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O f f e r i n g M e m o r a n d u m

15901 S VERMONT AVEG A R D E N A , C A 9 0 2 4 7

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Exclusively Listed ByNABIL AWADA Associate - Multifamily

Direct +310 844 9362Mobile +310 469 2974nabil.awada@matthews.comLIC#02046840 (CA)

DAVID HARRINGTON EVP & National Director

Direct +310 295 1170Mobile +310 497 5590david.harrington@matthews.comLIC#01320460 (CA)

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15901 S VERMONT AVEG A R D E N A , C A 9 0 2 4 7

O f f e r i n g M e m o r a n d u m

04Property Overview

08Location Overview

12Financial Overview

04PROPERT Y OVERVIEW

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OpportunityMatthews Real Estate Investment Services is proud to offer 15901 S Vermont Avenue. This 16-unit apartment building is an opportunity for an investor to purchase a multifamily property in the heart of Gardena. Located on the Northeastern part of Gardena’s rapidly improving Hermosillo neighborhood. The property boasts significant upside with continued long-term growth as the surrounding area continues to grow. Tenants appreciate the proximity to entertainment and retail shops including Gardena Valley Shopping Center, Vons, Eatalian Cafe, and Starbucks. Located only 1 mile away from Memorial Hospital of Gardena. The 110 Freeway is easily accessible to commuters and only a short drive south to 91 freeway.

The property boasts a desirable unit mix of (2) Two Bedroom/Two Bathroom, (10) One Bedroom/One Bathroom, (4) Studio, and (1) Non-Conforming Studio Unit. There are (5) two car garages and (5) one car garages coupled with ample street parking. The building is separately metered for gas and electricity. An investor can capitalize on the tight rental market and high rents in this neighborhood by implementing a strategic unit interior renovation plan, which will upgrade the units and allow the buyer to command top of the market rents. Rents at the higher end of the range result in 27% rent upside potential.

Property SummaryNumber of Units: 16Year Built: 1962APN: 6113-028-010Gross Sq. Ft.: 10,390Average S.F. Per Unit: 649Lot Size (Acres): 11,301

Property Description• 16 Units + (1) Non-Conforming Studio• (2) Two Bedroom/Two Bathroom, (10) One Bedroom/One Bathroom, (4) Studio

and (1) Non-Conforming Studio • (5) Two Car Garages and (5) One Car Garages along with ample street parking• Gross Building Square Footage of 10,390• Lot Size of 11,301 Square Feet • On-site Laundry room with two washers and two dryers• Short Walk to Shops, Dining, and Retail• Easily Accessible to Hospital, Parks, and Freeways

Regional Map

Local Map

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08LOCATION OVERVIEW

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Gardena is a city located in the South Bay (southwestern) region of Los Angeles County. The city is known for its rich cultural diversity and beautiful landscaping. Gardena is a family-oriented city with many programs to meet the needs of both the family and single population. The city is proud of its high quality of life.

The City of Gardena was incorporated on September 11, 1930. It combined the rural communities of Gardena, Moneta, and Strawberry Park into a Municipal Corporation, Sixth Class City. At that time Gardena was a small farming community of about 20,000 people. Today Gardena is an active and progressive residential and business community with a city government that prides itself in providing a full range of qualified services to the community.

Gardena is bordered by Athens on the north, the Los Angeles neighborhood of Harbor Gateway on the east and south, Torrance on the southwest, Alondra Park on the west, and Hawthorne on the northwest. Gardena has a large Japanese population helping make the South Bay region of Los Angeles home to the largest concentration of Japanese companies within the mainland United States.

Digital Manga, Nissin Foods, Marukai Corporation U.S.A., and En Pointe Technologies are all headquartered in Gardena.

Gardena, CADemographics

1 MILE 3 MILE 5 MILEPOPULATION

2010 Census 32,156 203,310 743,614

2018 Estimate 32,823 209,297 774,677

2023 Projection 33,548 214,858 799,881

POPULATION GROWTH

Percent Change: 2010 to 2018 2.07% 2.94% 4.18%

Percent Change: 2018 to 2023 2.21% 2.66% 3.25%

HOUSEHOLDS

2010 Census 10,912 64,933 223,041

2018 Estimate 11,160 66,770 231,932

2023 Projection 11,416 68,546 239,357

HOUSEHOLD GROWTH

Percent Change: 2010 to 2018 2.27% 2.83% 3.99%

Percent Change: 2018 to 2023 2.29% 2.66% 3.20%

INCOME

Average Household Income $68,779.67 $76,859.07 $76,342.06

Median Household Income $50,502.65 $57,020.74 $54,876.62

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.

Los Angeles MSA

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Top EmployersThe 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 extreme commercial and historical importance to the w 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.

Economy

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12FINANCIAL OVERVIEW

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Number of Units: 16

Year Built: 1962

APN: 6113-028-010

Gross Sq. Ft.: 10,390

Average S.F. Per Unit: 649

Lot Size: 11,301

Zoning GAC3

Offering Price: $3,550,000

Property Address: 15901 S Vermont Ave Gardena, CA 90247

Price Per Unit: $221,875

Price Per S.F.: $341.67

Cap (current / market): 3.89% / 5.52%

GRM (current / market): 14.70 / 11.69

Investment Summary

Total Units Unit Mix Unit Mix % Current Avg Rent

Current Monthly Rent Market Rent Market

Monthly Rent4 Studio 25% $1,025 $4,100 $1,200 $4,80010 1+1 63% $1,223 $12,225 $1,550 $15,5002 2+2 13% $1,400 $2,800 $2,000 $4,000

Scheduled Monthly Rent: $19,125 $24,300Scheduled Yearly Rent: $229,500 $291,600

Unit Mix

Annualized Operating SummaryCurrent Market

Scheduled Gross Income: $229,500 $291,600 27% UpsideLess Vacancy Reserve: 3.0% $6,885 3.0% $8,748 *Other Income: (1) Non-Conforming Studio @ $1000/month $12,000 $12,000Gross Operating Income: $234,615 $294,852Expenses: 42.1% $96,596 34.0% $99,006 *Net Operating Income: $138,019 $195,846Loan Payments: $110,413 $110,413Cash-on-Cash Return: 1.5% $27,605 4.7% $85,433 **Plus Principal Reduction: $25,288 $25,288Total Return Before Taxes: 2.9% $52,893 6.0% $110,721 *** As a percent of Scheduled Gross Income

** As a percent of Down Payment

Current Per Unit % of SGI*Taxes 1.250% x Sale Price $44,375 $2,773 19%*Insurance $0.35 x GSF $3,637 $227 2%Off-Site Management 4.0% x GOI $9,385 $587 4%On-Site Management $600 x 12 Months $7,200 $450 3%Repairs & Maintenance $500 x Units $8,000 $500 3%Contract Services $200 x Units $3,200 $200 1%Utilities $1,000 x Units $16,000 $1,000 7%General Administration $300 x Units $4,800 $300 2.09%Total Expenses $96,596 $6,037 42.1%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $48,012 $3,001 20.9%Total Expense without Taxes $52,221 $3,264 22.75%

Proforma Annual Operating Expenses

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Unit Mix Rent Market Rent

1 2+2 $1,300 $2,000

2 1+1 $1,200 $1,550

3 1+1 $1,100 $1,550

4 1+1 $1,200 $1,550

5 1+1 $1,200 $1,550

6 Studio $900 $1,200

7 1+1 $1,200 $1,550

8 1+1 $1,100 $1,550

9 Studio $1,000 $1,200

10 1+1 $1,200 $1,550

11 1+1 $1,325 $1,550

12 1+1 $1,200 $1,550

14 Studio $1,200 $1,200

15 1+1 $1,500 $1,550

16 2+2 $1,500 $2,000

17 Studio $1,000 $1,200

Totals $19,125 $24,300

Averages $1,195 $1,519

Rent Roll

Address Units Yr Built Square Feet Price Price Per Unit Price Per Foot Cap Rate GRM Sold

Date Unit Mix

15901 S Vermont Ave 16 1962 10,390 $3,550,000 $221,875 $341.67 3.89% 14.70 None(4) Studio

(10) 1/1(2) 2/2

1034 Magnolia Avenue 16 1961 13,156 $3,650,000 $228,125 $277.44 3.37% 16.85 1/24/18(2) Studio

(1) 1/1 (13) 2/1

14015 S Budlong Avenue 20 1963 16,528 $4,670,000 $233,500 $282.55 4.07% 13.94 5/17/17 (6) 2/1 (14) 2/1.5

1250-1258 West 168th Street 18 1963 15,279 $3,850,000 $213,889 $251.98 2.87% 19.76 5/30/18(12) 1/1 (5) 2/1 (1) 2/1.5

15515 S Vermont Avenue 25 1960 17,980 $5,100,000 $204,000 $283.65 5.23% 10.86 7/18/18 (20) 2/1 (5) 1/1

Averages $219,878 $273.90 3.89% 15.35

Gardena Sales Comparables

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Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF

15901 S Vermont Avenue, Gardena, CA 90247 16 1962 Studio $1,050 - -

1735 W 147th Street, Gardena, CA 90247 8 1962 Studio $1,250 450 $2.78

860 W 165th Place, Gardena, CA 90247 12 1991 Studio $1,195 450 $2.66

13921 Normandie Avenue, Gardena, CA 90249 68 1964 Studio $1,115 360 $3.10

14417 S Vermont Avenue, Gardena, CA 90247 64 1968 Studio $1,195 450 $2.66

Averages $1,189 428 $2.80

Gardena Rent Comparables - Studio Units

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Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF

15901 S Vermont Avenue, Gardena, CA 90247 16 1962 1+1 $1,223 - -

15120 S Normandie Avenue, Gardena, CA 90247 39 1963 1+1 $1,500 700 $2.14

1736 Marine Avenue, Gardena, CA 90247 15 1958 1+1 $1,495 560 $2.67

15113 S Raymond Avenue, Gardena, CA 90247 35 1974 1+1 $1,600 725 $2.21

1030 Magnolia Avenue, Gardena, CA 90247 26 1963 1+1 $1,750 525 $3.33

Averages $1,615 603 $2.74

Gardena Rent Comparables - One Bedroom Units

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Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF

15901 S Vermont Avenue, Gardena, CA 90247 16 1962 2+2 $1,400 - -

1030 Magnolia Avenue, Gardena, CA 90247 26 1963 2+1 $2,075 800 $2.59

1439 W 179th Street, Gardena, CA 90248 19 1962 2+1 $1,895 - -

14015 S Budlong Avenue, Gardena, CA 90247 20 1963 2+1 $2,050 - -

13324 S Vermont Avenue, Gardena, CA 90247 6 1960 2+1 $1,850 1,000 $1.85

Averages $1,968 900 $2.22

Gardena Rent Comparables - Two Bedroom Units

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Confidentiality Agreement & DisclaimerThis Offering Memorandum contains select information pertaining to the business and affairs of 15901 S Vermont Avenue Gardena, CA 90247 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or

its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

O f f e r i n g M e m o r a n d u m

15901 S VERMONT AVEG A R D E N A , C A 9 0 2 4 7

™Exclusively Listed ByNABIL AWADA Associate - Multifamily

Direct +310 844 9362Mobile +310 469 2974nabil.awada@matthews.comLIC#02046840 (CA)

DAVID HARRINGTON EVP & National Director

Direct +310 295 1170Mobile +310 497 5590david.harrington@matthews.comLIC#01320460 (CA)