents of the Palms area have easy access to two LA freeways, making anywhere in LA easily accessible. Palms is served by both the 405 (San Diego Freeway) and the 10 (Santa Monica Freeway). Palm is also served by the Metro Expo Line. The western terminus is located near the intersection of Venice and Robertson Boulevards. The line travels conveniently through Palms, to Santa Monica, with the station at the intersection of National, Palms and Exposition Boulevards. IMMEDIATE LOCATION 3658 Midvale is conveniently located in the heart of Palms, right off of Venice Blvd. Nearby parks include Tellefson Park, Veterans Memorial Park, and Doctor Carlson Memorial Park Midvale has a Walk Score of 78 out of 100, so most errands can be accomplished on foot. The closest grocery store is Ralph s which is less than a mile away. Nearby restaurants include Bella Vista, Pampas Grill, Shawarma Land Mediterranean, and Café Brasil. RESTAURANT/NIGHTLIFE Residents of Palms enjoy a full selection of nightly entertainment including a healthy spread of pubs, bars, lounges, music venues, and nightclubs. For a phenomenal happy hour menu in a laid-back atmosphere, locals make their way to Bigfoot West on Venice Boulevard. Enjoy an expansive selection of whiskey and bourbons, while local DJs provide musical entertainment for you and your friends at this trendy neighborhood spot. Carbon Nightclub provides an ideal retreat for visitors to come and enjoy warming company in a lively and upbeat atmosphere, where the latest music pulses through the facility as guests enjoy cold drinks and dance the night away. OFERRING MEMORANDUM

8 8 MIDVALE APARTMENTS Los Angeles, CA As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California s original 27 counties, is one of the nation s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California s population. The area continues to grow, especially given the vigorous residential development in downtown LA. Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles- Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas. Economy The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the Movie Capital of the United States due to the region s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism. MATTHEWS REAL ESTATE INVESTMENT SERVICES

9 9 Demographics 1 MILE 3 MILE 5 MILE POPULATION 2010 Census 53, , , Estimate 55, , , Projection 57, , ,610 POPULATION GROWTH Percent Change: 2010 to % 4.71% 4.93% Percent Change: 2017 to % 4.00% 4.04% HOUSEHOLDS 2000 Census 24, , , Estimate 25, , , Projection 26, , ,645 HOUSEHOLD GROWTH Percent Change: 2010 to % 4.86% 4.97% Percent Change: 2017 to % 4.13% 4.20% FAMILY HOUSEHOLDS 2010 Census 11,078 61, , Estimate 11,567 64, , Census 12,019 67, ,156 FAMILY HOUSEHOLD GROWTH Percent Change: 2010 to % 4.65% 4.73% Percent Change: 2017 to % 4.01% 4.06% INCOME Average Household Income $82,213 $111,810 $108,981 Median Household Income $60,896 $74,030 $70,157 OFERRING MEMORANDUM

10 10 MIDVALE APARTMENTS Financial Overview INVESTMENT SUMMARY Price $2,800,000 Price/Unit $400,000 Price/SF $ Estimated Cap Rate 3.92% MATTHEWS REAL ESTATE INVESTMENT SERVICES

11 11 INVESTMENT SUMMARY Offering Price: $2,800,000 Number of Units: 7 Property Address: 3658 Midvale Year Built: 1958 Location: Los Angeles, CA APN: Price Per Unit: $400,000 Gross Sq. Ft.: 6,350 Price Per S.F.: $ Average S.F. Per Unit: 907 Cap (current / market): 3.92% / 4.69% Lot Size 7,990 GRM (current / market): / Zoning LAR3 UNIT MIX Total Units Unit Mix Unit Mix % Current Average Rent Current Monthly Rent Market Rent Market Monthly Rent 1 bachelor 14% $996 $996 $1,300 $1, % $1,798 $7,192 $2,200 $8, % $3,000 $6,000 $3,000 $6,000 Scheduled Monthly Rent: $14,188 $16,100 Scheduled Yearly Rent: $170,256 $193,200 OFERRING MEMORANDUM

12 12 MIDVALE APARTMENTS ANNUAL OPERATING SUMMARY Current Market Scheduled Gross Income: $170,256 $193,200 13% Upside Less Vacancy Reserve: 3.0% $5, % $5,796 Laundry Income: Estimated $1,200 $1,200 Gross Operating Income: $166,348 $188,604 Expenses: 33.2% $56, % $57,367 Net Operating Income: $109,872 $131,237 Loan Payments: $91,560 $91,560 Pre-Tax Cash Flow: 1.5% $18, % $39,677 ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.250% x Sale Price $35,000 $5,000 21% *Insurance $0.35 x GSF $2,223 $318 1% Off-Site Management 4.0% x GOI $6,654 $951 4% Repairs & Maintenance $500 x Units $3,500 $500 2% Contract Services $250 x Units $1,750 $250 1% Utilities $950 x Units $6,650 $950 4% General Administration $100 x Units $700 $100 0% Total Expenses $56,476 $8, % Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins: $37,223 $5, % Total Expense with out Taxes $21,476 $3, % MATTHEWS REAL ESTATE INVESTMENT SERVICES

13 13 RENT ROLL Unit Mix Rent Market Rent $1,720 $2, $2,100 $2, $3,000 $3, $1,700 $2, $1,672 $2, $3,000 $3,000 7 Bachelor $996 $1,250 Totals $14,188 $14,400 Averages $2,027 $2,400 OFERRING MEMORANDUM

14 This Offering Memorandum contains select information pertaining to the business and affairs of 3658 Midvale Ave, Los Angeles, CA ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

15 KYLE MIRRAFATI Senior Associate - Multifamily Direct Mobile kyle.mirrafati@matthews.com License No (CA) DAVE HARRINGTON EVP & National Director - Multifamily Direct Mobile david.harrington@matthews.com License No (CA)