837 South Ardmore Avenue, Los Angeles, CA 90005

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837 South Ardmore Avenue, Los Angeles, CA 90005 An 8-Unit Apartment Building in the Heart of

1 837 South Ardmore Avenue, Los Angeles, CA An 8-Unit Apartment Building in the Heart of Koreatown Exclusively Listed by The Neema Group at Marcus & Millichap //

WWW.NEEMAAHADIAN.COM NEEMA AHADIAN First Vice President Investments Direct 310.909.5444 neema.ahadian@marcusmillichap.

2 NEEMA AHADIAN First Vice President Investments Direct License CA MARCUS & MILLICHAP West Los Angeles Main West Olympic Boulevard, #350 Los Angeles, CA OFFERING MEMORANDUM 837 South Ardmore Avenue Los Angeles, CA Non-Endorsement Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. Disclaimer THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. INVESTMENT SUMMARY PROPERTY DESCRIPTION LOCATION OVERVIEW PRICING & FINANCIALS MARKET COMPARABLES

Investment OPPORTUNITY Marcus & Millichap, the exclusive listing agent, is proud to offer for sale 837 South Ardmore Avenue, an eight-unit apartment building.

3 Investment OPPORTUNITY Marcus & Millichap, the exclusive listing agent, is proud to offer for sale 837 South Ardmore Avenue, an eight-unit apartment building. Less than three blocks south of Wilshire Boulevard and just west of Normandie Avenue, the property is in the heart of Koreatown, one of Los Angeles most densely populated and vibrant districts providing a diverse multicultural experience for residents and visitors, alike, given its strong Asian and Latin populations, as well as, its around-the-clock clubs, bars and restaurants that have become urban night-life hubs. Today this sprawling, three-square-mile community just west of downtown has become one of the city s hippest areas thanks to the continuing renovation of its rich architectural heritage, a new subway traversing its Wilshire Boulevard hub and recently opened boutique hotels like the Line and Normandie. Built in 1972, the building consists of an attractive unit mix of three (3) one-bedroom/one-bath units, two (2) two-bedroom/ one-bath units, one (1) two-bedroom/two-bath unit, and two (2) three-bedroom/two-bath units. Most of the units have been remodeled, which provides an ease of management. Residents can enjoy the convenience of on-site laundry facilities and ample parking ten (10) spaces (8 tuck-under, 2 uncovered). An investor could find value in the strong current income of approximately $183,000 annually and the additional proven rental upside potential of over ten percent (10%) in a highly desirable and densely populated rental market that has continually seen growth and redevelopment, making it a highly sought-after neighborhood, especially for younger residents, that sustain high market rents due to its walkability and close proximity to retail and metro only four blocks from the Purple Line s Wilshire/Normandie Station. Investment HIGHLIGHTS Highly Desirable Prime Koreatown Location - Excellent Walk Score of 96 Stabilized Asset Offering Current GRM Attractive Unit Mix of One, Two, and Three-Bedroom Units One Upcoming Vacancy as of August 31, 2017 Current LAR4-2 Zoning Most Units Renovated, Providing Ease of Management Walking Distance to Metro's Wilshire/Normandie Station Separately Metered Gas & Electric

4 PROPERTY Description

PROPERTY Summary 837 South Ardmore Avenue, Los Angeles, CA 90005 APN 5093-024-030 Zoning LAR4 Site Description Number of

Ownership Fee Simple Parking 10 Spaces: 8 Tuck-Under, 2 Uncovered Utilities Water Electric Gas Master Metered Separately

5 PROPERTY Summary 837 South Ardmore Avenue, Los Angeles, CA APN Zoning LAR4 Site Description Number of Units 8 Number of Buildings 1 Number of Stories 2 Year Built 1972 Gross Square Feet 6,682 SF Lot Size 6,765 SF Type of Ownership Fee Simple Parking 10 Spaces: 8 Tuck-Under, 2 Uncovered Utilities Water Electric Gas Master Metered Separately Metered Separately Metered Construction Foundation Framing Exterior Parking Surface Roof Concrete Wood Frame Stucco Asphalt Flat

7 PROPERTY Description

TRANSIT SCORE 76 "Excellent Transit" Transit convenient for most trips.

8 PEDESTRIAN & TRANSIT FRIENDLY LOCATION HIGHLY SOUGHT-AFTER, DENSELY POPULATED MARKET 837 S Ardmore Avenue WALK SCORE 96 "Very Walkable" Most errands can be accomplished on foot. TRANSIT SCORE 76 "Excellent Transit" Transit convenient for most trips. BIKE SCORE 55 "Bikeable" Flat as a pancake; minimal bike lanes 42,611 population per square mile 2.7% vacancy rate 6,000+ unit in development or under construction

Koreatown Multicultural & Dynamic Koreatown, located west of Downtown L.A.

Encompassing roughly 3 square miles, the area was once the epicenter of Golden Age Hollywood, home to the Ambassador Hotel, the Coconut Grove and

Koreatown is also known for having one of the largest concentrations of nightclubs and 24-hour businesses and restaurants in the country.

Academy Awards in the '30s and '40s (and was also the site of the Robert F. Kennedy assassination).

In 1992 Koreatown bore the brunt of much of the violence and looting that happened during the L.A.

But renewed development in the early 2000s, plus a new subway line with stations in the neighborhood, led to a revitalization of the area.

's most recognized food, the original Korean taco truck. While L.A.

9 Koreatown Multicultural & Dynamic Koreatown, located west of Downtown L.A. and south of Hollywood, is one of the most diverse neighborhoods in Los Angeles. Encompassing roughly 3 square miles, the area was once the epicenter of Golden Age Hollywood, home to the Ambassador Hotel, the Coconut Grove and the Brown Derby. Today, Korean and Latino populations contribute to Koreatown s rich cultural diversity. Koreatown is also known for having one of the largest concentrations of nightclubs and 24-hour businesses and restaurants in the country. In the 1920s and '30s it was very much a swinging spot for Hollywood celebrities, and was the location of the Ambassador Hotel, which hosted the Academy Awards in the '30s and '40s (and was also the site of the Robert F. Kennedy assassination). Though the Ambassador was torn down in 2005, you can still see some remnants of that old glamour in other buildings scattered among the newer strip malls and construction. Heavy Korean settlement in the area cemented the neighborhood as Koreatown in the 1970s, when many South Koreans immigrated to California. In 1992 Koreatown bore the brunt of much of the violence and looting that happened during the L.A. riots, and many Koreans fled to the suburbs after the riots. But renewed development in the early 2000s, plus a new subway line with stations in the neighborhood, led to a revitalization of the area. Wherever you go, you will hear Korean, Spanish and English, and often a mashup of all three. This blend of cultures has led to some of L.A.'s most recognized food, the original Korean taco truck. While L.A. has the nation's largest Korean population and Koreans make up the largest nationality in the neighborhood (22%) most of the residents of Koreatown are Latino (58%). But you can also find Bangladeshi, Brazilian, Vietnamese, Pakistani and all manner of South American residents, businesses and eateries in the area. Twenty-four-hour restaurants are just the beginning. Koreatown is home to more nightlife than many other entire cities can claim, from dive bars to high-end cocktail speakeasies, from karaoke clubs to establishments that must be a business of some sort, on the second level of a strip mall with a sign in Korean and people coming and going at 4 a.m. There's a lot of mystery here, but also a lot on full display. (Rodell, 2015)

10 PRICING and Financials

11 837 SOUTH ARDMORE AVENUE LOS ANGELES rent roll income & expenses TOTAL NUMBER OF UNITS TOTAL AREA (GROSS) 8 6,682 SF UNIT UNIT TYPE NUMBER UNIT SIZE CURRENT RENT RENT/SF MARKET RENT RENT/SF NOTES 1 2 Bed, 1 Bath 700 SF $1,750 $2.50 $2,000 $2.86 Renovated Unit 2 1 Bed, 1 Bath 550 SF $1,287 $2.34 $1,650 $ Bed, 2 Bath Vacant as of 8/31/17* 1,100 SF $3,000 $2.73 $3,000 $2.73 Renovated Unit 4 2 Bed, 1 Bath 700 SF $1,255 $1.79 $2,000 $2.86 Balcony 5 1 Bed, 1 Bath 550 SF $1,600 $2.91 $1,650 $3.00 Renovated Unit, Balcony 6 1 Bed, 1 Bath 550 SF $1,600 $2.91 $1,650 $3.00 Renovated Unit, Balcony 7 3 Bed, 2 Bath 1,100 SF $2,800 $2.55 $3,000 $2.73 Renovated Unit, Balcony 8 2 Bed, 2 Bath 750 SF $1,854 $2.47 $2,100 $2.80 Renovated Unit 1 TOTAL VACANT 1,100 SF $3,000 $3,000 7 TOTAL OCCUPIED 4,900 SF $12,146 $14,050 8 TOTAL TOTAL 6,000 SF $15,146 $17,050 * Note: For underwriting purposes, the current rent for Unit 3 reflects a projected pro forma rent of $3,000, as the tenant will be vacating August 31, INCOME CURRENT PER UNIT PRO FORMA PER UNIT GROSS POTENTIAL RENT $180,552 $22,569 $204,600 $25,575 Other Income Laundry Income $2,400 $300 $2,400 $300 Total Other Income $2,400 $300 $2,400 $300 GROSS POTENTIAL INCOME $182,592 $22,869 $207,000 $25,875 Vacancy/Collection Allowance (GPR) 3.0%/$5,417 $ % / $10,230 $1,279 EFFECTIVE GROSS INCOME $177,535 $22,192 $196,770 $24,596 EXPENSES* Real Estate Taxes (1.1900%) $32,130 $4,016 $32,130 $4,016 Insurance $3,162 $395 $3,162 $395 Utilities $9,761 $1,220 $9,761 $1,220 Waste $1,443 $180 $1,443 $180 Repairs & Maintenance $4,000 $500 $4,000 $500 Landscaping $1,200 $150 $1,200 $150 Pest Control $696 $87 $696 $87 Management Fee 5.0%/$8,877 $1, %/$9,839 $1,230 License & Permits $543 $68 $543 $68 TOTAL EXPENSES $61,812 $7,726 $62,774 $7,847 Expenses per SF $9.25 $9.39 % of EGI 34.8% 31.9% NET OPERATING INCOME $115,724 $14,465 $133,997 $16,750 Reserves $1,600 $200 $1,600 $200 NET CASH FLOW BEFORE DEBT SERVICE $114,124 $14,265 $132,397 $16,550 *The following expenses are estimates: Taxes based on a confirmed tax rate of 1.19% of Purchase Price, Maintenance at $500/unit annually, Management at 5% of SGI, Reserves at $200/unit annually. All other expenses have been provided by the current owner that we believe to be reliable. However, buyer must verify the accuracy of all figures independently. THE NEEMA GROUP AT MARCUS & MILLICHAP

12 837 SOUTH ARDMORE AVENUE LOS ANGELES financial overview 837 S. Ardmore Avenue, Los Angeles CA Price $2,700,000 Down Payment 50%/$1,350,000 Number of Units 8 Price/Unit $337,500 Gross Square Feet 6,682 SF Price/SF $ CAP Rate - Current 4.29% CAP Rate - Pro Forma 4.96% GRM - Current GRM - Pro Forma Year Built 1972 Lot Size 6,765 SF Type of Ownership Fee Simple FINANCING First Trust Deed Loan Amount $1,350,000 Interest Rate 3.85% Amortization 30 Years Loan information is time sensitive and subject to change. Contact your local Marcus & Millichap Capital Corporation representative. ANNUALIZED OPERATING DATA INCOME CURRENT PRO FORMA Gross Potential Rent $180,552 $204,600 Other Income $2,400 $2,400 Gross Potential Income $182,952 $207,000 Less: Vacancy/Deductions (GPR) 3.0%/$5, % / $10,230 Effective Gross Income $177,535 $196,770 Less: Expenses $61,812 $62,774 Net Operating Income $115,724 $133,997 Reserves $1,600 $1,600 Net Cash Flow Before Debt Service $114,124 $132,397 Debt Service $75,947 $75,947 Debt Coverage Ratio Net Cash Flow After Debt Service 2.8%/$38, %/$56,450 Principal Reduction $24,399 $24,399 Total Return 4.6%/$62, %/80,849 EXPENSES Real Estate Taxes $32,130 $32,130 Insurance $3,162 $3,162 Utilities $9,761 $9,761 Waste $1,443 $1,443 Repairs & Maintenance $4,000 $4,000 Pest Control $696 $696 Landscaping $1,200 $1,200 Management Fee $8,877 $9,839 License & Permits $543 $543 Total Expenses $61,812 $62,774 Expenses/Unit $7,726 $7,847 Expenses/SF $9.25 $9.39 % of EGI 34.82% 31.90% SCHEDULED INCOME NO. OF UNITS UNIT TYPE APPROX. SF CURRENT RENTS RENT/SF MONTHLY INCOME PRO FORMA RENTS RENT/SF MONTHLY INCOME 3 1BD/1BA 550 $1,496 $2.72 $4,487 $1,650 $3.00 $4, BD/1BA 700 $1,503 $2.15 $3,005 $2,000 $2.86 $4, BD/2BA 750 $1,854 $2.47 $1,854 $2,100 $2.80 $2, BD/2BA 1,100 $2,850 $2.59 $5,700 $3,000 $2.73 $6,000 8 Total/Wtd.Avg. 6,682 $15,046 $17,050 THE NEEMA GROUP AT MARCUS & MILLICHAP

13 MARKET Comparables

837 SOUTH ARDMORE AVENUE LOS ANGELES sales Comparables subject property 1 2 5 sales Comparables [ 1 ] 968 SOUTH NEW HAMPSHIRE AVENUE

ANDREWS PLACE [ 4 ] 938 GRAMERCY DRIVE [ 5 ] 4305 WEST 5TH STREET [ 6 ] 961 SOUTH KENMORE AVENUE 837 SOUTH ARDMORE AVENUE LOS

of Units: 8 Year Built: 1972 968 SOUTH NEW HAMPSHIRE AVENUE LOS ANGELES, CA 90006 Sale Price: $1,483,636 Close of Escrow: 2/21/2017

of Units: 7 Year Built: 1974 4 3 6 1 2 Price/Unit: $337,500 Price/SF: $404.07 CAP Rate: 4.29% Price/Unit: $247,273 Price/SF: $391.

14 837 SOUTH ARDMORE AVENUE LOS ANGELES sales Comparables subject property sales Comparables [ 1 ] 968 SOUTH NEW HAMPSHIRE AVENUE [ 2] 951 MENLO AVENUE [ 3 ] 947 SOUTH ST. ANDREWS PLACE [ 4 ] 938 GRAMERCY DRIVE [ 5 ] 4305 WEST 5TH STREET [ 6 ] 961 SOUTH KENMORE AVENUE 837 SOUTH ARDMORE AVENUE LOS ANGELES, CA Offering Price: $2,700,000 Close of Escrow On Market No. of Units: 8 Year Built: SOUTH NEW HAMPSHIRE AVENUE LOS ANGELES, CA Sale Price: $1,483,636 Close of Escrow: 2/21/2017 No. of Units: 6 Year Built: MENLO AVENUE LOS ANGELES CA Sale Price: $2,200,000 Close of Escrow: 2/17/2017 No. of Units: 7 Year Built: Price/Unit: $337,500 Price/SF: $ CAP Rate: 4.29% Price/Unit: $247,273 Price/SF: $ CAP Rate: N/A Price/Unit: $314,286 Price/SF: $ CAP Rate: 4.61% GRM: GRM: N/A GRM: N/A UNITS UNIT TYPE UNITS UNIT TYPE UNITS UNIT TYPE 3 1 BD/1 BA 1 1 BD/1 BA 2 SINGLE/1 BA 2 2 BD/1 BA 5 2 BD/1 BA 2 2 BD/1 BA 1 2 BD/2 BA 2 2 BD/2 BA 2 3 BD/2 BA 1 3 BD/2 BA THE NEEMA GROUP AT MARCUS & MILLICHAP

837 SOUTH ARDMORE AVENUE LOS ANGELES sales Comparables 3 4 5 6 947 SOUTH ST.

of Units: 6 Year Built: 1963 Price/Unit: $291,667 Price/SF: $326.01 CAP Rate: 4.80% GRM: 13.

of Units: 12 Year Built: 1962 Price/Unit: $222,083 Price/SF: $263.65 CAP Rate: 4.13% GRM: 16.

of Units: 10 Year Built: 1957 Price/Unit: $253,700 Price/SF: $277.94 CAP Rate: 3.

15 837 SOUTH ARDMORE AVENUE LOS ANGELES sales Comparables SOUTH ST. ANDREWS PLACE LOS ANGELES, CA Sale Price: $1,750,000 Close of Escrow: 10/26/2016 No. of Units: 6 Year Built: 1963 Price/Unit: $291,667 Price/SF: $ CAP Rate: 4.80% GRM: GRAMERCY DRIVE LOS ANGELES CA Sale Price: $2,665,000 Close of Escrow: 8/23/2016 No. of Units: 12 Year Built: 1962 Price/Unit: $222,083 Price/SF: $ CAP Rate: 4.13% GRM: WEST 5TH STREET LOS ANGELES, CA Sale Price: $2,537,000 Close of Escrow 8/4/2016 No. of Units: 10 Year Built: 1957 Price/Unit: $253,700 Price/SF: $ CAP Rate: 3.51% GRM: N/A 961 SOUTH KENMORE AVENUE LOS ANGELES, CA Sale Price: $1,500,000 Close of Escrow: 6/21/2017 No. of Units: 6 Year Built: 1963 Price/Unit: $250,000 Price/SF: $ CAP Rate: 3.08% GRM: UNITS UNIT TYPE 1 SINGLE /1 BA 4 2 BD/2 BA 1 3 BD/2 BA UNITS UNIT TYPE 8 1 BD /1 BA 4 2 BD/2 BA UNITS UNIT TYPE 6 1 BD /1 BA 4 2 BD/1 BA UNITS UNIT TYPE 2 1 BD /1 BA 4 2 BD/1 BA THE NEEMA GROUP AT MARCUS & MILLICHAP

837 South Ardmore Avenue Los Angeles, CA 90005 NEEMA AHADIAN First Vice President Investments

16 837 South Ardmore Avenue Los Angeles, CA NEEMA AHADIAN First Vice President Investments Direct License CA

1745 MAGNOLIA AVENUE. A 9-Unit Apartment Building in the Heart of Koreatown

1745 MAGNOLIA AVENUE. A 9-Unit Apartment Building in the Heart of Koreatown 1745 MAGNOLIA AVENUE A 9-Unit Apartment Building in the Heart of Koreatown OFFERING MEMORANDUM NEEMA AHADIAN First Vice President Investments Direct 310.909.5444 neema.ahadian@marcusmillichap.com License