8820 S. SEPULVEDA BLVD. WESTCHESTER, CA 90045

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1 OFFERING MEMORANDUM LISTED AT $25,000, S. SEPULVEDA BLVD. WESTCHESTER, CA % TRIPLE NET LEASED INVESTMENT TROPHY IRREPLACEABLE LOCATION 1

2 This Memorandum ( Offering Memorandum ) has been prepared by Hudson Partners, Inc. and BRC Advisors, Inc. based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice. This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Partners, Inc. and BRC Advisors, Inc., and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property. This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum. This Memorandum is being delivered by Hudson Partners Inc. and BRC Advisors, Inc., to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to interested and qualified prospective purchasers. Hudson Partners, Inc. and BRC Advisors, Inc., reserves the right to request the return of any or all of the information enclosed. 2

3 TABLE OF CONTENTS SECTION ONE 05 EXECUTIVE PROFILE SECTION TWO 19 PROPERTY INFORMATION 2017 Hudson Partners, Inc. & BRC Advisors. The information contained in this document has been obtained from sources believed reliable. While Hudson Partners, Inc. & BRC Advisors does not doubt its accuracy, Hudson Partners, Inc. & BRC Advisors has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. Hudson Partners, Inc. & BRC Advisors and the Hudson Partners, Inc. & BRC Advisors logos are service marks of Hudson Partners, Inc. & BRC Advisors and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners. 3

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5 SECTION 1 EXECUTIVE OVERVIEW 5

6 INVESTMENT OVERVIEW Hudson Partners and BRC Advisors have been exclusively retained to market the sale this Bed Bath and Beyond anchored trophy asset. This rare leased investment opportunity features creative second floor space with very high ceilings. This Westchester Bed Bath and Beyond location has tremendous sales revenue in excess of $10M annually, with percentage rent clauses increasing its base rent if revenues continue its trend. This 15 year lease expires in 2023, with a one ten year option and a second renewal option for a 5 year term. This anchor tenant is currently below economic rent for similar big box locations, with a plethora of surrounding national credit tenants immediately adjacent to subject property. There are two other ground tenants: Starbucks and Coldwell Banker both have lease rollover in the next two years, but they both have 2, 5 year options with 3% annual increases and a strong propensity for their renewal. This leased investment does have a second floor tenant which is a USC ancillary location for its Physical Therapy department, their lease rolls over in 2020 with no options to renew. They are paying well below market rent at $2.18NNN per square footage, providing an investor additional upside with the 2nd largest tenant occupying 11.6% of the rentable square footage. PROPERTY HIGHLIGHTS Trophy & Irreplaceable Location Initial 4.51% Cap Rate Real Rental Upside Bed Bath & Beyond Anchor Tenant Strong Revenue and Financials /Westchester Location Plenty of Parking/ Reciprocal Parking Easements Tremendous Retail Synergy A Plethora of Surrounding National Credit Tenants 6 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

7 PROPERTY INFORMATION site description Physical description DESCRIPTION SPECIFICATION DESCRIPTION SPECIFICATION BUILDING SF 51,632 SF CONSTRUCTION TYPE Concrete Block PARCEL SIZE 73,202 SF ROOF Rolled Composition APN , , FOUNDATION Concrete NUMBER OF TENANTS 4 FIRE PROTECTION Sprinklers FLOOR-TO-AREA RATIO 0.63 HVAC 5 Ton Package Units ZONING (Q) C2-CD-2D-CD0 METERS Seperately Metered PARKING ± 130 Spaces AVERAGE PSF RENT $4.00 PSF YEAR BUILT 2007 ELEVATOR 16 Passenger/2,500lb Capcity LOT DIMENSIONS varies CEILING HEIGHT Feet STREET FRONTAGE on Sepulveda Blvd on Drollinger Way TENANCY Multi-Tenant HIGHWAY ACCESS 105 and 405 Freeways LEASE TYPE Triple Net TRAFFIC COUNT ± 80,461 Vehicles/day ANCHOR TENANT OPTION BBB 1/10 Year and 1/5 Year Option BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 7

8 RENT ROLL - CURRENT TENANT SQ. FT. % BUILDING RENT PSF NNN PSF NNN LEASE START DATE LEASE EXPIRATION OPTION INCREASE BED, BATH AND BEYOND 40,000 SF 77.4% $85, $2.13 / PSF $9,683 $ /26/04 01/31/23 1, 10 Year 1, 5 Year 3% Annually COLDWELL BANKER 2,000 SF 3.87% $10, $5.33 / PSF $1, $ /30/07 12/31/17 2, 5 Year 3% Annually MOVEMENT PERFORMANCE INSTITUTE 5,199 SF 11.60% $11,343 $2.18 / PSF $4, $ /15/10 04/14/20 None None STARBUCKS 1,662 SF 3.22% $10, $6.37 / PSF $1, $ /15/08 03/14/18 2, 5 Year None 48,861 SF 100% $117, AVG. PSF $16, $1,415, $4.00 $193, AVG. PSF $ BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

9 FINANCIAL ANALYSIS FINANCIAL OVERVIEW DESCRIPTION SPECS ANNUALIZED OPERATING DATA INCOME CURRENT PSF Price $25,000,000 Downpayment (100%) $25,000,000 Gross Base Rent $1,415,044 $27.41 Reimbursement ($209,806) ($4.06) Gross Square Feet 51,632 SF Potential Gross Income $1,624,850 $31.47 Rentable Square Feet 48,861 SF Less: Vacancy (5%) $81,243 $1.57 Price Per Square Foot $ Effective Gross Income $1,543,607 $29,90 Lot Size 73,202 SF Less: Expenses ($415,293) ($8.04) Price Per Foot on Land $ Net Operating Income $1,128,314 $21.85 Current Cap Rate 4.51% Occupancy 100 % EXPENSES CURRENT PSF NOI $1,128,314 Real Estate (1.125%) $281,250 $5.45 Average Rent $4.00 NNN Insurance $23,234 $0.45 Lease Type NNN Utilities $51,632 $1.00 Year Built 2007 Repairs & Maintenance $25,816 $0.50 Zoning [Q]C2-2D-CDO Management Fee $33,361 $0.65 Type of Ownership Fee Simple TOTAL EXPENSES $415,293 $8.04 BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 9

10 LOS ANGELES INTERNATIONAL AIRPORT TREMENDOUS RESIDUAL EFFECT $1.6 Billion midfield passenger terminal will be finished late PEOPLE MOVER Miles Arriving every 2 minutes connecting from Metro. REGION S ECONOMY $7 Billion to Region s Economic Out TRAVELERS 80.9 Million Travelers in 2016 & 98.6 Million by 2040 SUMMER OLYMPICS Los Angeles is America s choice to host the 2024 Summer Olympics (Forbes) 10 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

11 LOS ANGELES INTERNATIONAL AIRPORT TRAFFIC COUNTS AVERAGE AGE AVERAGE HOUSEHOLD INCOME POPULATION TOTAL SPECIFIED CONSUMER SPENDING 40, $88, ,803 $6,882,246 BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 11

12 LEASE COMPARABLES A S SEPULVEDA BLVD WESTCHESTER, CA ANCHOR TENANT DISTANCE BUILDING SF TENANT TYPE LEASE TYPE $2.13 NNN 0.0 Miles 51,632 SF BBB Multi-Tenant NNN WILSHIRE BLVD WESTWOOD, CA W JEFFERSON BLVD PLAYA VISTA, CA PACIFIC BLVD HUNTINGTON PARK, CA S LA CIENEGA BLVD LOS ANGELES, CA ATLANTIC AVE BELL, CA ASKING RATE $2.50 / PSF/ MO ASKING RATE $5.50 / PSF/ MO ASKING RATE $2.50 / PSF/ MO ASKING RATE $2.83 / PSF/ MO ASKING RATE $2.52 / PSF/ MO DISTANCE 9 Miles DISTANCE 1.7 Miles DISTANCE Miles DISTANCE Miles DISTANCE Miles BUILDING SF 40,819 SF BUILDING SF 50,873 SF BUILDING SF 30,360 SF BUILDING SF 216,756 SF BUILDING SF 23,200 SF TENANT 1 PIC Theaters TENANT Cinemark TENANT Starwood TENANT Smart & Final TENANT O Riely Auto TYPE Retail TYPE Retail TYPE Retail TYPE Retail/Office TYPE Retail LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN LEASE TYPE NNN 12 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

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14 ANCHOR TENANT PROFILE Bed Bath & Beyond Inc. is an American-owned chain of domestic merchandise retail stores in the United States, Puerto Rico, Canada and Mexico. Formed in 1971, the stores sell goods primarily for the bedroom and bathroom, as well as kitchen and dining room. The company is included in the S&P 500 and Global 1200 Indices and the NASDAQ-100 Index. It is also counted among the Fortune 500 and the Forbes Global 2000 as well. Since the liquidation of Linens n Things, Bed Bath & Beyond has had few major retail competitors except Walmart, Target, J. C. Penney, and some mid-sized players like Pier 1 Imports. Companies such as Crate & Barrel, IKEA and the numerous Williams-Sonoma companies (e.g. Pottery Barn and West Elm) are competitors as well. In 1971, Warren Eisenberg and Leonard Feinstein opened a store in Springfield, New Jersey called Bed n Bath. By 1985, Eisenberg and Feinstein were operating 17 stores in the New York metropolitan area and California. Also in 1985, the first superstore was opened, as an attempt to remain competitive with Linens n Things, Pacific Linen, and Luxury Linens. In order to properly represent the size increase in its retail stores, the company changed its name to Bed Bath & Beyond BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

15 TENANT PROFILE Coldwell Banker Real Estate LLC is an American real estate franchise owned by Realogy with headquarters in Madison, New Jersey. It was founded in 1906 in San Francisco, and has approximately 3,000 offices in 43 countries and territories. Coldwell Banker analyzes data from more than 81,000 similar-sized four-bedroom, two-bedroom homes in over 2,700 real estate markets nationwide and publishes the findings in its annual Home Listing Report. The report serves as a guide for determining most affordable and most expensive housing markets. After the devastating 1906 San Francisco earthquake and fires, Colbert Coldwell and two partners formed Tucker, Lynch and Coldwell on August 27, Benjamin Arthur Banker joined the firm as a salesman in 1913, and became a partner in The company was renamed Coldwell Banker in the same year. Banker and Coldwell remained active in the company throughout their lives. In 1920 Coldwell Banker moved to a three-story building in San Francisco. It opened an office in Phoenix, Arizona, its first outside California, in In the 1970s the company expanded by acquiring firms in Atlanta, Chicago, and Washington, D.C. The first international Coldwell Banker office opened in Toronto, Canada in Coldwell Banker became a corporation in 1961, and went public in In 1981 it was bought by Sears, Roebuck, and became part of the Sears Financial Network. Sears sold it to the Fremont Group, a California investment company, for $230 million in It was sold to HFS Inc., later Cendant, in When Cendant broke up in 2006, the real estate businesses were spun off as Realogy, which was sold to Apollo Management for about $7.75 billion. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 15

16 SECOND FLOOR TENANT PROFILE PROFESSIONAL EDUCATION CENTER USC base, Movement Performance Institute (MPI) is a state-of-the-art clinical facility dedicated to understanding the biomechanical basis of healthy and disordered human motion. The basic philosophy behind MPI is human health and quality of life depends on the ability to move skillfully and efficiently. Furthermore, it is our belief that movement dysfunction is the root cause of many overuse and sport related injuries of the musculoskeletal system. To this end, we provide in-depth biomechanical evaluations as well as rehabilitation and consultation services for persons with musculoskeletal complaints or those looking to enhance physical performance and/or prevent injury. Through objective measurements of motion, forces/pressures, muscle activation patterns and muscle performance, more effective clinical interventions can be designed and better long-term outcomes achieved. Although a primary focus of MPI is dedicated to the evaluation of persons who are injured or are having difficulty moving, we also perform biomechanical assessments aimed at enhancing physical performance and preventing injury in non-injured persons; including return to sport evaluations for those who have completed rehabilitation following injury and/or surgery and are striving to return to previous activity levels as quickly and safely as possible. Beyond enhancing the physical well-being of persons with movement impairments, MPI also is committed to education and research. MPI offers post-professional courses aimed at educating clinicians in the areas of clinical biomechanics and rehabilitation. Furthermore, MPI is active in carrying out clinical research to better understand the root causes of various musculoskeletal conditions as well as optimal methods to restore function following injury BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

17 TENANT PROFILE Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in As of November 2016, it operates 23,768 locations worldwide, including 13,107 (+170) in the United States, 2,204 (+86) in China, 1,418 (-12) in Canada, 1,160 (+2) in Japan and 872 in South Korea (bumping United Kingdom from 5th place) (Differences reflect growth since Jan 8, 2016). Starbucks is considered the main representative of second wave coffee, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons. Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and looseleaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select Starbucks Evenings locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 17

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19 SECTION 2 PROPERTY INFORMATION BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 19

20 PROPERTY PHOTO 20 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

21 AERIAL AMENITIES. MANCHESTER BOULEVARD SEPULVEDA BOULEVARD.. BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 21

22 AERIAL MAP 22 - BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC.

23 PLAT MAP BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. - 23

24 JAY MARTINEZ Managing Principal STUDIO CITY OFFICE Ventura Blvd., #140 Studio City, CA BEVERLY HILLS OFFICE 9301 Wilshire Blvd., Suite 206 Beverly Hills, CA Cal BRE: CONTACT CELL PHONE PHONE FAX WEBSITE ELIZABETH CLARK Senior Vice President BEVERLY HILLS OFFICE 9301 Wilshire Blvd., Suite 206 Beverly Hills, CA Cal BRE: CONTACT CELL PHONE PHONE FAX BRC ADVISORS & HUDSON COMMERCIAL PARTNERS, INC. WEBSITE