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1 ERIC CHRISTOPHER // // // BRE # This information contained herein was obtained from third parties, and has not been independently verified by real estate brokers. Buyers and Tenants should have experts of their choice inspect the property and verify all information. Real Estate Brokers are not qualified to act as or select experts with respect to legal, tax environmental, building construction, soil drainage or other such matters. INCOCOMMERCIAL.COM 6621 E. PACIFIC COAST HWY, SUITE 280 LONG BEACH, CA DRE#

2 Table of Contents CONTENTS PROPERTY INFORMATION 3 FINANCIAL ANALYSIS 5 LOCATION INFORMATION 13 SALE COMPARABLES 17 DEMOGRAPHICS 22 PRESENTED BY: ERIC CHRISTOPHER Senior Investment Associate O: C: E: echristopher@incocommercial.com CONFIDENTIALITY & DISCLAIMER All materials and information received or derived from INCO Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither INCO Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. INCO Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. INCO Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. INCO Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by INCO Commercial in compliance with all applicable fair housing and equal opportunity laws.

3 Section: 1 PROPERTY INFORMATION

4 PROPERTY INFORMATION Executive Summary OFFERING SUMMARY Sale Price: $1,350,000 Price / SF: $ Number Of Units: 9 Cap Rate: 5.47% NOI: $73,858 Lot Size: 8,500 SF Year Built: 1941 PROPERTY OVERVIEW 9 Units: (1) 2 Bedroom + 1 Bath (8) 1 Bedroom + 1 Bath (3) Garages LOCATION OVERVIEW 1706 Sherman Pl is a 9 unit multi-family property located in the Zaferia district, near Pacific Coast Highway and Cherry Avenue in Long Beach. This property is priced at 11.5x gross based on current actual numbers and offers investors the opportunity to acquire well maintain and upgraded real estate that will yield good cash flow immediately. The property enjoys easy access to Pacific Coast Highway, Cherry Avenue, 405 and 710 Freeways. Additionally, Cal State University Long Beach and Long Beach Airport are located just minutes away. Building Size: 4,226 SF Zoning: LBR2N

5 Section: 2 FINANCIAL ANALYSIS

6 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW Price $1,350,000 Price per Unit $150,000 GRM 12.5 CAP Rate 5.5% Cash-on-Cash Return (yr 1) 4.49 % Total Return (yr 1) $32,902 Debt Coverage Ratio 1.26 OPERATING DATA Gross Scheduled Income $107,940 Other Income $4,800 Total Scheduled Income $112,740 Vacancy Cost $3,382 Gross Income $109,358 Operating Expenses $35,500 Net Operating Income $73,858 Pre-Tax Cash Flow $15,149 FINANCING DATA Down Payment $337,500 Loan Amount $1,012,500 Debt Service $58,709 Debt Service Monthly $4,892 Principal Reduction (yr 1) $17,753

7 FINANCIAL ANALYSIS Income & Expenses INCOME SUMMARY PER UNIT GROSS INCOME $109,358 $12,150 EXPENSE SUMMARY PER UNIT Taxes $15,120 $1,680 Insurance $1,690 $187 Water/Sewer $1,536 $170 Gas $912 $101 Electricity $780 $86 Maint & Rep $5,400 $600 Management $6,462 $718 On Site $1,800 $200 Misc & Res $1,800 $200 GROSS EXPENSES $35,500 $3,944 NET OPERATING INCOME $73,858 $8,206

8 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH UNIT SIZE (SF) LEASE START LEASE END CURRENT RENT CURRENT RENT (PER SF) MARKET RENT MARKET RENT/SF SECURITY DEPOSIT $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $950 $2.24 $995 $ $1,395 $1.69 $1,475 $1.79 Totals/Averages 4,226 $8,995 $2.13 $9,435 $2.28 $0

9 FINANCIAL ANALYSIS Design and Layout PROPERTY NAME: PROPERTY ADDRESS: 9 Unit Multi-Family Offering 1706 Sherman Place Long Beach, CA APN: ZONING: BUILDING STYLE: LBR2N Courtyard NUMBER OF UNITS: 9 NUMBER OF BUILDINGS: 8 NUMBER OF STORIES: 2 YEAR BUILT: 1941 RENTABLE SQUARE FEET: 4,226 LOT SIZE: 8,500 TYPE OF OWNERSHIP: Fee Simple PARKING - GARAGES: 3 PARKING - CARPORTS: 0 PARKING - SURFACE: 4 LANDSCAPING: LAUNDRY FACILITIES: TOPOGRAPHY: None Yes-owned by building Flat

10 FINANCIAL ANALYSIS Construction & Utilities FOUNDATION: FRAMING: EXTERIOR SKIN: ROOF: UNIT DOORS: GARAGE DOORS: WINDOWS: PLUMBING: WATER: ELECTRIC: GAS: GAS FOR HOT WATER: Post & Pylons Wood Horizontal Siding Composition Shingle Wood Wood Vinyl All copper Paid by Owner Paid by Tenant Paid by Tenant Paid by Tenant

11 FINANCIAL ANALYSIS Complete Highlights PROPERTY HIGHLIGHTS Excellent Unit Configuration - Most units are separate buildings. 8 buildings total! Major systems Upgraded: - Roofs in pristine condition - All Copper plumbing - Upgraded Electrical - Freshly preserved and painted exteriors 5.40% Cap Rate on Current Actuals Located in Zaferia District - Near Traffic Circle - CSULB - Long Beach Airport Separate Utility Meters Separate Water Heaters (3) Garages and (2) Surface Spaces

12 FINANCIAL ANALYSIS Additional Photos 2016 INCO Commercial. All Rights Reserved E. Pacific Coast Hwy, Suite 280, Long Beach, CA DRE#

13 Section: 3 LOCATION INFORMATION

14 LOCATION INFORMATION Regional Map 1706 Sherman Place

15 LOCATION INFORMATION Location Maps

16 LOCATION INFORMATION Aerial Map 2016 INCO Commercial. All Rights Reserved E. Pacific Coast Hwy, Suite 280, Long Beach, CA DRE#

17 Section: 4 SALE COMPARABLES

18 SALE COMPARABLES Sale Comps SUBJECT PROPERTY 1706 Sherman Place Long Beach, CA Sale Price: $1,350,000 Year Built: 1941 Building SF: 4,226 SF Price PSF: $ No. Units: 9 Price / Unit: $150,000 GRM: Cap: 5.47% OHIO AVENUE Long Beach, CA Sale Price: $1,025,000 Year Built: 1920 Building SF: 3,312 SF Price PSF $ No. Units 7 Price / Unit $146,428 Closed: 08/19/2016 GRM: FREEMAN AVENUE Long Beach, CA Sale Price: $980,000 Year Built: 1949 Building SF: 3,502 SF Price PSF $ No. Units 6 Price / Unit $163,333 Closed: 08/19/2016 GRM: E 10TH Long Beach, CA Sale Price: $740,000 Year Built: 1963 Building SF: 3,657 SF Price PSF $ No. Units 6 Price / Unit $123,333 Closed: 09/02/2016 GRM:

19 SALE COMPARABLES Sale Comps SAINT LOUIS AVENUE Long Beach, CA Sale Price: $1,075,000 Year Built: 1922 Building SF: 6,896 SF Price PSF $ No. Units 6 Price / Unit $179,166 GRM: Under Contract

20 SALE COMPARABLES Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/UNIT GRM # OF UNITS 9 Unit Multi-Family Offering 1706 Sherman Place Long Beach, CA $1,350,000 4,226 SF $ $150, SALE COMPS PRICE BLDG SF PRICE/SF PRICE/UNIT GRM # OF UNITS CLOSE Ohio Avenue Long Beach, CA $1,025,000 3,312 SF $ $146, /19/ Freeman Avenue Long Beach, CA $980,000 3,502 SF $ $163, /19/ E 10th Long Beach, CA Saint Louis Avenue Long Beach, CA $740,000 3,657 SF $ $123, /02/2016 $1,075,000 6,896 SF $ $179, On Market PRICE PRICE/SF PRICE/UNIT GRM # OF UNITS TOTALS/AVERAGES $955,000 $ $152,

21 SALE COMPARABLES Sale Comps Map SUBJECT PROPERTY 1706 Sherman Place Long Beach, CA Ohio Avenue Long Beach, CA Freeman Avenue Long Beach, CA E 10th Long Beach, CA Saint Louis Avenue Long Beach, CA 90804

22 Section: 5 DEMOGRAPHICS

23 DEMOGRAPHICS Demographics Report 0.25 MILES 0.5 MILES 1 MILE Total households 1,326 4,673 18,814 Total persons per hh Average hh income $50,568 $49,252 $49,335 Average house value $487,320 $484,084 $487, MILES 0.5 MILES 1 MILE Total population 4,661 16,719 62,631 Median age Median age (male) Median age (female) * Demographic data derived from 2010 US Census

24 DEMOGRAPHICS Demographics Map POPULATION 0.25 MILES 0.5 MILES 1 MILE TOTAL POPULATION 4,661 16,719 62,631 MEDIAN AGE MEDIAN AGE (MALE) MEDIAN AGE (FEMALE) HOUSEHOLDS & INCOME 0.25 MILES 0.5 MILES 1 MILE TOTAL HOUSEHOLDS 1,326 4,673 18,814 # OF PERSONS PER HH AVERAGE HH INCOME $50,568 $49,252 $49,335 AVERAGE HOUSE VALUE $487,320 $484,084 $487,158 * Demographic data derived from 2010 US Census