10TH STREETAPARTMENTS1224-1228 10TH ST.SANTA MONICA, CA 90401

Michael Chang BRE#01880895Vice President310.903.4967michael.chang@svn.comCalDRE #01880895

SVN | RICH INVESTMENT REAL ESTATE PARTNERS | 10940 WILSHIRE BLVD., SUITE 1600, LOS ANGELES, CA 90024 SALE BROCHURE

OFFERING SUMMARY

Sale Price: $6,150,000

Number Of Units: 15

Price Per Unit: $410,000

Cap Rate: 3.93%

NOI: $241,863

Lot Size: 15,026 SF

Year Built: 1958

Building Size: 8,700 SF

Zoning: R3

Market: Los Angeles

Submarket: Santa Monica

SVN is pleased to present an opportunity to acquire two adjacent apartment buildings with combined 15 units consistingof all 1 bedroom/1 bath apartments. The subject property is situated on a double lot located just south of WilshireBoulevard with approximately 15,026 lot SF, zoned R3 in the heart of Santa Monica. Subsequently, the property offers anInvestor the opportunity to create additional value by rehabbing the existing units to achieve market rents with over 25%upside in rent growth. Alternatively, the current Owner has undergone though an entitlement process for 13 luxury condounits pre-approved by the city of Santa Monica for a Developer to build in the near future. 1224 10th Street is built in 1951with (5) 1 bedroom/1 bath units each with a private outdoor patio space averaging 453 SF per unit. 1228 10th Street is a2-story walk-up apartment building built in 1958 and is comprised of (10) 1 bedroom units averaging 788 SF per unit.

PROPERTY OVERVIEW

PROPERTY HIGHLIGHTS

• Located in Prime Santa Monica Boulevard - Immediately South of Wilshire Boulevard

• Value-Add Opportunity With 25%+ Rental Upside - 3 Units Delivered VACANT!

• Entitlements Available to Build 13 Condo Units On Double Lot!

• Several Blocks Away From 3rd Street Promenade and Santa Monica Pier

• Walk-Score of 88 - Very Walkable | Bike Score of 95 - Biker's Paradise

• Walking Distance To Award Winning Restaurants, Retail Shops, and Entertainment

Property Summary

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 2The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 3The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

LOCATION INFORMATION

Building Name 10th Street Apartments

Street Address 1224-1228 10th St.

City, State, Zip Santa Monica, CA 90401

County Los Angeles

Market Los Angeles

Sub-market Santa Monica

Cross-Streets Santa Monica Boulevard

Signal Intersection No

BUILDING INFORMATION

NOI $241,863.83

Cap Rate 3.93

Occupancy % 80.0%

Tenancy Multiple

Number of Floors 2

Average Floor Size 580 SF

Year Built 1958

Free Standing No

PROPERTY HIGHLIGHTS

• Located in Prime Santa Monica Boulevard - Immediately South of WilshireBoulevard

• Value-Add Opportunity With 25%+ Rental Upside - 3 Units Delivered VACANT!

• Entitlements Available to Build 13 Condo Units On Double Lot!

• Several Blocks Away From 3rd Street Promenade and Santa Monica Pier

• Walk-Score of 88 - Very Walkable | Bike Score of 95 - Biker's Paradise

• Walking Distance To Award Winning Restaurants, Retail Shops, and Entertainment

Complete Highlights

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 4The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

UNITNUMBER

UNITBED

UNITBATH

UNITSIZE (SF)

LEASESTART

LEASESTART

CURRENTRENT

CURRENTRENT (PER SF)

MARKETRENT

MARKETRENT (PER SF) COMMENTS

1 1 1 788 5/1/14 Current $1,772 $2.25 $2,600 $3.30

2 (Vacant) 1 1 788 VACANT Current $2,600 $3.30 $2,600 $3.30 Delivered Vacant

3 1 1 788 2/1/15 Current $1,897 $2.41 $2,600 $3.30

4 1 1 788 6/10/17 Current $2,090 $2.65 $2,600 $3.30

5 1 1 788 4/1/16 Current $2,084 $2.65 $2,600 $3.30

6 1 1 788 10/6/18 Current $2,250 $2.86 $2,600 $3.30

7 1 1 788 5/27/97 Current $833 $1.06 $2,600 $3.30

8 1 1 788 1/3/18 Current $2,100 $2.66 $2,600 $3.30

9 (Vacant) 1 1 788 VACANT Current $2,600 $3.30 $2,600 $3.30 Delivered Vacant

10 1 1 788 4/1/04 Current $1,024 $1.30 $2,600 $3.30

A 1 1 453 1/5/06 Current $1,459 $3.22 $2,350 $5.19

B 1 1 453 3/1/05 Current $1,421 $3.14 $2,350 $5.19

C (Vacant) 1 1 453 VACANT Current $2,350 $5.19 $2,350 $5.19 Delivered Vacant

D 1 1 453 10/31/17 Current $2,200 $4.86 $2,350 $5.19

E 1 1 453 4/1/10 Current $1,409 $3.11 $2,350 $5.19

Storage Current $200

Storage Current $200

Totals/Averages 10,145 $28,095 $2.77 $38,150 $3.93 $0

Rent Roll

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 5The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Additional Photos

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 6The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

INVESTMENT OVERVIEW CURRENT PRO FORMA

Price $6,150,000 $6,150,000Price per Unit $410,000 $410,000GRM 17.3 13.6CAP Rate 3.9% 5.4%Cash-on-Cash Return (yr 1) 2.51 % 5.39 %Total Return (yr 1) $145,847 $235,434Debt Coverage Ratio 1.62 2.22

OPERATING DATA CURRENT PRO FORMA

Gross Scheduled Income $356,055 $451,800Other Income $6,000 $6,000Total Scheduled Income $362,055 $362,055Vacancy Cost $10,681 $13,554Gross Income $351,373 $444,246Operating Expenses $109,510 $112,796Net Operating Income $241,863 $331,450Pre-Tax Cash Flow $92,735 $182,322

FINANCING DATA CURRENT PRO FORMA

Down Payment $3,690,000 $3,382,500Loan Amount $2,460,000 $2,767,500Debt Service $149,128 $149,128Debt Service Monthly $12,427 $12,427Principal Reduction (yr 1) $53,112 $53,112

Financial Summary

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 7The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

INCOME SUMMARY CURRENT PER UNIT PRO FORMA PER UNIT

Rental Income $356,055 $23,737 $356,055 $23,737Laundry $1,200 $80 $1,200 $80Parking/Storage $4,800 $320 $4,800 $320

Gross Income $362,055 $24,137 $362,055 $24,137

EXPENSE SUMMARY CURRENT PER UNIT PRO FORMA PER UNIT

Property Tax (1.25%) $76,875 $5,125 $76,875 $5,125Trash (Actual) $2,895 $193 $2,895 $193Insurance $3,915 $261 $3,915 $261Utilities - Water (Actual) $5,101 $340 $5,101 $340Utilities - Power (Actual) $472 $31 $472 $31Utilities - Gas (Actual) $284 $18 $284 $18Pest Control $750 $50 $750 $50Maintenance ($450/Unit) $6,750 $450 $6,750 $450Professional Fees $1,000 $66 $1,000 $66Off-Site Management (3%) $10,268 $684 $13,554 $903Gardening $1,200 $80 $1,200 $80

Gross Expenses $109,510 $7,300 $112,796 $7,519

Net Operating Income $241,863 $16,124 $331,450 $22,096

Income & Expenses

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 8The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

Location Maps

10TH STREET APARTMENTS | 1224-1228 10TH ST. SANTA MONICA, CA 90401 SVN | Rich Investment Real Estate Partners | Page 9The information presented here is deemed to be accurate, but it has not been independently verified. We make no guarantee, warranty or representation. It is your responsibility to independently confirm accuracy and completeness. All SVN® offices are independently owned and operated.

POPULATION 0.5 MILES 1 MILE 1.5 MILES

Total population 11,671 38,158 64,457

Median age 39.5 40.3 41.0

Median age (Male) 38.2 39.2 40.2

Median age (Female) 41.9 42.2 42.3

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES

Total households 6,690 21,137 34,112

# of persons per HH 1.7 1.8 1.9

Average HH income $87,266 $97,461 $110,649

Average house value $747,310 $866,622 $924,732

* Demographic data derived from 2010 US Census

Demographics Map