| marketing proposal a unique apartment building / … · 2018. 8. 27. · south bay los angeles...

| MARKETING PROPOSAL

221 Concord Street | El Segundo, CA 9024534 Units | $4,850,000 A UNIQUE APARTMENT BUILDING / HOTEL WITH A VARIETY OF USES IN A PRIME COASTAL LOCATION

BRENT SPRENKLESenior Managing [email protected] BRE License #01290116

a Berkshire Hathaway and Jefferies Financial Group companywww.BerkadiaREA.com

For Real-Time Property Information go to:hotel2twentyone.BerkadiaREA.com

BRENT SPRENKLESenior Managing Director

[email protected]

CA BRE License #01290116

South Bay Los Angeles Office2321 Rosecrans Avenue

Suite 3235El Segundo, California 90245

Phone: 424.239.5900Fax: 424.239.5901

BerkadiaREA.comApartmentUpdate.com

For Real-Time Property Information go to:hotel2twentyone.BerkadiaREA.com

Incredible South Bay LocationLow Cost Unit, Low GRM, High Cap Rate

Various Uses - Apartment, Hotel, Short TermSteps to Downtown El SegundoHigh-Demand Rental MarketNo Rent Control and a Unique Opportunity

THE ASSETProperty Description 1Location Description 2Location Map 7Aerial 8Property Photos 9

VALUATIONFinancial Analysis 12

MARKET POSITIONINGComparable Sale Properties 14Comparable Rental Properties 16Comparable Hotel Rental Properties & Map 18

APPENDIXEconomic & Demographic Overview 20Demographics 31Apartment Update 40

HOTEL 2TWENTYONEhotel2twentyone.BerkadiaREA.com

PROPERTY DESCRIPTIONThe 2TwentyOne is a hotel/apartment building situated three blocks fromdowntown El Segundo. The city recognizes the property as a 31-room hotel,however, currently it is operated as a hybrid between an apartment buildingand a hotel, where 34 rooms are available nightly, weekly or monthly,depending on not only the needs of the clientele but also the seasonaldemand. Considered to be one of the lowest costs apartment buildings orhotels anywhere in the area, the property is of high demand and enjoys a veryhigh occupancy rate. Please note that all rooms utilize shared bathrooms thatare available on each floor and the property is considered an SRO (singleroom occupancy). There are a variety of uses that a new owner could exploreto optimize the highest income to expense ratio including:

100% nightly rentals - Pure hotel operation100% monthly rentals - Pure apartment operationWeekly rentals could be consideredHybrid operation - Rent units nightly or monthlyCo-Living-Explore the idea of a co-living operationCorporate or Student HousingAssisted Living or Rehab FacilityFurnished or Unfurnished - Currently all are Furnished

The property consists of a three-story wood frame and stucco structure on astreet to alley sloped lot. There is parking in the rear for approximately threevehicles but more could be configured with the storage shed moved closer tothe property. The top two floors of the property each consists of 12 hotelrooms that each have a closet and sink as well as two shower rooms and twotoilet rooms. In addition, there is a small kitchen on each of the top two floors.The ground floor contains ten rooms of which three are considerednon-conforming with two of them currently being used for rental purposes.There is also one large bathroom and a very large kitchen and break room. Inaddition, there is an empty room that could be configured into anotherbathroom. On the second floor, one of the units is currently being utilized asan office but could be immediately rented.

Downtown El Segundo is proving itself to be a true destination for the SouthBay to live, work, eat, and shop. Four blocks from the property are severaldining and entertainment options such as the original Rock n Brews, BrewportTap House, Sausal and now El Segundo Brewery is joining the group with theirnew restaurant and brewery directly across the street. The Old Town MusicHall and El Segundo Museum of Art (ESMoA) are also within a 4-block walk ofthe property.

HOTEL 2TWENTYONEhotel2twentyone.BerkadiaREA.com 1

LOCATION DESCRIPTION


The City of El Segundo Overview

El Segundo features a highly-skilled labor force working in a wide array of industries including

aerospace, information technology, marketing, professional sports, and media. The city is home to the

offices of 15 Fortune 500 companies such as AT&T, Boeing, Oracle, Raytheon, Chevron, and IBM

with additional prominent companies including the Los Angeles Lakers, Konami, Rosetta Stone, and

the Los Angeles Kings all operating in the city. With a workforce population of over 70,000 El

Segundo is one of the top cities in Los Angeles for commuters. Over the past five years, the city has

seen an influx of new residents as younger, well-educated professionals flock to the city for work and

stay within the city limits to take advantage of the quiet neighborhoods, excellent schools, and small-

town charm.

Retail Market

A wide array of restaurants, retail, and entertainment options are located throughout El Segundo,

primarily in the downtown corridor and at The Point, an $80 million, 115,000-square-foot shopping

and entertainment development located at Rosecrans Avenue and the Pacific Coast Highway. The

Point features a number of boutique retailers and restaurants including Lululemon, Johnnie-O,

Madewell, North Italia, and True Food Kitchen. El Segundo’s trade area includes the affluent

communities located between Marina del Ray and Palos Verdes.

Office Market

El Segundo’s office market is primarily comprised of three office parks that offer nearly five million

square feet of office space. Continental Park covers 100-acres along the Rosecrans Corridor and is

one of the largest office parks in metro L.A. The development is home to dozens of prominent

national, regional, and local companies including Accenture, Bank of America, Fidelity Investments,

Merrill Lynch, Northrop Grumman, and Wells Fargo. Golf, tennis, two regional malls, and three

fitness centers are all located within walking distance of Continental Park, making it one of the

premier office parks in the South Bay.

2



Pacific Corporate Towers encompasses 1.6 million square feet of rentable building area and was renovated in 2014. The LEED Gold Certified building is home to over 90 tenants ranging from Fortune 500 companies to start-ups. The campus features a number of amenities including an outdoor recreation area, vehicle charging stations, fitness center, multiple large meeting areas, ther.e.d bar & grill, shuttle service to Downtown El Segundo, LAX, and access to the L.A. Metro

Green Line.

Elevon at Campus El Segundo is a mixed-use office complex featuring 210,000 square feet of office

space and 13,500 square feet of retail. Prominent law firms, design studios, and specialty medical

clinics make up the majority of tenants in the complex. Amenities at Elevon include car charging

stations, dog parks, garden rooms with outdoor offices. Restaurants include Ocean Market Grill, Kafe

Bougasta, Bowlology, and Lisa’s Bon Appetit.

El Segundo, CA Largest Employers

1. Raytheon Space & Airborne Systems 5,040

2. The Aerospace Corporation (Boeing) 3,500

3. Northrop Grumman 3,050

4. Mattel Inc. 1,720

5. Accenture 1,640

6. Chevron 1,230

7. Internet Brands Inc. 660

8. Karl Storz Endoscopy America 380

9. Infineon Technologies Americas 370

10. Guthy-Renker Corp. 360

Source: City of El Segundo 2017 CAFR

El Segundo Districts

Historic Downtown – Located between the beaches and residential neighborhoods, El

Segundo’s Historic Downtown is home to a number of the city’s locally owned shops and

restaurants including Petros, Tyler, Brewpoint, and Beyond Meat.

Residential Community – Located in El Segundo’s northwest corner and along the beaches,

the residential community has preserved a small-town feel with a number of parks, athletic

fields, and tree-lined streets.

Smoky Hollow – This neighborhood features two major commercial areas that serve as a

center for start ups that feed off the area’s creativity, energy, and innovation. Companies in

the area include Frontrow, Glentek, Makai, CenterCal, and Popcornopolis.

3



Continental Park – Situated along the Rosecrans Corridor, Continental Park is home to the

offices of Konami, Tech Style, and Vantage Media. Notable developments include Apollo at

Rosecrans and Continental Park which offer a unique blend of high end retail and amenity

rich office parks all within a short drive of El Segundo and Manhattan Beach.

Plaza District – El Segundo’s Plaza District is a dynamic lifestyle center that features retail

shops for every aspect of life. Both the Plaza El Segundo and The Point feature national big

box retailers and high-end boutiques such as Dick’s Sporting Goods, Cost Plus World Market,

Whole Foods Market, Banana Republic, and Lululemon.

The Edge – One of El Segundo’s newest districts, The Edge covers 46.5 acres near the

Aerospace District. Home to the Elevon Campus El Segundo, The Edge is home to the Toyota

Sports Center, the Los Angeles Lakers practice facility, Hyatt Place, Skye Biologics, and Bio

Discovery.

Aerospace District – One of L.A. County’s most prominent aerospace corridors, the Aerospace

District in El Segundo is home to the L.A. Air Force Base, Northrop Grumman, Boeing, and

Raytheon all of which are among the largest employers in the city.

Tower District – Home to some of El Segundo’s landmark buildings including the Pacific

Corporate Towers, the Tower District supports a large concentration of the city’s Fortune 500

companies. Additional Class A office buildings in the Tower District include Campus 2100

and Gateway El Segundo. Notable companies include Mattel, Internet Brands, Rosetta Stone,

Aerojet Rocketdyne, and Singapore Airlines.

Raytheon District – Covering approximately 142 acres, the presence of Raytheon in El

Segundo is worthy of its own district. The company employs 5,040 people at the facility which

has been approved to expand by over 2.1 million square feet in three phases which would

add new office, warehousing, light industrial, and commercial (retail / restaurant) space to the

campus.

The Wedge - A number of sports / entertainment and creative agencies including Time

Warner Cable, Ross Racing, and the Ballpark Advertising Agency call The Wedge District

Home. Located in the southeast corner of El Segundo, notable commercial developments in

The Wedge include the Utah Ave. Campus and 701 S. Aviation Ave.

Chevron Campus – Home of the second Standard Oil refinery on the West Coast, the

Chevron El Segundo refinery covers 840 acres in the southwest corner of the city. The refinery

supports approximately 1,230 jobs and has been in the community since 1911.

4



Transportation

The city’s proximity to Los Angeles International Airport (LAX), major freeways, and public

transportation make it an ideal location for businesses and business travelers. Metro L.A.’s Green Line

passes through the heart of El Segundo and passes through the coastal cities of Redondo Beach and

Manhattan Beach before turning inland to Inglewood, Downey, and Norwalk. Beginning in 2019,

residents and visitors will be able to access Downtown Los Angeles via the light rail as the 8.5-mile

Crenshaw /LAX Traffic Corridor expansion is slated to be completed. Access from El Segundo to LAX is

provided via the Aviation / I-105 shuttle

Education

The El Segundo Unified School District covers the residential district of El Segundo, providing

educational services to nearly 3,500 students at seven schools. In 2017-18, the district boasted a

98.9% graduation rate, the highest rate in the region and became a member of the League of

Innovative Schools. Five of the district’s schools including Center Street Elementary, Richmond Street

Elementary, El Segundo Middle, and El Segundo High School are considered to be above average –

earning a rating score of 8 or higher – by greatschools.org.

5



HOTEL 2TWENTYONE

NEIGHBORHOOD QUICK FACTS

EL SEGUNDO, CADEMAND DRIVER

The defense manufacturer has plans to expand operations

in El Segundo by another 400,000 SF

FROM THE

PROPERTY

JOBS

SUPPORTED

SF OFFICE/

INDUSTRIAL

SPACE

2.7mi

5.0k

1.8m

NEIGHBORHOOD SHOPPING

Apple | Pottery Barn | Victoria’s Secret

FROM THE

PROPERTY2.6mi

SF SHOPPING

DESTINATION573k

TOTAL

STORES 100

ATTRACTION

Built in 1889, the iconic Redondo Beach Pier is just

minutes away from the area’s most popular beaches

JOBS

SUPPORTED

SF

FACILITY

DEMAND DRIVER

Aerospace Corp. resides in a cluster of top manufacturers

like Northrop Grumman, Manduka. and Raytheon.

FROM THE

PROPERTY4.9mi

3.5k

217.6k

DEMAND DRIVER

Serving 84.6 million people in 2017, LAX is the world’s 5th

busiest airport. $14 billion in renovations are underway.

FROM THE

PROPERTY3.0mi

LOCAL JOBS

SUPPORTED621kLOCAL

ECONOMIC

IMPACT $127b

DEMAND DRIVER

SpaceX recently launched the world’s largest rocket and

remains a leading driver of private enterprise nationwide.

FROM THE

PROPERTY5.8mi

JOBS

SUPPORTED4.8k

SF

FACILITY657k

91.1%Average Occupancy Rate

(El Segundo Oice Submarket)

48.5mAnnual Visitors in 2017

(Los Angeles County)

$22.7bDirect Visitor Spending in 2017

(Los Angeles County)

17.5mSF of Inventory

(El Segundo Oice Submarket)

232kSF Under Construction

(El Segundo Oice Submarket) SHOPS

VENUES AND

RESTAURANTS

SF

OPEN SPACE

50+

70k

FROM THE

PROPERTY7.0mi

6

LOCATION MAP

HOTEL 2TWENTYONE221 Concord StreetEl Segundo, CA 90245


AERIAL


PROPERTY PHOTOS


FINANCIAL ANALYSIS


Hotel 2TwentyOne

Unit # Unit

Description

Estimated

Unit SF

Current

Rate

Current

Rent Per SF

Projected

Monthly Rate

Projected

Market Rate

Projected

Rent Per SFStatus Renovated

Bed

Arrangement

101 Room 150 $1,350.00 $9.00 $1,495.00 $1,700.00 $11.33 Vacant 8/7 Fully Queen102 Room 150 $1,350.00 $9.00 $1,795.00 $1,700.00 $11.33 Fully Twin x 2103 Room 150 $1,700.00 $11.33 $1,195.00 $1,700.00 $11.33 Fully Twin104 Room 150 $1,350.00 $9.00 $1,495.00 $1,700.00 $11.33 Fully Double105 Room 150 $1,350.00 $9.00 $1,495.00 $1,700.00 $11.33 Fully Double106 Room 150 $1,700.00 $11.33 $1,700.00 $11.33 Fully Double107 Room 150 $1,700.00 $11.33 $1,700.00 $11.33 Fully Double108 Room 150 $0.00 $0.00 $1,700.00 $11.33 Non-Conforming* Storage Storage109 Room 150 $1,700.00 $11.33 $1,700.00 $11.33 Non-Conforming* Fully Queen110 Room 150 $1,700.00 $11.33 $1,700.00 $11.33 Non-Conforming* Fully Double201 Room 150 $1,095.00 $7.30 $1,195.00 $1,700.00 $11.33 Partially Double202 Room 150 $1,195.00 $7.97 $1,195.00 $1,700.00 $11.33 Partially Double203 Room 150 $0.00 $0.00 $1,195.00 $0.00 $0.00 Used as Office Fully Office204 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Twin205 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double206 Room 150 $1,195.00 $7.97 $1,195.00 $1,700.00 $11.33 Partially Double207 Room 150 $1,195.00 $7.97 $1,195.00 $1,700.00 $11.33 Partially Double208 Room 150 $1,350.00 $9.00 $1,195.00 $1,700.00 $11.33 Fully Double209 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double210 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double211 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double212 Room 150 $1,195.00 $7.97 $1,195.00 $1,700.00 $11.33 Partially Double301 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Twin302 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Partially Double303 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Twin304 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double305 Room 150 $1,295.00 $8.63 $1,195.00 $1,700.00 $11.33 Partially Double306 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Twin307 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Twin308 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Partially Double309 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Partially Double310 Room 150 $1,150.00 $7.67 $1,195.00 $1,700.00 $11.33 Partially Double311 Room 150 $1,029.00 $6.86 $1,195.00 $1,700.00 $11.33 Partially Double312 Room 150 $1,150.00 $7.67 $1,195.00 $1,700.00 $11.33 Twin

Unit

Description

Estimated

SF

Current

Rate

Rent Range

Per SF

Projected

Monthly Rate

Projected

Market Rate

Percent

Vacant

Number

Vacant

Number of

Units

Percentage of

Total

Totals: Room 5,100.00 $40,456.00 $0.00 - $11.33 $36,155.00 $56,100.00 #REF! #REF!34 100.00%

#REF!

Unit

Description

Estimated

SF

Current

Rate

Current

Rent Per SF

Projected

Monthly Rate

Projected

Market Rate

Projected

Rent Per SF

% Estimated

Upside

Rental

RangeAverages: Room 150.00 $1,189.88 $7.93 $1,063.38 $1,650.00 $11.00 38.67% $0 - $1,700

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.

© 2018 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All square footage and project market rate rents are estimated.

The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All square footage and project market

rental rates are estimated. Buyer to independently investigate.

*3 Rooms are Non-Conforming.

12

FINANCIAL ANALYSIS


Units Unit TypeEstimated

Unit SF

Current

Rental Range

Current

Rent

Market

Rent Apts

Current

Rent/ SF

Market

Rent/ SF

Est. Total

Net SF

34 Efficiency / 1 Bath 150 $0 - $1,700 $1,190 $1,063 $7.93 $11.00 5,100

Gross SF 7,824

IncomeCurrent

Pro Forma

Market

Pro Forma

Apartment

Operations

Scheduled Market Rent $485,472 $673,200 $433,860 Less: Vacancy Actual is #REF! 10.00% ($48,547) ($67,320) ($21,693) 5.00%

Net Rental Income $436,925 $605,880 $412,167

Plus: Misc. Income $1,885 $1,885 $4,080

Total Operating Income (EGI) $438,810 $607,765 $416,247

Estimated Expenses Percentage Per Unit Per Unit/%

Administrative $40 $1,360 $1,360 $1,360 $40

Transient Occupancy Tax $371 $12,624 $17,506 $0 $0

Cleaning $385 $13,104 $13,104 $13,104 $385

Advertising & Promotion $17 $568 $568 $1,190 $35Payroll $2,107 $71,632 $71,632 $10,200 $300Repairs & Maintenance $500 $17,000 $17,000 $17,000 $500Management Fee 4.00% $571 $19,419 $26,928 $19,524 4.50%Utilities (Water, Sewer, Electric & Gas) $251 $8,537 $8,537 $8,537 $251Contracted Services $311 $10,568 $10,568 $10,568 $311Base Property Taxes 1.141% $1,628 $55,347 $55,347 $55,347 $1,628Property Tax Direct Assessments $21 $713 $713 $713 $21Insurance $243 $8,274 $8,274 $8,274 $243Replacement Reserve $200 $6,800 $6,800 $6,800 $200

Total Estimated Expenses $225,946 $238,337 $152,617

% of Scheduled Rent: 46.54% 35.40% 35.18%Per SF: $28.88 $30.46 $19.51

Per Unit: $6,645 $7,010 $4,489

Net Operating Income $212,864 $369,428 $263,630

Less: Debt Service ($174,469) ($174,469) ($174,469)Projected Net Cash Flow $38,395 $194,959 $89,161Total Economic Loss 10.0% 10.0% 5.0%

Cash-on-Cash Return (Based on Listing Price) 1.57% 7.96% 3.64%Debt Service Coverage 1.22 2.12 1.51

Cap Rate Analysis Price $/Unit $/FootCap Rate

Current

Cap Rate

Market

Apartment

Operations

GRM

Current

GRM Apt

Operations

Listing Price $4,850,000 $142,647 $619.89 4.39% 7.62% 5.44% 9.95 11.07

All FinancingTotal Loan

Amount

Down

PaymentLTV

Monthly

Payment

Debt

Constant

$2,425,000 $2,449,250 50% ($14,539) 7.2%

New First Mortgage (to be originated at purchase)LTV for this loan Amount Interest Rate Amortization Payment Fees I/O Term (yrs)

50% $2,425,000 6.00% 30 ($14,539) 1.00% 0

PRO FORMA INCOME & EXPENSES

Hotel 2TwentyOne

221 Concord St, El Segundo, CA

IMPORTANT INFORMATION & DISCLAIMER: The information contained herein is assumed to be correct and market-supported. Output produced from this model should not be considered an appraisal. Projections are forecasts and are not to be considered fact. The information contained in this file is privileged and confidential; it is intended only for use by Berkadia® and their clients. This file may not be reproduced physically or in electronic format without the expressed written consent of Berkadia. CAUTION: Security codes have been included into this file and unauthorized use may render this file useless. Berkadia® employees, affiliates, and contractors are instructed to hard-code this model for reproduction and distribution. Not responsible for errors and omissions.

© 2018 Berkadia Real Estate Advisors Inc. Berkadia® is a trademark of Berkadia Proprietary Holding LLC. Investment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In California, Berkadia Real Estate Advisors Inc. conducts business under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. # 843890. Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116. For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx All Rights Reserved. DRAFT REPORT: Privileged & Confidential, For Discussion Purposes Only.

The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All square footage and project market rate rents are estimated. The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept

responsibility for its correctness. All square footage and project market

rental rates are estimated. Buyer to independently investigate.

13

COMPARABLE SALE PROPERTIES


PROPERTY INFORMATION SALES DATA Property Units Built Rentable SF Price Price/Unit Price/SF Cap

RateGRM Sale

Date 1 638 West Imperial Avenue

638 West Imperial Avenue El Segundo, CA 90245

7 1989 7,820 $3,525,000 $503,571 $450.77 - - 2/18

2 216 East Imperial Avenue

216 East Imperial Avenue El Segundo, CA 90245

12 1989 14,012 $5,900,000 $491,667 $421.07 2.70% - 10/17

3 1208 East Imperial Avenue

1208 East Imperial Avenue El Segundo, CA 90245

6 1953 4,459 $2,260,000 $376,667 $506.84 2.91% 21.28 10/17

4 526 Illinois Street

526 Illinois Street El Segundo, CA 90245

5 1988 7,635 $3,750,000 $750,000 $491.16 3.58% 18.83 9/17

5 301-305 West Palm Avenue

301-305 West Palm Avenue El Segundo, CA 90245

6 1956 4,143 $2,600,000 $433,333 $627.56 2.75% 21.02 1/16

6 The G

200-210 West Grand Avenue El Segundo, CA 90245

27 1925 15,270 $7,400,000 $274,074 $484.61 3.00% - 8/17

Averages $471,552 $497.00 2.99% 20.38

S Hotel 2TwentyOne221 Concord StreetEl Segundo, CA 90245

34 1912 7,824 $4,850,000 $142,647 $619.89 4.39% 9.95

14

COMPARABLE SALE PROPERTIES


S. Hotel 2TwentyOne 221 Concord Street El Segundo CA1. 638 West Imperial Avenue 638 West Imperial Avenue El Segundo CA2. 216 East Imperial Avenue 216 East Imperial Avenue El Segundo CA3. 1208 East Imperial Avenue 1208 East Imperial Avenue El Segundo CA4. 526 Illinois Street 526 Illinois Street El Segundo CA5. 301-305 West Palm Avenue 301-305 West Palm Avenue El Segundo CA6. The G 200-210 West Grand Avenue El Segundo CA

15

COMPARABLE RENTAL PROPERTIES


1. Stardust ApartmentsEast716-717 Indiana CourtEl Segundo, CA 90245

Units Built42 1958

Units Type SF Asking Rent Rent / SF-13 0/1.00 225 $1,775 $7.89

Weighted

Avg.

225 $1,775 $7.89

2. 548 West ImperialAvenue548 West Imperial AvenueEl Segundo, CA 90245

Units Built5 1949

Units Type SF Asking Rent Rent / SF5 0/1.00 $1,1255 WeightedAvg. $1,125

3. The G200-210 West GrandAvenueEl Segundo, CA 90245

Units Built27 1925

Units Type SF Asking Rent Rent / SF0/1.00 242 $1,700 $7.02

WeightedAvg. 242 $1,700 $7.02

4. Extended Stay America1910 East MariposaAvenueEl Segundo, CA 90245

Units Built150 1997

Units Type SF Asking Rent Rent / SF0/1.00 $2,3310/1.00 $2,664

WeightedAvg. $2,498

S. Hotel 2TwentyOne 221 Concord StreetEl Segundo, CA 90245

Units Built34 1912

Units Type SF Current Rent Rent / SF34 0/1.00 150 $1,190 $7.93 34 WeightedAvg. 150 $1,190 $7.93

16

COMPARABLE RENTAL PROPERTIES


S. Hotel 2TwentyOne 221 Concord Street El Segundo CA1. Stardust Apartments East 716-717 Indiana Court El Segundo CA2. 548 West Imperial Avenue 548 West Imperial Avenue El Segundo CA3. The G 200-210 West Grand Avenue El Segundo CA4. Extended Stay America 1910 East Mariposa Avenue El Segundo CA

17

COMPARABLE HOTEL RENTAL PROPERTIES & MAP


HOTEL COMPARABLE RENTAL PROPERTIES

Hotel RoomHotel 2 TwentyOne (Subject) $75Courtyard by Marriott $205

Extended Stay America $140

Aloft El Segundo $244

Fairfield Inn & Suites N/A

Cambria Hotel $324

Double Tree by Hilton $229

Hyatt House $199

Averages $234

Hotel SuiteN/A

$229

$165

N/A

$259

$375

N/A

$209

$247

18

COMPARABLE HOTEL RENTAL PROPERTIES & MAP


S. SP- Hotel 2TwentyOne 221 Concord Street El Segundo CA1. Courtyard by Marriott 2000 East Mariposa Avenue El Segundo CA2. Extended Stay America 1910 East Mariposa Avenue El Segundo CA3. Aloft El Segundo 475 North Sepulveda Boulevard El Segundo CA4. Fairfield Inn & Suites 525 North Sepulveda Boulevard El Segundo CA5. Cambria Hotel 199 Continental Boulevard El Segundo CA6. DoubleTree by Hilton 1985 East Grand Avenue El Segundo CA7. Hyatt House 810 South Douglas Street El Segundo CA

19

ECONOMIC & DEMOGRAPHIC OVERVIEW


One of the world’s most significant economic and cultural centers, Los Angeles County is home to

more than 10 million residents, comprising 26% of California’s total population and making it the most-

populous county in the United States. Known for its coastal location, cultural attractions, educational

institutions, and massive economy, Los Angeles County encompasses more than 4,000 square miles and

contains 88 cities and 65 unincorporated communities.

Los Angeles is one of the world’s leading trade and manufacturing centers, due largely to the Port of

Los Angeles and Port of Long Beach, which provide access to major U.S. markets and the Pacific

Rim. If Los Angeles County were a nation, its economy would rank 21st among the world’s countries in

terms of gross domestic product. Los Angeles County’s GDP of $665.4 billion exceeds those of Sweden,

Switzerland, and Saudi Arabia.

International Trade CapitalLos Angeles County is the No. 1 “International Trade Capital of America”- The Kyser Center for Economic Research

Best City to Launch CareerThe city of Los Angeles ranked No. 2 among the “Best Cities to Launch Your Career”- Bankrate

Manufacturing HubLos Angeles is ranked the No. 1 “Manufacturing City in the Nation”- The Kyser Center for Economic Research

Best Place to LiveThe city of Los Angeles is ranked among the top 40 “Best Large Cities to Live In”- NerdWallet

20



DEMOGRAPHICS

n Los Angeles County’s population is forecast to grow 3.5% over the next five years, reaching nearly

10.5 million residents

n 30% of countywide residents age 25 and older hold a bachelor’s degree or higher, on par with the

national average

n 29% of Los Angeles County households earn $100,000 or more annually, compared to 25% nationally

n 49% of occupied housing units in Los Angeles County are renter occupied, compared to the U.S.

average of 31%

n The county’s median household income is projected to reach $67,766 by 2023, up 10.2% from 2018

COUNTY INDUSTRY BREAKDOWN

JOB GROWTH

n 24,600 jobs created in the Leisure and

Hospitality sector (Y-o-Y May ‘18)

21



COUNTY EMPLOYMENT TRENDS

MAY 2018

n 4.0% the county’s monthly unemployment rate was

down 40 bps annually

MAY 2018

n 63,900 jobs were created countywide, a 1.4%

Y-o-Y increase

LOS ANGELES COUNTY

LARGEST EMPLOYERS

Los Angeles County 107,500

Los Angeles Unified School District 60,240

City of Los Angeles 49,500

University of California Los Angeles 46,200

U.S. Government 45,000

Kaiser Permanente 36,900

State of California 29,900

University of Southern California 27,430

Northrop Grumman Corporation 16,600

Target Corporation 15,000

Sources: Los Angeles Almanac; LAUSD; USC

22



TRADE AND LOGISTICS

n 1.2 Million Jobs Supported

n $3.6 Trillion+ Annual Trade Value

n $58 Billion Annual Wages and Tax Revenues

Metro Los Angeles is one of the world’s leading trade and logistics centers, due largely to the presence

of the Port of Los Angeles and the Port of Long Beach which provide access to major U.S. markets

and the Pacific Rim. The Los Angeles Customs District ranked first in the nation in terms of total value

of worldwide trade handled, with a total of more than $3.6 trillion. Combined, the ports support

more than 1.2 million direct and indirect jobs and generate over $58 billion annually in wages

and tax revenues.

Port of Los Angeles

MANUFACTURING

n Largest Manufacturing Center in the Nation

n 352,500 Jobs Supported Countywide

n 65 Manufacturing Plants on I-605 Corridor

With approximately 352,500 jobs supported, Los Angeles County is the top manufacturing center

in the nation. Approximately 65 manufacturing plants are situated along the 605 corridor

and additional manufacturing hubs are located in nearby Cerritos, Buena Park, and Santa Fe Springs.

Significant manufacturing companies in Los Angeles County include Northrop Grumman, American

Solar Direct, Crocker Motorcycles, and Panavision.

Northrop Grumman

23



ENTERTAINMENT

n $120 Billion Total Output

n 837,000 Jobs Supported

n Entertainment Capital of the World

Los Angeles is the world center for the entertainment industry. Top movie studios based in Los Angeles

County include Walt Disney Co., Paramount, Sony, Fox, Universal Pictures, Warner Brothers,

and DreamWorks. All major U.S. television networks, including ABC, NBC, and CBS have considerable

operations in the area as well. With an estimated total output of $120 billion annually, the entertainment

industry in the region supports over 162,000 jobs directly, nearly 590,000 jobs indirectly, and an

additional 85,000 jobs for independent contractors.

Paramount Pictures

PROFESSIONAL AND BUSINESS SERVICES

n 12 Fortune 500 Headquarters

n 622,600 Jobs Supported

n $184 Billion Combined Annual Revenue

Los Angeles County is home to 12 Fortune 500 headquarters, including Amgen, Avery Dennison, Live

Nation Entertainment, Mattel, Occidental Petroleum, and Walt Disney Co. These Fortune 500 companies

have combined payrolls exceeding 30,000 employees and have an annual revenue of over $184 billion.

The professional and business services segment represents the third-largest employment sector in Los

Angeles County, supporting approximately 622,600 jobs in May 2018.

Saatchi & Saatchi

24



CONSTRUCTION AND DEVELOPMENT

n $14 Billion Capital Improvements n 121,000+ Construction Jobs

Known as the largest public-works program in the history of

the city of Los Angeles, the $14 billion LAX modernization

program began in 2009 and has a projected completion date of

2023. The Tom Bradley International Terminal was completed in

September 2013 and features new aircraft gates and concourses,

retail shops and other amenities. Other projects that were recently

completed include new taxiways and taxilanes, infrastructure

upgrades, and renovation improvements to all terminals. The

future $5.5 billion Landside Access Modernization Program

(LAMP) will generate additional terminal renovations and

provide the growing number of airport passengers convenient

connections to public transportation from the airport.

LAX MODERNIZATION PROGRAM

n $4.9 Billion Contract n 85 Million Passengers Served Each Year

In April 2018, the Los Angeles World Airports (LAWA) Board

of Airport Commissioners approved a $4.9 billion, 30-year

public-private partnership contract with LAX Integrated Express

Solutions (LINXS) to design, construct, and operate the planned

Automated People Mover (APM) system at LAX. As the

centerpiece of LAMP, the 2.25-mile APM will consist of driverless

trains traveling to six stations, three inside the airport terminal

loop and three outside the terminal, providing travelers with

easy access to the light-rail, parking, and terminals. Slated to

be operational by 2023, LAWA expects the Automated People

Mover to serve over 85 million passengers each year.

AUTOMATED PEOPLE MOVER (APM) AT LAX

n $2.5 Billion Investment n 1,000 Permanent Jobs

Work is underway on Century Associates’ $2.5 billion

redevelopment of Century Plaza, encompassing 1.5

million square feet of space. The project will include a pair

of 46-story residential towers designed by Pei Cobb Freed, a

100,000-square-foot retail plaza, and a new 394-room hotel

with 63 luxury condos located in the heart of Los Angeles’

Century City neighborhood. The entire project will create

5,000 construction-related jobs and up to 1,000 permanent

jobs. Construction started in March 2016 and is slated to be

completed in late 2019.

CENTURY PLAZA

25




n 12,000 Permanent Jobs n $6.3 Billion Economic Impact

The $1.6 billion Evolution master plan will expand NBC

Universal’s studio and theme park, located on 391 acres

in Universal City. The plan includes 1.5 million square feet of

new studio and office space, a 327,000-squarefoot addition

to the Universal Studios theme park, and 1,000 hotel rooms.

The entire Evolution project will have an economic

impact of $6.3 billion, supporting 31,000 jobs during

construction and 12,000 new permanent positions.

Estimated completion is 2030.

NBC UNIVERSAL

n $12 Billion Investment n 205,000 Total Jobs Created

In October 2017, construction began on a massive 21,500-home

Newhall Ranch development on 15,000 acres along Highway

126 in north Los Angeles County near Magic Mountain, considered

to be the largest subdivision of its kind in the nation. The

$12 billion project will include nine villages with the first two,

Landmark and Mission, to include more than 620 single-family lots,

an elementary school, and a fire station. The entire development

is expected to create 130,000 construction jobs, support

75,000 new county jobs, and generate over $21 billion in

business revenues and $2.7 billion annually in total taxes.

The development will also include over 11 million square feet of

commercial space and is slated to be complete by 2035.

NEWHALL RANCH DEVELOPMENT

n 3,000 Workers can be Accommodated n 1.1 Million SF Building

Plans are underway to renovate the early 20th-century

Broadway Trade Center in Downtown Los Angeles into a

15-story multi-use property. The makeover of this 1.1 million-

square-foot building will feature retail space on the ground

floor, restaurants, multiple bars, spa, private club, office space

capable of accommodating up to 3,000 workers, more

than 150 hotel rooms, and underground parking for 400 to

600 vehicles. The renovated property will showcase a rooftop

activity area with movie screen and Olympic-size swimming

pool. Completion is expected in 2019.

BROADWAY TRADE CENTER RENOVATION

26




n 25,000+ Jobs Supported n 5.6 Million SF of Commercial Space

This $2.5 billion sports and entertainment district, located in

the South Park District of Downtown Los Angeles, encompasses

more than 5.6 million square feet of retail shops, music venues,

night clubs, movie theaters, restaurants, and a 54-story Ritz-Carlton

Residences hotel and condominium tower, supporting more than

25,000 jobs. Future plans call for a 600,000-square-foot office

tower for nearby creative firms, a 360-unit residential building, and

a new parking garage. At build-out, the buildings will be wrapped

in a giant, LED sign stretching 60,000 square feet along Olympic,

Figueroa, and 11th Street. The project will also feature retail and

commercial space at the base of the buildings for hotel guests and

residents. Work is expected to be completed by 2023.

L.A. LIVE

n $2.6 Billion Investment n 1.5 Million SF of Commercial Space

An 70,000-seat sport stadium and multi-use development

is currently under construction in Inglewood’s new City of

Champions district, approximately 10 miles north of Torrance.

The stadium will be the new home of the NFL’s Rams and

Chargers franchises. At 3 million square feet, it will be the

largest stadium in professional football. The $2.6 billion, 300-

acre, multipurpose facility will also include a 6,000-seat

performance venue, more than 1.5 million square feet of retail

and office space, 2,500 homes, a 300-room hotel, and 25

acres of parks. Combined team annual revenue is estimated

to generate $700 million to the region. The new stadium is

expected to be completed in time for the 2020 NFL season.

LOS ANGELES STADIUM IN NEW CITY OF CHAMPIONS DISTRICT

27



DELIVERIES / ABSORPTION

RENT / OCCUPANCY

NEW DELIVERIES

n 2,911 units through June 2018, down 52.6%

year over year

NET ABSORPTION

n 2,366 units through 2Q18, down 56.6%

compared to the first half of 2017

EFFECTIVE RENT

n $2,339 in the second quarter of 2018, up

2.9% from one year prior

OCCUPANCY RATE

n 96.0% in 2Q18, up 10 bps year over year

In second quarter of this year, builders delivered 1,954 apartment units in Los Angeles County, part of 2,911 rentals

delivered since January 2018. Although deliveries are down 52.6% compared to the first half of 2017, an influx of 9,649

units are scheduled to come online by year-end. Total annual deliveries for 2018 are forecast to reach 12,560, exceeding the

8,615 apartments added to inventory during 2017.

Operators recorded net absorption of 2,366 units since the start of the year, down 56.6% compard to the same time

last year. By year-end leasing activity is expected to reach 7,505 newly rented net units. Over the past five years, net annual

absorption averaged 9,812 apartments countywide.

The average apartment occupancy rate in Los Angeles County was a robust 96.0% as of June 2018, up 10 basis points from

one year prior. With construction exceeding absorption by 46.7% during the second half of 2018, occupancy is anticipated

to decline. Supply-side pressure will cause a 20-basis-point annual drop in the occupancy rate, forecast to end 2018 at a still

healthy 95.7%.

LA County operators continue to put pressure on effective rent, pushing up average apartment rent 2.9% annually to end

second quarter at $2,339 per month. By December 2018, countywide effective rent is projected to settle at $2,323 per

month, 11.6% above the five-year average.

0

5,000

10,000

15,000

20,000

2012 2013 2014 2015 2016 2017 2018*

Deliveries Absorption*PROJECTED

$1,821

$1,880

$1,986

$2,103

$2,187

$2,249

$2,323

$800

$1,200

$1,600

$2,000

$2,400

93%

94%

95%

96%

97%

2012 2013 2014 2015 2016 2017 2018*Rent Occupancy*PROJECTED

LOS ANGELES COUNTY APARTMENT MARKET

LOS ANGELES COUNTY APARTMENT MARKET

28



EDUCATION

HIGHER EDUCATIONn 625,000 students metrowide

ANNUAL GRADUATESn 60,000 produced by Metro Los Angeles universities each year

The region is a higher education center, with over 120 colleges and universities that support economic growth, provide jobs, attract new residents to the area, and generate sustained demand for off-campus housing. The universities alone produce 60,000 graduates annually,the highest number of any county in the nation.

The University of California Los Angeles (UCLA) is world renowned for its high quality academic, research, and athletic programs. UCLA offers more than 125 undergraduate majors and 150 graduate degree programs. The university is one of the largest employers in the region, supporting approximately 46,200 jobs countywide. UCLA has an enrollment of 45,430 students and generates $12.7 billion in economic impact in the Southern California region.

The University of Southern California (USC) enrolls approximately 45,690 students and employs 27,430 residents. USC has the largest private university graduate program in the nation in science, engineering, and health. The University of Southern California was ranked No. 23 among national universities in 2017 by U.S. News & World Report.

TRANSPORTATION

MTA RIDERSHIP

n 440.9m rail and bus passengers in 2017

LAX PASSENGERS

n 82.9m passengers served in 2017

Los Angeles boasts an extensive freeway network, with major routes including the Santa Ana Freeway (I-5), San Diego Freeway (I-405), Foothills Freeway (I-210), Santa Monica and San Bernardino freeways (I-10), Harbor Freeway (I-110), Long Beach Freeway (I-710), and San Gabriel River Freeway (I-605).

The Metropolitan Transportation Authority (MTA) provides local bus and rail service, linking communities in Los Angeles County MTA offers over 1,500 square miles of service area and employs more than 9,200 residents.

The Los Angeles International Airport (LAX) supports 408,000 local jobs and has an annual economic impact of $60 billion. LAX served over 82.9 million passengers in 2017, making it the third-busiest airport in the nation and seventh-busiest airport in the world.

Los Angeles International Airport

LOS ANGELES COUNTY, CA

HIGHER EDUCATION

Los Angeles Community College District 152,690

University of Southern California 45,690

University of California Los Angeles 45,430

California State University Northridge 39,820

Mt. San Antonio College 37,770

California State University Long Beach 37,070

California State University Los Angeles 28,250

Santa Monica College 27,740

Pasadena City College 25,370

Long Beach City College 11,270

Sources: listed college websites; California Community Colleges Chancellor’s Office

29



BY THE NUMBERS

TOTAL POPULATION

2010 9,818,605

2018* 10,116,258

2023* 10,474,059

Growth Rate (2018 - 2023) 3.5%

TOTAL HOUSEHOLDS

2010 3,241,204

2018* 3,350,748

2023* 3,478,435

Growth Rate (2018 - 2023) 3.8%

MEDIA INCOME

2010 $53,082

2018* $61,494

2023* $67,766

Growth Rate (2018 - 2023) 10.2%

MEDIAN AGE

2010 34.8

2018* 36.9

2023* 38.2

MEDIAN HOME PRICE

May - 2017 $585,000

May - 2018 $635,000

Growth Rate Y-o-Y 8.5%

RENT VS. OWN

Average Mortgage Payment** $3,629

Effective Rent $2,339

Difference $1,290

*Projected**30-yr fixed; 20% down; 4.65% interest rate; 1.75% property taxes; $1,000 homeowners insurance

Sources: Berkadia; Tetrad; U.S. Census Bureau; U.S. Bureau of Labor Statistics; Apartment Data Services; Moody’s; Wikipedia; Axiometrics; Corelogic; California Association of Realtors; City of Los Angeles California Division of Tourism; Los Angeles County Metropolitan Transportation Authority; Los Angeles County; Los Angeles Times; Los Angeles Economic Development Corporation; Los Angeles Area Chamber of Commerce; Los Angeles World Airports; Port of Los Angeles; Los Angeles Unified School District; Los Angeles Convention and Visitors Bureau; California Association of Realtors; Los Angeles Business Journal; Los Angeles Daily News; Los Angeles Downtown News; UCLA; USC; CSU-Northridge; CSU-L.A.; Los Angeles Community College District; Mt. St. Mary’s College; Occidental College; Southern California Association of Governments; Airports Council International; Urbanize L.A.; Peterson’s; The Signal Santa Clarita Valley; The Orange County Register; Business Insider; LA Curbed; U.S. News & World Report; LA Almanac; LAUSD; Develop San Pedro; Curbed.

30

DEMOGRAPHICS


Traffic Profile221 Concord St, El Segundo, CA 90245

Traffic Map

# Street Cross St Dir Vol. Dist (mi) # Street Cross St Dir Vol. Dist (mi)1 Concord St W Franklin Ave S 1,424 0.0 11 W Holly Ave Virginia St E 1,166 0.2

2 Virginia St W Franklin Ave S 717 0.1 12 Whiting St W Holly Ave N 1,120 0.2

3 W Grand Ave Whiting St W 6,173 0.1 13 Loma Vista St W Franklin Ave S 659 0.2

4 Virginia St Binder Pl S 982 0.1 14 W Holly Ave Whiting St W 539 0.2

5 Concord St Binder Pl S 687 0.1 15 W el Segundo Blvd Richmond St W 2,090 0.2

6 Whiting St W Franklin Ave S 1,208 0.1 16 Virginia St W Holly Ave S 696 0.2

7 Virginia St W Holly Ave N 1,369 0.1 17 W Holly Ave Whiting St E 982 0.2

8 Whiting St Binder Pl S 1,329 0.1 18 Loma Vista St Binder Pl S 653 0.2

9 Main St E Grand Ave N 6,720 0.2 19 Whiting St W Holly Ave S 1,051 0.2

10 W Holly Ave Virginia St W 1,133 0.2 20 W Holly Ave Marketplace W 11,617 0.2

©2017, Tetrad. All rights reserved. Data Source: Kalibrate

33

DEMOGRAPHICS


DEMOGRAPHIC PROFILE2010 Census, 2017 Estimates & 2022 Projections

Calculated using Proportional Block Groups

2018-Aug-06

Lat/Long: 33.918605/-118.418619

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221 Concord St, El Segundo,CA 90245

Los Angeles-Long Beach-Anaheim, CA

US Benchmark0 - 1 mi 0 - 3 mi 0 - 5 mi

Popu

latio

n

Area in square miles 3 18 45 4,849 3,537,439

Est. Population/square mile 4,262 3,875 9,069 2,721 93

2022 Projection 14,405 71,807 428,404 13,598,383 340,769,540

2017 Estimate 14,040 69,522 410,435 13,192,819 327,886,553

2010 Census 14,091 67,777 400,206 12,828,837 312,471,327

2000 Census 13,693 64,105 385,533 12,365,353 281,421,872

Growth 2017-2022 2.6% 3.3% 4.4% 3.1% 3.9%

Growth 2010-2017 -0.4% 2.6% 2.6% 2.8% 4.9%

Growth 2000-2010 2.9% 5.7% 3.8% 3.7% 11.0%

Hous

ehol

ds

2022 Projection 6,268 31,077 163,477 4,515,702 128,833,129

2017 Estimate 6,111 30,087 155,546 4,368,849 123,996,543

2010 Census 6,147 29,321 150,322 4,233,985 118,092,823

2000 Census 6,181 28,690 145,363 4,068,951 106,741,406

Growth 2022-2027 2.6% 2.9% 4.1% 2.9% 4.0%

Growth 2017-2022 2.6% 3.3% 5.1% 3.4% 3.9%

Growth 2010-2017 -0.6% 2.6% 3.5% 3.2% 5.0%

Growth 2000-2010 -0.5% 2.2% 3.4% 4.1% 10.6%

2022 Proj. Pop. In Households 14,270 71,958 423,785 13,392,883 332,831,444

2017 Est. Pop. In Households 13,912 69,656 405,794 12,987,293 319,954,493

2022 Proj. Avg. HH Size 2.28 2.32 2.59 2.97 2.58

2017 Est. Avg. HH Size 2.28 2.32 2.61 2.97 2.58

Hous

ing Vacant Housing Units 361 6% 2,039 6% 9,741 6% 252,366 5% 15,111,482 11%

Occupied Housing Units 6,111 94% 30,087 94% 155,546 94% 4,368,849 95% 123,996,543 89%

Owner-Occupied 2,521 39% 16,632 52% 66,767 40% 2,206,008 48% 80,851,843 58%

Renter-Occupied 3,590 55% 13,455 42% 88,778 54% 2,162,841 47% 43,144,700 31%

Ethn

icity

Population by Ethnicity 14,040 69,522 410,435 13,192,819 327,886,553

White 11,047 79% 54,511 78% 226,485 55% 7,058,119 53% 238,639,225 73%

Black 251 2% 2,025 3% 54,182 13% 919,769 7% 40,849,681 12%

Asian 1,199 9% 6,222 9% 35,396 9% 1,966,153 15% 15,950,807 5%

Other 1,542 11% 6,763 10% 94,371 23% 3,248,778 25% 32,446,840 10%

Hispanic or Latino 2,273 16% 9,981 14% 155,191 38% 5,854,136 44% 57,364,718 17%

Educ

. Less than HS Diploma 429 4% 2,187 5% 46,196 17% 1,873,085 21% 29,634,484 14%

HS, Some Col. or Assoc. Deg. 4,502 46% 16,794 35% 117,105 43% 4,106,748 47% 124,268,749 57%

Bach. Degree or Higher 4,913 50% 29,335 61% 111,333 41% 2,775,962 32% 65,057,220 30%

©2017, Tetrad. All rights reserved. -1- Demographic Source: STI PopStats

34

DEMOGRAPHICS




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2018-Aug-06

Lat/Long: 33.918605/-118.418619




Age

Total Population 14,040 69,522 410,435 13,192,819 327,886,553

Age 0 to 14 2,367 17% 12,172 18% 80,020 19% 2,430,584 18% 57,845,741 18%

Age 14 to 18 586 4% 3,248 5% 18,957 5% 651,031 5% 16,996,667 5%

Age 18 to 22 768 5% 3,893 6% 21,761 5% 794,693 6% 21,091,673 6%

Age 22 to 25 475 3% 1,892 3% 15,063 4% 560,716 4% 12,992,019 4%

Age 25 to 35 1,615 12% 7,582 11% 55,210 13% 1,821,415 14% 41,291,738 13%

Age 35 to 45 2,065 15% 9,981 14% 62,749 15% 1,786,660 14% 40,983,525 12%

Age 45 to 55 2,315 16% 11,045 16% 59,221 14% 1,798,923 14% 43,198,192 13%

Age 55 to 65 2,064 15% 9,616 14% 48,600 12% 1,588,601 12% 42,528,083 13%

Age 65 to 75 1,117 8% 6,225 9% 30,601 7% 1,036,515 8% 30,191,062 9%

Age 75 to 85 483 3% 2,790 4% 13,455 3% 517,135 4% 15,279,036 5%

Age 85 and over 185 1% 1,076 2% 4,797 1% 206,546 2% 5,488,817 2%

Median Age 40.7 41.0 37.2 36.9 38.3

Average Age 39.5 39.7 37.2 37.8 39.0

Fam

ily

Families by # of Workers 3,536 17,231 95,290 3,018,586 83,068,823

No workers 204 6% 1,736 10% 9,178 10% 352,432 12% 12,599,015 15%

1 worker 1,277 36% 5,991 35% 34,725 36% 1,029,999 34% 27,749,734 33%

2 workers 1,707 48% 8,319 48% 41,473 44% 1,199,434 40% 33,919,098 41%

3 or more workers 350 10% 1,186 7% 9,915 10% 436,721 14% 8,800,976 11%

Enro

llmen

t Total Population 14,040 69,522 410,435 13,192,819 327,886,553

Pre-High School 1,856 13% 8,609 12% 56,656 14% 1,770,822 13% 44,782,301 14%

High School 855 6% 3,419 5% 21,799 5% 791,721 6% 18,135,915 6%

College/Grad/Prof 971 7% 5,765 8% 36,640 9% 1,187,641 9% 25,063,968 8%

Not enrolled 10,357 74% 51,729 74% 295,340 72% 9,442,635 72% 239,904,369 73%

Per Capita Income $51,820 $68,357 $42,638 $31,009 $30,285

Empl

oym

ent

Total Pop. Age 16+ 11,384 55,708 320,952 10,439,570 261,553,341

Labor Force 8,461 74% 38,905 70% 223,839 70% 6,755,575 65% 165,944,995 63%

In Armed Forces 21 0% 59 0% 215 0% 5,301 0% 1,130,596 0%

Civilian, Employed 8,168 72% 37,655 68% 214,203 67% 6,431,549 62% 156,270,024 60%

Civilian, Unemployed 272 2% 1,191 2% 9,421 3% 318,725 3% 8,544,375 3%

Not in Labor Force 2,923 26% 16,803 30% 97,113 30% 3,683,995 35% 95,608,346 37%

Unemployment Rate 3.2% 3.1% 4.2% 4.7% 5.1%


35

DEMOGRAPHICS




2018-Aug-06

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Empl

oyed

Pop

ulat

ion

Employed Pop. Age 16+ 8,168 37,655 214,203 6,431,549 156,270,024

Agr., forestry, fish & hunt,min., constr.

367 4% 1,187 3% 10,423 5% 404,809 6% 12,769,235 8%

Manufacturing 1,223 15% 4,331 12% 20,496 10% 711,616 11% 16,304,847 10%

Wholesale & retail trade 904 11% 4,195 11% 26,339 12% 923,192 14% 22,306,902 14%

Transp. and warehousing,and utilities

693 8% 2,217 6% 13,968 7% 313,113 5% 7,767,475 5%

Information 511 6% 2,820 7% 11,453 5% 240,574 4% 3,295,137 2%

Fin., ins., RE & rental/leasing 604 7% 3,443 9% 15,310 7% 437,975 7% 10,278,798 7%

Prof., sci., mgmt, admin, andwaste mgmt

1,138 14% 6,450 17% 31,903 15% 825,446 13% 17,218,530 11%

Prof., sci., & technical svcs 923 11% 5,395 14% 20,672 10% 487,959 8% 10,402,817 7%

Mgmt of companies & ent. 0 0% 9 0% 22 0% 4,425 0% 124,879 0%

Admin, support & waste mgmt 214 3% 1,046 3% 11,209 5% 333,062 5% 6,690,834 4%

Educ., health and soc. svc 1,486 18% 7,716 20% 41,733 19% 1,302,746 20% 36,213,774 23%

Arts, ent., rec., accom. & food 774 9% 3,019 8% 24,499 11% 684,114 11% 14,840,888 9%

Other services (exceptpublic admin)

145 2% 1,051 3% 11,532 5% 389,477 6% 7,720,405 5%

Public Administration 324 4% 1,225 3% 6,547 3% 198,487 3% 7,554,033 5%

Employed Civilian Pop. Age 16 + 8,168 37,655 214,203 6,431,549 156,270,024

White Collar 6,405 78% 31,363 83% 146,513 68% 4,066,880 63% 98,837,825 63%

Blue Collar 1,762 22% 6,292 17% 67,690 32% 2,364,669 37% 57,432,199 37%

Whi

te C

olla

r Mgmt, Business, and Fin. Op. 1,961 24% 9,864 26% 40,827 19% 966,113 15% 23,000,666 15%

Professional & Related 2,465 30% 12,546 33% 50,316 23% 1,382,590 21% 34,286,665 22%

Healthcare support 80 1% 297 1% 3,135 1% 123,302 2% 3,865,503 2%

Sales & related 904 11% 4,829 13% 25,013 12% 735,398 11% 16,856,796 11%

Office & admin support 996 12% 3,826 10% 27,222 13% 859,477 13% 20,828,195 13%

Blue

Col

lar

Protective service 159 0% 601 0% 4,544 0% 118,451 2% 3,493,547 2%

Food prep & serving 249 0% 980 0% 12,909 0% 360,184 6% 8,930,589 6%

Building & grounds cleaning& maint.

53 2% 331 2% 9,542 2% 297,617 5% 6,249,300 4%

Personal care & service 355 3% 1,285 3% 8,902 6% 304,141 5% 5,752,417 4%

Farming, fishing, and forestry 0 1% 0 1% 396 4% 22,136 0% 1,147,801 1%

Constr., Extraction, & Maint. 285 4% 1,131 3% 12,013 4% 467,667 7% 12,857,731 8%

Prod., Transp., & Mat. Moving 662 0% 1,964 0% 19,384 0% 794,473 12% 19,000,814 12%


36

DEMOGRAPHICS




2018-Aug-06

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Hous

ehol

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Households by HH Size 6,111 30,087 155,546 4,368,849 123,996,543

1-person household 2,043 33% 9,620 32% 45,329 32% 1,029,828 24% 33,022,416 27%

2-person household 1,982 32% 10,063 33% 46,329 33% 1,182,056 27% 40,569,495 33%

3-person household 954 16% 4,509 15% 24,566 15% 712,889 16% 19,989,607 16%



6-person household 70 1% 398 1% 4,627 1% 188,849 4% 3,267,253 3%

7 or more person household 29 0% 166 1% 4,265 1% 212,964 5% 2,400,213 2%

Hous

ehol

d Ty

pes

Households by Type 6,111 30,087 155,546 4,368,849 123,996,543

1 Person Households 2,043 33% 9,620 32% 45,329 32% 1,029,828 24% 33,022,416 27%

Family Households 3,536 58% 17,231 57% 95,290 57% 3,018,586 69% 83,068,823 67%

Married-couple family 2,538 42% 13,817 46% 64,732 46% 2,082,443 48% 60,676,012 49%

W/ own children < 18 yrs 1,290 21% 6,144 20% 30,616 20% 946,355 22% 24,271,234 20%

No own children < 18 yrs 1,248 20% 7,673 26% 34,116 26% 1,136,088 26% 36,404,778 29%

Male HHer: no wife present: 361 6% 1,221 4% 9,990 4% 284,920 7% 6,004,106 5%

W/ own children < 18 yrs 191 3% 480 2% 4,065 2% 116,063 3% 2,860,765 2%

No own children < 18 yrs 170 3% 741 2% 5,925 2% 168,857 4% 3,143,341 3%

Female HHer: no husband: 637 10% 2,194 7% 20,568 7% 651,223 15% 16,388,705 13%

W/ own children < 18 yrs 318 5% 1,036 3% 11,152 3% 314,000 7% 8,965,209 7%

No own children < 18 yrs 319 5% 1,158 4% 9,416 4% 337,223 8% 7,423,496 6%

Nonfamily Households 532 9% 3,236 11% 14,927 11% 320,435 7% 7,905,304 6%

Gro

up Q

uart

ers

2017 Est. Group Quarters 21 405 5,234 205,526 7,932,060

Institutionalized 3 12% 94 23% 742 23% 82,594 40% 3,993,867 50%

Non-Institutionalized 18 88% 311 77% 4,491 77% 122,932 60% 3,938,193 50%

College 6 29% 238 59% 3,297 59% 61,582 30% 2,522,758 32%

Military 0 0% 0 0% 0 0% 37 0% 338,183 4%

Other 12 59% 73 18% 1,194 18% 61,313 30% 1,077,252 14%

2010 Census Group Qtrs Pop. 22 0% 424 0% 5,379 0% 210,917 0% 8,025,278 0%

2017 Est. Group Qtrs Pop. 21 0% 405 0% 5,234 0% 205,526 0% 7,932,060 0%

2022 Proj. Group Qtrs Pop. 21 0% 405 0% 5,234 0% 205,500 0% 7,938,096 0%

Vehi

cles

Housing by Vehicles Avail. 6,111 30,087 155,546 4,368,849 123,996,543

None 184 3% 856 3% 8,378 3% 370,042 8% 11,336,503 9%

1 vehicle 2,338 38% 10,674 35% 60,805 35% 1,466,138 34% 41,927,828 34%

2 vehicles 2,392 39% 13,181 44% 61,960 44% 1,605,194 37% 46,344,682 37%

3 vehicles 866 14% 3,891 13% 17,482 13% 609,666 14% 17,054,193 14%

4 vehicles 193 3% 1,066 4% 5,008 4% 225,541 5% 5,313,590 4%

5 or more vehicles 137 2% 419 1% 1,913 1% 92,268 2% 2,019,747 2%

Avg. # of Vehicles Available 1.8 1.8 1.7 1.8 1.8


37

DEMOGRAPHICS




2018-Aug-06

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Hous

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Households by HH Inc. 6,111 30,087 155,546 4,368,849 123,996,543

$0 to $24,999 626 10% 3,027 10% 25,276 16% 854,415 20% 26,991,439 22%

$25,000 to $34,999 323 5% 1,294 4% 12,445 8% 362,999 8% 12,079,507 10%

$35,000 to $49,999 461 8% 2,224 7% 16,911 11% 522,858 12% 16,399,948 13%

$50,000 to $74,999 1,021 17% 4,348 14% 24,475 16% 720,732 16% 22,028,823 18%

$75,000 to $99,999 871 14% 3,375 11% 17,550 11% 528,359 12% 15,306,276 12%

$100,000 to $149,999 1,134 19% 5,299 18% 23,926 15% 671,176 15% 17,107,107 14%

$150,000 to $249,999 1,152 19% 6,461 21% 22,817 15% 489,696 11% 10,247,960 8%

$250,000 or more 524 9% 4,061 13% 12,145 8% 218,614 5% 3,835,483 3%

Median Household Income $ 92,090 $ 106,620 $ 73,500 $ 64,562 $ 56,803

Average Household Income $ 118,919 $ 157,217 $ 111,801 $ 92,733 $ 78,939

Hous

ehol

ders

<25

yrs HHer < 25 yrs by HH Inc. 102 762 4,276 121,251 4,624,128

$0 to $24,999 25 24% 301 40% 1,601 37% 49,816 41% 2,130,476 46%

$25,000 to $34,999 16 16% 57 7% 668 16% 15,987 13% 670,982 15%

$35,000 to $49,999 4 4% 91 12% 749 18% 18,201 15% 719,244 16%

$50,000 to $99,999 52 51% 211 28% 884 21% 27,994 23% 893,573 19%

$100,000 or more 5 5% 102 13% 374 9% 9,253 8% 209,853 5%



Hous

ehol

ders

25-

44 y

rs HHer 25-44 yrs by HH Inc. 2,237 11,171 65,527 1,602,472 41,340,880

$0 to $24,999 111 5% 691 6% 9,424 14% 268,581 17% 7,378,350 18%

$25,000 to $34,999 91 4% 204 2% 5,056 8% 134,700 8% 3,758,783 9%

$35,000 to $49,999 187 8% 746 7% 7,039 11% 198,932 12% 5,503,800 13%

$50,000 to $99,999 761 34% 3,324 30% 18,214 28% 496,998 31% 13,849,726 34%

$100,000 or more 1,087 49% 6,206 56% 25,794 39% 503,261 31% 10,850,221 26%



Hous

ehol

ders

45-

64 y

rs HHer 45-64 yrs by HH Inc. 2,755 12,278 60,363 1,768,230 49,653,797

$0 to $24,999 294 11% 1,010 8% 8,354 14% 275,982 16% 8,612,521 17%

$25,000 to $34,999 100 4% 529 4% 4,031 7% 121,357 7% 3,855,002 8%

$35,000 to $49,999 181 7% 694 6% 6,276 10% 193,886 11% 5,755,626 12%

$50,000 to $99,999 826 30% 2,752 22% 16,382 27% 508,062 29% 15,427,391 31%

$100,000 or more 1,356 49% 7,293 59% 25,321 42% 668,943 38% 16,003,257 32%




38

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Hous

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> 6

5 yr

s HHer > 65 yrs by HH Inc. 1,016 5,877 25,380 876,896 28,377,738

$0 to $24,999 197 19% 1,025 17% 5,897 23% 260,036 30% 8,870,092 31%

$25,000 to $34,999 116 11% 504 9% 2,690 11% 90,955 10% 3,794,740 13%

$35,000 to $49,999 88 9% 693 12% 2,847 11% 111,839 13% 4,421,278 16%

$50,000 to $99,999 252 25% 1,436 24% 6,545 26% 216,037 25% 7,164,409 25%

$100,000 or more 362 36% 2,219 38% 7,400 29% 198,029 23% 4,127,219 15%



Hous

ing

Valu

e

Owner-Occ. Housing Units 2,521 16,632 66,767 2,206,008 80,851,843

$0 to $49,999 53 2% 195 1% 758 1% 41,901 2% 5,964,035 7%

$50,000 to $99,999 5 0% 61 0% 299 0% 29,226 1% 9,657,935 12%

$100,000 to $199,999 34 1% 305 2% 990 1% 58,588 3% 21,494,616 27%

$200,000 to $499,999 131 5% 928 6% 9,087 14% 519,390 24% 29,767,717 37%

$500,000 or more 2,297 91% 15,143 91% 55,634 83% 1,556,903 71% 13,967,540 17%

Median Housing Unit Value $ 1,056,202 $ 1,054,864 $ 929,882 $ 694,341 $ 220,374

Average Housing Unit Value $ 1,158,572 $ 1,500,663 $ 1,097,697 $ 829,716 $ 324,716

Workplace Establishments 652 4,608 13,024 393,296 8,302,391

Workplace Employees (FTE) 30,309 169,749 325,655 6,832,446 148,599,824

Mor

tgag

e R

isk

Mortgage by Mort.-Risk Ratio 351 2,462 9,357 265,969 9,795,597

Under 1.0 1 0% 4 0% 39 0% 3,795 1% 537,051 5%

1.0 to 2.0 25 7% 140 6% 538 6% 17,269 6% 2,430,997 25%

2.0 to 3.0 96 27% 523 21% 2,103 22% 54,325 20% 3,333,151 34%

3.0 to 4.0 118 34% 825 34% 3,093 33% 81,049 30% 2,174,695 22%

4.0 to 5.0 80 23% 790 32% 2,560 27% 72,072 27% 958,936 10%

5.0 and over 32 9% 180 7% 1,024 11% 37,459 14% 360,767 4%

Average Mortgage Risk 3.5 3.6 3.6 3.7 2.7


39

APARTMENT UPDATE


a Berkshire Hathaway and Jeferies Financial Group company

SECOND QUARTER 2018

MARKET AT A GLANCE

OCCUPANCY AND RENT TRENDS

LOS ANGELES - SOUTHMULTIFAMILY REPORT

EFFECTIVE RENT RISES 2.9% ANNUALLY AS OCCUPANCY RISES 10 BASIS POINTS

Renters occupied 792 additional apartments in Los Angeles South since June 2017. Apartment demand was concentrated

among the El Segundo/Hermosa Beach/Redondo Beach, Hawthorne/North Torrance, and Carson/San Pedro/E. Torrance/

Lomita submarkets. While demand in Los Angeles South decreased 46% from the prior four-quarter period, absorption

outpaced the 343 deliveries since mid-2017. Average multifamily occupancy rose 10 basis points year over year to 96.3% in

June. Fourteen apartment communities were underway as of mid-2018, with 21 other multifamily developments in various

stages of planning. Over the next four quarters, builders are scheduled to complete 1,970 apartments. Nearly 40% of the new

inventory will be in the West Long Beach/Signal Hill submarket. Developers, anticipating continued apartment demand, kept

the planning pipeline full, requesting permits for 2,160 units during the last four quarters. Meanwhile, operators increased

average efective rent to $1,945 per month in June of this year, 2.9% higher than one year ago and the same annual rate of

increase as the county overall.

$1,000

$1,250

$1,500

$1,750

$2,000

93%

94%

95%

96%

97%

3Q13 1Q14 3Q14 1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 1Q18

OCCUPANCY AND RENT TRENDS

Occupancy Rate Effective Rent

OCCUPANCYRATE

EFFECTIVERENT

TOTAL INVENTORY

96.3%

$1,945

355,591

Up 10 bps since 2Q17

Up 2.9% since 2Q17

40

APARTMENT UPDATE


BERKADIASECOND QUARTER 2018

DELIVERIES AND DEMAND

ECONOMIC TRENDS


0

1,500

3,000

4,500

2013 2014 2015 2016 2017 2018*

DELIVERIES AND DEMAND

Deliveries Demand*Year to date

UNEMPLOYMENT*2017 2018

EMPLOYMENT*2017 2018

EXISTING SFH SALES**2017 2018

MEDIAN SFH PRICE**2017 2018

10-YEAR TREASURY**2017 2018

4.8%

4.43m

66.4k

$537.1k

2.19%

4.4%

4.48m

45.6k

$592.0k

2.91%

Tourism oicials celebrated the announcement of a

record 48.3 million visitors to Los Angeles County

in 2017, a 2.2% year-over-year increase. The rise in

tourism bolstered the leisure and hospitality sector

which grew 4.5% annually through May 2018 with

23,300 new workers. Sustained growth in local tourism

is anticipated following the opening of the NFL Rams

and Chargers stadium in Inglewood in 2020. In the

meantime, this project supported the construction

industry, which expanded 2.8%, or by 3,900 positions.

Overall, employers illed 55,200 new positions

countywide in the last 12 months, a 1.2% increase over

the corresponding period one year earlier. White-collar

employment surged as companies in the professional

and business services segment created 16,400 jobs,

and employers in the information industry recruited

7,400 workers. The two sectors had respective annual

growth of 2.7% and 3.5%. Meanwhile, institutions

in the education and health services segment illed

14,600 new jobs, a 1.8% gain.

-40 BPSCHANGE

1.2%CHANGE

-31.3%CHANGE

10.2%CHANGE

70 BPSCHANGE

U.S.ANNUAL RENT

26.5%share of wallet

METROANNUAL RENT

36.9%share of wallet

*May; **June

DELIVERIES

Units YTD

LA - SOUTH

164

DELIVERIES

Units YTD

LA - METRO

2,911

NETABSORPTION

LA - SOUTH

Units YTD111

NETABSORPTION

LA - METRO

2,366Units YTD

41

APARTMENT UPDATE


BERKADIA SECOND QUARTER 2018

© 2018 Berkadia Real Estate Advisors LLCBerkadia® is a registered trademark of Berkadia Proprietary Holding LLCDocument sources: Axiometrics; Berkadia Research; Federal Reserve Bank of St. Louis; Moody’s

SUBMARKET BREAKDOWN


SUBMARKET NAME 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18 2Q18 ANNUAL 2Q18 ANNUAL

Arcadia/Duarte/El Monte 97.2% 96.3% 4.5% 2.8% $1,799 $1,849 -123 -21 0 154

Azusa/Covina/Glendora 96.0% 96.6% 7.7% 5.4% $1,511 $1,592 -6 95 0 0

Carson/San Pedro/E Torrance/Lomita 94.9% 96.8% 1.3% 2.8% $2,103 $2,162 -87 591 0 0

Claremont/Pomona/La Verne 96.4% 95.6% 4.7% 2.6% $1,693 $1,738 78 -105 0 0

East LA/Alhambra/Montebello/Pico Rivera 97.2% 96.5% 10.3% 3.2% $1,657 $1,710 -4 -253 0 57

East Long Beach/Los Altos 96.2% 95.6% 3.3% 1.2% $1,941 $1,965 10 -143 0 0

El Segundo/Hermosa Beach/Redondo Beach 91.0% 95.3% 2.3% 0.2% $2,620 $2,625 -24 780 0 0

Hawthorne/North Torrance 95.4% 97.0% 6.2% 3.7% $1,874 $1,943 -92 506 0 0

Inglewood/Crenshaw 98.6% 97.4% 6.0% 5.3% $1,757 $1,849 -158 -386 0 0

N Long Beach/Lakewood/Artesia 97.0% 96.3% 4.7% 3.4% $1,745 $1,804 74 5 56 132

Paramount/Downey/Belllower/Norwalk 96.7% 96.8% 5.1% 3.9% $1,667 $1,732 25 41 0 0

West Covina/La Puente/Rowland Heights 96.3% 96.1% 6.9% 3.3% $1,649 $1,704 -21 -20 0 0

West Long Beach/Signal Hill 94.4% 94.0% 1.8% 1.0% $2,398 $2,423 52 -128 0 0

West Torrance/Ranchos Palos Verdes 96.0% 95.9% 0.0% 0.1% $2,292 $2,294 89 -10 0 0

Whittier 99.2% 98.0% 2.6% 3.9% $1,508 $1,566 -1 -158 0 0

TOTALS 96.2% 96.3% 4.5% 2.9% $1,890 $1,945 -187 792 56 343

OCCUPANCY AVG RENTINCREASE

AVG RENT NETABSORPTION

DELIVEREDUNITS

42

DISCLAIMER & CONFIDENTIALITY AGREEMENTThe material contained in this document is confidential, furnished solely for the purpose of considering investment in the propertydescribed therein and is not to be copied and/or used for any purpose or made available to any other person without the expresswritten consent of Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. In accepting this, the recipient agrees tokeep all material contained herein confidential.This information package has been prepared to provide summary information to prospective purchasers and to establish apreliminary level of interest in the property described herein. It does not, however, purport to present all material informationregarding the subject property, and it is not a substitute for a thorough due diligence investigation. In particular, Berkadia RealEstate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not made any investigation of the actual property, thetenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but notlimited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning theseissues. The information contained in this information package has been obtained from sources we believe to be reliable; however,Berkadia Real Estate Advisors LLC, Berkadia Real Estate Advisors Inc. and Seller have not conducted any investigation regardingthese matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the informationprovided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarilyrepresent the current or future performance of the property. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc. and Seller strongly recommend that prospectivepurchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the propertymeets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legaladvisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership.All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affectthe property and the health of some individuals. Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc.recommend, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct furtherinspections by a qualified professional.The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale issubject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Sellerand any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and suchobligations of Seller shall only be those in such contract of sale.For more information on these and other Berkadia© exclusive listings, please visit our website at Berkadia.comAll information contained herein is from sources deemed to be reliable; however, it is not guaranteed. Printed in the USA. All rightsreserved.Copyright 2018 © by Berkadia Proprietary Holding LLC. Berkadia© is a trademark of Berkadia Proprietary Holding LLCInvestment sales and real estate brokerage businesses are conducted exclusively by Berkadia Real Estate Advisors LLC and BerkadiaReal Estate Advisors Inc. Commercial mortgage loan origination and servicing businesses are conducted exclusively by BerkadiaCommercial Mortgage LLC and Berkadia Commercial Mortgage Inc. In California, Berkadia Real Estate Advisors Inc. conductsbusiness under CA Real Estate Broker License #01931050; Vincent B. Norris, CA BRE Lic. #843890. Berkadia CommercialMortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701; and Berkadia Commercial Mortgage Inc.under CA Real Estate Broker Lic. #01874116. This proposal is not intended to solicit commercial mortgage loan brokerage business in Nevada.For state licensing details visit: http://www.berkadia.com/legal/licensing.aspx

For Real-Time Property Information go to: hotel2twentyone.BerkadiaREA.com

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20th Floor

New York, NY 10175

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