Natick Manor Apartments

Natick Manor Apartments 4646 Natick Ave PROPERTY HIGHLIGHTS 18 Units + 2 non-conforming units minutes away from Ventura Blvd, on one of the most desirable streets in Sherman Oaks Excellent unit mix of mostly three bedroom two bath units and two bedroom two bath units. Prepared By Cindy Hill, CCIM Senior Vice President 818.846.1611 cindyhill@kw.com Units average over 1,500 square feet Amenities include indoor pool, balconies, central HVAC units, secured parking, and lush landscaping Below market assumable loan at 3.35% interest only for approximately three more years 4061 Laurel Canyon Blvd. Studio City, CA 91604 www.valleyapartmentsales.com

INVESTMENT DETAILS ANALYSIS Analysis Date June 2018 PROPERTY Property Property Address Natick Manor Apartments 4646 Natick Ave Year Built 1968 PURCHASE INFORMATION Property Type MultiFamily Purchase Price $7,600,000 Units 20 Total Rentable Sq. Ft. 26,910 FINANCIAL INFORMATION Down Payment $4,100,000 LOANS Type Debt Term Amortization Rate Payment LO Costs Interest Only $3,500,000 30 years 0 years 3.35% $9,771 INCOME & EXPENSES Gross Operating Income $448,937 Monthly GOI $37,411 Total Annual Expenses ($160,342) Monthly Expenses ($13,362)

EXECUTIVE SUMMARY Acquisition Costs Purchase Price, Points and Closing Costs $7,600,000 Investment - Cash $4,100,000 First Loan $3,500,000 Investment Information Purchase Price $7,600,000 Price per Unit $380,000 Price per Sq. Ft. $282.42 Income per Unit $23,132 Expenses per Unit ($8,017) Income, Expenses & Cash Flow Gross Scheduled Income $462,636 Total Vacancy and Credits ($13,699) Operating Expenses ($160,342) Net Operating Income $288,595 Debt Service ($117,250) Cash Flow Before Taxes $171,345 Financial Indicators Cash on Cash Return Before Taxes 4.18% Debt Coverage Ratio 2.46 Capitalization Rate 3.80% Gross Rent Multiplier 16.43 Gross Income / Square Feet $17.19 Gross Expenses / Square Feet ($5.96) Operating Expense Ratio 35.72%

PRO FORMA SUMMARY INCOME Description Actual Per Unit Market Per Unit Gross Potential Rent $456,636 $22,832 $535,980 $26,799 Less: Vacancy ($13,699) ($685) ($16,079) ($804) Misc. Income $6,000 $300 $6,000 $300 Effective Gross Income $448,937 $22,447 $525,901 $26,295 OPERATING EXPENSES Description Actual Per Unit Market Per Unit Property Management Fee $13,879 $694 $16,079 $804 Building Insurance $8,697 $435 $8,697 $435 City Fees $1,717 $86 $1,717 $86 Gardener $1,402 $70 $1,402 $70 Elevator $1,228 $61 $1,228 $61 Miscellaneous $1,500 $75 $1,500 $75 On-site Management Fees $5,400 $270 $5,400 $270 Pest Control $733 $37 $733 $37 Pool $1,350 $68 $1,350 $68 Repairs $7,500 $375 $7,500 $375 Telephone $1,091 $55 $1,091 $55 Taxes - Real Estate $90,670 $4,534 $90,670 $4,534 Trash Removal $3,964 $198 $3,964 $198 Utilities $21,211 $1,061 $21,211 $1,061 Total Expenses ($160,342) ($8,017) ($162,542) ($8,127) NET OPERATING INCOME $288,595 $14,430 $363,359 $18,168

PRO FORMA SUMMARY UNIT MIX & MONTHLY SCHEDULED Type Units Actual Total Market Total 1+1 4 $1,396 $5,582 $1,724 $6,895 2+2 9 $1,916 $17,246 $2,400 $21,600 2+2 + Den 2 $2,236 $4,471 $2,600 $5,200 3+2 4 $2,501 $10,004 $2,600 $10,400 Single 1 $750 $750 $570 $570 TOTALS 20 $38,053 $44,665 INVESTMENT SUMMARY Price: $7,600,000 Year Built: 1968 Units: 20 Price/Unit: $380,000 RSF: 26,910 Price/RSF: $282.42 Lot Size: 14,245 sf Floors: 3 APN: 2265-002-179 Cap Rate: 3.8% Market Cap Rate: 4.78% GRM: 16.43 Market GRM: 14.02 FINANCING SUMMARY Loan Amount: $3,500,000 Down Payment: $4,100,000 Loan Type: Interest Only Interest Rate: 3.35% Term: 30 years Monthly Payment: $9,771 DCR: 2.46 ANNUALIZED INCOME Description Actual Market Gross Potential Rent $456,636 $535,980 Less: Vacancy ($13,699) ($16,079) Misc. Income $6,000 $6,000 Effective Gross Income $448,937 $525,901 Less: Expenses ($160,342) ($162,542) Net Operating Income $288,595 $363,359 Debt Service ($117,250) ($117,250) Net Cash Flow after Debt Service $171,345 $246,109 Principal Reduction $0 $0 Total Return $171,345 $246,109 ANNUALIZED EXPENSES Description Actual Market Property Management Fee $13,879 $16,079 Building Insurance $8,697 $8,697 City Fees $1,717 $1,717 Gardener $1,402 $1,402 Elevator $1,228 $1,228 Miscellaneous $1,500 $1,500 On-site Management Fees $5,400 $5,400 Pest Control $733 $733 Pool $1,350 $1,350 Repairs $7,500 $7,500 Telephone $1,091 $1,091 Taxes - Real Estate $90,670 $90,670 Trash Removal $3,964 $3,964 Utilities $21,211 $21,211 Total Expenses $160,342 $162,542 Expenses Per RSF $5.96 $6.04 Expenses Per Unit $8,017 $8,127

UNIT MIX REPORT Units Type Approx. SqFt Avg. Rents Monthly Mkt Rents Monthly 4 1+1 0 $1,396 $5,582 $1,724 $6,895 9 2+2 0 $1,916 $17,246 $2,400 $21,600 2 2+2 + Den 0 $2,236 $4,471 $2,600 $5,200 4 3+2 0 $2,501 $10,004 $2,600 $10,400 1 Single 0 $750 $750 $570 $570 20 0 $38,053 $44,665 UNIT MIX UNIT MIX SQUARE FEET 1+1 2+2 2+2 + Den 3+2 Single 1+1 2+2 2+2 + Den 3+2 Single UNIT MIX INCOME UNIT MIX MARKET INCOME 1+1 2+2 2+2 + Den 3+2 Single 1+1 2+2 2+2 + Den 3+2 Single

UNIT RENT ROLL Unit Description Current Rent Pro Forma Rent Comments 201 2+2 + Den $2,195 $2,600 202 2+2 $2,164 $2,400 203 2+2 $1,444 $2,400 204 2+2 $2,050 $2,400 205 3+2 $2,490 $2,600 206 1+1 $1,586 $1,800 301 3+2 $2,462 $2,600 302 2+2 $2,016 $2,400 303 2+2 $1,054 $2,400 304 2+2 $2,008 $2,400 305 3+2 $2,462 $2,600 306 1+1 $1,590 $1,800 401 2+2 + Den $2,276 $2,600 402 2+2 $2,060 $2,400 403 2+2 $2,300 $2,400 404 2+2 $2,150 $2,400 405 3+2 $2,590 $2,600 406 1+1 $1,606 $1,800 101 Single $750 $570 Currently non-conforming; permits applied for 102 1+1 $800 $1,495 Currently non-conforming; permits applied for

PROPERTY DESCRIPTION 20 Units in Prime Sherman Oaks Excellent unit mix with upside KW Commercial is proud to represent this 18 unit plus 2 additional non-conforming units apartment building in Sherman Oaks. The non conforming units are in the process of being legalized with the city with permits expected in 2018. The building was constructed in 1968. Its unit mix consists of (3) one-bedroom, one-bathroom units, (9) two-bedroom, two-bathroom units, (2) two-bedroom, two-bathroom and a den units and (4) three-bedroom and two-bathroom units (converted from 2+2+den units). With a lot size of 14,245 square feet, the property has a total of 26,910 rentable square feet. There are (2) non confirming units that bring in an additional $1000 each per month. There is an existing loan in the approximate amount of $3,500,000 that was originated in 2015. The loan is at 3.35% interest that is fixed until October 16, 2020. The property is situated in a prime Sherman Oaks area, which has a comfortable blend of urban and suburban amenities. Along with sunny, clean sidewalks, the city offers many hip cafes and shops especially on Ventura Boulevard, which features the Sherman Oaks Galleria and many upscale restaurants. Residents also have easy access to the 405 and 101 freeways. The building s amenities include an indoor pool, balconies, central HVAC units, secured parking, and lush landscaping. It is separately metered for gas and electricity.

4646 Natick Ave PROPERTY PHOTOS Pride of ownership apartment building Trophy property close to dining, shopping, and entertainment Large balaconies Spacious living room Living and dining area Separate dining area Kitchen and breakfast area updated bathroom

4646 Natick Ave PROPERTY PHOTOS Pride of ownership apartment building Trophy property close to dining, shopping, and entertainment Indoor pool with exercise equipment Large bedroom property courtyard / patio Close to shopping, dining and entertainment Close aerial view Convenient to the 101 & 405 Freeways

MAPS AND AERIALS 18 Units in Prime Sherman Oaks Close to 101 and 405 freeways

City of Sherman Oaks Sherman Oaks has a comfortable blend of urban and suburban ameni es. With sunny, clean sidewalks, the city offers many hip cafes and shops especially on Ventura Boulevard. Residents enjoy close proximity to the Sherman Oaks Galleria, Sherman Oaks Fashion Square, and many upscale restaurants. The Sherman Oaks community also enjoys the Sherman Oaks War Memorial, which features jogging paths, tennis courts, and several classes and ac vi es. The city has easy access to the 405 and 101 freeways. www.valleyapartmentsales.com

SALE COMPARABLES 8% Cap Rate 24.0 Gross Rent Multiplier 7% 21.0 6% 5% 18.0 15.0 Avg. 16.767 4% 3% Avg. 3.367 12.0 9.0 2% 6.0 1% 3.0 Subjec 1 2 4 5 6 7 8 9 10 Subjec 1 2 4 5 6 7 8 9 10 $384,000 Price per Unit $360 Price per Sq. Ft. $336,000 $288,000 Avg. $294,132 $315 $270 Avg. $289.68 $240,000 $225 $192,000 $180 $144,000 $135 $96,000 $90 $48,000 $45 Subje 1 2 3 4 5 6 7 8 9 10 Subje 1 2 3 4 5 6 7 8 9 10

SALE COMPARABLES S Natick Manor Apartments 4646 Natick Ave Sale Price $7,600,000 Units 20 Price/Unit $380,000 Price/SqFt $282.42 Cap Rate 3.8% Year Built 1968 GRM 16.43 4 1+1 9 2+2 2 2+2 + Den 4 3+2 1 Single 1 Sale Date 12/11/2017 4540 Hazeltine Ave 4540 Hazeltine Ave Sherman Oaks, CA 91423 Sale Price $7,750,000 Units 23 Price/Unit $336,957 Price/SqFt $353.48 Cap Rate 4.0% Year Built 1951 GRM 15.6 6 One Bedroom One Bath 7 Two Bedroom Two Bath 10 Three Bedroom Two Bath 2 Sale Date 10/20/2017 4535 Murietta Ave 4535 Murietta Ave Sherman Oaks, CA 91423 Sale Price $3,900,000 Units 13 Price/Unit $300,000 Price/SqFt $324.95 Cap Rate 3.87% Year Built 1965 GRM 16.1 5 One Bedroom One Bath 4 Two Bedroom One Bath 4 Two Bedroom Two Bath

SALE COMPARABLES 3 Sale Date 4/14/2017 Coldwater Court 4526 Coldwater Canyon Studio City, CA 91604 Sale Price $5,350,000 Units 15 Price/Unit $356,667 Price/SqFt $310.92 Cap Rate N/A Year Built 1965 GRM N/A 8 One Bedroom One Bath 6 Two Bedroom Two Bath 1 Three Bedroom Two Bath 4 In Escrow Villa Colfax 4377 Colfax Ave Studio City, CA 91604 Sale Price $10,200,000 Units 34 Price/Unit $300,000 Price/SqFt $237.13 Cap Rate 3.04% Year Built 1970 GRM 18.3 10 One Bedroom One Bath 24 Two Bedroom Two Bath 5 Sale Date 11/16/2017 12100 Valley Spring Ln 12100 Valley Spring Ln Studio City, CA 91604 Sale Price $5,600,000 Units 20 Price/Unit $280,000 Price/SqFt $322.06 Cap Rate 3.26% Year Built 1965 GRM 17.0 10 One Bedroom One Bath 1 Two Bedroom One Bath 7 Two Bedroom Two Bath 2 Three Bedroom Two Bath

SALE COMPARABLES 6 Sale Date 6/28/2017 Toluca Plaza 10311 Riverside Dr Toluca Lake, CA 91602 Sale Price $11,900,000 Units 39 Price/Unit $305,128 Price/SqFt $281.26 Cap Rate 3.45% Year Built 1971 GRM 15.8 27 One Bedroom One Bath 12 Two Bedroom Two Bath 7 Sale Date 9/6/2017 Chandler Court 12245 Chandler Blvd Valley Village, CA 91607 Sale Price $10,025,000 Units 34 Price/Unit $294,853 Price/SqFt $305.82 Cap Rate 3.72% Year Built 1971 GRM 15.7 22 One Bedroom One Bath 12 Two Bedroom Two Bath 8 In Escrow The Imperial 11915 Kling St Valley Village, CA 91607 Sale Price $6,800,000 Units 26 Price/Unit $261,538 Price/SqFt $253.17 Cap Rate 2.97% Year Built 1969 GRM 17.5 5 One Bedroom One Bath 21 Two Bedroom Two Bath

SALE COMPARABLES 9 In Escrow 11935 Kling St 11935 Kling St Valley Village, CA 91607 Sale Price $6,800,000 Units 26 Price/Unit $261,538 Price/SqFt $256.19 Cap Rate 2.96% Year Built 1967 GRM 17.6 5 One Bedroom One Bath 20 Two Bedroom Two Bath 1 Three Bedroom Two Bath A In Escrow NOTES Legal address is 11940 Kling St 11930 Kling St 11930 Kling St Valley Village, CA 91607 Sale Price $6,850,000 Units 28 Price/Unit $244,643 Price/SqFt $251.84 Cap Rate 3.03% Year Built 1966 GRM 17.3 11 One Bedroom One Bath 16 Two Bedroom Two Bath 1 Three Bedroom Two Bath

SALE COMPARABLES S 4646 Natick Ave Sherman Oaks, CA, 91403 $7,600,000 1 4540 Hazeltine Ave Sherman Oaks, CA, 91423 $7,750,000 2 4535 Murietta Ave Sherman Oaks, CA, 91423 $3,900,000 3 4526 Coldwater Canyon Studio City, CA, 91604 $5,350,000 6 10311 Riverside Dr Toluca Lake, CA, 91602 $11,900,000 4 4377 Colfax Ave Studio City, CA, 91604 $10,200,000 7 12245 Chandler Blvd Valley Village, CA, 91607 $10,025,000 5 12100 Valley Spring Ln Studio City, CA, 91604 $5,600,000 8 11915 Kling St Valley Village, CA, 91607 $6,800,000 9 11935 Kling St Valley Village, CA, 91607 $6,800,000 A 11930 Kling St Valley Village, CA, 91607 $6,850,000