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11

DREW McALLISTER \\ DIRECTOR OF SALES925.683.9203 | [email protected]

8 Units • 328 W 8th St. \\ Long Beach, CA 90813

4425 Atlantic Ave. Bldg. C Long Beach, CA 90807

Direct \\ 562.528.8105Main \\ 562.423.8143Mobile \\ 925.683.9203DRE \\ 01946829

NRECommercial.com

NRECOMMERCIAL

The material contained in this document is confidential, furnished solely for the purpose of

considering investment in the property described therein and is not to be copied and/or used

for any purpose or made available to any other person without the express written consent of

NRECommercial. In accepting this, the recipient agrees to keep all material contained herein

confidential. This information package has been prepared to provide summary information to

prospective buyers and to establish a preliminary level of interest in the property described herein.

It does not, however, purport to present all material information regarding the subject property,

and it is not a substitute for a thorough due diligence investigation. NRECommercial and Seller

have not made any investigation of the actual property, the tenants, the operating history, financial

reports, leases, square footage, age or any other aspect of the property, including but not limited

to any potential environmental problems that may exist and make no warranty or representation

whatsoever concerning these issues. The information contained in this informational package has

been obtained from sources we believe to be reliable; however, NRECommercial and Seller have

not conducted any investigation regarding these matters and make no warranty or representation

whatsoever regarding the accuracy or completeness of the information provided. Any pro formas,

projections, opinions, assumptions or estimates used are for example only and do not necessarily

represent the current or future performance of the property.

DISCLAIMER

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NRECOMMERCIAL TABLE OF CONTENTS

06EXECUTIVE SUMMARY

22MARKET OVERVIEW

27SALES COMPARABLES

32RENT COMPARABLES

18FINANCIAL ANALYSIS

10REMODEL PACKAGES

EXECUTIVE SUMMARY328 W 8TH ST.

NRECOMMERCIAL

DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]

NRECOMMERCIAL EXECUTIVE SUMMARY

INVESTMENT OVERVIEW

Complex Title 8th Street Apartments

Address 328 W. 8th Street.

City, State, Zip Long Beach, CA 90813

County Los Angeles

Price $1,620,000

Number of Units 8

Current Cap Rate 5.25%

Market Cap Rate 6.06%

Current GRM 12.04

Market GRM 10.92

Down Payment (30%) $485,000

Loan (70%) $1,135,000

Interest Rate 4.50%

Year Built 1923

Building Size 3,714 (Est.)

Lot Size 2,400 (Est.)

Unit Mix Eight - Studio / One Bath

Assessor’s Parcel Number 7272-019-004

UtilitiesMaster Metered for Electricity & Water

Seperately Metered for Gas

Parking Street Parking

Rent Control No

Two-Story 8 Unit Apartment complex located in vibrant Downtown Long Beach, CA

Originally Built in 1923, Remodeled in 2017-2018

Unit Mix: (8) Large Studio Units with Open Floor Plans

Significant Interior & Exterior Renovations Throughout (See Renovations Page)

(4) Units Renovated with “Full Remodel Packages” (See Renovations Page)

(4) Units Renovated with “Light Remodel Packages” (See Renovations Page)

Rents Still Roughly 10% Below Market – 6.06% Achievable Cap Rate at Leveled Rents

Additional Upside Through Implementing a Utility Reimbursement Program of $50/Unit, as the building is master metered for electricity

DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected] DREW McALLISTER \\ DIRECTOR OF SALES \\ 925.683.9203 \\ [email protected]

NRECOMMERCIAL

RENOVATION OVERVIEWOver the past two years, ownership has expended significant time and capital into renovating the subject property. The emphasis has been on improving

functional space, modernizing unit amenities and implementing high end finishes, while conserving the building’s historic charm and architecture. Four units have

been completely renovated with “Full Remodel Packages” and four units have been renovated with “Light Remodel Packages.” New ownership can increase the

rents of four more units by remodeling with Full Remodel Packages. Full Remodel Packages have garnered an additional $200 rent premium. Ownership has also

began charging an additional $50 for the most recent vacant units to offset some electricity costs. This strategy can also be implemented across four more units.

Refinished Cabinets

Upgraded Counter-tops

Laminate Wood Flooring

Two Tone Paint

Light Remodel Package

New Stainless Steel Appliances (Select Units)

Exterior Improvements

Modern Stone Façade & Entryway

New Carpet Throughout Building Hallways

Faux Grass Along Street for Pets

New Common Light Fixtures

New Exterior Paint

Full Remodel Package

Floors: Whitewash Vinyl Plank Flooring

All New Cabinets with soft close

Upgraded Counter-tops:Quartz Countertop with Marble Finish

Stainless Steel Appliances

Two Tone Paint

Stackable In-Unit Washer/Dryer

Bathroom tile: Italian Porcelain Calcatta/Marble

Modern light fixtures throughout

EXECUTIVE SUMMARY

FULL REMODEL PACKAGE328 W 8TH ST.

NRECOMMERCIAL

LIGHT REMODEL PACKAGE328 W 8TH ST.

NRECOMMERCIAL

FINANCIAL ANALYSIS328 W 8TH ST.

NRECOMMERCIAL


NRECOMMERCIAL FINANCIAL ANALYSIS

PRICING SUMMARY:

Price: $1,620,000

Price/Unit: $202,500

Actual Cap Rate: 5.25%

Market Cap Rate: 6.06%

Actual GRM: 12.04

Market GRM: 10.92

Price/SF (Building): $436

Price/SF (Lot): $675

Expenses/Unit: $5,685

PROPERTY SUMMARY:

Apartment Units: 8

Year Built: 1923

Parking: Street Parking

Building Square Feet: 3,714 (Assessor)

Lot Square Feet Approx: 2,400 (Assessor)

Type Of Building(s): Mid-Rise Garden Style

Roof Structure: Flat

Unit Mix: Eight - Studio / One Bath

Disclaimer: This Information has been secured from sources we believe to be reliable, but we make no representation or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies.

UNIT MIX & RENTAL INCOME: CURRENT MARKET

Unit Mix Total Units Est. SF Avg. Per Unit Current Avg. Rent/SF Avg. Per Unit Market Avg. Rent/SF

Studio/One Bath (Full Remodel) 4 465 $1,495 $5,980 $3.22 $1,495 $5,980 $3.22

Studio/One Bath (Light Remodel) 4 465 $1,308 $5,230 $2.81 $1,495 $5,980 $3.22

TOTALS: 8 3,714 $11,210 $11,960

Plus Rubs: - $400

Total Monthly Income: $11,210 $12,360

Gross Annual Income: $134,520 $148,320


# UNIT UNIT TYPE EST. SQ. FT. CURRENT RENT MARKET RENT NOTES OCCUPANCY

1 Studio / One Bath 465 $1,295 $1,495 Light Remodel Occupied




5 Studio / One Bath 465 $1,495 $1,495 Full Remodel Occupied




TOTALS: 3,720 $11,210 $11,960

NRECOMMERCIAL RENT ROLL


CURRENT RENT MARKET RENT NOTES

Plus RUBS: - $400 $50 Per Unit Per Month

TOTAL MONTHLY INCOME: $11,210 $12,360

Annualized: x12 x12

TOTAL ANNUAL INCOME: $134,520 $148,320

Four Units Have Full Remodel Packages

Four Units Have Light Remodel Packages

Market RUBS assumes Tenant Utility Reimbursement of $50/Unit/Mth (Master Metered)

Unit #2 Pays $50/Mth Extra for a Small Pet


NRECOMMERCIAL FINANCIAL ANALYSIS


LESS ESTIMATED EXPENSES CURRENT MARKET

Less Property Taxes: - 1.22% ($19,763) ($19,763)

Less Property Tax Assessments: - Actual ($1,075) ($1,075)

Less Professional Management: - 5.0% ($6,524) ($6,961)

Less Insurance: - $250/Unit ($2,000) ($2,000)

Less Water/Sewer/Trash: - 2017 Actual ($4,048) ($4,048)

Less Electricity (Master): - 2017 Actual ($4,464) ($4,464)

Less Repairs & Maint: - $550/Unit ($4,400) ($4,400)

Less Grounds Maint. & Cleaning: - $50/Mth ($600) ($600)

Less Pest: - $50/Mth ($600) ($600)

Less Reserves: - $250/Unit ($2,000) ($2,000)

LESS TOTAL EXPENSES: ($45,474) - 35% ($45,910) - 33%

NET OPERATING INCOME: $85,011 $98,104

Less New Debt Service: ($69,011) ($69,011)

Cash Flow: $16,000 $29,094

Cash on Cash Return: 3.30% 6.00%

Plus Principle Reduction: $18,310 $18,310

Total Return: $34,310 $47,404

Total Rate of Return: 7.07% 9.77%

INCOME SUMMARY CURRENT MARKET

Gross Monthly Rental Income: $11,210 $11,960

Gross Scheduled Income (Annualized): $134,520 $143,520

Less Physical Vacancy (3%): ($4,036) ($4,306)

Gross Operating Income: $130,484 $139,214

Plus RUBS: - $4,800

Gross Annual Income: $130,484 $144,014

MARKET OVERVIEW328 W 8TH ST.

NRECOMMERCIAL


MARKET OVERVIEWNRECOMMERCIAL


NRECOMMERCIAL MARKET OVERVIEW

Population of 241,000+within a 3 Mile Radius

Located in the Heart of DowntownLong Beach – Vibrant Growing City Center

74% of Population within a3 mile radius classified as renters

LOCATION OVERVIEW HIGHLIGHTS

City of Long Beach & Public Officials Committed to the Revitalization of the Community & Future Business Growth

Tremendous Resurgence of New Developmentsin the Downtown Sub-Market



Long Beach Population over475,000 60% Qualifiedas "Perpetual Renters"

Port of LB and Port of LA Generates over $100Bin trade & more than

315,000 jobs

ECONOMIC HIGHLIGHTS

$250M Queen Mary Development Project

Underway

$520M Civic Center Development Project

Approved for Downtown

$160M Long Beach Courthouse Project Completed 2013

Long Beach is one of Southern California’s most sought after sub-markets for apartment investors due to rent growth trends, No Rent Control and Pro Business City Officials

Long Beach Population – 475,000 (7th Most Populous City in California)

Business & Development Friendly City

Over 2,200 Units of Class A Multifamily Product Under Construction or Proposed in Long Beach

More than 2 Million SF of Multi-Family & Mixed Use Projects Under Construction or Proposed in Long Beach

Transit OrientedDevelopment


Prime Location for Future Appreciation and Growth

Spacious Open Concept Studio Units

NOT Subject toRent Control


Walk Score of 92,Transit Score of 75& Bike Score of 77

Walking Distance to Eateries, Public Transportation &

Downtown Long Beach

Stabilized Turn Key Asset with Upside in Rents

INVESTMENT HIGHLIGHTS

Excellent Unit Mix for Tenant Profile & Location – Property Offers High End Interior Finishes at an Affordable Rate Compared to New Class A Construction

6.06% Achievable Cap Rate at Leveled Rents

SALES COMPARABLES328 W 8TH ST.

NRECOMMERCIAL


SALES COMPARABLESNRECOMMERCIAL


COMP #1: 445 E 3rd St COMP #2: 338-350 E 7th St

NRECOMMERCIAL SALES COMPARABLES


COMP #3: 338 Cedar Ave

Address: 445 E 3rd St

City, State, Zip: Long Beach, CA 90802

County: Los Angeles

Price: $4,704,000

Number of Units: 22

Year Built: 1922

Building Size SF: 12,150

Lot Size SF: 5,009

Unit Mix: Sixteen - Studio Six - 1 Bed / 1 Bath

Price/SF: $387


GRM: N/A

Cap Rate: 4.50%


Sale Date: 8/29/2018

Note: No On-Site Parking

Address: 338-350 E 7th St


County: Los Angeles

Price: $2,272,500

Number of Units: 8

Year Built: 1912


Lot Size SF: 5,297

Unit Mix: Ten - 1 Bed / 1 Bath

Price/SF: $339


GRM: 13.14

Cap Rate: 4.37%



Note: Renovated Building, Inferior Location, No On-Site Parking

Address: 338 Cedar Ave


County: Los Angeles

Price: $3,590,000

Number of Units: 17

Year Built: 1918


Lot Size SF: 7,505

Unit Mix: Not Reported

Price/SF: $353


GRM: N/A

Cap Rate: N/A

Market Cap Rate: N/A


Note:


COMP #4: 138 Elm Ave COMP #5: 909-915 Locust Ave



COMP #6: 1202 Myrtle Ave

Address: 138 Elm Ave


County: Los Angeles

Price: $5,475,000

Number of Units: 22

Year Built: 1914


Lot Size SF: 7,405

Unit Mix: Sixteen - Studio | Six - 1 Bed / 1 Bath Two - 2 Bed / 1 Bath

Price/SF: $466


GRM: N/A

Cap Rate: 4.20%



Note: Renovated Units, No On-Site Parking, Avg. Unit Size 500 SF

Address: 909-915 Locust Ave


County: Los Angeles

Price: $1,230,000

Number of Units: 6

Year Built: 1909


Lot Size SF: 7,514

Unit Mix: Six - 1 Bed / 1 Bath

Price/SF: $334


GRM: 13.52

Cap Rate: 4.77%


Sale Date: 8/7/2018

Note: Deferred Maintenence

Address: 1202 Myrtle Ave


County: Los Angeles

Price: $1,125,000

Number of Units: 5

Year Built: 1957


Lot Size SF: 6,464

Unit Mix: Five - 1 Bed / 1 Bath

Price/SF: $405


GRM: N/A

Cap Rate: 5.18%


Sale Date: 12/13/2017

Note: Renovated Units, (3) On-Site Parking Spaces




# Address Units Sale Price Price/Unit Price/SF Cap Rate Market Cap Rate GRM Yr Built

1 445 E 3rd St 22 $4,704,000 $213,818 $387 4.50% 5.45% N/A 1922

2 338-350 E 7th St 8 $2,272,500 $227,250 $339 4.37% 5.14% 13.14 1912

3 338 Cedar Ave N/A $3,590,000 $211,176 $353 N/A N/A N/A 1918

4 138 Elm Ave 22 $5,475,000 $228,125 $466 4.20% 4.90% N/A 1914

5 909-915 Locust Ave 6 $1,230,000 $205,000 $334 4.77% 5.68% 13.52 1909

6 1202 Myrtle Ave 5 $1,125,000 $225,000 $405 5.18% 5.18% N/A 1957

Total/ Avg. 13 $3,066,083 $218,395 $381 4.60% 5.27% 13.33 1922

328 W. 8th Street. 8 $1,620,000 $202,500 $436 5.25% 6.06% 12.04 1923


RENT COMPARABLES328 W 8TH ST.

NRECOMMERCIAL


RENT COMPARABLES - STUDIONRECOMMERCIAL


# Address Distance (Mi.) Rent Size/SF Rent/SF Bed / Bath Date Rented

1 1027 Chestnut Ave, Long Beach 0.20 $1,195.00 300 $3.98 0 / 1 9/1/2018

2 240 W 7th Street, Long Beach 0.10 $1,445.00 500 $2.89 0 / 1 10/26/2017

3 828 Chestnut Ave, Long Beach 0.06 $950.00 250 $3.80 0 / 1 11/1/2017

4 404 Pine Ave, Long Beach 0.45 $2,060.00 578 $3.56 0 / 1 8/15/2018

5 733 Daisy Ave, Long Beach 0.29 $950.00 330 $2.88 0 / 1 11/1/2017

6 555 Pine Ave, Long Beach 0.32 $1,732.00 600 $2.89 0 / 1 11/1/2017

7 530 W 9th St, Long Beach 0.23 $1,200.00 400 $3.00 0 / 1 10/26/2017

8 225 W 3rd St, Long Beach 0.50 $1,832.00 450 $4.07 0 / 1 5/23/2018

Total / Avg. 0.27 $1,421 426 $3.38 0 / 1 2/6/2018

328 W 8th Street: $1,402 465 $3.02 0 / 1 Current

4425 Atlantic Ave. Bldg. C Long Beach, CA 90807

Direct \\ 562.528.8105Main \\ 562.423.8143Mobile \\ 925.683.9203DRE \\ 01946829

NRECommercial.com

NRECOMMERCIAL

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