1506-1512 2nd Ave | Los Angeles, CA

MARKETING PACKAGE

1506-12 2ND AVE, LOS ANGELES, CA 90019

1506-12 2ND AVE

MARKETING PACKAGE TABLE OF CONTENTS 01

Property Overview

02 Financial Analysis 03 Location Overview 04 James Capital Advantage

CONTACT INFORMATION

tom jonsson Director (424) 325-2621

will james Director (424) 325-2610

Johnny cleator Senior Associate (424) 325-2609

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1506-12 2ND AVE, LOS ANGELES, CA 90019

SECTION ONE

PROPERTY OVERVIEW

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1506-12 2ND AVE, LOS ANGELES, CA 90019

PROPERTY OVERVIEW

DETAILS

Street Address City State Zip Code APN Rentable Square Feet Lot Size Year Built

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1506-12 2nd Ave Los Angeles CA 90019 5072-034-026 7,619 SF 22,500 SF 1913

Number of Units

8

Parking

Number of Buildings

9

Driveway Parking

Number of Stories Water

(2) 2-Story & (7) 1-Story

Zoning

Individually Metered

Unit Mix

Electric

Individually Metered

Gas

Individually Metered

Construction

Wood-Frame Stucco

Roof

2 Enclosed Garages; 5 Open Garages Available LARD1.5 (6) 2 Bed / 1 Bath (2) 3 Bed / 2 Bath

Pitched

1506-12 2ND AVE, LOS ANGELES, CA 90019

PROPERTY OVERVIEW

Highlights

Separately Metered for All Utilities Property is practically a zero utility building as tenants pay ALL Utilities including their own water.

Property is Situated on an Approximate Half Acre The total lot size is 22,500 sq. ft. and is zoned LARD1.5

Future Development Potential The zoning provides for a potential density bonus to build additional units due to the Transit Oriented Community Tier 2 Bonus given to the property.

Tremendous Unit-Mix Property consists of eight (8) separate residential units - Six (6) 2-Bed / 1 Bath & Two (2) 3 Bed / 2 Bath

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1506-12 2ND AVE, LOS ANGELES, CA 90019

SECTION TWO

FINANCIAL ANALYSIS

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1506-12 2ND AVE, LOS ANGELES, CA 90019

FINANCIAL ANALYSIS

PRICING ANALYSIS

$2,399,000 Price Price per Unit Price per Square Foot

$2,399,000 $299,875 $314.87

CURRENT

PRO FORMA

CAP Rate

4.11%

5.94%

GRM

14.74

11.36

$98,686

$142,421

NOI

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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1506-12 2ND AVE, LOS ANGELES, CA 90019

FINANCIAL ANALYSIS

FINANCING

Down Payment

$1,079,550 (45%)

Loan Amount

$1,319,450

Interest Rate

4.25%

Amortization / Fixed Period

30-Year / 5-Year

Term

360 Month

CURRENT

PRO FORMA

Debt Service

-$77,891

-$77,891

Pre-Tax Cash Flow

$20,795

Principle Reduction

-$22,244

Total Return

$43,039

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(1.93%)

$64,530

(5.98%)

-$22,244 (3.99%)

$86,775

(8.04%)

1506-12 2ND AVE, LOS ANGELES, CA 90019

FINANCIAL ANALYSIS

INCOME AND EXPENSE ANNUAL

INCOME

CURRENT

PRO FORMA

Base Rental Income

$162,740

Parking Income

ANNUAL

EXPENSE

CURRENT

PRO FORMA

$211,200

Taxes (1.17%)

$28,068

$28,068

$600

$600

Insurance (Actual)

$6,619

$6,619

Laundry Income

$2,400

$2,400

LADWP (Actual)

$608

$608

Gross Potential Income

$165,740

Gas (Actual)

$206

$206

Vacancy Allowance

$8,287

Repairs & Maintenance ($750/Unit)

$6,000

$6,000

Effective Gross Income

$157,453

Management Fee (5% of EGI)

$7,873

$10,175

Operating Expenses

$58,767

$61,069

Trash (Actual)

$120

$120

Net Operating Income

$98,686

$142,421

Landscaping (Actual)

$3,000

$3,000

Pest Control (Actual)

$818

$818

Miscellaneous (Estimated)

$2,000

$2,000

Reserves ($200/Unit)

$1,600

$1,600

Direct Assessments

$1,855

$1,855

Operating Expenses

$58,767

$61,069

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(5%)

$214,200

(5%)

$10,710 (37%)

$203,490

(30%)

1506-12 2ND AVE, LOS ANGELES, CA 90019

FINANCIAL ANALYSIS

RENT SCHEDULE

PRO FORMA

UNIT #

UNIT TYPE

SQ. FOOTAGE

RENT

1506

2 Bed / 1 Bath

756 SF

$1,643.97

$2,100

1506B

2 Bed / 1 Bath

756 SF

$1,534.00

$2,100

1508

2 Bed / 1 Bath

756 SF

$1,618.08

$2,100

1508B

2 Bed / 1 Bath

756 SF

$1,629.45

$2,100

1510

2 Bed / 1 Bath

756 SF

$1,612.41

$2,100

1510B

2 Bed / 1 Bath

756 SF

$1,612.41

$2,100

1512

3 Bed / 2 Bath

1,234 SF

$1,930.83

$2,500

3116

3 Bed / 2 Bath

1,234 SF

$1,980.48

$2,500

7,004 SF

$13,561.63

$17,600

TOTAL

RENT

*Square footage of all units are estimated.

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1506-12 2ND AVE, LOS ANGELES, CA 90019

SECTION THREE

LOCATION OVERVIEW

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

SUBMARKET MId-City

Mid-City is a highly diverse and dense urban neighborhood located in central Los Angeles, California. The area plays a crucial role as a nexus in the city’s impossibly intricate web of commuting patterns. But it is also a collection of highly diverse neighborhoods that stretches from Crenshaw to Robertson boulevards, home to more than 50,000 Angelenos. The area boasts a slew of historic single family homes and a multitude of multifamily apartment properties. Dive a little deeper into the area and you will find yourself immersed in a vast spectrum of beautifully built apartment properties constructed during the mid-century. The city’s hub: Almost anywhere you work in L.A., you’re a relatively short drive away.

According to Los Angeles Times, the borders of Mid-City are north of the 10 freeway and south of Pico Boulevard with the east/west borders defined as Robertson Boulevard to the west and Crenshaw Boulevard to the east. Despite its location just a few miles west of Downtown, MidCity maintains a suburban feel where home prices range between half a million dollars to well over $1 million, most of which are being purchased by Westside transplants being priced out of traditional coastal areas such as Venice, Marina del Rey, and even Mar Vista and Culver City. The come-onecome-all attitude of this area is clearly manifested in the emerging gentrification with regard to its retail shops and corner stores.

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

DEVELOPMENTS

1. The Kentish Town Located at 5050 W. Pico Blvd (1.8 miles away from the subject property), the development will consist of a six-story building featuring 79 apartments, 2,121 square feet of ground-floor retail space, and a semi-subterranean parking structure with 67 vehicle spaces.

2. Saturn & Hi Point Plans for new 45 units (3 miles away from the subject property) have already been approved by the city. But the developers are planning to use the city’s TOC guidelines to seek new entitlements for 58 units on the parcel, which is two blocks from Pico and Fairfax.

3. Amani Apartments The project calls for replacing a vacant lot at Pico Blvd and Crenshaw Blvd (0.6 miles away from the subject property) with a five-story building featuring 54 residential units. Plans call for a mix of low- and very low-income units.

4. Washington Arts Collective The project would replace two city-owned parking lots at 4600 and 4601 W. Washington Blvd (1.6 miles away from the subject property) with two four-story buildings containing 56 apartments including 20 units for formerly homeless families and individuals and 35 units for low-income families.

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

AERIAL

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

AERIAL

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

WALKABILITY

A. Los Angeles High School 4650 W. Olympic Blvd, Los Angeles, CA 90019 1.3 MILES FROM SUBJECT PROPERTY

B. Pio Pico Middle School 1512 Arlington Ave, Los Angeles, CA 90019 0.1 MILES FROM SUBJECT PROPERTY

C. Galleria Market 3250 W. Olympic Blvd, Los Angeles, CA 90006 1 MILE FROM SUBJECT PROPERTY

D. Koreatown Plaza 928 S. Western Ave, Los Angeles, CA 90006 1.1 MILES FROM SUBJECT PROPERTY

E. Food 4 Less 1717 S. Western Ave, Los Angeles, CA 90006 0.7 MILES FROM SUBJECT PROPERTY

F. CVS 1701 S. Western Ave, Los Angeles, CA 90006 0.8 MILES FROM SUBJECT PROPERTY

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

WALKABILITY

A LOS ANGELES HIGH SCHOOL

The oldest school in southern California has over 2,000 students.

B PIO PICO MIDDLE SCHOOL

This middle school is less than 0.1 miles away from the property.

D KOREATOWN PLAZA

This plaza offers a variety of shops, restaurants & more.

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C GALLERIA MARKET

This one-stop shop offers over 70 stores for your convenience.

E FOOD 4 LESS

This chain offers a wide selection of bulk grocery items & produce.

F CVS

CVs is a healthcare and retail company with over 10,000 locations.

1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

Hot Spots 1.

STAPLES Center 1111 S. Figueroa St, Los Angeles, CA 90015 3.4 MILES FROM SUBJECT PROPERTY

2. USC 3607 Trousdale Pkwy, Los Angeles, CA 90089 3.2 MILES FROM SUBJECT PROPERTY

3. The Grove 189 The Grove Dr, Los Angeles, CA 90036 4.2 MILES FROM SUBJECT PROPERTY

4. Los Angeles Convention Center 1201 S. Figueroa St, Los Angeles, CA 90015 3.2 MILES FROM SUBJECT PROPERTY

5. Walt Disney Concert Hall 111 S. Grand Ave, Los Angeles, CA 90012 5.4 MILES FROM SUBJECT PROPERTY

6. LACMA 5905 Wilshire Blvd, Los Angeles, CA 90036 3.6 MILES FROM SUBJECT PROPERTY

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1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

HOT SPOTS

01 STAPLES CENTER

This multi-purpose arena is the home of the Lakers and Clippers.

02 USC

This private university has more than 45,000 enrolled students.

04 LOS ANGELES CONVENTION CENTER

This center has more than 720,000 sq. ft of exhibition space.

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03 THE GROVE

The grove is a gorgeous retail and entertainment complex.

05 WALT DISNEY CONCERT HALL

This world famous concert hall has a capacity of 2,265 visitors.

06 LACMA

This 20-acre campus has a diverse collection spanning across history.

1506-12 2ND AVE, LOS ANGELES, CA 90019

LOCATION OVERVIEW

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

58,482

596,471

1,364,357

57,917

593,810

1,355,636

56,759

566,548

1,279,250

Growth ‘20 - ‘25

0.98%

0.45%

0.64%

Growth ‘10 - ‘20

2.04%

4.81%

5.97%

1-Mile

3-Mile

5-Mile

2025 Projection

19,243

211,242

512,199

2020 Estimate

19,128

210,626

509,201

19,113

202,757

482,136

Growth ‘20 - ‘25

0.60%

0.29%

0.59%

Growth ‘10 - ‘20

0.08%

3.88%

5.61%

Average Income

$65,670

$66,005

$77,885

Median Income

$42,972

$43,379

$51,084

2025 Projection 2020 Estimate 2010 Census

HOUSEHOLDS

2010 Census

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1506-12 2ND AVE, LOS ANGELES, CA 90019

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

FOR INQUIRIES

PLEASE CONTACT CONTACT

tom jonsson Director

(424) 325-2621

tom@jamescapitaladvisors.com CA RE Lic. 01755842

will james Director

(424) 325-2610

will@jamescapitaladvisors.com CA RE Lic. 01734419

Johnny cleator Senior Associate

(424) 325-2609

johnny@jamescapitaladvisors.com CA RE Lic. 01951437

James Capital Advisors, Inc.

www.jamescapitaladvisors.com

@jamescapitaladvisors