TRIPLEX IN OCEAN PARK, SANTA MONICA

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1 Corey Rasmussen TRIPLEX IN OCEAN PARK, SANTA MONICA Santa Monica, CA 90405

2 Exclusively Marketed By LYON STAHL INVESTMENT REAL ESTATE Corey Rasmussen (310) Corey Rasmussen (310) Lic Table of Contents INVESTMENT SUMMARY Investment Overview Regional Map AREA OVERVIEW Local Map City Overview County Overview Aerial Map PROPERTY DESCRIPTION Property Details 3D Map FINANCIALS Offering Summary Net Income Statement Rent Roll

3 Investment Summary Price $2,100,000 Cap Rate 3.32% NOI $69, GRM Units 3 Occupancy % Building Size 2,350 SF Price per Square Foot $ Land Area 6,320 Sq. Feet Ownership Fee Simple Investment Highlights Three Separate Bungalow style units Separately Metered for Gas and Electric Perfect Owner user situation Private backyard Front Patio perfect for entertaining Private driveway and plenty of permitted street parking Walking/Biking distance to Main Street Located 1 mile from the beach Close proximity to 10 freeway and Metro Stations Investment Description Lyon Stahl is proud to present this rare and unique 1940 s Construction triplex located in one of Southern California's most desirable communities, Ocean Park in Santa Monica. The property is located on a beautiful tree-lined street just off Ocean Park Blvd in a quiet neighborhood. It is a short bike ride or walk to Main Street which has some of the top-rated restaurants and nightlife scene in the city of Santa Monica. Located on a large 6,320 sqft lot, the property is comprised of three separate bungalow style structures is a 2-bed 2-bath unit which has a private yard with a patio area that is perfect for entertaining is a 1-bed 1-bath unit with a garage that has been converted into a 500 sqft bonus room with beautiful French doors that open to the private driveway. This unit also has a spacious deck in front. The three units bring $8,600/m in rent making it a strong investment property or a great owner/user property that has been well kept and provides solid upside potential. Optimal permitted street parking is also available. Investment Summary

4 Regional Map Investment Summary

5 Local Map Area Overview

6 Area Overview City Overview - Santa Monica Santa Monica is a beachfront city in western Los Angeles County, California, United States. The city is bordered on three sides by the city of Los Angeles Pacific Palisades to the north, Brentwood on the northeast, West Los Angeles and Mar Vista on the east, and the Pacific Ocean to the West. Santa Monica is home to many Hollywood celebrities and executives and is a mixture of affluent single-family neighborhoods, renters, surfers, professionals, and students. The Census Bureau 2010 population for Santa Monica is 89,736. Partly because of its agreeable climate, Santa Monica had become a famed resort town by the early 20th century. The city has experienced a boom since the late 1980s through the revitalization of its downtown core and significant job growth and increased tourism. The 2010 United States Census reported that Santa Monica had a population of 89,736. The population density was 10,662.6 people per square mile (4,116.9/km2). The racial makeup of Santa Monica was 69,663 (77.6%) White (70.1% Non-Hispanic White), 3,526 (3.9%) African American, 338 (0.4%) Native American, 8,053 (9.0%) Asian, 124 (0.1%) Pacific Islander, 4,047 (4.5%) from other races, and 3,985 (4.4%) from two or more races. Hispanic or Latino of any race were 11,716 persons (13.1%). Santa Monica is home to the headquarters of many notable businesses, including Universal Music Group, Lionsgate Films, the RAND Corporation, Beachbody, Macerich, and Supermarine, now Atlantic Aviation, is at the Santa Monica Airport. National Public Radio member station KCRW is located at the Santa Monica College campus. A number of game development studios are based in Santa Monica, making it a major location for the industry. These include: Activision Blizzard, Cloud Imperium Games (Creators of Star Citizen) and Riot Games, the creators of League of Legends. Also, Fatburger's headquarters are in Santa Monica and TOMS Shoes has its headquarters in Santa Monica. In addition, Universal Music Group is based in Santa Monica. Several of its labels such as Aftermath Entertainment (started by Dr. Dre), Interscope (started by Jimmy Iovine), A&M Records, Geffen Records, Shady Records,and G-Unit Records (created by 50 Cent & Sha Money XL) are based in Santa Monica, CA. Area Overview

7 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. 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, well-trained 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. 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 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. Area Overview

8 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 Property Details Address Santa Monica, California Square Footage 2,350 SF Land Area 6,320 Sq. Feet Year Built 1940 Assessors Parcel Number Site Zoning SMR2* Number of Buildings 3 Number of Stories 2 Parking Private Driveway & Permitted S Common Area Amenities Private Backyard & Patio Spacious Deck & Entertaining Area Property Description

11 Financial Offering Summary Price $2,100,000 Building Size 2,350 SF Ownership Fee Simple Land Area 6,320 Sq. Feet Number of Units 3 Number of Stories 2 Year Built 1940 Parking Private Driveway & Permitted S Occupancy % Price per Unit $700, Price per Square Foot $ Current CAP Rate 3.32% Pro Forma Cap Rate 4.19% Current GRM Pro Forma GRM NOI $69,696 Pro Forma NOI $88,064 Financing Loan Type New/Proposed Loan Amount $1,260,000 Down Payment $840,000 Interest Rate 4.25% Amortization Period 30 Years Annual Payment $74,381 Financials

12 Net Income Statement Current Annual Income Proforma Annual Income REVENUES Gross Potential Rent $104,664 $123,600 Less: Vacancy Rate 3,140 3,708 Effective Gross Income $101,524 $119,892 OPERATING EXPENSES Real Estate Taxes 24,143 24,143 Insurance 1,482 1,482 Utilities 2,250 2,250 Repairs 3,140 3,140 Direct Assessment TOTAL EXPENSES $31,828 $31,828 NET OPERATING INCOME $69,696 $88,064 Debt Service $74,381 $74,381 NET CASH FLOW AFTER DEBT SERVICE $-4,685 $13,683 Principal Reduction $21,242 $21,242 TOTAL RETURN 1.97% 4.16% Expenses Per SF $13.54 $13.54 % of EGR 31.35% 26.55% 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 BR 1 BTH - Occupied Nov $ 2, $ 3, $ BR 2 BTH - Occupied Jun $ 3, $ 3, $ BR 1 BTH - Occupied Jul $ 3, $ 3, $ Unit Note: Includes 500 square foot bonus room downstairs (originally a garage) personal driveway 3 Units TOTALS 0 Occ:3 Vac:0 $8, $10, $1, Financials

14 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 Lyon Stahl Corey Rasmussen (310) Agents@lyonStahl.com Corey@lyonstahl.com