BRAND NEW 20 YEAR CORPORATE GUARANTEED LEASE IN A DENSELY POPULATED URBAN INFILL LOS ANGELES COUNTY SUB-MARKET

G R O U P

BRANDON MICHAELS

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710bmichaels@marcusmillichap.comLicense: CA #01434685www.BrandonMichaelsGroup.com

PRESENTED BY:

G R O U P

BRANDON MICHAELS

OFFICES NATIONWIDEwww.marcusmillichap.com

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NON-ENDORSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Milli-chap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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DISCLAIMER

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN AP-PRAISAL.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

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AREA OVERVIEW

COMPARABLES ANALYSIS

FINANCIAL ANALYSIS

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The Brandon Michaels Group Group of Marcus & Millichap has been selected to exclusively market for sale Blink Fitness, ideally located at 6710 Pacific Boulevard in the landmark Warner Theater building in Huntington Park, CA. The subject property underwent a multi-million dollar renovation and is now the new home to Blink Fitness, one of the fastest growing fitness brands in the country that is a well-performing subsidiary of Equinox. The 30,588 square foot building has been beautifully remodeled to house a state of the art fitness facility. Ideally located at the epicenter of Huntington Park, the property benefits from a dense immediate population with over 1.1 million people within a five mile radius and significant vehicle and foot traffic along Pacific Boulevard, one of the busiest commercial thoroughfares throughout Los Angeles County.

Blink Fitness, a subsidiary of Equinox, just executed a brand new 20 year, NN lease. Blink Fitness is one of the fastst growing fitness brands in the country. Blink first opened in 2011 as an operating subsidiary of Equinox. In contrast to Equinox’s portfolio of luxury fitness centers and boutiques with monthly membership costs of $185+, Blink’s memberships range from $15 to $25 a month, which is less than the price of one SoulCycle class (SoulCycle is another Equinox subsidiary). The value proposition that Blink provides is bargain memberships compared to the fitness competition and higher profitability margins as a result of added amenities/costs such as yoga, pilates, and personal training sessions. Since 2012, Blink has organically grown from four locations to 81 locations (including those in development) today. Moreover, Blink’s overall real estate strategy is to grow to 90 locations by 2018 and eventually expand to 300 locations by 2020. Blink fitness centers range from 12,000 to 18,000 square feet, with the average being 15,000 square feet. This footprint in conjunction with the flexibility on how they utilize space ideally positions Blink amongst their competitors. With a total revenue of over $102 million, Blink experienced a 25% increase in sales from 2016. Blink operates at the highest EBITDA margin of all of Equinox’s subsidiary companies at 34.8%. Blink operates at the lowest rent margin in the fitness industry at 20%, compared to LA Fitness at 24% and 24 Hour Fitness at 40%, which is a distinct completive advantage.

Equinox Fitness is an American luxury fitness company which operates several separate fitness brands: Equinox, PURE Yoga, Blink Fitness, and SoulCycle. Within Equinox's portfolio of brands, there are more than 135 locations within every major city across the United States in addition to London, Toronto, and Vancouver. Its national headquarters is in New York City. The luxury sports club broke the mold of the traditional dingy, smelly workout facilities to create a fitness space that was not only high-end but also worthy of competing in a more general lifestyle market.

This stable and secure investment opportunity is located in the heart of the Huntington Park Business District and offers convenient access to the surrounding five major freeways of Los Angeles. This existing 1930’s theater building offers an old world charm and memorable feel and features high ceilings and a facade that provides prominent visibility along highly desirable Pacific Boulevard. Pacific Boulevard is the principal commercial thoroughfare in the city of Huntington Park, California. It runs from Vernon and Santa Fe Avenues in Vernon to Cudahy Street in Walnut Park before changing to Long Beach Boulevard. The Pacific Boulevard commercial district is the third highest grossing commercial district in the County of Los Angeles.

- A rare opportunity to acquire a brand new 20 year corporate guaranteed lease in a densely populated urban infill Los Angeles county sub-market.

- A Subsidiary of

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$102.8 M300+Blink Fitness's revenue grew25% to $102.8 Million in 2017

300+ Blink Fitness Locationsprojected by 2020

Blink Fitness EBITDA, which is the highest of all EQUINOX subsidiaries at 34.8%

$35.2 M5

BRAND NEW 20 YEAR CORPORATE GUARANTEED LEASE WITH BLINK FITNESS BY EQUINOX - Brand new 20 year corporate guarantee NN lease with Blink Fitness, one of the strongest performing subsidiaries of Equinox and one of the fastest growing fitness brands in the country.

SIGNIFICANT GROWTH PROJECTIONS AND EXCELLENT OPERATING HISTORY FOR BLINK FITNESS - Blink is projecting over 300 locations by 2020, and operates at the lowest rent margin in the fitness industry and the highest EBITDA of all Equinox subsidiaries .

EQUINOX IS A LEADER IN THE HIGH GROWTH FITNESS INDUSTRY - The luxury sports club leader is re-inventing the fitness industry by breaking the mold of the traditional workout facility to create high-end fitness spaces worthy of competing in a more general lifestyle market. With 135 locations in every major city across the United States in addition to London, Toronto, and Vancouver, Equinox has become synonymous with a unique luxury experience that is catering to a large segment of the fitness world.

ICONIC PROPERTY THAT HAS UNDERGONE A MULTI-MILLION DOLLAR RENOVATION - Blink occupies the landmark Warner Theater building, a 1930’s theater building Blink with a unique old world charm and memorable feel that features high ceilings and a highly visible facade. The significant renovation is complete with a new roof, electrical systems, plumbing, and significant amenities that create a distinctive environment for members of this location. Over $4.5 million has been invested in the property.

ACCESSIBILITY AND WALKABILITY - Pacific Boulevard has a score of 91/100 for walkability. Retailers, small boutiques, and restaurants populate Pacific Boulevard. Huntington Park also has convenient access to the surrounding five major freeways- Interstates 710, 110, 10, 105 and the 5.

RARE OPPORTUNITY - Stable and secure offering allows for minimal management responsibility in a strong Los Angeles county location with 12.5% rental increases every 5 years.

INVESTMENT HIGHLIGHTS

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FLORENCE AVENUE

PAC

IFIC

BO

ULE

VA

RD

RANDOLPH STREETGAGE AVENUE

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Property Address 6710 - 6720 Pacific BoulevardHuntington Park, CA 90255

Tenant Blink Fitness by E Q U I N O X

Price Request For Offer

Net Operating Income $801,231

Gross Building SF* 30,923 SF

Lot Size 17,442 SF

Year Built 1930 / Renovated 2018

APN 6322-017-006

Zoning C2

Type of Ownership Fee Simple

Square Footage Breakdown Ground Floor: Lower Level: Mezzanine: Balcony:TOTAL:

PROPERTY INFORMATION

PROPERTY OVERVIEW

3,587 SF

14,809 SF7,780 SF

4,747 SF30,923 SF

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ADDRESS6710 - 6720 Pacific BoulevardHuntington Park, CA 90255

SITEThe subject property is located on the east side of Pacific Boulevard south of Gage Avenue and north of Florence Avenue in Huntington Park, CA.

SQUARE FOOTAGESThe total building square footage is 30,923 square feet. Total land square footage is 17,442 square feet. The square footage breakdown is as follows: Ground Floor-14,809 SF, Lower Level-7,780 SF, Mezzanine-3,587 SF, Balcony- 4,747 SF.

FRONTAGE AND ACCESS±114 feet of frontage on Pacific Boulevard

ZONINGThe zoning is C2.

YEAR BUILTThe subject property was originally built in 1930 and fully renovated in 2018.

TRAFFIC COUNTSIntersection of Pacific Boulevard and Gage Avenue:21,215 vehicles per day

Intersection of Pacific Boulevard and Florence Avenue:28,197 vehicles per day

PROPERTY SUMMARY

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DOWNTOWN LOS ANGELES

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LEASE ABSTRACTTenant Blink Fitness by EQUINOX

Lease Start July, 1, 2018

Lease Expiration June 30, 2038

Rental Increases 12.50% every 5 Years

Lease Term Remaining 20 Years

Options 1 - 5 year @ FMV

Monthly Rent(Year1/Year6) $52,417/$58,969

Annual Rent(Year1/Year6) $629,004/$707,628

Rent/SF(Year1/Year6) $2.07/$2.33

Lease Type NN

Landlord Obligations Roof and Structure

Guarantor Blink Fitness

Annual Revenue $102.8 million

Number of Locations Currently 81 Locations

PACIFIC ARCADE

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BY

TENANT SUMMARY

Blink Fitness first opened in 2011 as an operating subsidiary of Equinox. In contrast to Equinox’s portfolio of luxury fitness centers and boutiques with monthly membership costs of $185+, Blink’s memberships range from $15 to $25 a month, which is less than the price of one SoulCycle class (SoulCycle is another Equinox subsidiary). The value proposition that Blink provides is bargain memberships compared to the fitness competition and higher profitability margins as a result of added amenities/costs such as yoga, pilates, and personal training sessions. Since 2012, Blink has organically grown from four locations to 81 locations (including those in development) today. Moreover, Blink’s overall real estate strategy is to grow to 90 locations by 2018 and eventually expand to 300 locations by 2020. Blink Fitness centers range from 12,000 to $18,000 square feet, with the average being 15,000 square feet and are primarily located in strip malls.

Blink’s revenue for 2017 grew an estimated 25% to $102.8 million driven by the opening of 12 locations and modest comparable unit growth. The Company reported in its franchise marketing material that average unit volume (AUV) was $1.7 million and the average location generated EBITDA of $568,000, representing a 34.8% EBITDA margin. Blink operates at the highest EBITDA margin, relative to Equinox’s other subsidiary SoulCycle (32% EBITDA margin). With regards to the balance sheet, Blink does not appear to have any credit facility or term loan, and therefore relies on its parent Company, Equinox, for financing. Equinox has taken on a significant amount of debt to fund its previous acquisitions of SoulCycle and properties from Sportsclub/LA Fitness, as well as investing in its hotel business and growth initiatives for both SoulCycle and Blink Fitness. As of the 2017 year-end, Equinox had $996.0 million of total debt outstanding, comprised of a 6% $796.0 million secured term loan due in March 2024 and 10% $200.0 million term loan due in March 2025. Equinox also has a $150.0 million senior secured revolver due November 22, 2022, although total borrowings under the revolver is unknown. The Company’s estimated leverage ratio as exhibited by total debt to TTM EBITDA stands at 5.0x, which is above the fitness peer average of 4.6x. Additionally, due to the high interest rate on the debt outstanding, Equinox currently operates at an estimated interest coverage of 2.9x, which is below our 3.0x warning threshold.

Headquarters 386 Park AvenueNew York, NY 10016

Website Address https://www.BlinkFitness.com

GENERAL INFORMATION

BUSINESS DESCRIPTION

Locations81 operating and under development

90 locations by end of FY2018 expected300 locations projected by 2020

Sales $102.8 million (+25% from 2016)EBITDA $35.2 million (34.8% of sales)

Rent Expense $23.1 million (22.4% of sales)Rent/Square Foot $24 (same as 2016)Sales/Store $1.7 million (+1% from 2016)Sales/Square Foot $107 (-2.7% from 2016)

Ownership Subsidiary of Equinox Holdings, Inc.CEO Todd Magazine

OWNERHSIP AND KEY PERSONNEL

KEY FINANCIAL METRICS

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TENANT SUMMARY GROWTH ANALYSIS70

60

50

40

30

20

10

0

NUMBER OF LOCATIONS

YEAR2012 2014 2016 2020

PROJECTIONS2013 2015 2017

4

35

50

300+

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43

62$1,800

$1,500

$1,200

$900

$600

$300

02012 2014 20162013 2015 2017

$1,578$1,610 $1,642

$1,594$1,626 $1,658

YEAR

SALES PER STORE

$120

$100

$80

$60

$40

$20

02012 2014 20162013 2015 2017

$106 $108$110

$107 $109 $107

YEAR

SALES PER SQUARE FOOT

$1,776,537

34.8%EBITDA MARGIN

20%RENT MARGIN

BLINK FITNESS TOTAL REVENUE: $102.8 MILLION

AVERAGE SIZE CENTER: 12,000-18,000 SF LOCATIONS: 300+ PROJECTED BY 2020

AVERAGE UNIT VOLUME

5,917MEMBERSHIP

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IN THE NEWS

T H E B L I N K - F E E L G O O D E X P E R I E N C E™

MOOD LIFTERS™ COLOR ME HAPPY EVERYONE CLEANS MUSIC MATTERS

BY

™

• 80+ pieces of Cardio Equipment

• 50+ pieces of Srength Equipment

• 40 pairs of Dumbbells

• Olympic benches, power & squat racks

• Multi-use stretch areas

• Functional area for HIIT and circuit training

• Battle ropes, kettle bells

• Medicine balls, resistance bands

• 1on 1 Personal Training

MOOD ABOVE MUSCLE

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IMPROVEMENTS AND UPGRADES

$ 4 . 5 M I L L I O N I N U P G R A D E S

NEW ELECTRICAL600A – 480W and 600A 120/240W that is placed on city's parking lot and allowed

easement from city

NEW PLUMBINGSewer & Drain Cleaning. Rooter Services.

Cast Iron Piping Restoration.

NEW HVACImproved Heating and Cooling.

Duct Cleaning.

STRUCTURAL UPGRADESNew Roof and Membrane.

New Doors, Facades, and Windows.

PAINT AND FABRICATIONSpecialized Painter for Historic Artwork.

Refabrication of all Historic Finishes.

ALARMS AND SPRINKLERSFire and Smoke Alarm Systems. Emergency Lighting Systems.

Sprinkler system Inspections and Testings.

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BREAKDOWN OF ALL SOFT COSTS

BREAKDOWN OF ALL IMPROVEMENTS AND UPGRADES

HARD COSTS = $2,985,000 SOFT COSTS = $394,000PAID TENANT $1.2M IN TENANT IMPROVEMENTS FOR THEIR GYM BUILD OUT

• Structural reinforcement of parts of the structure and balcony• All new steel work throughout the entire property• All new painting throughout interior and exterior• All new metal flooring and concrete deck on the ground floor• All new drywall throughout the entire property• Brand new doors and glass work throughout the entire property• Brand new HVAC units – 4 X 20 ton units plus 2 X 6 ton units – Roof top package

including heat pumps and 3 X 4 ton split heat pump system units, plus 3 X 1.5 ton units split heat pump system.

• Brand New Elevator shaft, cabin and system. • All new electric – Main switch board 600A – 480W and 600A 120/240W, new sub

panels, and feeders • Brand new lighting fixtures throughout the property • Brand new fire sprinkler system • Brand new fire alarm monitoring system. • New store front glass and door systems. • Brand new roof • All new cast iron sewer pipes and new plumbing connection within the entire project.• Brand new bathrooms• All new copper waterpipes within the property.• New gas line and new gas meter and connection. • New ADA Steel Handrails throughout the entire project• New Alley Iron ADA gates in the rear• Terrazzo repair• Duplicate/Fabrication of original tiles and installation• Replacement and Repair of neon marquee and blade signage• Repair of all interior original ceilings and wall art/paintings• Duplication/Fabrication of precast moldings and installation inside the space• installation inside the space

• Architectural Pre Design $16,000• Architectural & Structural Design $108,000• City of HP Fees $46,000• Electrical Engineering $18,500• Structural tests $12,000• Survey $3,500• Traffic Studies $12,000• LA County Sanitation Fees $178,000

TOTAL - $4,579,000 17

BLINK FITNESS 6710 6718

Ground Floor 12,730 SF 1,022 SF 1,056 SF

Lower Level 4,269 SF 1,588 SF 1,922 SF

Mezzanine 3,587 SF - -

Balcony 4,742 SF - -

Total 25,334 SF 2,610 SF 2,978 SF

SQUARE FOOTAGE BREAKDOWN PER LEVEL

SQUARE FOOTAGELOWER LEVEL: 4,269 SF

GROUND LEVEL: 12,730 SF

MEZZANINE: 3,587 SF

BALCONY: 4,742 SF

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MORE THAN A GYM, IT'S AN EXPERIENCE. Created by the industry’s best minds. Taught by superstars who inspire and ignite. In specially designed studios and pristine spaces. Equinox continually crafts a suite of destination experiences that bring results through innovation.

REDEFINING- Equinox Fitness is an American luxury fitness company which operates several separate fitness brands: Equinox, PURE Yoga, Blink Fitness, and SoulCycle. Within Equinox's portfolio of brands, there are more than 135 locations within every major city across the United States in addition to London, Toronto, and Vancouver. Its national headquarters is in New York City. The luxury sports club broke the mold of the traditional dingy, smelly workout facilities to create a fitness space that was not only high-end but also worthy of competing in a more general lifestyle market.

TRAINING- The brand meticulously vets its 4,500 trainers to ensure it has the most personable, experienced employees. INFLUENCE- It's a booming time for the gym industry. Americans, especially young people, are increasingly valuing a healthy lifestyle. The number of people participating in running events has grown an average of 9% every year since 2005, according to Morgan Stanley. Data also shows that millennials believe exercise is essential for health, while their parents only focused on diet. The number of people participating in running events has grown an average of 9% every year since 2005, according to Morgan Stanley.

LUXURY- Locations feature an array of swanky lounge areas, with couches for relaxing before class. Members receive cool Eucalyptus towels after working out. Locker rooms are stocked with hairdryers and Kiehl's skin products.

FUTURE- In 2016, the upscale gym giant unveiled plans to open luxury hotels in New York City's Hudson Yards and Los Angeles by 2019. A Los Angeles location was announced in 2017 in Downtown Los Angeles neighborhood. The Frank Gehry designed development will consist of a 20 story hotel tower with 305 rooms.

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STORE CONCENTRATION

GROWTH ANALYSIS

AVERAGE STORE SIZE - EQUINOX: 40,000 - SoulCycle: 3,700 - Blink Fitness: 15,000 - PURE Yoga: 20,000

REAL ESTATE TRENDSEQUINOX: 100 STORES - 38% New York - 29% California - 5% Florida

1%38%% OF TOTAL EQUINOX STORES BY STATE

STORE COUNT

EQUINOX

BLINK FITNESS

SOUL CYCLE

PURE YOGA

12/31/13 12/31/14 12/31/15 12/31/16 12/31/17

100

75

50

25

0

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FITNESS INDUSTRY COMPETITION METRICSGYM SALES

($ Thousands)Latest Membership

(000s)Previous Membership

(000s)Latest Store

CountPrevious Store

CountStore

GrowthStore Size

OccupancyCost

Planet Fitness $2,300,000 10,600 8,900 1,518 1,313 15.6% 20,000 18.1%LA Fitness $2,100,000 7,500 7,344 689 675 2.1% 40,000 23.5%Gold's Gym $1,519,250 3,000 2,765 701 650 7.8% 35,000 30.3%Lifetime Fitness $1,462,600 890 839 129 122 5.7% 114,000 17.9%24 Hour Fitness $60,417.10 4,000 3,953 430 425 1.2% 35,000 30.7%Equinox $1,122,700 495 401 238 200 19.0% 40,000 15.2%Town Sports $403,042 587 544 165 150 10.0% 38,000 31.3%Average $1,512,513 3,867 3,535 553 505 46,000 23.9%

GYM Sales perStore

Sales PerSquare Foot

Rent PerSquare Foot

EBITDA($000s)

Total Debt($000s)

Debt toEBITDA

InterestCoverage

Planet Fitness $1,752 $81.24 $15.85 $184,700 $703,761 3.8x 5.2xLA Fitness $3,111 $76.98 $18.06 $296,296 $1,600,000 5.4x 1.9xGold's Gym $2,585 $71.06 $22.40 $348,264 - - -Lifetime Fitness $12,453 $106.19 $19.00 $430,725 $1,970,516 4.6x 3.5x24 Hour Fitness $3,441 $97.75 $30.00 $210,938 $1,350,000 6.4x 1.0xEquinox $5,614 $128.16 $19.50 $199,200 $996,000 5.0x 2.9xTown Sports $2,641 $67.34 $22.16 $56,144 $196,029 3.5x 4.5xAverage $4,514 $89.82 $21.00 $246,610 $1,136,051 4.6x 3.2x

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BLINK FITNESS- In 2011 Equinox Holdings created Blink Fitness, a low-cost subsidiary, to add to its portfolio of luxury fitness subsidiaries, which include SoulCycle and Pure Yoga. Blink is financially supported by its parent, Equinox Holdings. Blink Fitness is a low-cost fitness chain, compared to the Equinox Fitness chain's premium prices of over $185 per month. SoulCycle and Pure Yoga are both boutique fitness chains with premium prices of $36 per class for Soul Cycle and a $230 per month membership for Pure Yoga.

FITNESS INDUSTRY- The fitness industry has grown at an annual rate of 6.4% from 1996 to 2017, sustaining growth through two recessions. Between 2011 and 2017 the industry grew annually at 5.6% to $28.00 billion, and is projected to increase 2% to 3% per year between 2018 and 2021.

FITNESS MEMBERSHIPS GROWTH- Health club memberships among Americans who are 15 and older have increased at an annual average of 4% between 1996 and 2017. Additionally, the percentage of fitness memberships to the overall U.S. population in that age demographic grew from 12% in 1996 to 22% in 2017.

CHANGING LANDSCAPE- Fitness boutiques and low-cost operators have entered the industry, which has increased competition. Between 2011 and 2017 fitness locations in the U.S. increased at a 5-year CAGR of 5.1% while average memberships per location declined 1.8% between 2012 and 2017.

FITNESS SPENDING- While the 20-year average growth rate of spend per member grew 2.2% between 1996 and 2016, the last five years saw an acceleration in fitness spend to a 3.5% growth rate. Annual fitness spend per member (other than membership) is now $490.

HIGH VALUE, LOW PRICE- Blink Fitness operates within the HVLP sector of the fitness industry; that sector is dominated by Planet Fitness, which owns seven times more market share than its closest competitors. The HVLP sector is highly fragmented with just four chains operating over 100 units, including Planet Fitness, Crunch Fitness, Fitness 19, and YouFit.

at the forefront of the Fitness Revolution

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FINANCIAL ANALYSIS

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TENANT SF BLDG % LEASE START LEASE EXP OPTIONS $ $/SF CAM* CAM/SF LEASE TYPE

Blink Fitness 25,3341 81.93%4 7/1/2018 6/30/2038 1 - 5 year @ FMV $58,969.24 $2.33 $14,398.08 $0.57 NN5

6710 Pacific Blvd 2,6112 8.44% 5/1/2019 4/31/2024 $3,900.00 $1.49 $1,483.91 $0.57 NNN

Bella All Natural - Vitamin Shop 2,9783 9.63% 4/11/2019 4/30/2024 $3,900.00 $1.31 $1,692.49 $0.57 NNN

TOTAL 30,923 100% $66,769.24 $2.16 $17,574.48 $0.57 -

RENT ROLL

FINANCIAL ANALYSIS

Months Monthly Rent Annual Rent Rent/SF1 - 60 $52,417.10 $629,005.20 $2.07

61 - 120 $58,969.24 $707,630.88 $2.33 121-180 $66,340.39 $796,084.68 $2.62 181-240 $74,632.94 $895,595.28 $2.95

BLINK FITNESS RENT SCHEDULE*

BLINK FITNESS RENT SCHEDULE

*CAMs are based on projected operating expenses1. The retail ancillary area (entrance area) is an additional 499 square feet of space, totaling 25,833 square feet2. 6710 Pacific Blvd - Total square footage includes 1,022 square feet of ground level space plus 1,588 square feet of lower level space3. Total square footage includes 1,096 square feet of ground level space plus 1,922 square feet of lower level space, which can only be used as storage4. As per the terms of their lease, Blink Fitness is responsible for 85% of all CAM's5. Landlord is responsible for roof and structure

* The current rent is $52,417.10 (“current rent”). The monthly rent increases as of 7/1/2023 to $58,969.24 (“increased rent”). At the close of escrow, the Seller will credit the monthly difference between the current rent and the increased rent in the amount of $6,552.14 to the Buyer based on the number of months remaining from the close of escrow until the scheduled rent increase date.

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OPERATING DATA CURRENT

Scheduled Lease Income $801,231

NNN Charges $210,894

Effective Gross Income $1,012,125

Expenses $210,894

Net Operating Income $801,231

Loan Payment $500,468

Pre-tax Cash Flow $300,762

Principal Reduction $120,706

Total Return Before Taxes $421,468

ANNUALIZED OPERATING DATA PRICINGEXPENSES* PER YEAR PER SF

Taxes** @ 1.25% $153,750 $4.97

Insurance $11,000 $0.36

Water/Sewer $4,500 $0.15

Electricity - Area Lighting $2,400 $0.08

Telephone - Fire Alarm $4,400 $0.14

Repairs & Maintenance $2,795 $0.09

Management $32,049 $1.04

TOTAL $210,894 $6.82/0.57

Price Request For Offer

Net Operating Income $801,231

Gross Building SF 30,923 SF

Lot Size 17,242 SF

*Projected Expenses** Approximate Projected Taxes

FINANCIAL ANALYSIS

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Year 1 2 3 4 5

Blink Income $58,969.24 $58,969.24 $58,969.24 $58,969.24 $58,969.24

6710 Income $3,900.00 $4,017.00 $4,137.51 $4,261.64 $4,389.48

6718 Income $3,900.00 $4,017.00 $4,137.51 $4,261.64 $4,389.48

Monthly Income $66,769.24 $67,003.24 $67,244.26 $67,492.51 $67,748.21

Net Operating Income $801,230.88 $804,038.88 $806,931.12 $809,910.13 $812,978.50

CAP Rate 6.51% 6.54% 6.56% 6.58% 6.61%

20-YEAR CASH FLOW ANALYSIS

Year 6 7 8 9 10

Blink Income $58,969.24 $58,969.24 $58,969.24 $58,969.24 $58,969.24

6710 Income $4,521.17 $4,656.80 $4,796.51 $4,940.40 $5,088.62

6718 Income $4,521.17 $4,656.80 $4,796.51 $4,940.40 $5,088.62

Monthly Income $68,011.58 $68,282.85 $68,562.26 $68,850.05 $69,146.47

Net Operating Income $816,138.93 $819,394.17 $822,747.07 $826,200.56 $829,757.65

CAP Rate 6.64% 6.66% 6.69% 6.72% 6.75%

FINANCIAL ANALYSIS

CASH FLOW MODEL

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Year 11 12 13 14 15

Blink Income $66,340.39 $66,340.39 $66,340.39 $66,340.39 $66,340.39

6710 Income $5,241.27 $5,398.51 $5,560.47 $5,727.28 $5,899.10

6718 Income $5,241.27 $5,398.51 $5,560.47 $5,727.28 $5,899.10

Monthly Income $76,822.94 $77,137.41 $77,461.32 $77,794.95 $78,138.59

Net Operating Income $921,875.25 $925,648.97 $929,535.90 $933,539.44 $937,663.08

CAP Rate 7.49% 7.53% 7.56% 7.59% 7.62%

Year 16 17 18 19 20

Blink Income $74,632.94 74632.94 74632.94 74632.94 74632.94

6710 Income $6,076.07 $6,258.36 $6,446.11 $6,639.49 $6,838.67

6718 Income $6,076.07 $6,258.36 $6,446.11 $6,639.49 $6,838.67

Monthly Income $86,785.09 $87,149.65 $87,525.15 $87,911.92 $88,310.29

Net Operating Income $1,041,421.03 $1,045,795.80 $1,050,301.82 $1,054,943.01 $1,059,723.45

CAP Rate 8.47% 8.50% 8.54% 8.58% 8.62%

Average CAP Rate 7.34%

CASH FLOW MODEL

FINANCIAL ANALYSIS

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30

AREA OVERVIEW

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Named for prominent industrialist Henry E. Huntington, Huntington Park was incorporated in 1906 as a streetcar suburb for workers in the rapidly expanding industries to the southeast of downtown Los Angeles. To this day, about 30% of its residents work at factories in nearby Vernon and Commerce. The stretch of Pacific Boulevard in downtown Huntington Park was a major commercial district serving the city’s largely working-class residents, as well as those of neighboring cities such as Bell, Cudahy, South Gate, and Downey.

Huntington Park has noteworthy Art Deco & Streamline Moderne Buildings. Streamline Moderne examples of this architectural style are The Lane-Wells Company Building designed by William E. Myer c.1939 and The W. W. Henry Company Building built in 1939 next to it . Among its commercial district you can still see some details and structural designs of that design style and of Art Deco. The most widely known buildings for their Art Deco designs are: the building of where Don Roberto Jewelers business currently resides and of course the former theaters along Pacific Blvd.

The City of Huntington Park provides residents with more than 31 acres of total park space, which include playgrounds, picnic areas, athletic facilities, a skate park and meeting rooms, among other amenities. Pacific Boulevard, the commercial business street of Huntington Park, has been the location for festivals, carnival fairs and parades. The "Carnaval Primavera" is held each year for three days across nine blocks of Pacific Boulevard in Huntington Park. The event features Central American and Mexican food, carnival rides, games, and live music.

The City of Perfect Balance

HUNTINGTON PARK

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L.A. LIVEL.A. LIVE is the leading entertainment district in Los Angeles offering six live entertainment venues, a fourteen screen cinema, the GRAMMY Museum®, and over twenty dining experiences. It's the host of the GRAMMYs, EMMYs, American Music Awards, ESPYs, and a years worth of red carpet premieres.

EXPOSITION PARKExposition Park is a collection of world-class museums, educational and sport facilities and entertainment venues. Within the 160-acre campus, you can experience the fun of science, math and technology at the California Science Center, learn about the diverse cultural experience at the California African American Museum or explore natural and cultural worlds at the Natural History Museum of Los Angeles County, or simply relax in the splendor of the City of Los Angeles Rose Garden.

LOS ANGELES CONVENTION CENTERThe Los Angeles Convention Center’s goal is to create and execute outstanding events from beginning to end. It attracts more than 2 million visitors annually and is renowned internationally as a leading destination for conventions and exhibitions. With impressive architecture, the LA Convention center has also been featured as the backdrop for countless Hollywood movies.

DOWNTOWN LOS ANGELESDTLA is in the midst of a cultural and architectural resurgence that’s turning the area into a walkable, Metro-friendly destination dotted with museums and beautiful destinatioms. Get to know Bunker Hill, Little Tokyo, the Historic Core and beyond. In DTLA, you'll find world class dining, shopping, and hotel urprises around every corner.

NEARBY POINTS OF INTEREST

DTLADOWNTOWN LOS ANGELES

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Total Population of Huntington Park.

MALE

High School Associates Degree Bachelor’s Degree Grad Degree

FEMALE

1,120,181

52%48%

21.2%52% 18.2% 8.6%

EDUCATION

BUSINESSES

Until recently, Silicon Beach was where a tech startup needed to be to have access to the resources necessary for success. That's all started to change, and DTLA has become one of the premier spots in LA attracting new tech companies. Companies to Know: Boingo Wireless, Critical Cycles, Greycroft Partners, Hyperloop One, Joymode, Levee, Loot Crate, NationBuilder, Nestigator, PetNet, and Rhubarb Studios.In 2016, the area finished at number eight on Built In LA's top 10 tech neighborhoods by funding. Companies located there brought in a whopping $96 million over the last year, beat neighborhoods like Marina Del Rey in the process.

• Southern California Gas Company• AT&T• The Capital Group Companies, Inc.

• Gibson, Dunn & Crutcher LLP• Telepacific Communications Corp• Paul, Hastings, Janofsky & Walker, LLP

• Quinn Emanuel Trial Lawyers• Los Angeles Community College District• City of Los Angeles

TOP EMPLOYERS

DEMOGRAPHICS

The Median Age is 30.

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• Quinn Emanuel Trial Lawyers• Los Angeles Community College District• City of Los Angeles

88,546Owner Occupied Households

within 5-m radius

186,693Renter Occupied Households

within 5-m radius

1,120,181Population within a 5-m radius

$49,053Average HH income within 5-m radius

$36,608Median HH income within 3-m radius

352,135Daytime Population within 5-m radius

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COMPARABLES ANALYSIS

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# ADDRESS SALE PRICE CAP RATE PRICE/SF BLDG SF LAND SF CLOSE OF ESCROW

REMAININGTERM

1LA Fitness29737 Antelope RdMenifee, CA 92584

$14,600,000 6.00% $384.21 38,000 152,460 7/18/201815 Years

W/ 3 - Five Yr Options

2Smart & Final27550 Base Line StHighland, CA 92346

$9,475,000 5.40% $344.25 27,524 126,324 6/28/2018

20 YearsW/ 7.5% Rent

Increases Every 5 Yrs & 4 - Five

Yr Options

3LA Fitness2222 W Beverly BlvdMontebello, CA 90640

$12,468,000 6.20% $290.32 42,946 133,729 6/23/2017 10 Years2 - Five Yr Opts.

4Burlington Coat Factory Plaza2840 S Bristol StSanta Ana, CA 92704

$20,100,000 5.46% $343.88 58,450 195,149 6/8/2018 -

5Office Depot1130 E Colorado BlvdPasadena, CA 91106

$11,500,000 5.35% $477.65 24,076 60,091 5/31/20187 Years

Plus Options Totaling 30 Years

6Petco24413 Crenshaw BlvdTorrance, CA 90505

$9,000,000 5.54% $634.34 14,188 21,780 5/23/2018 -

7Office Depot11100 Garden Grove BlvdGarden Grove, CA 92843

$9,180,000 5.90% $306.66 29,935 66,856 4/14/2017 7 Years W/ Options

SALES COMPARABLES

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# ADDRESS SALE PRICE CAP RATE PRICE/SF BLDG SF LAND SF CLOSE OF ESCROW

REMAINING TERM

8LA Fitness13822 Garvey AveBaldwin Park, CA 91706

$15,725,000 4.83% $349.44 45,000 175,547 10/13/2017 25 Years

9Smart & Final1023 N Mount Vernon AveColton, CA 92324

$8,900,000 5.51% $319.34 27,870 119,289 11/14/2017 -

10Smart & Final15055 Mulberry DrWhittier, CA 90604

$6,720,000 5.50% $219.84 30,567 87,207 6/30/2017 7 Years

11Smart & Final928 E Ontario AveCorona, CA 92881

$10,000,000 4.88% $383.11 26,102 84,546 2/15/2018 -

12Planet Fitness2057 Rancho Valley RdPomona, CA 91766

$8,803,000 5.70% $368.70 23,876 - 6/16/2017 -

13Foot Locker6730-6732 Pacific BlvdHuntington Park, CA 90255

$2,500,000 5.83% $366.35 6,824 8,276 12/20/2018 -

AVERAGE $10,690,077 5.55% $368.31 30,412 102,605 - -

SALES COMPARABLES

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G R O U P

BRANDON MICHAELS

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710bmichaels@marcusmillichap.comLicense: CA #01434685