8023 Alhambra AVE South gate, CA

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1 8023 Alhambra AVE South gate, CA O F F E R I N G M E M O R A N D U M

2 2MATTHEWS REAL ESTATE INVESTMENT SERVICES 2 APARTMENT NAME

CONTENTS 04 PROPERTY OVERVIEW 06 AREA OVERVIEW 10 FINANCIAL OVERVIEW 12

MULTIFAMILY Direct +1 424 220 7261 Mobile +1 858 245 8770 Austin.

02010218 MATTHEWS REAL ESTATE INVESTMENT SERVICES DAVID HARRINGTON EVP &

3 CONTENTS 04 PROPERTY OVERVIEW 06 AREA OVERVIEW 10 FINANCIAL OVERVIEW 12 RENT COMPARABLES EXCLUSIVELY LISTED BY AUSTIN FISHER ASSOCIATE MULTIFAMILY Direct Mobile License No MATTHEWS REAL ESTATE INVESTMENT SERVICES DAVID HARRINGTON EVP & NATIONAL DIRECTOR MULTIFAMILY Direct Mobile License No

Property Overview 4MATTHEWS REAL ESTATE INVESTMENT SERVICES OPPORTUNITY 31% Upside in a Non-Rent Control Area Convenient Location with Easy Access to the

4 Property Overview 4MATTHEWS REAL ESTATE INVESTMENT SERVICES OPPORTUNITY 31% Upside in a Non-Rent Control Area Convenient Location with Easy Access to the 105 and 710 Freeways Over 50% of the Local Population are Renters Quiet Residential Street Made Up of Single Family Homes Old School Neighborhood Atmosphere

PROPERTY DESCRIPTION Four 1-Bedroom Units Share

Lot 1956 Construction MATTHEWS REAL ESTATE

5 PROPERTY DESCRIPTION Four 1-Bedroom Units Share a 2,070 Square Foot Building 2-Bedroom 920 Square Foot Single Family Home Two Car Garage Four Covered Parking Spots 7,337 Square Foot Lot 1956 Construction MATTHEWS REAL ESTATE INVESTMENT SERVICES 5 UNITS 4 PARKING SPACES 31 RENTAL UPSIDE 5

Area Overview LOS ANGELES MSA 6MATTHEWS REAL ESTATE INVESTMENT SERVICES As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland,

6 Area Overview LOS ANGELES MSA 6MATTHEWS REAL ESTATE INVESTMENT SERVICES As the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California s original 27 counties, is one of the nation s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California s population. The area continues to grow, especially given the vigorous residential development in downtown LA. Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles County make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

POPULATION AT A GLANCE ECONOMY The LA economy is famously and heavily based on

pictures, interactive games, and recorded music - the Hollywood district of

United States due to the region s commercial and historical importance to the

Other significant sectors include shipping/ international trade - particularly

comprising the United States busiest seaport - as well as aerospace,

7 Million POPULATION $55,509 MEDIAN HOUSEHOLD INCOME DEMOGRAPHICS 4.

294,440 873,925 2010 Census 36,443 300,367 889,107 2017 Estimate 37,908

1-MILE 3-MILE 5-MILE % Change: 2000 to 2010 0.16 2.01 1.

67 MATTHEWS REAL ESTATE INVESTMENT SERVICES HOUSEHOLDS 1-MILE 3-MILE 5-MILE

7 POPULATION AT A GLANCE ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the Movie Capital of the United States due to the region s commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism. TOP EMPLOYERS 18.7 Million POPULATION $55,509 MEDIAN HOUSEHOLD INCOME DEMOGRAPHICS 4.4% UNEMPLOYMENT RATE POPULATION 1-MILE 3-MILE 5-MILE 2000 Census 36, , , Census 36, , , Estimate 37, , , Projection 39, , ,593 POPULATION GROWTH 1-MILE 3-MILE 5-MILE % Change: 2000 to % Change: 2010 to % Change: 2017 to MATTHEWS REAL ESTATE INVESTMENT SERVICES HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2000 Census 9,530 79, , Census 9,528 80, , Estimate 9,952 83, , Projection 10,337 86, ,085 INCOME 1-MILE 3-MILE 5-MILE 2017 Avg. Household Income $68,415 $65,115 $65,492 7

8MATTHEWS REAL ESTATE INVESTMENT SERVICES SOUTH GATE, CA Located in the heart of the Los Angeles Metropolitan Area, the City of South Gate is a busy, urban community consisting of residential,

South Gate is known for its outstanding city services, remarkable parks and recreation facilities, and family-friendly environment.

South Gate has traditionally been a major industrial center, located favorably near various freeway and transit networks.

8 8MATTHEWS REAL ESTATE INVESTMENT SERVICES SOUTH GATE, CA Located in the heart of the Los Angeles Metropolitan Area, the City of South Gate is a busy, urban community consisting of residential, commercial, and industrial development spread over 7.4 square miles. South Gate is a large city with a population of 96,057. South Gate is known for its outstanding city services, remarkable parks and recreation facilities, and family-friendly environment. Recently, the Azalea regional shopping center was built in South Gate making it the newest destination for great shopping and dining experience in South Gate and the surrounding areas. South Gate has traditionally been a major industrial center, located favorably near various freeway and transit networks. The city s proximity to numerous future transit hubs is also a key element for its future economic growth prospects. Currently, manufacturing, transportation, warehousing, and retail are the three top sectors in South Gate, comprising an estimated 58% of total jobs. While manufacturing, transportation, and warehousing are expected to remain strong into the future, recent trends have also shown expansion potential in the professional-office, education and health, food service, retail, and personal services sectors. DOWNEY, CA The subject property is located just a few blocks from Downey and can enjoy all Downey has to offer. Downey brings together a large population in a small-town environment. Its status as a top city in California for business makes it an excellent choice for established families and single professionals. Nestled between several freeways and sitting just 10 miles from the beach, Downey gives residents the opportunity to work or play whenever they want. Downey is home for thousands of businesses and services. The city s largest employer, with about 2,500 employees, is Rancho Los Amigos Hospital. Downey has plenty of recreational activities, including Downey Landing, Stonewood Center, and Los Amigos Gold Course all located within miles of the subject property. The Stonewood Center is Downey s premier shopping destination with 170 stores including unique, innovative shops and specialty boutiques and restaurants. Downey Landing is Downey s newest commercial retail center and home to a wider variety of businesses including shops, restaurants, and offices. The center has 3 major restaurants and a casual dining food court serving a range of cuisine. 95,350 POPULATION $43,552 AVERAGE HOUSEHOLD INCOME 40,108 NUMBER OF EMPLOYEES 113,407 POPULATION $62,897 AVERAGE HOUSEHOLD INCOME 53,114 NUMBER OF EMPLOYEES

6 Miles Away > Los Amigos Golf Course: 2.

9 Subject Property MATTHEWS REAL ESTATE INVESTMENT SERVICES POINTS OF INTEREST > Downey Landing: 2.6 Miles Away > Stonewood Center: 3.6 Miles Away > Los Amigos Golf Course: 2.1 Miles Away > Rio Hondo Gold Club: 3.4 Miles Away > Downtown Downey: 2.4 Miles Away > Wilderness Park: 5.0 Miles Away 9

10 Financial Overview MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT SUMMARY Offering Price: $925,000 Number of Units: 5 Property: 8023 Alhambra Avenue Year Built: 1956 South Gate, CA APN: Price Per Unit: $185,000 Gross Sq. Ft.: 3,087 Price Per S.F.: $ Average S.F. Per Unit: 617 Cap (current / market): 4.25% / 5.90% Lot Size (Acres): 7,337 (0.17) GRM (current / market): / UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent % $903 $3,610 $1,235 $4, % $1,500 $1,500 $1,750 $1,750 Scheduled Monthly Rent: $5,110 $6,690 Scheduled Yearly Rent: $61,320 $80,280 RENT ROLL # Mix Rent Market Rent $880 $1, $880 $1, $900 $1, $950 $1, $1,500 $1,750 Totals $5,110 $6,690 Averages $1,022 $1,338 10

11 ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $61,320 31% Upside $80,280 Less Vacancy Reserve: 3.0% $1, % $2,408* Gross Operating Income: $59,480 $77,872 Expenses: 32.8% $20, % $23,258* Net Operating Income: $39,337 $54,614 Loan Payments: $32,763 $32,763 Pre-Tax Cash Flow: 1.8% $6, % $21,851** Plus Principal Reduction: $9,357 $9,357 Total Return Before Taxes: 4.3% $15, % $31,207** * As a percent of Scheduled Gross Income ** As a percent of Down Payment PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.250% x Sale Price $11,563 $2, % *Insurance $0.35 x GSF $1,080 $ % Repairs & Maintenance $500 x Units $2,500 $ % Utilities $750 x Units $3,750 $ % Contract Services $250 x Units $1,250 $ % MATTHEWS REAL ESTATE INVESTMENT SERVICES Total Expenses $20,143 $4, % Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $12,643 $2, % Total Expense with out Taxes $8,580 $1, % 11

12 MATTHEWS REAL ESTATE INVESTMENT SERVICES S

13 RENT COMPARABLES ADDRESS ASKING RENT SF YEAR NOTES 1 BEDROOM 1 BATHROOM S 8023 ALHAMBRA AVE PARAMOUNT BLVD, $1, HOWERY ST, $1, CARLIN AVE, $1, LAKEWOOD BLVD $1, AVERAGE $1,235 2 BEDROOM 1 BATHROOM 8037 PRISCILLA ST $1, MATTHEWS REAL ESTATE INVESTMENT SERVICES IMPERIAL HWY $1, RYEERSON AVE $1, ATLANTIC AVE $1, DOWNEY AVE $1, AVERAGE $1,750 13

EXCLUSIVELY LISTED BY AUSTIN FISHER ASSOCIATE MULTIFAMILY

Direct +1 310 295 1170 Mobile +1 310 497 5590 David.

14 EXCLUSIVELY LISTED BY AUSTIN FISHER ASSOCIATE MULTIFAMILY Direct Mobile License No DAVID HARRINGTON EVP & NATIONAL DIRECTOR MULTIFAMILY Direct Mobile License No O F F E R I N G M E M O R A N D U M 8023 Alhambra AVE South gate, CA

13921 BESSEMER STREET

13921 BESSEMER STREET VALLEY GLEN, CALIFORNIA OFFERING MEMORANDUM 2 3 13921 BESSEMER STREET VALLEY GLEN, CALIFORNIA CONTENTS 4 6 10 Property Overview Financial Analysis Area Overview EXCLUSIVELY LISTED