1515 Santa Fe Ave 04 EXECUTIVE SUMMARY 06 PROPERTY DESCRIPTION 09 LOCATION OVERVIEW 19 MARKET COMPARABLE 24 MARKET OVERVIEW.

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2 Table of Contents 1515 Santa Fe Ave 04 EXECUTIVE SUMMARY 06 PROPERTY DESCRIPTION 09 LOCATION OVERVIEW 19 MARKET COMPARABLE 24 MARKET OVERVIEW

3 1515 Santa Fe Ave PROPERTY HIGHLIGHTS 3 Parcel Lots totaling 28,088 SF GLA on a 36,569 SF Lot Signalized Corner with high average daily traffic counts on Olympic and Santa Fe Ave Adjacent to Interstate-10 Freeway Opportunity to create an iconic space Plans submitted for mixed-use development Over $2 Billion of institutional investments in the Arts District, and growing Just minutes away from many new developments in the area Excellent transit and connectivity Abundant fenced parking along with additional parking surrounding the property Presented by: OFFICES NATIONWIDE Investment Sales: Moon Lim SENIOR ASSOCIATE NATIONAL OFFICE & INDUSTRIAL PROPERTIES GROUP NATIONAL RETAIL GROUP LOS ANGELES Tel: (213) Fax: (213) moon.lim@marcusmillichap.com License: CA The Richard Tovar ASSOCIATE LOS ANGELES Tel: (213) Fax: (213) richard.tovar@marcusmillichap.com License: CA Moonstar Group Debt & Structured Financing: Ronald Balys ASSOCIATE DIRECTOR MARCUS & MILLICHAP CAPITAL CORPORATION LOS ANGELES Tel: (213) Fax: (213) rbalys@marcusmillichap.com License: CA

4 EXECUTIVE MARKET AND SUMMARY PROPERTY ANALYSIS nue S Santa Fe Ave AKA E Olympic Blvd Los Angeles, CA SALE SUMMARY LEASE SUMMARY Price $12,000,000* Lease Type NNN Lot Area 36,569 SF / 0.84 AC Lease Rate Negotiable Price/SF Lot $ Building Type Industrial Building SF 28,088 SF Individual GLA ± 5,796 SF, ± 10,680 SF, ± 11,612 SF Price/SF GLA $ Total GLA 28,088 SF Zone M3-1-RIO Ceiling Height 13, APN , 040, 042 Year Built 1922, 1923, 1937 *Financing Available through MMCC Construction Masonry Parking 30 4

5 PROPERTY GLA OVERVIEW 5

6 LEASE MARKET SUMMARY AND PROPERTY ANALYSIS LEASE A-1 LEASE B LEASE C-1 Lease Type NNN Lease Type NNN Lease Type NNN Gross Leasable Area 1,660 SF Gross Leasable Area 10,680 SF Gross Leasable Area 7,006 SF Lease Rate Negotiable Lease Rate Negotiable Lease Rate Negotiable LEASE A-2 LEASE C-2 Lease Type NNN Lease Type NNN Gross Leasable Area 4,136 SF Gross Leasable Area 4,606 SF Lease Rate Negotiable Lease Rate Negotiable 4

7 MARKET GROSS LEASABLE AND PROPERTY AREA DESCRIPTION ANALYSIS 5

8 THE MARKET OFFERING AND PROPERTY ANALYSIS 8

9 MARKET INVESTMENT AND OVERVIEW PROPERTY ANALYSIS Investment Overview MARCUS & MILLICHAP is pleased to present an industrial building located at 1515 South Santa Fe Avenue. The property is consisting of 3 parcels totaling 28,088 SF of building space and 36,569 SF lot size. The buildings were built in s and the property is located on the Southern side of the Arts District just South of Interstate-10 Freeway. The Arts District favors iconic, place-making developments and the Site is a blank canvas ripe for redevelopment in a neighborhood dotted with creative, avant-garde projects. Moreover, market fundamentals support a multitude of potential buildout options, evidenced by multiple creative office, residential, and retail developments underway in the Arts District. 9

10 PROPERTY PHOTOS 10

11 PROPERTY PHOTOS 11

12 AVERAGE DAILY TRAFFIC VOLUME 12

13 MARKET PROPERTY AND AERIAL PROPERTY ANALYSIS 13

14 RENDERING IMAGE 14

15 RENDERING IMAGE 15

16 PARCEL MAP 16

17 ZIMAS 17

18 LOCATION OVERVIEW MAP 18

19 LOCATION OVERVIEW 26-ACRE LA TIMES PRINTING SITE A partnership headed by Harridge Development Group purchased the 26-acre Los Angeles Times printing plant just south of the Arts District from Tribune Media s real estate arm for $120 million. Seven acres of the printing plant site are immediately developable, and Harridge plans to build retail, including a mid-level grocery store, on that part of the site. The four buildings on the land a pressroom, a plate-making department, a storage facility and a shipping area are leased to the Los Angeles Times publisher, now known as tronc, until SOHO WAREHOUSE The new location of the expensive members-only SoHo House club in Downtown LA s Arts District on a 1917 brick building at 1000 S. Santa Fe Ave. The company plans to turn it into creative office space with ground floor retail. The plan will include a rooftop pool and artist studio rooms where guests may stay for weeks or months. Soho House was founded in London in 1995 as a private members club. Membership prices range from $1,000, for those under 27, to $2,800 a year. 2 6 STUDIO ONE ELEVEN The proposed 2110 Bay development, slated for a 1.8- acre site adjacent to the forthcoming Soho Warehouse, would consist of three buildings on a campus-like setting with public and private open space. The project is being designed to gracefully incoprorate itself into the surrounding Arts District through sensitive massing, scaling and materials. Plans call for a 110-unit live-work tower featuring a rooftop pool deck and amenity space. In total, the 2110 Bay development would provide over 50,000 square feet or shops and restaurants 3 7 ARTS DISTRICT OFFICE BUILDING The project, which is being developed by Los Angeles-based real estatate firm Lowe Enterprises, would rise from an approximately.75-acre site at 2130 E. Violet Avenue. Plans call for a nine-story building which would feature 90,700 square feet of office space, 6,100 square feet of ground-floor retail and a 274-car garage. The subject property, like much of Violet Avenue, is currently developed for industrial purposes without sidewalks, landscaping or active ground-floor uses. 4 8 FORD FACTORY > CREATIVE OFFICE The Shorenstein Company, a San Francisco-based real estate developer which purchased the four-acre complex last year for $37 million, is in the process of converting the erstwhile manufacturing center into approximately 254,000 square feet of office space and 60,000 square feet of ground-level retail and restaurant space. Designs call for expansive windows and contiguous floor plates of up to 88,000 square feet in size. Recently, Warner Music Group has decided to move its west coast headquarters from Burbank to occupy office space at this location. MIXED-USE DEVELOPMENT The seven-story complex, which is planned by a limited liability corporation known as Elm Tree Investments, would feature 125 live-work apartments and 8,000 square feet of ground-floor retail space. Proposed amenities include 500 square feet of artist s production space, outdoor gardens on the building s second and roof levels, and two floors of underground parking. ROW DTLA The 30-acre industrial complex, highlighted by its trio of hulking 98-year-old warehouses, is being rebranded by owner Atlas Capital Group as ROW DTLA, a two-million-square-foot campus consisting of creative offices, green spaces, shops and restaurants. plans call for approximately 1.3-million square feet of office space capable of housing as many as 20,000 employees. Each building offers 70,000-square-foot floor plates, featuring high ceilings, sandblasted walls and restored windows. RE-REDESIGNED AMP LOFTS The project, which is being developed by Bolour Associates, would rise from a 2.38-acre site bounded by Seventh Street, Santa Fe Avenue and Imperial Street. Designs from local architect Joey Shimoda call for a seven-story building, featuring 320 joint live-work apartments and 20,000 square feet of ground-floor commercial uses. Like other nearby developments, the AMP Lofts are being marketed to creative professionals, with appealing features such as on-site production space for residents. 19

20 REGIONAL MARKET AND MAPROPERTY ANALYSIS Subject Property 20

21 Recent Sales Comparables Map RECENT SALES Subject Hunter St Hunter St S Santa Fe Ave Sacramento St Bay St Bay St / Sacramento St E 8th St 1 Subject Property 3 21

22 Recent MARKET Sales AND Comparables PROPERTY ANALYSIS Summary AVG $ AVG $

23 MARKET RECENT SALES AND PROPERTY ANALYSIS Subject Property. CA Los Angeles List Price $12,000,000 Lot SF 36,569 Price / SF Lot $ Building SF 28,088 Price / SF GLA $ COMMENTS: Year Built Zoning M Hunter St, Los Angeles, CA Close of Escrow 2/9/2016 Sales Price $4,550,000 Lot SF 16,520 Price / SF Lot $ Building SF 13,800 Price / SF GLA $ COMMENTS: Year Built Zoning M Hunter St, Los Angeles, CA Close of Escrow 12/9/2015 Sales Price $2,855,000 Lot SF 12,003 Price / SF Lot $ Building SF 11,200 Price / SF GLA $ COMMENTS: Year Built 1923 Zoning M3 23

24 RECENT MARKET SALES AND PROPERTY ANALYSIS S Santa Fe Ave, Los Angeles, CA Close of Escrow 4/8/2016 Sales Price $31,000,000 Lot SF 104,059 Price / SF Lot $ Building SF 199,695 Price / SF GLA $ COMMENTS: Year Built Zoning M Sacramento St, Los Angeles, CA 9002 Close of Escrow 8/23/2016 Sales Price $2,700,000 Lot SF 11,398 Price / SF Lot $ Building SF 9,600 Price / SF GLA $ COMMENTS: Year Built Zoning M Bay St, Los Angeles, CA Close of Escrow 9/19/2016 Sales Price $4,410,000 Lot SF 11,023 Price / SF Lot $ Building SF 10,400 Price / SF GLA $ COMMENTS: Year Built 1913 Zoning M3 24

25 MARKET AND PROPERTY ANALYSIS Bay St/ Sacramento St, Los Angeles, CA Close of Escrow 11/1/2016 Sales Price $24,500,000 Lot SF 74,186 Price / SF Lot $ Building SF 36, Bay St Sacramento St Price / SF GLA $ COMMENTS: Year Built 1945, Zoning M E 8th St, Los Angeles, CA Close of Escrow 7/21/2016 Sales Price $2,482,000 Lot SF 5,065 Price / SF Lot $ Building SF 4,522 Price / SF GLA $ COMMENTS: Year Built 1965 Zoning M Bay St, Los Angeles, CA

26 MARKET OVERVIEW AND PROPERTY ANALYSIS Demographic Summary Arts District Today In 2015, the Arts District is still home to large artist residence base, in addition to several other creative industries including green technology, architecture, and entertainment. Much of the historical industrial architecture has been preserved. Approximately half of the Arts District s current residents use their home as live/work space. *Statistics are approximate 26

27 MARKET OVERVIEW The Arts District Spanning 320 acres and home to nearly 400 businesses, thousands of entrepreneurs, a leading Architecture and Design school, an emerging clean-tech industry, and a social enclave for upwardly mobile professionals patronizing new art galleries, trendy bars and restaurants. Institutional capital has taken notice of this vibrant urban neighborhood, restaurants. Institutional capital has taken notice of this vibrant urban neighborhood, resulting in capital flowing into large residential and retail projects, financed by leading investment funds. A HISTORY OF REINVENTION Throughout the first half of the century, the Arts District was the crossroads of goods and services as the manufacturing core of Downtown Los Angeles, home to foundries machine shops, printing and publishing houses, automobile and rubber shops, and a wide array of industrial activity. Beginning in the 1950 s, as a railroad transport gave way to the trucking industry, large manufacturing plants began moving away from the downtown core, leaving many of the Arts District s 1920 s era warehouses vacant and subject to decay. By the 1970 s, Los Angeles artists started moving into the large warehouses, repurposing the neighborhood to create live-work lofts. By 1981, the City responded to the burgeoning artists community and implemented the Artist in Residence (AIR) program which legalized the residential occupancy of formerly industrial buildings for artists. In 1999, the City of Los Angeles passed the landmark Adaptive Reuse Ordinance, which further relaxed zoning restrictions allowing the conversion of pre-1974 commercial and industrial buildings into residential uses. Source: Los Angeles Conservancy 27

28 MARKET OVERVIEW AND PROPERTY ANALYSIS DTLA at a glance 40% Use Public Transportation 56% Work in Downtown 80% College Degree or Higher 26% Of residents earn $150,000 in % Increase in Residency since

29 MARKET OVERVIEW DEMOGRAPHY SNAPSHOT is located on the Southern side the Arts District just South of Interstate-10 Freeway in the Downtown area of Los Angeles. This property is a rare gem in one of the hottest real estate pockets in Los Angeles. The Arts District favors iconic, place-making developments and the Site is a blank canvas ripe for redevelopment in a neighborhood dotted with creative, avant-garde projects. Moreover, market fundamentals support a multitude of potential buildout options, evidenced by multiple creative office, residential, and retail developments underway in the Arts District. City of Los Angeles LOS ANGELES COUNTY Total Population: 3,948,820 10,185,841 Total Households: 1,390,245 3,402,416 Median Household Income: $48,892 $56,264 Average Household Income: $80,965 $85,745 Median Age: Vacancy (3Q 2016): 4.7% 4.0% Median Home Price (3Q 2016): $693,000 $492,000 Affordability Gap: $1,175 $411 Average Asking Rent (3Q 2016): $2,475 $2,180 Monthly House Payment on Median-Priced Home: $3,650 $2,591 Percentage Gap: 47.5% 18.9% % of Population Who Can Afford Median-Priced Home: 10.1% 21.5% Assumes 20% Down, 4.0% interest rate, 30 year loan, 1.5% taxes and insurance for home payment Sources: Marcus & Millichap Research Services, Experian, Inc., RealFacts, California Association of Realtors, Trulia, Freddie Mac 29

30 NON-ENDORSEMENT NOTICE Marcus & Millichap Real Estate Investment Services, Inc. ( M&M ) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. 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. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

31 1515 SOUTH SANTA FE AVENUE los angeles, california presented by Presented by: OFFICES NATIONWIDE Investment Sales: Moon Lim SENIOR ASSOCIATE NATIONAL OFFICE & INDUSTRIAL PROPERTIES GROUP NATIONAL RETAIL GROUP LOS ANGELES Tel: (213) Fax: (213) License: CA Richard Tovar ASSOCIATE LOS ANGELES Tel: (213) Fax: (213) Mobile: (626) License: CA The Moonstar Group Debt & Structured Financing: Ronald Balys ASSOCIATE DIRECTOR MARCUS & MILLICHAP CAPITAL CORPORATION LOS ANGELES Tel: (213) Fax: (213) License: CA