MULTIFAMILY OFFERING MEMORANDUM

MULTIFAMILY OFFERING MEMORANDUM Valley Glen Apartments 13807 Oxnard Street Valley Glen, CA 91401 FRANCIS D. GONZAGA NEA California Group, Inc. 17418 Chatsworth Street Suite 201 Granada Hills, CA 91344 Direct: 818-648-3080 Fax: 818-907-5650 fgonzaga@socal.rr.com

EXECUTIVE SUMMARY This report is being presented by NEA California Group, Inc. and contains salient facts relevant to the twentyfive (25) unit multi residential property located at 13807 Oxnard Street, Valley Glen, California. The subject property is situated in the city of Valley Glen. The property benefits from its close proximity to the 5, 101, 134, and 170 freeways where public transportation is easily accessible to its residents. Additionally, the building is in the heart of the San Fernando Valley just north of Sherman Oaks/Studio City areas and just west of the newly developed NOHO Arts District. The neighborhood s residential and commercial industry continues to strive due in part to its year round tourist attraction sites and has consistently maintained a solid demand for this particular area for many years. The rental demand remains competitive as vacancy rates remain low regardless of economic state. The property offers an excellent unit mix with numerous upgrades both in the interior of several units and exterior of the building which include copper plumbing and relatively new roof(s). The property is professionally managed and well maintained with little to no deferred maintenance. This offering is a great opportunity for an astute investor looking to acquire multifamily apartment buildings located in a desirable and strong rental pocket. The property is situated on a huge rectangular parcel with multiple buildings. The property is currently 100% occupied and ideal for a hands on type of investor, an investor looking for a turnkey/ease of management property, or even an owner/user type investor looking to take advantage of the upside in rents. EXECUTIVE SUMMARY

PROPERTY INFORMATION SUBJECT PROPERTY: PROPERTY ADDRESS: VALLEY GLEN APARTMENTS 13807 Oxnard Street CITY, STATE, ZIP CODE: Valley Glen, California 91401 APN: 2239-022-001 LAND USE: NUMBER OF UNITS: MULTIPLE RESIDENTIAL 25 Units YEAR BUILT: 1961 LOT SIZE: 28,314 Square Feet UNIT MIX: 14 One bedroom / One bathroom Unit 3 Two Bedroom / One bathroom Unit 7 Two bedroom/two bathroom Unit 1 Three bedroom/two bathroom TH Unit PROPERTY HIGHLIGHTS Good Unit Mix Approx. 20%+ Below Market Rents Huge Rental Upside Large Lot Nice Curb Appeal Copper Plumbing Well Maintained; No Deferred Maintenance Excellent Location PROPERTY INFORMATION

PROPERTY PHOTOS PROPERTY PHOTOS

PROPERTY PHOTOS PROPERTY PHOTOS

PROPERTY MAP PROPERTY MAP

MARKET OVERVIEW Valley Glen is a highly diverse community in the southeastern portion of the San Fernando Valley in Los Angeles, California. Nearly half its residents were born outside the United States. Originally part of Van Nuys and North Hollywood, Valley Glen was officially recognized by the City of Los Angeles. in 2004. The neighborhood includes a community college, seven public schools six private schools, and a city recreational park. Valley Glen is noted for a half mile long California history mural painted on the side of a flood control channel. For much of the 1800s, the narrow strip of the San Fernando Valley known as Valley Glen was part of the vast collection of wheat fields owned by the wealthy Lankershim family. The fields would eventually give rise to the small hamlet now known as Lankershim, which in turn grew into the tracts and commercial strips of North Hollywood. The neighborhood remained virtually intact until its western third split off in the 2000s to become Valley Glen. Before the split however, the area became a major draw due to the growing film industry. Studios began to migrate over the hill, with Universal Pictures, Walt Disney Pictures and Mack Sennett among the production houses to set up shop on the north side of the Hollywood Hills. To provide higher education opportunities for these new residents, Los Angeles Valley College was founded in 1949 in Van Nuys, and moved to its current location in what is now Valley Glen in 1951. The college provided something of a new center of gravity for the area, and the construction of the second phase of the Hollywood Freeway in 1968, which cut a huge swath of the neighborhood off from North Hollywood proper, eventually led residents there to vote on a new name for the region. By the 1930s, this migration of the entertainment industry had increased the Valley s diversity to the point where its first Jewish house of worship, Adat Ariel, was founded in a small area in Valley Glen. World War II accelerated the growth of the Valley s other great economic engine the aerospace industry. As Burbank became a center of aircraft manufacturing, demand for housing for the workers who toiled on the assembly lines exploded, and the final push to develop the Valley began in earnest. During the war, the Valley s population doubled, and it would increase fivefold after the war. The vast tracts of suburban ranch homes that typified the Valley in the popular imagination were built in the postwar period to house this influx of people. Velley Glen was chosen, after the historic Jewish community. Soon, portions of eastern Van Nuys, which had already lost its southernmost tracts to Sherman Oaks, joined them. In 2004, the city ratified the change, making Valley Glen one of the city s newest neighborhoods. In Valley Glen s short history as an independent neighborhood, its slowly but consistently producing a unique and definable character for itself. Source: Wikipedia, Los Angeles Times, Valley Glen Neighborhood Association MARKET OVERVIEW

DEMOGRAPHIC OVERVIEW Year Established: 2004 Current land Area: Population: City of Valley Glen Median Age: 172,036 35 years old Total Number of Households: City of Valley Glen 59,089 Average Household Size: 2.9 Family Households: Non-Family Households: White Collar Employment: Blue Collar Employment: 37,876 21,731 35 1,800 Household & Average Income: Median Income Under 25: $36,177 Median Income 25-44: $43,393 Median Income 45-64: $54,261 Median Income Over 65: $45,672 Median Home Value: $671,300 Source: Zillow, Point2Homes, Wikipedia DEMOGRAPHIC OVERVIEW

SALES COMPARABLE NO. 1 1.5 Miles from Subject Property PROPERTY INFORMATION ADDRESS: 13411 Vanowen Street COE: 12/7/2017 CITY: Valley Glen YEAR BUILT: 1963 STATE: California LOT SIZE: 16,587 Sqft. ZIP: 91405 BLDG. AREA: 13,827 Sqft. APN: 2328-031-002 NO. UNITS: 14 FINANCIALS SALE PRICE: $3,150,000 PRICE PER SQFT: $228 PRICE PER UNIT: $226,071 GRM: 15.26X CAP RATE: 3.90% SALES COMPARABLES NEA California Group, Inc.

SALES COMPARABLE NO. 2 0.9 Miles from Subject Property PROPERTY INFORMATION ADDRESS: 13520 Victory Blvd. COE: 4/26/2017 CITY: Valley Glen YEAR BUILT: 1963 STATE: California LOT SIZE: 18,641 Sqft. ZIP: 91401 BLDG. AREA: 11,124 Sqft. APN: 2330-009-018 NO. UNITS: 11 FINANCIALS SALE PRICE: $2,650,000 PRICE PER SQFT: $236 PRICE PER UNIT: $240,909 GRM: 14.00X SALES COMPARABLES

SALES COMPARABLE NO. 3 0.6 Miles from Subject Property PROPERTY INFORMATION ADDRESS: 13227 Oxnard Street COE: 5/9/2017 CITY: Valley Glen YEAR BUILT: 1953 STATE: California LOT SIZE: 6,109 Sqft. ZIP: 91401 BLDG. AREA: 5,184 Sqft. APN: 2331-029-002 NO. UNITS: 4 FINANCIALS SALE PRICE: $1,299,000 PRICE PER SQFT: $246 PRICE PER UNIT: $324,750 GRM: 16.24X SALES COMPARABLES

SALES COMPARABLE NO. 4 4.6 Miles from Subject Property PROPERTY INFORMATION ADDRESS: 15843 Saticoy Street COE: 5/26/2017 CITY: Van Nuys YEAR BUILT: 1977 STATE: California LOT SIZE: 11,349 Sqft. ZIP: 91406 BLDG. AREA: 9,656 Sqft. APN: 2206-010-043 NO. UNITS: 16 FINANCIALS SALE PRICE: $4,500,000 PRICE PER SQFT: $466 PRICE PER UNIT: $281,250 SALES COMPARABLES

SALES COMPARABLE NO. 5 2.7 Miles from Subject Property PROPERTY INFORMATION ADDRESS: 14624 Wyandotte Street COE: 8/11/2017 CITY: Van Nuys YEAR BUILT: 1957 STATE: California LOT SIZE: 15,317 Sqft. ZIP: 91405 BLDG. AREA: 12,243 Sqft. APN: 2218-023-008 NO. UNITS: 15 FINANCIALS SALE PRICE: $5,700,000 PRICE PER SQFT: $466 PRICE PER UNIT: $380,000 SALES COMPARABLES

SALES COMPARABLE SUMMARY COMP # UNITS YR. BUILT PRICE $/UNIT $/SQFT. 1 14 1963 $3,150,000 $226,071 $228 2 11 1963 $2,650,000 $240,909 $236 3 4 1953 $1,299,000 $324,750 $246 4 16 1977 $4,500,000 $281,250 $466 5 15 1957 $5,700,000 $380,000 $466 AVERAGE 13 1963 $3,459,800 $290,596 $294 SUBJECT 25 1961 $5,950,000 $238,000 $277 SALES COMPRABLE AVERAGES

RENT ROLL UNIT UNIT MIX LEASE RATE MARKET RATE 1 3+2 TH $1,432 $2,100 2 2+1 $1,035 $1,850 3 1+1 $785 $1,650 4 1+1 $1,450 $1,650 5 2+2 $1,900 $1,900 6 1+1 $1,450 $1,650 7 2+2 $1,695 $1,900 8 2+2 $1,366 $1,900 9 2+2 $1,584 $1,900 10 1+1 $1,038 $1,650 11 2+1 $1,795 $1,850 12 1+1 $1,395 $1,650 12A 1+1 $893 $1,650 14 2+2 $1,214 $1,900 15 1+1 $1,038 $1,650 16 1+1 $1,540 $1,650 17 1+1 $1,038 $1,650 RENT ROLL

RENT ROLL UNIT UNIT MIX LEASE RATE MARKET RATE 18 1+1 $1,326 $1,650 19 1+1 $1,450 $1,650 20 1+1 $1,495 $1,650 21 2+2 $1,366 $1,900 22 2+2 $1,310 $1,900 23 2+1 $1,202 $1,850 24 1+1 $1,326 $1,650 25 1+1 $785 $1,650 AVERAGE: 1+1 $1,215 $1,650 2+1 $1,344 $1,850 2+2 $1,491 $1,900 3+2 $1,432 $2,100 RENT ROLL

13807 Oxnard Street ~ Valley Glen, CA 91401 EXECUTIVE SUMMARY VALUE INDICATORS PROPOSED FINANCING Purchase Price: $5,950,000 GRM: 14.95 New First Loan: $3,272,500 Down Payment: 45% $2,677,500 Market GRM: 11.19 Terms: 5-7 year fixed Number of Units: 25 CAP RATE: 3.70% Interest Rate: 4.25% Year Built: 1961 Market CAP Rate: 5.88% Amortization: 30 year Lot Sq. Ft.: 28,314 Cost Per Unit: $238,000 Monthly Payments: $16,099 Bldg. Sq. Ft.: 21,504 Expenses Per Unit: $6,624 Thomas Guide: Cost Per Bldg. Sq. Ft.: $276.69 Assessors Parcel Number: 2239-002-001 Expenses Per Bldg. Sq. Ft.: $7.70 Total Parking Spaces: 25 Rent Per Bldg. Sq. Ft.: $1.53 PROPERTY PHOTOS #REF! #REF! PROPERTY HIGHLIGHTS Excellent Location Good Unit Mix Huge Rental Upsdide 20%+ Below Market Rents Nice Curb Appeal Copper Plumbing Newer Roof Well Maintained SCHEDULED INCOME NO. OF APPROX. SQ. AVERAGE MONTHLY AVERAGE MARKET MONTHLY MARKET UNIT TYPE UNITS FT. RENT INCOME RENT/FOOT RENT INCOME RENT/FOOT 14 1+1 700 $1,215 $17,009 $1,650 $23,100 $2.36 3 2+1 1000 $1,344 $4,032 $1,850 $5,550 $1.85 7 2+2 1050 $1,490.71 $10,435 $1,900 $13,300 1 3+3 1350 $1,432 $1,432 $2,100 $2,100 25 Total Scheduled Income: $32,908 $44,050 Laundry Income: $250 $250 Monthly Scheduled Gross Income: $33,158 $44,300 Annual Scheduled Gross Income: $397,896 $531,600 ANNUALIZED OPERATING DATA ANNUAL EXPENSES ACTUAL INCOME MARKET INCOME Property Tax (New): $74,375 Scheduled Gross Income: $397,896 $531,600 2017 Tax Rate: 1.25% Vacancy Reserve*: 3% ($11,937) 3% ($15,948) Insurance: $5,000 Gross Operating Income: $385,959 $515,652 Utilities Water, Power, Gas): $33,000 Less Expenses*: 41.62% $165,610 31.15% $165,610 Maintenance & Repairs (Est.): $16,000 Net Operating Income: $220,349 $350,042 Gardening & Pool Service: $4,200 Estimated Loan Payments: $193,188 $193,188 On-Site Manager $9,540 Pre-Tax Cash Flow**: 1.01% $27,161 5.86% $156,854 Off-Site Manager $19,895 Principal Reduction: $54,107 $54,107 Pest Control: $600 Total Return On Investment**: 3.04% $81,268 7.88% $210,961 Reserves & Misc.: $3,000 *As a percent of Scheduled Gross Income **As a percent of Down Payment Total Expenses: $165,610 Francis Gonzaga Per Net Sq. Ft.: $7.70 Tel: 818 648 3080 Expenses Per Unit: $6,624 fgonzaga@socal.rr.com This information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied as to the accuracy of the information. Reference to square footage or age are approximate. Buyer must verify the information and bears all risks for any inaccuracies.

SCHEDULE OF PROSPECTIVE CASH FLOW Name PROPERTY 13807 Oxnard Street Price Down Payment Loan Amount Interest Rate Term (Years) Current DCR LOCATION Valley Glen, CA $5,950,000 $2,677,500 $3,272,500 4.250% 30 1.14 Price Year Year Year Year Year Year Year Year Year Year $5,950,000 1 2 3 4 5 6 7 8 9 10 Down Payment Schedule Gross Income $397,896 $403,540 $397,548 $399,039 $410,861 $400,580 $420,561 $441,541 $463,571 $486,701 $2,677,500 45.00% Vacancy Factor ($11,937) ($12,106) ($11,926) ($11,971) ($12,326) ($12,017) ($12,617) ($13,246) ($13,907) ($14,601) Gross Operating Income $385,959 $391,433 $385,621 $387,068 $398,535 $388,563 $407,945 $428,295 $449,663 $472,100 Operating Expenses Property Tax ($74,375) ($75,119) ($75,870) ($76,629) ($77,395) ($78,169) ($78,951) ($79,740) ($80,537) ($81,343) Insurance ($5,000) ($5,050) ($5,101) ($5,152) ($5,203) ($5,255) ($5,308) ($5,361) ($5,414) ($5,468) Utilities ($33,000) ($33,495) ($33,997) ($34,507) ($35,025) ($35,550) ($36,084) ($36,625) ($37,174) ($37,732) Maintenance/Repairs ($16,000) ($16,160) ($16,322) ($16,485) ($16,650) ($16,816) ($16,984) ($17,154) ($17,326) ($17,499) Property Management ($29,435) ($29,729) ($30,027) ($30,327) ($30,630) ($30,936) ($31,246) ($31,558) ($31,874) ($32,193) Pool ($1,800) ($1,827) ($1,854) ($1,882) ($1,910) ($1,939) ($1,968) ($1,998) ($2,028) ($2,058) Landscaping ($2,400) ($2,436) ($2,485) ($2,534) ($2,585) ($2,637) ($2,690) ($2,743) ($2,798) ($2,854) Pest Control ($600) ($609) ($621) ($634) ($646) ($659) ($672) ($686) ($700) ($714) Reserves & Misc. ($3,000) ($3,060) ($3,121) ($3,184) ($3,247) ($3,312) ($3,378) ($3,446) ($3,515) ($3,585) NOI $220,349 $223,948 $216,224 $215,735 $225,244 $213,289 $230,664 $248,984 $268,297 $288,654 Cap Rate 3.70% 3.76% 3.63% 3.63% 3.79% 3.58% 3.88% 4.18% 4.51% 4.85% Loan Amount $3,272,500 55.00% NOI $220,349 $223,948 $216,224 $215,735 $225,244 $213,289 $230,664 $248,984 $268,297 $288,654 Interest Rate Debt Service ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) ($193,185) 4.25% Cash Flow After Debt $27,164 $30,764 $23,039 $22,550 $32,059 $20,104 $37,479 $55,799 $75,113 $95,469 Term 30 Rate Of Return 1.01% 0.94% 0.70% 0.69% 0.98% 0.61% 1.15% 1.71% 2.30% 2.92% Current DCR Principal Reduction $55,170 $57,561 $60,055 $62,658 $65,374 $68,207 $71,163 $74,247 $77,464 $80,822 1.14 Total Return $82,334 $88,324 $83,094 $85,208 $97,432 $88,311 $108,642 $130,046 $152,577 $176,291 Future Sale CAP 4.00% Total Return Percentage 3.08% 3.30% 3.10% 3.18% 3.64% 3.30% 4.06% 4.86% 5.70% 6.58% IRR Analysis Cash Flow After Debt $82,334 $88,324 $83,094 $85,208 $97,432 $88,311 $108,642 $130,046 $152,577 $176,291 Sale of Property Future Sale Cap of 4.00% $7,216,356 Retire Debt ($2,599,780) Total After Debt Cash Flows $82,334 $88,324 $83,094 $85,208 $97,432 $88,311 $108,642 $130,046 $152,577 $4,792,867 Total Cash In/Out ($2,677,500) $82,334 $88,324 $83,094 $85,208 $97,432 $88,311 $108,642 $130,046 $152,577 $4,792,867 IRR 8.69% CASHFLOW ANALYSIS The financial analysis enclosed herein is based upon numerous assumptions including but not limited to the following: lease rates, occupancy projections, inflation, future cap rates, and other financial metrics of an uncertain nature. Neither the owner, owners representatives, broker and/or agent(s) make any representations or guarantees regarding the accuracy of the assumptions provided in this analysis. NEA California Group, Inc.

CONTACT INFORMATION FRANCIS D. GONZAGA NEA California Group, Inc. 17418 Chatsworth Street Suite 201 Granada Hills, CA 91344 Direct: 818-648-3080 Fax: 818-907-5650 Email: fgonzaga@socal.rr.com BROKER CONTACT INFORMATION