LOS ANGELES, CA4320 S Centinela Avenue

O F F E R I N G M E M O R A N D U M

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LISTED BY:

DANIEL WITHERS SVP & Senior Director - Multifamily

Direct +1 818 923 6107 Mobile +1 310 365 5054 daniel.withers@matthews.com License No. 01325901 (CA)

CO-LISTED WITH:

MARCUS & MILLICHAPJeffery Louks

Direct + 1 818 212 2780Mobile + 1 310 941 5899Fax (818) 212 2627jeff.louks@matthews.comLicense No. 00908473

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CONTENTS

05 PROPERTY OVERVIEW

09 AREA OVERVIEW

16 FINANCIAL OVERVIEW

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S CENTINELA AVE

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PROPERTYOVERVIEW

SECTION

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LOCAL MAP PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

4320 S. Centinela Avenue is a 15-unit apartment building located in a prime Mar Vista, CA. Built in 1990, the property consists entirely of two-bedroom, two-bathroom units. The building features a modern gray façade, private balconies, secure gated parking, controlled building access and central air conditioning and heating.

Situated just South of Washington Boulevard, the property is in close proximity to many restaurants, cafes, coffee shops, boutiques and night life as well as a weekly farmers market. This location provides tenants easy access to surrounding areas including Culver City, Marina Del Rey and Venice. Additionally, the building is conveniently located near both the 405 and 90 Freeways.

This is an opportunity for an investor to capitalize on over 31% upside in a strong rental market.

• 15-Units, built in 1990

• Unit Mix: (15) 2+2

• Walk Score of 80 – Very Walkable

• Property features include private balconies, secure gated parking, controlled access and central air conditioning and heating

• Easy access to the 90 and 405 Freeways

• Growing entertainment and technology hub with local employers including HBO, Apple, Google, Amazon and Sony

• Located in proximity to shopping, dining and entertainment options

• 21,268 square foot building on a 10,486 square foot lot zoned LAR3

LOS ANGELES, CA4320 S Centinela Avenue

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AREAOVERVIEW

SECTION

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LOS ANGELES COUNTY

The Los Angeles Westside is an urban region in western Los Angeles County, California. Generally it is the area south of the Santa Monica Mountains, north of the Santa Monica Freeway and west of La Cienega Boulevard, 405 Freeway, and Downtown Los Angeles. he Westside is home to the University of California, Los Angeles, a public research university in the Westwood neighborhood. It is the second-oldest of the ten campuses of the University of California system. UCLA is considered a flagship campus of the University of California system, along with UC Berkeley.

Los Angeles County, officially the County of Los Angeles, is the most populous county in the United States, with more than 10 million inhabitants as of 2018. Its population is larger than that of 41 individual U.S. states. It is the third-largest metropolitan economy in the world, with a Nominal GDP of over $700 billion—larger than the GDPs of Belgium, Norway, and Taiwan. It has 88 incorporated cities and many unincorporated areas and, at 4,083 square miles larger than the combined areas of Delaware and Rhode Island. The county is home to more than one-quarter of California residents and is one of the most ethnically diverse counties in the U.S.

ECONOMY

Los Angeles County is commonly associated with the entertainment and digital media industry; all six major film studios—Paramount Pictures, 21st Century Fox, Sony, Warner Bros., Universal Pictures, and Walt Disney Studios—are located within the county. Numerous other major industries also define the economy of Los Angeles County, including international trade supported by the Port of Los Angeles and the Port of Long Beach, music recording and production, aerospace and defense, fashion, and professional services such as law, medicine, engineering and design services, financial services and more. High-tech sector employment within Los Angeles County is 368,500 workers, and manufacturing employment within Los Angeles County is 365,000 workers.

MAR VISTA, CA

Mar Vista is a residential and commercial neighborhood on the Westside of Los Angeles, California. According to the Mapping L.A. project of the Los Angeles Times, Mar Vista is adjoined on the northeast by Palms, on the east, southeast and south by Culver City, on the west by Venice and on the northwest by Santa Monica. Mar Vista’s street and other boundaries are: the San Diego Freeway to the Culver City boundary at Venice Boulevard on the northeast, the Culver City line on the southeast, Walgrove Avenue on the southwest and the Santa Monica city boundary on the northwest.

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DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE

2010 Census 43,866 261,993 617,709

2019 Estimate 45,858 280,143 649,508

2024 Projection 47,181 289,333 669,268

Growth 2010-2019 4.54% 6.93% 5.15%

Growth 2019-2024 2.88% 3.28% 3.04%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE2010 Census 18,319 120,340 279,067

2019 Estimate 19,290 129,177 294,176

2024 Projection 19,887 133,581 303,434

Growth 2010-2019 5.30% 7.34% 5.41%

Growth 2019-2024 3.10% 3.41% 3.15%

INCOME 1-MILE 3-MILE 5-MILE

2019 Avg. Household Income 107,309 133,410 125,252

3.4% UNEMPLOYMENT

RATE

$100,081MEDIAN

HOUSEHOLD INCOME

126,683POPULATION

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NUMBER OF EMPLOYEES

$75,000 or more

$60,000 or more

$45,000 or more

$30,000 or more

$30,000 or less

AVERAGE HOUSEHOLD INCOME

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NUMBER OF EMPLOYEES

30,000 or more

20,000 or more

10,000 or more

5,000 or more

Less than 5,000

EMPLOYMENT DENSITY

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Culver City± 2.9 MI

Venice± 2.9 MI

CULVER CITY, CALIFORNIA

Culver City is a city in Los Angeles County, California. Hundreds of movies have been produced on the lots of Culver City’s studios: Sony Pictures Studios Culver Studios, and the former Hal Roach Studios. Getting around the city is easy since the Culver City station of the Los Angeles Metro Expo Line sits at the Culver Junction near Venice and Robertson Boulevards in Culver City. The Expo Line provides a light rail connection from Culver City to Downtown Los Angeles in the east and Downtown Santa Monica in the west, mostly following the right-of-way that the Pacific Electric Santa Monica Air Line used, also known as the Exposition Blvd. Additionally, the city is served by the Los Angeles International Airport that is just a quick 7 miles away.

Marina Del Rey± 2.8 MI

MARINA DEL REY, CALIFORNIA

Marina del Rey is an unincorporated seaside community in Los Angeles County, California, with a marina that is a major boating and water recreation destination of the greater Los Angeles area. The area is a popular tourism destination for water activities such as paddle board and kayak rentals, dining cruises, and yacht charters. This Westside locale is approximately 4 miles south of Santa Monica, and 4 miles north of Los Angeles International Airport. The Marina Expressway, California State Route 90, terminates at Lincoln Blvd in northeastern Marina del Rey and links the area with Culver City. Marina del Rey is in the Los Angeles Unified School District, although there are no schools in the area proper. Students from Marina del Rey attend Coeur d’Alene Avenue Elementary School, Marina del Rey Middle School, and Venice High School.

VENICE, CALIFORNIA

From its world famous boardwalk and beautiful beach to the shopper’s paradise of Abbot Kinney Blvd., if you’re looking for cool things to do in California, Venice offers a unique and vibrant mix of activities and attractions. Originally called “Venice of America,” Venice was founded in 1905 by developer Abbot Kinney as a beachfront resort town. Kinney’s initial vision of creating a cultural mecca was set aside to accommodate the public, and Venice became the “Coney Island of the Pacific,” complete with an amusement pier and a miniature steam railroad. Kinney also created a system of canals and imported gondolas and gondoliers from Venice, Italy. Today, Venice is one of the most popular destinations in Los Angeles for visitors and locals alike.

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MARINA DEL REY

S CENTINELA AVE

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FINANCIALOVERVIEW

SECTION

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INVESTMENT SUMMARY

UNIT MIXTOTALUNITS

UNIT MIX

UNIT MIX%

CURRENT AVG. RENT

CURRENT MONTHLY RENT MARKET RENT MARKET

MONTHLY RENT

15 2+2 100% $2,449 $36,730 $3,200 $48,000

Scheduled Monthly Rent: $36,730 $48,000

Scheduled Yearly Rent: $440,760 $576,000

Property Address: 4320 S Centinela AvenueLos Angeles, CA 90066

Number of Units: 15

Year Built: 1990

APN: 4232-023-038

Gross Sq. Ft.: 21,268Average S.F. Per Unit: 1,418

Lot Size (Acres): 0.24

Density: 63

OFFERINGPRICE PRICE/UNIT PRICE/FOOT

CURRENT MARKET

CAP RATE GRM CAP RATE GRM

$8,500,000 $566,667 $399.66 2.88% 19.18 4.42% 14.70

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ANNUAL OPERATING SUMMARYCURRENT MARKET

Scheduled Gross Income: $440,760 $576,000 31% Upside

Less Vacancy Reserve: $13,295 3.0% $17,352 3.0%

Laundry Income: $2,400 $2,400

Gross Operating Income: $429,865 $561,048

Expenses: $185,052 42.0% $185,052 32.13% *

Net Operating Income: $244,813 $375,996

Pre-Tax Cash Flow: $244,813 2.88% $375,996 4.42% **

Plus Principal Reduction: $0 $0

Total Return Before Taxes: $244,813 2.88% $375,996 4.42% **

* As a percent of Scheduled Gross Income** As a percent of Down Payment

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PRO FORMA ANNUAL OPERATING EXPENSES

PRO FORMA ESTIMATES % OF SGI CURRENT PER UNIT MARKET PER UNIT % OF SGI

Property Taxes 1.196% x Sale Price 23.65% $101,664 $6,778 $101,664 $6,778 17.6%

Off-Site Management 4.0% x GOI 4.00% $17,195 $1,146 $17,195 $1,146 3.0%

Insurance $740 X Units 2.58% $11,101 $740 $11,101 $740 1.9%

Reserves $250 x Units 0.87% $3,750 $250 $3,750 $250 0.7%

Payroll $1,477 x Units 5.15% $22,158 $1,477 $22,158 $1,477 3.8%

Repairs & Maintenance $158 x Units 0.55% $2,368 $158 $2,368 $158 0.4%

Landscaping $1,374 x Units 4.79% $20,611 $1,374 $20,611 $1,374 3.6%

Utilities $202 x Units 0.70% $3,026 $202 $3,026 $202 0.5%

Trash $212 x Units 0.74% $3,180 $212 $3,180 $212 0.6%

Total Expenses 43.05% $185,052 $12,337 $185,052 $12,337 32.1%

CURRENT PER UNIT % OF SGI

Non-controllable expenses: Taxes, Ins., Reserves: $116,515 $7,768 26.4%

Total Expense without Taxes $83,388 $5,559 18.92%

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RENT ROLL

# UNIT MIX RENT MARKET RENT

1 101 2+2 $2,595 $3,200

2 102 2+2 $2,325 $3,200

3 103 2+2 $2,325 $3,200

4 104 2+2 $2,595 $3,200

5 105 2+2 $2,595 $3,200

6 201 2+2 $2,825 $3,200

7 202 2+2 $2,550 $3,200

8 203 2+2 $2,325 $3,200

9 204 2+2 $2,250 $3,200

10 205 2+2 $2,595 $3,200

11 301 2+2 $2,325 $3,200

12 302 2+2 $2,325 $3,200

13 303 2+2 $2,325 $3,200

14 304 2+2 $2,325 $3,200

15 305 2+2 $2,450 $3,200

Totals15

$36,730 $48,000

Averages $2,449 $3,200

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SALES COMPS

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PROPERTY YEAR BUILT SALE PRICE BLDG SF # OF UNITS PRICE PER

SF PRICE PER

UNIT ACTUAL CAP

RATE GRM SALE DATE

4320 S Centinela AveLos Angeles, CA 90066 1990 $8,500,000 21,268 15 $399.66 $566,667 2.88% 19.18

11905 Avon WayLos Angeles, CA 90066 1987 $3,475,000 6,776 10 $512.84 $347,500 5.61% 12.09 11/1/18

11722 Avon WayLos Angeles, CA 90066 1986 $4,850,000 8,215 8 $590.38 $606,250 5/14/18

12036 Culver BlvdLos Angeles, CA 90066 1989 $4,800,000 13,434 9 $357.30 $533,333 6/29/18

3815 Mclaughlin AveLos Angeles, CA 90066 1989 $12,800,000 22,877 27 $559.51 $474,074 3.44% 10/31/18

11852 Washington PlLos Angeles, CA 90066 1990 $4,600,000 10,536 8 $436.60 $575,000 3.64% 18.00 7/31/18

AVERAGES $491.33 $507,231 4.23% 15.05

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RENT COMPS

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PROPERTY UNITS YEAR BUILT UNIT MIX CURRENT AVG RENT

4320 S Centinela AveLos Angeles, CA 90066 15 1990 2+2 $2,449

12451 Pacific Avenue Los Angeles, CA 8 1978 2+2 $3,000

3724 S Bentley Avenue Los Angeles, CA 9 1988 2+2 $3,195

12433 Pacific Avenue Los Angeles, CA 10 1985 2+2 $3,000

10125 Palms Boulevard Los Angeles, CA 29 1988 2+2 $3,195

AVERAGES $3,098

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TWO BEDROOM UNITS

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Confidentiality Agreement & DisclaimerThis Offering Memorandum contains select information pertaining to the business and affairs of the Property located at 4320 S Centinela Avenue, Los Angeles, CA 90066 (“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.

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LISTED BY:

DANIEL WITHERS SVP & Senior Director - Multifamily

Direct +1 818 923 6107 Mobile +1 310 365 5054 daniel.withers@matthews.com License No. 01325901 (CA)

LOS ANGELES, CA4320 S Centinela Avenue

CO-LISTED WITH:

MARCUS & MILLICHAPJeffery Louks

Direct + 1 818 212 2780Mobile + 1 310 941 5899Fax (818) 212 2627jeff.louks@matthews.comLicense No. 00908473