1240 W Gardena Blvd

MARKETING PACKAGE

1240 W. GARDENA BLVD, GARDENA, CA 90247

1240 W. GARDENA BLVD

MARKETING PACKAGE TABLE OF CONTENTS 01

Property Overview

02 Financial Analysis 03 Location Overview CONTACT INFORMATION

John katnik Senior Associate (310) 956-2291

elliot hassAn Senior Director (424) 325-2643

mike hanassab Senior Director (424) 325/2642

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1240 W. GARDENA BLVD, GARDENA, CA 90247

SECTION ONE

PROPERTY OVERVIEW

03

1240 W. GARDENA BLVD, GARDENA, CA 90247

PROPERTY OVERVIEW

DETAILS

Street Address City State Zip Code APN

1240 W. Gardena Blvd Gardena CA 90247 6111-006-007

Number of Units

8

Carport Parking

Number of Buildings

1

Open Parking

Number of Stories

2

Zoning

Water Electric

Individually Metered Individually Metered

Rentable Square Feet

6,714 SF

Gas

Lot Size

9,775 SF

Construction

Year Built

04

1964

Master-Metered

Roof

Unit Mix

8 Covered Carport Spaces 2 Open Spaces C1 (4) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath (2) 2 Bed / 2 Bath

Wood-frame Siding Pitched

1240 W. GARDENA BLVD, GARDENA, CA 90247

PROPERTY OVERVIEW

HIGHLIGHTS

Apartment with Attractive Day 1 Cash Flow The property is operating at a very attractive return on current income.

6 Out of 8 Units Renovated Renovated units feature new flooring, kitchens and bathrooms.

Recent Capital Improvements Building features new vinyl windows, copper plumbing and new landscaping.

Large Floorplans and Private Balconies The building has a terrific unit mix of 1 and 2 bedroom floorplans and some units feature private balconies.

Great Area of South Gardena The property lies south of Redondo Beach Blvd and west of Vermont Ave on Gardena Blvd.

Gardena Blvd features great retail and makes the property very walkable.

Ample Parking and On-Site Laundry The building features 8 covered carport spaces and 2 open spaces as well as 2 washers and 2 dryers.

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1240 W. GARDENA BLVD, GARDENA, CA 90247

PROPERTY OVERVIEW

UNIT Renovations

06

1240 W. GARDENA BLVD, GARDENA, CA 90247

PROPERTY OVERVIEW

UNIT Renovations

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1240 W. GARDENA BLVD, GARDENA, CA 90247

PROPERTY OVERVIEW

UNIT Renovations

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1240 W. GARDENA BLVD, GARDENA, CA 90247

SECTION TWO

FINANCIAL ANALYSIS

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1240 W. GARDENA BLVD, GARDENA, CA 90247

FINANCIAL ANALYSIS

PRICING ANALYSIS

$2,095,000 Price Price per Unit Price per Square Foot

CURRENT

PRO FORMA

4.57%

6.04%

14.05

11.49

$146,285

$178,412

Expenses

$50,561

$51,846

NOI

$95,725

$126,566

CAP Rate GRM $2,095,000 $261,875 $312.03

Gross Income

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

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1240 W. GARDENA BLVD, GARDENA, CA 90247

FINANCIAL ANALYSIS

FINANCING

Down Payment

$733,250 (35%)

Loan Amount

$1,361,750

Interest Rate

3.75%

Amortization / Fixed Period

30-Year / 5-Year

Term

360 Month

CURRENT

PRO FORMA

Debt Service

-$75,678

-$75,678

Pre-Tax Cash Flow

$20,047

Principle Reduction

-$25,040

Total Return

$45,086

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(2.73%)

$50,888

(6.94%)

-$25,040 (6.15%)

$75,928

(10.35%)

1240 W. GARDENA BLVD, GARDENA, CA 90247

FINANCIAL ANALYSIS

INCOME AND EXPENSE ANNUAL

INCOME

CURRENT

PRO FORMA

Base Rental Income

$149,160

Laundry Income

ANNUAL

EXPENSE

CURRENT

PRO FORMA

$182,280

Taxes (1.16%)

$24,222

$24,222

$1,600

$1,600

Insurance

$2,443

$2,443

Gross Potential Income

$150,760

$183,880

Utilities

$9,876

$9,876

Vacancy Allowance

$4,475

Trash

$3,448

$3,448

Effective Gross Income

$146,285

Repairs/Maintenance

$2,400

$2,400

Operating Expenses

$50,561

Management Fee (4% of EGI)

$5,851

$7,136

Net Operating Income

$95,725

Landscaping

$720

$720

Reserves

$1,600

$1,600

Operating Expenses

$50,561

$51,846

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(3%)

$5,468

(3%)

$178,412 (35%)

$51,846 $126,566

(29%)

1240 W. GARDENA BLVD, GARDENA, CA 90247

FINANCIAL ANALYSIS

RENT SCHEDULE

PRO FORMA

PRO FORMA

$1.93

$2,200

$2.20

$1,100

$1.57

$1,650

$2.36

700 SF

$1,300

$1.86

$1,650

$2.36

2 Bed / 2 Bath

1,000 SF

$1,795

$1.80

$2,200

$2.20

5

1 Bed / 1 Bath

700 SF

$1,100

$1.57

$1,650

$2.36

6*

1 Bed / 1 Bath

700 SF

$1,495

$2.14

$1,650

$2.36

7*

2 Bed / 1 Bath

950 SF

$1,995

$2.10

$2,095

$2.21

8*

2 Bed / 1 Bath

950 SF

$1,720

$1.81

$2,095

$2.21

6,700 SF

$12,430

UNIT #

UNIT TYPE

SQ. FOOTAGE

RENT

RENT PER SF

1*

2 Bed / 2 Bath

1,000 SF

$1,925

2

1 Bed / 1 Bath

700 SF

3*

1 Bed / 1 Bath

4*

TOTAL

RENT

RENT PER SF

$15,190

* Renovated Units ** Square Footage Estimated

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1240 W. GARDENA BLVD, GARDENA, CA 90247

SECTION THREE

COMPARABLES

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1240 W. GARDENA BLVD, GARDENA, CA 90247

COMPARABLES

SALES COMPARABLES #

ADDRESS

SALE PRICE

# OF UNITS

CAP RATE

GRM

PRICE / UNIT

PRICE / SF

01

1245 W. 166th St, Gardena, CA 90247

$1,350,000

6

3.00%

17.77

$225,000

$267.64

02

15828 S. Denker Ave, Gardena, CA 90247

$2,620,000

10

4.22%

14.33

$262,000

$313.13

03

15127 S. Budlong Ave, Gardena, CA 90247

$3,000,000

12

4.87%

13.40

$250,000

$270.66

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1240 W. GARDENA BLVD, GARDENA, CA 90247

COMPARABLES

SALES COMPARABLES

01

02

Sale

03

Sale

Sale

1245 W. 166th St

15828 S. Denker Ave

15127 S. Budlong Ave

Gardena, CA 90247

Gardena, CA 90247

Gardena, CA 90247

Close of Escrow

5/14/2020

Close of Escrow

6/19/2020

Close of Escrow

12/6/2019

Sold Price

$1,350,000

Sold Price

$2,620,000

Sold Price

$3,000,000

CAP Rate

3.00%

CAP Rate

4.22%

CAP Rate

4.87%

GRM Number of Units Year Built

17.77 6 1987

GRM Number of Units Year Built

14.33 10 1963

GRM Number of Units Year Built

13.40 12 1962

Rentable Square Feet

5,044 SF

Rentable Square Feet

8,367 SF

Rentable Square Feet

11,084 SF

Price per Square Foot

$267.64

Price per Square Foot

$313.13

Price per Square Foot

$270.66

Price per Unit Unit Mix

16

$225,000 (1) Studio / 1 Bath (4) 2 Bed / 1 Bath (1) 3 Bed / 2 Bath

Price per Unit Unit Mix

$262,000 (4) 1 Bed / 1 Bath (5) 2 Bed / 1 Bath (1) 3 Bed / 2 Bath

Price per Unit Unit Mix

$250,000 (4) 1 Bed / 1 Bath (8) 2 Bed / 1.5 Bath

1240 W. GARDENA BLVD, GARDENA, CA 90247

SECTION THREE

LOCATION OVERVIEW

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

The SOUTH BAY

The South Bay The South Bay is a region of the Los Angeles metropolitan area which contains fifteen cities plus portions of the City of Los Angeles. The area is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the north and east. Its name comes from its location on the south end of the Santa Monica Bay. Major areas of the South Bay include: the beach cities of Manhattan Beach, Hermosa Beach, and Redondo Beach, a popular destination for swimmers, surfers, bodyboarders, and other beachgoers; the Palos Verdes Peninsula, home to the affluent communities of Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, and Rolling Hills Estates; the Los Angeles harbor neighborhoods of San Pedro and Wilmington; and the inland cities of Inglewood, Hawthorne, Gardena, Lawndale, Lomita, and Carson.

The South Bay is heavily reliant on the aerospace and automotive industries, and is home to numerous industry headquarters. It has two major transportation hubs on its borders — Los Angeles International Airport and the Ports of Los Angeles and Long Beach and the Pacific Ocean is at its back door. These factors, and its diverse cities, make it economically, geographically and socially unique.

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

GARDEna, CA

Gardena, CA Gardena, California, is a full-service city of 5.9 square miles with a population of over 62,000.

The City is known for its rich cultural diversity and beautiful landscaping. Gardena is a familyoriented City with many programs to meet the needs of both the family and single population.

Gardena is approximately 20 minutes southwest of Los Angeles, 10 minutes northeast of Redondo Beach and 15 minutes from the Pacific Ocean and is part of the Los Angeles metropolitan area.

Located in the heart of the South Bay, along with some of the strongest densities and strong per capita retail sales within the region, it is no wonder that Gardena is known as a quality business environment. Gardena’s foundation was built on the strength of its business industry and continues to thrive under the current leadership. Gardena provides services to its business community in a “unique” hometown atmosphere. Gardena strives to attract high quality businesses that want to grow, be successful and who will partner with the City to create jobs, provide services to its residents, and improve the overall quality of life. Gardena’s retail sector includes plenty of national credit tenants and several nationally recognized manufacturers that produce a wide variety of products. The City is host to one of the largest printing companies in California and home to one of the oldest continuous provider of carbon composites in the United States.

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

MAJOR INDUSTRIES Los Angeles SoFi Stadium SoFi Stadium is an unprecedented and unparalleled sports and entertainment destination being built in Inglewood, CA just 3 miles away from the subject property. Located on the site of the former Hollywood Park racetrack, the stadium is the centerpiece of a 298-acre mixed-use development featuring retail, commercial office space, a hotel, residential units, and outdoor park spaces.

Tesla Founded in 2003, the American company specializes in electric automotives, energy storage and solar panel manufacturing. Their design studio is located in Hawthrone, less than 5 miles away from the subject property. This design center serves as a campus for Tesla employees and allows Tesla owners to lounge and charge their cars while they tour the facilities.

Space X Alongside Tesla, within less than 5 miles from the subject property lies Space X. Space Exploration Technologies Corp., doing business as SpaceX, is a private American aerospace manufacturer and space transport services company headquartered in Hawthorne, California. It was founded in 2002 by entrepreneur Elon Musk with the goal of reducing space transportation costs and enabling the colonization of Mars.

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

Developments

230-Unit Millennium Hawthorne Apartments The project, located at 12540 Crenshaw Blvd, and less than 4 miles away from the subject property, is being developed by the Dinerstein Cos. Plans call for a pair of five-story buildings containing 230 studio, one-, and two-bedroom apartments, in addition to 3,100 square feet of ground-floor retail space and an above-grade parking garage.

A rendering depicts a contemporary mid-rise structure, which will include amenities such as a fitness center, a swimming pool, an outdoor deck, and numerous street-fronting courtyards.

Millennium Hawthorne Apartments LA Clippers Arena The Clippers are constructing a new $1.2 billion basketball arena in near proximity to SoFi Stadmiun along with a practice facility, team offices, a medical facility, retail stores, restaurants and parking. The most “striking” feature of the arena will be indoor and outdoor “sky gardens,” landscaped areas for eating and drinking, accessible from every concourse level. The complex will hold a plaza with a concert stage, public basketball courts, and community gathering space. The Clippers say the project would generate $268 million in “economic activity” and $190 million in tax revenue from 2020 to 2045. The 18,000-seat venue is expected to be complete just in time for the 2024-25 season.

LA Clippers Arena

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

AERIAL

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

AERIAL

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

WALKABILITY 1.

Albertons 1735 Artesia Blvd, Gardena, CA 90248 1.1 MILES FROM SUBJECT PROPERTY

2. Sam’s Club 1399 Artesia Blvd, Gardena, CA 90248 0.8 MILES FROM SUBJECT PROPERTY

3. Vons 1260 W. Redondo Beach Blvd, Gardena, CA 90247 0.8 MILES FROM SUBJECT PROPERTY

4. Memorial Hospital of Gardena 1145 W. Redondo Beach Blvd, Gardena, CA 90247 1.2 MILES FROM SUBJECT PROPERTY

5. Gardena High School 1301 W. 182nd St, Gardena, CA 90248 1.2 MILES FROM SUBJECT PROPERTY

6. Peary Middle School 1415 W. Gardena Blvd, Gardena, CA 90247 0.3 MILES FROM SUBJECT PROPERTY

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

WALKABILITY

01 ALBERTONS

Albertons is the second-largest supermarket Chain in North America.

02 SAM’S CLUB

Sam’s Club ranks second in sales volume among warehouse clubs.

04 MEMORIAL HOSPITAL OF GARDENA

This hospital has more than 172 beds & offer a full range of diagnostic.

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03 VONS

Vons has been around for 114 years and has more than 325 locations.

05 GARDENA OF HIGH SCHOOL

This high school has more than 1,400 annually enrolled students.

06 PEARY MIDDLE SCHOOL

This middle school was founded in 1956, the third oldest in the LAUSD.

1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

Points of Interest 1.

The Forum 3900 W. Manchester Blvd, Inglewood, CA 90305 7.8 MILES FROM SUBJECT PROPERTY

2. SoFi Stadium 1000 S. Prairie Ave, Inglewood, CA 90301 6.6 MILES FROM SUBJECT PROPERTY

3. LAX 1 World Way, Los Angeles, CA 90045 11.8 MILES FROM SUBJECT PROPERTY

4. HUSTLER® Casino 1000 W. Redondo Beach Blvd, Gardena, CA 90247 1 MILE FROM SUBJECT PROPERTY

5. Alondra Park 3850 Manhattan Beach Blvd, Lawndale, CA 90260 3.2 MILES FROM SUBJECT PROPERTY

6. Manhattan Beach 2 Manhattan Beach Blvd, Manhattan Beach, CA 90266 7.1 MILES FROM SUBJECT PROPERTY

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1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

Points of Interest

01 THE FORUM

This indoor arena in Inglewood has the capacity of more than 17,000.

02 SOFI STADIUM

This multi-purpose stadium will be able to seat up to 100,000.

04 HUSTLER® CASINO

This is the go-to Casino with thousands of machines & card games.

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03 LAX

LAX is the world’s fourth busiest and the US’ second busiest airport.

05 ALONDRA PARK

park with a lake & an island where a native-plant garden attracts birds.

06 MANHATTAN BEACH

This beach is along the oceanfront between modern mansions & parks.

1240 W. GARDENA BLVD, GARDENA, CA 90247

LOCATION OVERVIEW

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

2025 Projection

31,510

204,000

719,099

2020 Estimate

31,391

204,100

721,271

30,064

200,161

716,962

Growth ‘20 - ‘25

0.38%

-0.05%

-0.30%

Growth ‘10 - ‘20

4.41%

1.97%

0.60%

1-Mile

3-Mile

5-Mile

2025 Projection

11,192

65,851

221,338

2020 Estimate

11,152

65,905

222,132

2010 Census

10,705

64,783

221,556

Growth ‘20 - ‘25

0.36%

-0.08%

-0.36%

Growth ‘10 - ‘20

4.18%

1.73%

0.26%

Average Income

$74,218

$82,951

$83,722

Median Income

$54,705

$63,207

$63,414

2010 Census

HOUSEHOLDS

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1240 W. GARDENA BLVD, GARDENA, CA 90247

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation

by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

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www.jamescapitaladvisors.com

@jamescapitaladvisors

JAMES CAPITAL ADVISORS, INC.

THANK YOU FOR YOUR TIME CONTACT

John katnik Senior Associate

(310) 956-2291

john.katnik@jamescapitaladvisors.com CA RE Lic. 02002695

elliot hassan Senior Director

(424) 325-2643

elliot.hassan@jamescapitaladvisors.com CA RE Lic. 01481211

mike hanassab Senior Director

(424) 325/2642

mike.hanassab@jamescapitaladvisors.com CA RE Lic. 01484891

James Capital Advisors, Inc.

www.jamescapitaladvisors.com

@jamescapitaladvisors