A FULLY ENTITLED SITE TO BUILD THREE TOWNHOMES AND THREE CONDOMINIUM FLATS WITHIN A DESIGNATED OPPORTUNITY ZONE

1255 N BEACHWOOD DRIVELOS ANGELES, CA

AFFILIATED BUSINESS DISCLOSURE

CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

Copyright Notice

© 2019 CBRE, Inc. All Rights Reserved.

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IV.

Executive Summary

Summary of Entitlements

Sales Comparables

Market Overview

DAVID B. HENNEY+1 310 550 2546david.henney@cbre.comLic. 01960833

CONTACT

1255 N BEACHWOOD DRIVELOS ANGELES, CA

E X E C U T I V E S U M M A R Y

1255 N BEACHWOOD DRIVE

LOS ANGELES, CA

I

E X E C U T I V E S U M M A R Y

CBRE Inc. as an exclusive agent is pleased to present for sale Beachwood Redevelopment: a fully entitled site to build three townhomes and three condominium flats within a designated Opportunity Zone.

Just beneath Sunset Gower Studios, a developer will have the opportunity to acquire ± 6,749 square feet of land. The seller is currently in the final stages of plan check, as the Building & Safety and Grading Permit are close to completion. It’s estimated that permits will be ready to issue within 60 days of January 21st, 2019.

The site is entitled for 6 condominiums, of which three are townhomes with 3 bedrooms and 3.5 baths that range between 2,059 to 2,090 SF. The fourth floor of each townhome has a private 367 SF rooftop. Two of the three flats are 1,238 SF with 1 bedroom and 2 baths, while the third is 795 SF with an open layout. Beneath the units is a 3,820 SF garage with 9 parking spaces. There is also a shared 703 SF backyard that each owner can access through the side of the property.

Future residents will enjoy an abundance of shopping and entertainment attractions such as Hollywood/Sunset, The Grove, 3rd and Fairfax, Larchmont Village, Koreatown and Melrose Avenue. Key employers include Paramount Pictures, Children’s Hospital, Kaiser Permanente, and Sunset Bronson Studios. Hollywood’s outstanding, central location is minutes away from key employment centers including Downtown Los Angeles, West Hollywood, Wilshire Boulevard’s Miracle Mile, Beverly Hills and Century City.

THE

OFFERING

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INVESTMENT

HIGHLIGHTS

• Fully entitled and estimated to have approval for building permits within 60 days

• Designated within an Opportunity Zone

• Contemporary Design with three Townhomes and three Flats

• Lack of Entry-Level Housing in a Booming Job Market

• Hollywood has recently delivered over 1.35 million SF of office space with over 3.6mm SF on the way

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Property Address

1255 Beachwood Drive

Assessor Parcel Number

5534-015-004

Submarket

Hollywood

Estimated Land Area

± 6,750 square feet

± 0.16 acres

Zoning

LAR3-1

Ownership Interest

Fee Simple

PROPERTY

FACTS

PARCEL

MAP

135’

50’

130’

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S U M M A R Y O F E N T I T L E M E N T S

1255 N BEACHWOOD DRIVE

LOS ANGELES, CA

II

S U M M A R Y O F E N T I T L E M E N T S

SUMMARY OFENTITLEMENTS

10,473 SFPROPOSED BUILDING AREA

41’-10”BUILDING HEIGHT

703 SF SHARED BACKYARD

9,478 SFRENTABLE SF

3,628 SFSTRUCTURAL FOOTPRINT

Each 367 SFROOF DECKS

GARAGE

7’-10” below grade, 2’-10” above grade

3,981 SF

PARKING

Standard 5 Compact 3 Handicap Van 1Total 9

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RESIDENTIAL

UNITS

Unit # Unit Size Floor Plan1 2,090 SF 3 Bedroom / 3.5 Bath

2 2,059 SF 3 Bedroom / 3.5 Bath

3 2,059 SF 3 Bedroom / 3.5 Bath

4 795 SF Studio

5 1,238 SF 1 Bedroom / 2 Bath

6 1,238 SF 1 Bedroom / 2 Bath6 TOTAL

UNIT

MIX

Unit Type Layout3 3 Bedroom / 3.5 Bath Townhome

2 1 Bedroom / 2 Bath Condominium

1 Studio Condominium

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LONGITUDINAL SECTION

1 1

FIRST LEVEL PLAN

1 2

SECOND LEVEL PLAN

1 3

THIRD LEVEL PLAN

1 4

ROOF LEVEL PLAN

1 5

TRANSVERSAL SECTION

1 6

TRANSVERSAL SECTION

1 7

NORTH ELEVATION

SOUTH ELEVATION

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EAST & WEST ELEVATIONS

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S A L E S C O M P A R A B L E S

1255 N BEACHWOOD DRIVE

LOS ANGELES, CA

III

S A L E S C O M P A R A B L E S

Address Type BR BA SqFt Sale Price $SP/SF Built COE1 5806 WARING AVE #2 Flat 1 1 800 $600,000 $750 2007 7/6/18

2 7062 HAWTHORN AVE #301 Loft 1 1 1,020 $738,000 $724 2006 6/4/18

3 6250 HOLLYWOOD BLVD #4D Flat 1 2 1,420 $975,000 $687 2009 5/16/18

3 6250 HOLLYWOOD #8B Flat 1 2 1,335 $925,000 $693 2009 5/22/18

2 7062 HAWTHORN AVE #105 Loft 2 2 1,110 $735,000 $662 2006 6/7/18

5 1410 N CURSON AVE #404 Flat 2 2 1,460 $925,000 $634 2006 3/6/18

3 6250 HOLLYWOOD BLVD #6F Flat 2 2 1,410 $940,000 $667 2009 5/13/18

AVERAGE 1,222 $834,000 $688 2007

SALES COMPARABLESFLATS & LOFTS

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2

3

1

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Address Type BR BA SqFt Sale Price $SP/SF Built COE1 5806 WARING AVE #11 Townhomes 2 2 1,455 $910,000 $625 2007 10/1/18

2 1979 GRACE AVE #4 Townhomes 2 2 1,440 $990,000 $644 1979 5/25/18

3 1436 N DETROIT ST #4 Townhomes 2 2.5 1,380 $899,000 $651 2007 9/18/18

4 1430 N VISTA ST #2 Townhomes 2 4 1,830 $1,249,000 $683 2008 6/5/18

5 850 N POINSETTIA PL #5 Townhomes 3 3 1,344 $870,530 $632 1990 10/27/18

6 6074 WEST STUDIO CT Townhomes 3 3.5 1,861 $1,225,906 $659 2015 3/13/18

7 1246 GORDON ST Townhomes 3 3.5 1,835 $1,024,000 $587 2017 10/12/17

8 908 N HUDSON AVE Townhomes 3 3.75 1,849 $1,365,000 $738 2018 5/15/18

AVERAGE 1,624 $1,066,680 $652 2005

SALES COMPARABLESTOWNHOMES

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5

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M A R K E T O V E R V I E W

1255 N BEACHWOOD DRIVE

LOS ANGELES, CA

IV

M A R K E T O V E R V I E W

KEY DISTANCES

BY ROAD

3/4 MILE 3/4 MILE 1/4 MILEMETRO RED LINE

STATIONHOLLYWOOD (101)

FREEWAYSUNSET STRIP

4 1/4 MILE 4 MILES 5 3/4 MILESGRIFFITH PARK UNIVERSAL STUDIOS DODGER STADIUM

7 MILES 6 MILES 14 1/2 MILESUSC DOWNTOWN

LOS ANGELESPACIFIC OCEAN

BEACHES

7.5 MILES 14 1/2 MILES 7 MILESUCLA LAX CENTURY CITY

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LOCATION

HIGHLIGHTS

HIGHLY DESIRABLE HOLLYWOOD, CALIFORNIA:

Desirable infill location in world-famous Hollywood and adjacent to the city of West Hollywood.

PROXIMITY TO WELL-PAYING EMPLOYERS:

Residents enjoy convenient access to major brand media companies like Netflix and Paramount Pictures, as well as high-wage healthcare centers like Chil-dren’s Hospital and Kaiser Permanente. Other nearby large employers include Paramount Pictures, Universal Studios, and Sunset Gower Studios. Within 30 minutes are large employment centers in West Hollywood, Beverly Hills, Down-town Los Angeles, Universal City, Burbank, Glendale and Pasadena.

HOLLYWOOD RENAISSANCE:

Plans call for a total of $4.8 Billion to be invested in Hollywood development. Already $2.2 billion of completed projects include office, retail, entertainment, and hospitality destinations.

HOT RESTAURANTS, ENTERTAINMENT, AND NIGHTLIFE:

Popular restaurants include Osteria Mozza, Lemonade, Sweet Fin Poke, Pressed Juicery, Salt & Straw, Rao’s Hollywood, Cafe Gratitude, Providence, Tender Greens, and Trois Mec. The property is close to an abundance of des-tination hotels, clubs, and nightlife such as W Hotel, Lowe’s Hollywood Hotel, The Hollywood Roosevelt, Good Times at Davey Wayne’s, AVALON Hollywood, Sound Nightclub and Lucky Strike Live, Nearby world-class entertainment venues include the Hollywood Bowl, The Pantages Theatre, the Hollywood Pal-ladium, El Capitan Theater, the Fonda Theater, Chinese Theater, and Grauman’s Egyptian Theater.

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ACCESS TO TRANSIT

Nearby is the Metro red Line subway portal at Hollywood and Vine. The red line extends north to North Hollywood where riders can walk to Uni-versal Studios or the Noho Arts District, or transfer to the Orange Line that extends to Warner Center, the largest employment hub in the San Fernando Valley. South on the Red Line towards Downtown Los Ange-les, riders have the choice of transferring to the Purple Line out through Mid Wilshire and Koreatown, the expo line which passes by the USC and heads towards Culver City and Santa Monica, the Silver Line travels south to San Pedro, the Blue Line allows access to South LA and Long Beach, the Gold Line provides access to Pasadena, or, at the red line terminus at Union Station, riders may transfer to Amtrak or Metrolink.

LOCAL GROCERS AND PHARMACY

Sprouts, Pavilions, Ralph’s, Trader Joe’s, Smart & Final, Walgreen’s, Tar-get, Rite-Aid, and CVS are a short distance away. Sundays at Selma and Ivar feature the weekly Hollywood Farmer’s Market.

NEARBY PARKS:

Las Palmas Playground, Yucca Park, Whitley Heights Historic District, De Longpre Park, Runyon Canyon Park, Barnsdall Art Park and Griffith Park.

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HOLLYWOOD

SNAPSHOT

5.2% $3000 95.8%AVERAGE ANNUAL RENT GROWTH

(SINCE 2014)AVERAGE RENT

(MAY 2018)AVERAGE OCCUPANCY

(MAY 2018)

$134K $1.48M 163%AVERAGE HOUSEHOLD INCOME

(2017)MEDIAN HOME PRICE(MAY 2018 | ZIP 90038)

AFFORDABILITY GAP

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HOLLYWOOD OVERVIEW

Recognized worldwide for its fame and cultural identity as the historical center of film studios and stars, Hollywood has always been synonymous with the Ameri-can entertainment industry. Today, Hollywood is an area where all aspects of the entertainment industry, including independent and major movie studios, television studios, radio stations, record companies, special effect houses, video game com-panies, and production and post-production companies reside and thrive. Resi-dents enjoy the community’s close proximity to the Sunset Strip and Hollywood & Highland shopping and entertainment districts as well as seven major Film and Television Studios and three major Record Labels. Hollywood beckons tourists with landmarks like TCL Chinese Theatre and star-studded Walk of Fame. High-lights include Paramount Pictures, historic music venues like the Hollywood Bowl, and Dolby Theatre, home of the Oscars. Scenesters can choose from improv com-edy clubs, retro-cool bars and velvet-roped nightclubs. Locals frequent eateries in nearby Thai Town. Hollywood is an ideal location for urban living in Los Angeles, with easy access to jobs, culture, shopping and transit. Two light rail lines make it easy to commute to jobs in downtown Los Angeles or the San Fernando Valley. Residents are provided easy access to over one million jobs located in Hollywood and surrounding areas. Its central geographic and ‘ground-zero’ location for the entertainment industry and emerging technology companies has transformed Hol-lywood into one the strongest office markets in the country. The area has received an influx of over $4 billion of recent capital investments that will result in 1.9 million square feet of office space, numerous residential projects and 1,500 hotel rooms by 2021.

MELROSE AVENUE SHOPPING DISTRICT 7290 SUNSET BLVD, HOME TO THE

DIRECTORS GUILD OF AMERICA

THE SUNSET STRIP 8000 SUNSET OFFICE RETAIL CENTER

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HOLLYWOOD

DEVELOPMENT

Some of the most successful new developments in Los Angeles are situated in Hollywood, including the W Hotel, Redbury Hotel, Roosevelt Hotel, the Los Angeles Medical Center, Technicolor Headquarters, ArcLight Hollywood, Emerson College LA and Columbia Square. With over $4 billion in capital investments, Hollywood remains one of California’s fastest growing and popular urban submarkets.

The pipeline of office space totaling over 3.4 million square feet translates to thousands of jobs and continued high demand for rental housing.

CASE STUDIES

Located on a prominent four-acre site at the northeast corner of the Sunset Bronson Studios lot, ICON is a 14-story, Class A office building and the new home to Netflix’s Los Angeles headquarters. ICON is situated in the heart of Hollywood, just one block west of the 101 Freeway and minutes from the Hollywood/Vine LA Metro Red Line station. The vertical campus features a striking design by Gensler Architects and state-of-the-art building systems

expected to achieve LEED Gold certification. In addition to unique access to a full-service production facility and studio lot, the building features 24,000-square-foot floor plates, 45-square-foot column free spans, 14-foot ceilings, floor-to-ceiling windows with panoramic views and terraced balconies

on multiple floors.

PARAMOUNT PICTURES supports approximately 5,000 people, including salaried employees, clients, and tenants based on site and seasonal employment. The studio occupies 1.9 million square feet of space used for executive offices, sound stages, production facilities, theatres, and equipment facilities. The company recently received approval or a $700 million expansion and revitalization project for its studio including improvements for new sound stages and offices. Approximately 1.4 million square feet

of development is planned to take place over the next 25 years at Paramount’s headquarters and adjacent properties owned by the company. The expansion will support 7,300 construction and 5,500 additional permanent jobs at the studio.

$4.8 BILLIONINVESTED AND ANNOUNCED SINCE 2000

by developers of major retail, commercial, hospitality, and business projects

$2.2 BILLIONCOMPLETED PROJECTS

$1 BILLIONPROJECTS UNDER-

CONSTRUCTION

$1.6 BILLIONPROJECTS IN THE

PIPELINE

3.4 M SF= 15,000 JOBS3.4 million square feet of new class “A” office space under

construction or proposed translates into 15,000 new, white-collar jobs.

3 0

NETFLIX’S DECISION TO RELOCATE ITS SOCAL OPERATIONS TO HOLLYWOOD “REAFFIRMS THAT LOS ANGELES REMAINS THE NEXUS FOR

INNOVATIVE TECH AND CREATIVE COMPANIES AND THAT THE FUTURE OF THE ENTERTAINMENT INDUSTRY WILL CALL HOLLYWOOD HOME,”

- MAYOR ERIC GARCETTI, LA TIMES

RECENT

LEASING ACTIVITY

3 1

HOLLYWOOD

1. Jim Henson Company2.Jimmy Kimmel Show3. Peach Inc.4. J2 Global5. Moviola Digital Arts Institute6. Occidental Entertainment7. Soundelux Entertainment8. Live Nation9. Allied Integrated10. Trailer Park11. CIM Group12. Chrome Hearts13. Crest Digital14. A & I Photographic & Digital15. Turner broadcasting System16. CNN17. IO Film18. Paladin Group19. BIT & Associates20. Bank of America21. SAE Institute LA22. Imaginary Forces23. Universal Music24. TV Guide International25. Target Media26. Los Angeles Film School27. Encore Hollywood28. Academy of Motion Picture Arts29. LA County30. Reveille31. American Music & Drama 32. Capital Records33. Prime Focus Global34.Point 360

35.Time Warner Cable36. Milk Studios37. RenMar Studios38. Recording Musicians Association39. Chase Bank40. Nickelodeon41. Nielsen Media Research42. Time Warner Entertainment

43. Josie Maran Cosmetics44. Technicolor45. Storybook Productions46. Siren Studios47. Ocean Way Recording 48. Paramount Pictures49. EastWest Studios50. KTLA

51. Disney Studios52. Kaiser Hospital53. Children’s Hospital54. American Career College55. Netflix

3 2

EPICENTER OF THE

ENTERTAINMENT INDUSTRY

The primary supplier of jobs in the Hollywood market are the entertainment, media, and technology companies that occupy studio and office space and serve as a magnet for the ancillary entertainment industry service providers. Hollywood contains one of the largest concentrations of entertainment industry and media firms in the world. A sampling of these recognizable industry leaders include:

ENTERTAINMENT LEADERS

*Academy of Motion Picture Arts & Sciences

*Jim Henson Studios

*BuzzFeed *Live Nation *Capitol Records

*CNN *Magical Elves *Deluxe

*Panavision *Encore Video *Reveille Productions / Shine America

*Fender

*Technicolor *Fotokem *Trailer Park *j2 Global Communications *Viacom *VNU/Nielsen

Media Research*Netflix

HOLLYWOOD STUDIO LOTS

*Hollywood Center Studios *Raleigh Studios*Paramount Studios *Sunset Gower/Bronson Studios

*Red Studios

ANCILLARY SERVICE PROVIDERS

*BLT Productions *Paladin Lighting*Laser-Pacific Media *Paskal Lighting*Line 204 *Quixote

EDUCATION

*American Academy of Dramatic Arts *American Film Institute *Los Angeles Recording Studio*American Musical & Dramatic Academy *Los Angeles City College *SAE Institute*American Film Institute *Los Angeles Film School

THE ENTERTAINMENT INDUSTRY SUPPORTS OVER 162,000 DIRECT JOBS, 590,000

INDIRECT JOBS, AND 85,000 INDEPENDENT CONTRACTORS. THE INDUSTRY BOASTS

AN ANNUAL PAYROLL IN EXCESS OF $18.9 BILLION

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WEST

HOLLYWOOD

The city of West Hollywood, known colloquially as WeHo, is a trendy area known for its high-energy nightlife. The famous Sunset Strip features the Chateau Marmont, a trendy celebrity hideaway, plus comedy clubs and live music venues like the legendary Whiskey a Go Go, along with the area’s most buzzworthy restaurants, clubs, and shops. West Hollywood is known for its extreme density and walkable street grid.

From SoHo House to Chateau Marmont, Sunset Boulevard offers plenty of ways to play, relax and blow off steam. People from around the world flock here to bask in the inimitable character of the city. The hub of entertainment, dining and nightlife is centered on Sunset and Santa Monica Boulevards, with its Avenues of art & design along Melrose, Beverly, and La Cienega. West Hollywood is known for its high concentration of high profile retail and entertainment destinations, making it truly the place to see and be seen in Southern California. West Hollywood is famous for its population of both the radical and refined, making it the ideal location for both retail and multi-family housing.

WEST HOLLYWOOD GATEWAY

WHISKEY A GO-GO

PACIF IC DESIGN CENTER

3 4

ACCESSIBILITYBeachwood Apartments is extremely convenient to the entire Los Angeles metro area thereby allowing residents access to more than one million employment opportunities within a 30-mile radius.

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HOLLYWOOD

BOULE

VARD

PLANNE4,713 UNITS

UNDER CONSTRUCTION2,956 UNITS

TOTALS

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INDICATES DEVELOPMENT ACTIVITY +

RECENTLY BUILT 1,371,753 SF

UNDER CONSTRUCTIONOFFICE: 738,674 SFPOTENTIAL JOBS: 3,693

PROPOSED/APPROVEDOFFICE: 2,873,896 SFPOTENTIAL JOBS: 14,369

TOTALS

3 7

1255 N BEACHWOOD DRIVELOS ANGELES, CA

DAVID B. HENNEY+1 310 550 2546david.henney@cbre.comLic. 01960833

CONTACT

CBRE, INC.Broker Lic. 00409987

© 2019 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.