TROPHY 8-UNIT APARTMENT BUILDING BIXBY KNOLLS LONG BEACH

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1 TROPHY 8UNIT APARTMENT BUILDING BIXBY KNOLLS LONG BEACH Woody Stahl (310) Brett Lyon (310)

2 TROPHY 8UNIT APARTMENT IN BIXBY KNOLLS EXCLUSIVELY MARKETED BY : Lyon Stahl Investment Real Estate INVESTMENT SUMMARY Investment Overview Regional Map Woody Stahl (310) Woody@LyonStahl.com Lic Brett Lyon (310) Brett@LyonStahl.com Lic AREA OVERVIEW Local Map City Overview County Overview Aerial Map PROPERTY DESCRIPTION Property Details 3D Map FINANCIALS Offering Summary Net Income Statment Rent Roll Unit Mix COMPARABLES Sales Comparable Map Sales Comparables Rental Comparable Map Rental Comparables On Market Comparable Map On Market Comparables

3 TROPHY 8UNIT APARTMENT BUILDING Investment Summary Price Cap Rate NOI GRM Units Occupancy Building Size Price per Square Foot Land Area Ownership $1,875, % $78, % 5,249 SF $ ,270 SF Fee Simple Investment Description Lyon Stahl is pleased to present, an 8unit apartment building located in the Bixby Knolls neighborhood of Long Beach. This beautifully maintained property has a unit mix consisting of eight (8) 1bed/1bath units combining for a total living space of 5,249 SF. Situated on an 8,270 SF lot, this 8unit complex features a Koi Pond, four (4) garage/carport parking spaces, and recently renovated units. Currently operating at a 4.21% CAP Rate and GRM, this is an ideal investment for any investor looking to add a great cashflowing property to their portfolio. Investment Highlights Trophy 8unit apartment building Bixby Knolls area of Long Beach (8) 1bedroom/1bathroom units Units have recently been remodeled New vinyl windows and roof Beautiful Koi Pond and courtyard 4.21% CAP GRM $234,375 / unit Has not traded in 25+ years Pride of ownership and wellkept grounds Investment Summary

4 TROPHY 8UNIT APARTMENT BUILDING Interior Photos Property Description

5 , Regional Map Investment Summary

6 , Local Map Area Overview

7 , Area Overview City Overview Long Beach Long Beach has emerged as a popular living area in Southern California. Located south of the city of Los Angeles, made up of square miles and a population just below 471,000, primarily made up of college graduates, working professionals, and families, Long Beach offers many attractions including the Queen Mary, Aquariums, Toyota Grand Prix, and the Long Beach Convention Center. The historic Pine Avenue provides many restaurants and shopping options for residents. Long Beach is also home to major businesses such as Verizon, Boeing, and DIRECTTV. Long Beach provides alternative transits for working professionals to avoid heavy traffic in the southern California area and easy access to the 405 and the 710 for easy commutes to downtown Los Angeles, and Orange County. In 2017 Long Beach s YeartoYear rental price change increased a whopping 7.8% emerging as one of the biggest in major US cities. Over 60% of Long Beach residents are renters, with onethird of renters spending more than half their income on housing. In 2016, the overall average house and condo value in the city of Long Beach was around $518,900 which was significantly higher than the overall California average of $477,500. Long Beach has since past major cities such as Portland and Atlanta to become a major competitor in the rental market. The development of Long Beach has grown significantly from a financial and economic standpoint. Recently, one and twobedroom units have matched Los Angeles units dollar for dollar. Long Beach has been developing new complexes that offer lots of amenities which explains the demand for housing in the area. Developers in Long Beach have been focusing on creating spaces for multigenerational families who want to move to the area. Using smaller lots and constructing larger units, make it suitable for these families. The proposed units are primarily being focused in neighborhoods, which accommodates Long Beach citizens who use alternative ways of transportation. These larger units will allow families to access efficient transits to various businesses and schools, located in the Long Beach and Los Angeles areas. The past few years have been very busy for downtown Long Beach. There are over a dozen new developments in the works totaling over $4 billion. Among them are an enormous entertainment complex planned beside the Queen Mary, a total overhaul of the city s civic center, a pair of mixeduse developments with nearly 1,000 units of housing for students between them, and an apartment tower set to be the largest building in town. County Overview The most heavily populated county in the country is Los Angeles County with approximately 9.9 million people, including about 1 million that live in unincorporated areas of the county. The metropolis formed by the six neighboring counties of Los Angeles, Ventura, Kern, San Bernardino, Riverside, and Orange is home to approximately 19 million residents. Los Angeles County is home to one of the most educated labor pools in the country and offers a labor force of more than 4.7 million, of which more than 1.5 million are college graduates. Los Angeles County has the largest population of any county in the nation, exceeded only by eight states. According to the United States Conference of Mayors, Los Angeles County boasts a GDP among the twenty largest in the world. Los Angeles County s continued economic growth, in contrast to other areas of the state and nation, is due to its diversified economy and abundant, welltrained workforce. Los Angeles County is well located on the Southern Coast of the California, and covers 4,061 square miles, including the San Clemente and Santa Catalina islands. The County is comprised of approximately 88 vibrant and diverse cities hosting more than 244,000 business establishments the greatest concentration in the state. Los Angeles County has a Gross Domestic Product (GDP) of approximately $446 billion placing it among the top 20 economies in the world. The combined GDP of Los Angeles and its five surrounding neighboring counties places it in the top 10. California is generally considered to be in the top five. Area Overview

8 , If Los Angeles County were its own nation, its economy would be the 18th largest in the world. It is home to more than 244,000 businesses, with more minority and women owned businesses than any other in the nation and is the nation s top international trade center and manufacturing center. Los Angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace and international trade. Because the Los Angeles area is so large and diverse, it has something to offer to everyone. While Hollywood and the Los Angeles beach culture are part of our collective image of Los Angeles, the city also has more museums than any other city and some of the best hotels in the world are located in Los Angeles. Over the years, Los Angeles County has developed a diverse economic base, supported by a number of Fortune 500 companies with headquarters in the area, including Hilton Hotels, Walt Disney, Occidental Petroleum, DirecTV Group, Northrop Grumman, Computer Sciences, KB Home, Health Net, Mattel, and Avery Dennison. Key factors positively impacting the region s economic position include increased local media production by the entertainment industry and a continuing expansion of import flows. Moreover, growth in aerospace, homeland security and in the private business sector have contributed positively to the County's economy. Los Angeles' well educated labor pool, many universities, wonderful climate, and world class infrastructure will enable Greater Los Angeles to continue to be a world leader in economic and cultural significance. County Highlights Los Angeles County is the world s 18th largest economy. Los Angeles part of the "Tech Coast" and is regarded as the of the main entrepreneurial regions of the world. It has approximately 200,000 small businesses, which is twice as many small businesses as can be found in any other region of the United States. If Los Angeles' five county area were a state, it would be the fourth largest in the United States. Los Angeles has more than 80 stage theaters and 300 museums, more than any other U.S city. Area Overview

9 , Aerial Map Area Overview

10 TROPHY 8UNIT APARTMENT BUILDING Property Details Address Square Footage 5,249 SF Land Area 8,270 SF Year Built 1947 Assessors Parcel Number Site Zoning LBR3S Number of Buildings 1 Number of Stories 2 Parking 4 Property Description

11 TROPHY 8UNIT APARTMENT BUILDING Financial Offering Summary Price $1,875,000 Building Size 5,249 SF Ownership Fee Simple Land Area 8,270 Sq. Feet Number of Units 8 Number of Stories 2 Year Built 1947 Parking 4 Occupancy % Financing Loan Type New/Proposed Loan Amount $1,050,000 Down Payment $825,000 Interest Rate 4.25% Amortization Period 30 Years Annual Payment $61,984 Price per Unit $234, Price per Square Foot $ Current CAP Rate 4.16% Pro Forma Cap Rate 4.84% Current GRM Pro Forma GRM NOI $78,021 Pro Forma NOI $90,690 Financials

12 TROPHY 8UNIT APARTMENT BUILDING Net Income Statement Current Annual Income Proforma Annual Income REVENUES Gross Potential Rent $129,900 $145,200 Less: Vacancy Rate Reserve 3,897 7,260 Effective Scheduled Rent 126, ,940 Laundry 1,068 1,800 Effective Gross Income $127,071 $139,740 OPERATING EXPENSES Real Estate Taxes 24,976 24,976 Insurance 2,436 2,436 Utilities 6,043 6,043 Maintenance 3,929 3,929 Landscaping 2,170 2,170 Property Management 6,548 6,548 Pest 1,176 1,176 Koi Pond 1,772 1,772 TOTAL EXPENSES $49,050 $49,050 NET OPERATING INCOME $78,021 $90,690 Debt Service $61,984 $61,984 NET CASH FLOW AFTER DEBT SERVICE $16,037 $28,706 Principal Reduction $17,702 $17,702 TOTAL RETURN 4.09% 5.63% Expenses Per SF $9.34 $9.34 % of EGR 38.60% 35.10% Financials

13 , Rent Roll Unit Information Lease Rental Rates Unit No Unit Type App. Square Footage Status Move In Date Current Monthly Rent PSF Pro Forma Monthly Rent PSF Loss to Lease 1 1 BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ BR 1 BTH Occupied $ 1, $ 1, $ Units TOTALS 0 Occ:8 Vac:0 $10, $12, $1, Financials

14 , Unit Mix Unit Info Occupancy Square Footage Current Monthly Rent Pro Forma Monthly Rent Number of Units Unit Type Occ Vac % Occ Average Unit SF Total Unit SF AVG Low High Total AVG PSF AVG Total AVG PSF Vacancy Loss 8 1 BR 1 BTH % $ 1,353 $ 1,175 $ 1,450 $10,825 $1,513 $12,100 $0 8 TOTALS % 0 SF $10,825 $12,100 $0 Financials

15 , Sales Comparable Map Comparables

16 , Sales Comparables Photos Address Sale Price Sale Date Total Units Price Per Unit Total SF $/SF CAP GRM Unit Mix Year Built Land Area Days on Market $1,950,000 N/A 8 243,750 5,249 SF $ % (8) 1BR + 1BTH ,270 SF N/A 1090 E San Antonio $4,875,000 02/09/ $243,750 14,980 SF $ % (16)1bed/1bath (4) Studios ,980 SF 33 Averages $4,875, $243,750 14,980 SF $ % Comparables

17 , Rental Comparable Map Comparables

18 , Rental Comparables Photos Address Date Surveyed Total Units Year Built Bldg SF Occupancy Units Types Avg Unit SF Avg Unit Rent Avg Rent Per SF ,249 SF % 1 BR / 1 BTH $1, Gundry Ave #1/ /21/ SF 1BR /1BTH 798 SF $1,995 $ E Carson St # /16/ SF 1BR /1BTH 664 SF $1,495 $ Elm Ave # /06/ SF 1BR /1BTH 740 SF $1,550 $2.09 Comparables

19 , Photos Address Date Surveyed Total Units Year Built Bldg SF Occupancy Units Types Avg Unit SF Avg Unit Rent Avg Rent Per SF 4595 California Ave # /02/ SF 1BR /1BTH 771 SF $1,495 $ N Banner Dr BR /1BTH 750 SF $1,479 $1.97 Averages 743 SF 745 SF $ 1,603 $ 2.15 Comparables

20 , On Market Comparable Map Comparables

21 , On Market Comparables Photos Address Sale Price Total Units Price Per Unit Total SF $/SF CAP GRM Unit Mix Year Built Land Area $1,950,000 8 $ 243,750 5,249 SF $ % (8) 1BR + 1BTH ,270 SF 5065 Pacific Ave $499,900 2 $249,950 1,318 SF $379 (2) 1bed/1bath ,119 SF 1715 E Jackson St $620,000 2 $310,000 1,664 SF $373 (2) 2bed/1bath ,444 SF 5351 Cedar Ave $740,000 4 $185,000 2,136 SF $ % (4) 1bed/1bath ,958 SF Comparables

22 , Photos Address Sale Price Total Units Price Per Unit Total SF $/SF CAP GRM Unit Mix Year Built Land Area 3717 Brayton Ave $1,089,000 3 $363,000 3,158 SF $ % (2) 2bed/1bath (1)1bed/1bath ,447 SF Averages $737,225 3 $276,988 2,069 SF $ % Comparables

23 CONFIDENTIALITY AND DISCLAIMER The information contained in this Offering Memorandum ( Memorandum ) is proprietary and strictly confidential; it is intended to be reviewed only by the party receiving it from Broker and should not be made available to anyone else without the written consent of Broker. By retention or use of this Memorandum, you agree that its contents are confidential, that you will hold it in the strictest confidence, and that you will not disclose any of its contents contrary to these terms. This Memorandum has been prepared to provide summary, unverified information to establish a preliminary level of interest in the subject property ( Property ). The information in this Memorandum has been obtained from sources Broker believes to be reliable; however, Broker has not conducted sufficient investigation to make any warranty or representation whatsoever including but not limited to the accuracy or completeness of the information, veracity or accuracy of the information, condition of the Property or its compliance or lack of compliance with applicable governmental requirements, developability, suitability or financial performance of the Property, income or expenses for the Property, the size and square footage of the Property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State or Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant or any tenant s plans or intentions to continue occupancy of the Property. The Memorandum has selected information relating to the Property and does not purport to be an all inclusive representation regarding the Property or to contain all or part of the information which prospective investors may require to evaluate the purchase of the Property. Additional information and an opportunity to investigate the Property will be made available to interested and qualified prospective purchasers. All information is based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of Broker, therefore, all information is subject to material variation. The information contained herein is not a substitute for a thorough due diligence investigation. Interested parties are expected to review all information of whatever nature independently and not rely on the contents of this Memorandum in any manner. The Property owner ( Owner ) expressly reserves the right, at its sole discretion, to reject any or all offers to purchase the Property, and/or to terminate discussions at any time with or without notice. The Owner shall have no legal commitment or obligation unless and until written agreement(s) have been fully executed, delivered and approved by the Owner and any conditions to the Owner s obligations therein have been satisfied or waived. Exclusively Marketed By: Lyon Stahl Investment Real Estate Woody Stahl (310) Woody@LyonStahl.com Brett Lyon (310) Brett@LyonStahl.com