THE COHEN GROUP OFFERING MEMORANDUM PALMWOOD DRIVE LOS ANGELES, CA JOSH COHEN CA:

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1 THE COHEN GROUP OFFERING MEMORANDUM PALMWOOD DRIVE LOS ANGELES, CA JOSH COHEN CA:

2 S E C T I O N I F i n a n c i a l A n a l y s i s

3 UNIT RENT ROLL Unit Description Approx. Sq. Ft. Current Rent Pro Forma Rent One Bed 705 $1,090 $1, One Bed 705 $782 $1, One Bed 705 $995 $1, One Bed 705 $866 $1, One Bed 705 $1,100 $1, One Bed 705 $1,200 $1, One Bed 705 $1,030 $1, One Bed 705 $861 $1, One Bed 705 $1,000 $1, One Bed 705 $980 $1,200

4 The Cohen Group REAL ESTATE INVESTMENT DETAILS ANALYSIS Analysis Date July 2015 PROPERTY Property Address Palmwood Drive Los Angeles, CA Year Built 1954 PURCHASE INFORMATION Property Type Purchase Price Units Total Rentable Sq. Ft. FINANCIAL INFORMATION MultiFamily $1,200, ,050 Down Payment $360,000 LOANS Fixed Debt $840,000 Term 30 years INCOME & EXPENSES Gross Operating Income Monthly GOI Total Annual Expenses Monthly Expenses Amortization 30 years Rate 3.85% Payment $3,938 LO Costs CONTACT INFORMATION $115,283 $9,607 ($50,268) ($4,189) Josh Cohen CA

5 The Cohen Group PRO FORMA SUMMARY UNIT MIX & ANNUAL SCHEDULED INCOME Type Units One Bed One Bath 10 TOTALS 10 Actual $11,885 Total $118,848 Market $14,400 $118,848 Total $144,000 $144,000 ANNUALIZED INCOME Actual Gross Potential Rent Less: Vacancy INVESTMENT SUMMARY Price: $1,200,000 Year Built: 1954 Units: 10 Price/Unit: $120,000 RSF: $ Lot Size: 8,086 sf Floors: % Market Cap Rate: 7.45% GRM: 10.1 Market GRM: 8.33 FINANCING SUMMARY Loan Amount: $840,000 Down Payment: $360,000 Loan Type: Fixed Interest Rate: 3.85% Monthly Payment: DCR: Effective Gross Income Less: Expenses $115,283 ($50,268) (43%) $139,680 ($50,268) (35%) Net Operating Income Debt Service $65,015 ($47,256) $89,412 ($47,256) Net Cash Flow after Debt Service Principal Reduction $17,759 (4.9%) $15,182 $42,156 (11.7%) $15,182 Total Return $32,941 (9.15%) $57,338 (15.93%) ANNUALIZED EXPENSES Actual Cap Rate: Term: Market $144,000 ($4,320) 7,050 Price/RSF: APN: $118,848 ($3,565) 30 years Insurance Landscaping Maintenance Management Fees Taxes - Real Estate Trash Removal Utility - Water Utility - Electricity Utility - Gas Utility - Sewer Total Expenses Expenses Per RSF Expenses Per Unit Market $6,225 $1,775 $5,942 $5,739 $14,880 $5,402 $3,751 $1,412 $2,379 $2,763 $6,225 $1,775 $5,942 $5,739 $14,880 $5,402 $3,751 $1,412 $2,379 $2,763 $50,268 $7.13 $5,027 $50,268 $7.13 $5,027 $3,

6 S E C T I O N I I P r o p e r t y D e s c r i p t i o n

7 The Cohen Group PROPERTY DESCRIPTION The Cohen Group is pleased to present for sale Palmwood Drive, a 10 unit apartment complex in the Baldwin Village neighborhood of Los Angeles, California. The subject property comprises bedroom, one bathroom units. ten one The property features on-site parking and laundry for tenant convenience. All units are individually metered for gas and electricity. The local neighborhood is a historically strong rental market ideally positioned for continued and future gentrification due to its close proximity to very desirable areas such as Baldwin Hills, Marina Del Rey, West Los Angeles, Culver City, and Mid-Wilshire. The overall strength of the Los Angeles multi-family market, as well as the continued availability of historically strong financing make this an ideal investment for a wide variety of commercial real estate investors.

8 The Baldwin Village neighborhood is experiencing a tremendous amount of development, as highlighted by the description of two prominent examples below: Known by the glamorous title of ʺKaiser Permanente Outpatient Medical Facility Baldwin Hills MOB,ʺ the project offers a four story, 105,000 square foot building, surrounded by surface parking lots and a landscaped central plaza. The plaza, which will be open to the public, allows for cut through pedestrian traffic between the Baldwin Hills Crenshaw Plaza shopping mall and the residential neighborhood to the west. Designed by HOK, the project will utilize a variety of environmentally friendly measures in an effort to obtain either LEED Gold or LEED Platinum Certification. The outpatient facility will incorporate solar panels in several areas throughout the project site, including its parking lots and the central plaza area. Most notably, the building will employ a photovoltaic canopy as part of an architectural rooftop feature. Other exterior materials include metal panels, perforated metal screens and spandrel glazing. The new medical offices will rise on a site once occupied by Marlton Square (a.k.a. Santa Barbara Plaza). With the new Crenshaw/MLK subway station slated to open one block east in 2019, it appears that Kaiserʹs timing may be just right. This new development is just several hundred feet from the subject property, as noted by the below aerial map.

9 Additionally, per the Urbanize LA website, Capri Capital Partners, the Chicago based owner of Baldwin Hills Crenshaw Plaza, is planning to redevelop their 43 acre property with over 2 million square feet of new office space, housing, retail space and hotel rooms. According to a master plan created by planning and design firm RAW International, the proposed development would replace a series of surface parking lots and low rise commercial buildings which flank the mid century shopping center. The centerpiece mall, anchored by a Macyʹs department store, would be preserved and rehabilitated as part of the project. A pedestrian oriented retail village would be constructed at the southeast corner of the property, abutting the intersection of Crenshaw Boulevard and Stocker Street. The proposed shopping center would consist of multiple freestanding one and two story buildings bisected by heavily landscaped paseos. A wide central promenade would cut a swath directly through the center of the retail village, creating a pedestrian link to the existing mall and Marlton Avenue. Proposed uses within the village include including stores, restaurants and entertainment venues. Other commercial establishments could be located within the ground floor of newly constructed buildings in different areas of the development site. The project would also include roughly 148,000 square feet of office space, to be situated within a 14 story building on Crenshaw Boulevard, 39th Street and Marlton Avenue. The proposed tower would stand approximately 145 feet tall, seated above a subterranean parking garage and landscaped open space at ground level.

10 Current designs call for a multi cornered structure which would feature construction materials including concrete, steel and a glazed curtain wall. A penthouse level would sit atop the building, offering panoramic views of the Los Angeles basin. Capri Capitalʹs plans call for the creation of a mid rise hotel tower immediately west of the proposed retail village. The 12 story, 135 foot tall edifice would rise near the intersection of Stocker Street and Santa Rosalia Drive, containing 400 guest rooms and ancillary restaurant space. The proposed hotel would feature a uniform design, incorporating elements of the existing mallʹs International Style architecture by articulating each floor with a horizontal glass band. The towerʹs plaza level would be situated at the same elevation as the adjacent retail village, allowing for a seamless pedestrian connection between the two areas. Vehicular access to a 74 car surface parking lot would occur on the western side of the building. Under an alternate development program, the hotel could switch locations with aforementioned office tower at the northern edge of the project site. Much of the developmentʹs remaining footprint would be devoted to multi family housing. Capri Capitalʹs plans for Crenshaw Plaza include a cumulative 961 residential units, to be divided between rental apartments and condominiums. Plans call for a mixture of 410 one and two bedroom apartments and 551 one, two andthree bedroom condominiums. The majority of these units would be situated within a series of seven story structures located north of Martin Luther King Jr. Boulevard. Each new building would feature ground floor commercial space and one level of above grade parking. Proposed retail tenants include an 85,000 square foot grocery store at the the intersection of Crenshaw Boulevard and 39th Street, replacing a smaller market which would be demolished to make way for the new buildings. The remainder of the projectʹs residential component would be located within a pair of five story structures near the intersection of Santa Rosalia Drive and Marlton Avenue. The residential buildings would obscure two above grade parking garages which would sit immediately west of the existing mall.

11 Although Crenshaw Plaza will be located almost directly atop a future subway station, the expansion projectʹs office and retail components would result in substantial parking accommodations. A full build out of the development would include nearly 7,000 vehicle stalls, including approximately 2,800 spaces on the north site and almost 4,200 spaces on the south site. Construction of the Crenshaw Plaza redevelopment would occur over multiple phases, although an exact order has yet to be determined. While a precise schedule will depend on multiple factors including Capri Capitalʹs ability to obtain financing completion is currently expected by the end of 2020.

12 The Cohen Group

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14 S E C T I O N I I I R e c e n t S a l e s

15 SALES COMPARABLES 8% Cap Rate 16.0 Gross Rent Multiplier 7% 6% 5% Avg Avg % 8.0 3% 6.0 2% 4.0 1% 2.0 Subject Subject $144,000 Price per Unit $176 Price per Sq. Ft. $126,000 $108,000 $90,000 Avg. $122,714 $154 $132 $110 Avg. $ $72,000 $88 $54,000 $66 $36,000 $44 $18,000 $22 Subject Subject

16 SALES COMPARABLES S Palmwood Drive Los Angeles, CA Sale Price $1,200,000 Units 10 Price/Unit $120,000 Price/SqFt $ Cap Rate 5.42% Year Built 1954 GRM 10.1 # Units Unit Type 10 One Bed One Bath A In Escrow 4033 Palmwood Drive Los Angeles, CA Sale Price $928,000 Units 8 Price/Unit $116,000 Price/SqFt $ Cap Rate 5.5% Year Built 1954 GRM 10.3 # Units Unit Type 7 One Bedroom One Bath 1 Two Bedroom One Bath B Sale Date 5/1/ Santa Rosalia Drive Los Angeles, CA Sale Price $860,000 Units 6 Price/Unit $143,333 Price/SqFt $ Cap Rate 7.9% Year Built 1956 GRM 9.9 # Units Unit Type 4 Two Bedroom Two Bath 2 Three Bedroom Two Bath

17 SALES COMPARABLES C Sale Date 2/12/ Gibraltar Avenue Los Angeles, CA Sale Price $1,090,000 Units 9 Price/Unit $121,111 Price/SqFt $ Cap Rate 7.2% Year Built 1958 GRM 10.5 # Units Unit Type 2 One Bedroom One Bath 1 Two Bedroom One Bath 6 Two Bedroom Two Bath D Sale Date 12/16/ Stevely Avenue Los Angeles, CA Sale Price $965,000 Units 8 Price/Unit $120,625 Price/SqFt $ Cap Rate 7.1% Year Built 1957 GRM 10.4 # Units Unit Type 3 One Bedroom One Bath 4 Two Bedroom Two Bath 1 Three Bedroom Two Bath E Sale Date 11/14/ S Muirfield Road Los Angeles, CA Sale Price $1,800,000 Units 16 Price/Unit $112,500 Price/SqFt $ Cap Rate 5.9% Year Built 1948 GRM 11.5 # Units Unit Type 8 One Bedroom One Bath 8 Two Bedroom One Bath

18 SALES COMPARABLES Palmwood Drive, Los Angeles, CA ($1,200,000) A 4033 Palmwood Drive, Los Angeles, CA ($928,000) B 4541 Santa Rosalia Drive, Los Angeles, CA ($860,000) C 3934 Gibraltar Avenue, Los Angeles, CA ($1,090,000) D 3849 Stevely Avenue, Los Angeles, CA ($965,000) E 4068 S Muirfield Road, Los Angeles, CA ($1,800,000)

19 THE COHEN GROUP JOSH COHEN CA: