1326south5thave.berkadiarea · [email protected] ca bre license #01290116 a berkshire...

| EXCLUSIVE MULTIFAMILY OFFERING

1326 5th Avenue | Los Angeles, CA 900196 Units | $1,195,000

BRENT SPRENKLESenior Managing [email protected] BRE License #01290116

a Berkshire Hathaway and Leucadia National companywww.BerkadiaREA.com

For Real-Time Property Information go to:1326south5thave.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

Low Cost Per Unit at Under $200k All One-Bedrooms With Parking Extremely Low Rents-Massive Upside Great Location near Arlington and Pico

For Real-Time Property Information go to:1326south5thave.BerkadiaREA.com

THE ASSETProperty Summary 1Location Description 2Location Map 3Aerial 4Property Photos 5

VALUATIONFinancial Analysis 6

MARKET POSITIONINGComparable Sale Properties 8Comparable Rental Properties 10

APPENDIXEconomic & Demographic Overview 13Demographics 24Apartment Update 33

1326 SOUTH 5TH AVE1326south5thave.BerkadiaREA.com

PROPERTY SUMMARY

PROPERTY DESCRIPTION

Number of Units 6 Year Built 1908 and 1950

Average SF 634± Site Acreage .13±

Roofs Pitched Exterior Wood Frame

The 5th Avenue Apartments is a 6-unit apartmentcommunity consisting of two separate structuresbuilt in 1908 and 1950. The property is situated ona 6,720.6 square foot lot that is zonedRD2-1-O-CPIO and located in the Transit OrientedCommunity (TOC) Tier 3. All of the units in theproperty are one-bedrooms with one bathroom.The structure that is situated on 5th Avenue consistsof 2 units, approximately 1,676 sq ft and was builtin 1908. The structure in the rear consists of 4units, approximately 2,130 square feet and wasbuilt in 1950. All units are individually metered forutilities and there is open parking in the front andrear of the property.

1326 SOUTH 5TH AVE1326south5thave.BerkadiaREA.com 1

LOCATION DESCRIPTION


PROPERTY NEIGHBORHOOD DESCRIPTION

LOS ANGELES, CA

The 5th Avenue Apartments is located in the MidCity neighborhood of Los Angeles, California, approximately five miles west

of the city’s downtown. The property is conveniently situated less than one mile north of Interstate 10, providing residents easy

access to abundant employment opportunities throughout Greater Los Angeles. Residents can enjoy numerous shopping, dining,

and entertainment options within five miles of the property at downtown Los Angeles, Hollywood, and Koreatown. Santa Monica

and Venice Beach are also within a short drive of the property and provide the grounds for various recreational activities.

569.8kPopulation

(Within Three Miles)

$40.7kMedian Household Income

(Within Three Miles)

4.8%City Unemployment Rate

(Jan. 2018)

NEIGHBORHOOD SHOPPING

Koreatown Plaza

FROM THE

PROPERTY1.2miSF SHOPPING

DESTINATION227kTOTAL

STORES 90+

NEIGHBORHOOD SHOPPING

Nordstrom | Barneys New York | Banana Republic

FROM THE

PROPERTY3.6miSF SHOPPING

DESTINATION600kTOTAL

STORES 40+

NEIGHBORHOOD CONVENIENCES

Within a three-mile radius of the property

JOBS

SUPPORTED

HOSPITAL

BEDS

1.4k

408

DEMAND DRIVER

Good Samaritan Hospital Los Angeles

FROM THE

PROPERTY3.9mi

PRIMARY EDUCATION

Carson-Gore ES | Pio Pico MS | Los Angeles Sr. HS

STUDENTS

SERVED714kSCHOOLS

AND CENTERS1.3kJOBS

SUPPORTED60.2k

DEMAND DRIVER

Los Angeles Corporate Headquarters

FROM THE

PROPERTY1.8mi

JOBS

SUPPORTED1.0k

2

LOCATION MAP

1326 SOUTH 5TH AVE1326 South 5th AvenueLos Angeles, CA 90019


AERIAL


PROPERTY PHOTOS


FINANCIAL ANALYSIS


5th Avenue Apartments

Unit # Unit DescriptionEstimated

Unit SF

Current

Rate

Current

Rent Per SF

Projected

Market Rate

Projected

Rent Per SFStatus Notes Parking

1326 One Bedroom, One Bath 838 $1,239.72 $1.48 $1,700.00 $2.031326.5 One Bedroom, One Bath 838 $916.19 $1.09 $1,700.00 $2.031328 One Bedroom, One Bath 533 $764.92 $1.44 $1,500.00 $2.82

1328.25 One Bedroom, One Bath 533 $944.34 $1.77 $1,500.00 $2.821328.5 One Bedroom, One Bath 533 $904.02 $1.70 $1,500.00 $2.821328.75 One Bedroom, One Bath 533 $872.50 $1.64 $1,500.00 $2.82

Unit DescriptionEstimated

SF

Current

Rate

Rent Range

Per SF

Projected

Market Rate

Percent

Vacant

Number

Vacant

Rental

Range

Percentage

of Total

Totals: One Bedroom, One Bath 3,806.00 $5,641.69 $1.09 - $1.77 $9,400.00 0.00% 0 $765 - $1,240 100.00%

Unit DescriptionEstimated

SF

Current

Rate

Current

Rent Per SF

Projected

Market Rate

Projected

Rent Per SF

% Estimated

UpsideAverages: One Bedroom, One Bath 634.33 $940.28 $1.48 $1,566.67 $2.47 66.62%

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.

6

FINANCIAL ANALYSIS


Units Unit Type Average

Unit SF

Current

Rental Range

Current

Rent

Market

Rent

Current

Rent/ SF

Market

Rent/ SF

Total

Net SF

6 1 Bed / 1 Bath 634 $765 - $1,240 $940 $1,567 $1.48 $2.47 3,806

6 634 $940 $1,567 $1.48 $2.47 3,806

Gross SF 3,806

IncomeCurrent

Pro Forma

Market

Pro Forma

Projected

EOY 1

Scheduled Market Rent $67,700 $112,800 $70,408 Less: Vacancy Actual is 0.00% 3.00% ($2,031) ($3,384) ($2,112)Net Rental Income $65,669 $109,416 $68,296

Plus: Misc. Income $350 $350 $350Total Operating Income (EGI) $66,019 $109,766 $68,646

Estimated Expenses Percentage Per Unit

Repairs & Maintenance $600 $3,600 $3,600 $3,600Management Fee 4.50% $508 $3,047 $5,076 $3,047Utilities $1,126 $6,753 $6,753 $6,753Contracted Services $402 $2,413 $2,413 $2,413Real Estate Taxes ($786 Assessments) 1.1930% $2,507 $15,043 $15,043 $15,043Insurance $300 $1,800 $1,800 $1,800Replacement Reserve $200 $1,200 $1,200 $1,200Total Estimated Expenses $33,856 $35,885 $33,856

% of Scheduled Rent: 50.01% 31.81% 48.08%

Per SF: $8.90 $9.43 $8.90Per Unit: $5,643 $5,981 $5,643

Net Operating Income $32,164 $73,881 $34,790

Less: Debt Service $0 $0 $0Projected Net Cash Flow $32,164 $73,881 $34,790Total Economic Loss 3.0% 3.0% 3.0%

Cash-on-Cash Return (Based on Asking Price) 2.69% 6.18% 2.91%

Cap Rate Analysis Price $/Unit $/FootCap Rate

Current

Cap Rate

Market

Cap Rate

EOY 1

GRM

Current

GRM

Pro Forma

Asking Price $1,195,000 $199,167 313.98 2.69% 6.18% 2.91%17.56 10.56

PRO FORMA INCOME & EXPENSES

5th Avenue Apartments

1326 S. 5th Avenue, Los Angeles, 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.

7

COMPARABLE SALE PROPERTIES


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

RateGRM Sale

Date 1 1221 4th Avenue

1221 4th Avenue Los Angeles, CA 90019

6 1939 6,006 $1,330,000 $221,667 $221.45 3.95% 16.45 1/18

2 1608-1610 South Wilton Place

1608-1610 South Wilton Place Los Angeles, CA 90019

6 1912 4,984 $1,290,000 $215,000 $258.83 2.07% 13.38 12/17

3 1507 3rd Avenue

1507 3rd Avenue Los Angeles, CA 90019

8 1960 4,000 $1,375,000 $171,875 $343.75 4.33% - 11/17

4 2122 6th Avenue

2122 6th Avenue Los Angeles, CA 90018

5 1918 5,220 $1,100,000 $220,000 $210.73 - 15.27 7/17

5 5119 - 5125 West 20th Street

5119 - 5125 West 20th Street Los Angeles, CA 90016

8 1949 4,800 $1,675,000 $209,375 $348.96 - - 6/17

Averages $207,583 $276.74 3.45% 15.03

S 1326 South 5th Ave1326 South 5th AvenueLos Angeles, CA 90019

6 1908 3,806 $1,195,000 $199,167 $313.98 2.69% 17.56

8

COMPARABLE SALE PROPERTIES


S. 1326 South 5th Ave 1326 South 5th Avenue Los Angeles CA1. 1221 4th Avenue 1221 4th Avenue Los Angeles CA2. 1608-1610 South Wilton Place 1608-1610 South Wilton Place Los Angeles CA3. 1507 3rd Avenue 1507 3rd Avenue Los Angeles CA4. 2122 6th Avenue 2122 6th Avenue Los Angeles CA5. 5119 - 5125 West 20th Street 5119 - 5125 West 20th Street Los Angeles CA

9

COMPARABLE RENTAL PROPERTIES


1. Lafayette Place1625 Crenshaw BoulevardLos Angeles, CA 90019

Units Built43 1984

Units Type SF Asking Rent Rent / SF28 1/1.00 775 $1,950 $2.52

WeightedAvg. 775 $1,950 $2.52

2. 4845 Saturn Street4845 Saturn StreetLos Angeles, CA 90019

Units Built16 1964


WeightedAvg. 700 $1,649 $2.36

3. La Fayette349 South La Fayette ParkPlaceLos Angeles, CA 90057

Units Built120 1971

Units Type SF Asking Rent Rent / SF30 1/1.00 530 $1,885 $3.56 80 1/1.00 650 $1,910 $2.94

WeightedAvg. 590 $1,898 $3.25

4. 1006 South OrangeDrive1006 South Orange DriveLos Angeles, CA 90019

Units Built16 1928


WeightedAvg.750 $1,750 $2.33

10



5. Villa Vicente5351-5369 West SanVicente BoulevardLos Angeles, CA 90019

Units Built276 1963


WeightedAvg. 585 $1,795 $3.07

6. 1615 4th Avenue1615 4th AvenueLos Angeles, CA 90019

Units Built4 1922

Units Type SF Asking Rent Rent / SF4 1/1.00 782 $1,700 $2.17 4 WeightedAvg. 782 $1,700 $2.17

S. 5th AvenueApartments1326 5th AvenueLos Angeles, CA 90019

Units Built6 1908

Units Type SF Current Rent Rent / SF6 1/1.00 634 $940 $1.48 6 WeightedAvg. 634 $940 $1.48

11



S. 1326 South 5th Ave 1326 South 5th Avenue Los Angeles CA1. Lafayette Place 1625 Crenshaw Boulevard Los Angeles CA2. 4845 Saturn Street 4845 Saturn Street Los Angeles CA3. La Fayette 349 South La Fayette Park Place Los Angeles CA4. 1006 South Orange Drive 1006 South Orange Drive Los Angeles CA5. Villa Vicente 5351-5369 West San Vicente Boulevard Los Angeles CA6. 1615 4th Avenue 1615 4th Avenue Los Angeles CA

12

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

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

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

13



0 200,000 400,000 600,000 800,000 1,000,000

Construction

Other Services

Financial Activities

Information

Manufacturing

Leisure and Hospitality

Government

Professional and Business Services

Education and Health Services

Trade, Transportation, and Utilities

Nov-16 Nov-17

DEMOGRAPHICS

METRO DIVISION INDUSTRY BREAKDOWN

JOB GROWTH

n 26,300 jobs created in the Education and

Health Services sector (Y-o-Y Nov. ‘17)

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

10.4 million residents

n 30% of residents age 25 and older hold a bachelor’s degree or higher

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

to 25% nationally

n 49% of housing units in Los Angeles County are renter occupied, compared to 31% nationally

n The county’s median household income is projected to reach $66,411 by 2022, up 10.2% from 2017

14



EMPLOYMENT TRENDS

NOVEMBER 2017

n 4.1% the county’s monthly unemployment rate was

down 70 bps annually

NOVEMBER 2017

n 36,900 jobs were created countywide, a 0.8%

Y-o-Y increase

(300,000)

(200,000)

(100,000)

0

100,000

200,000

0%

3%

6%

9%

12%

15%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018*

Unemployment Rate Jobs Added / Lost*Projected

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

15



TRADE & 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 in 2016, 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.

MANUFACTURING

n Largest Manufacturing Center in the Nation

n 353,900 Jobs Supported Countywide

n 65 Manufacturing Plants on I-605 Corridor

With approximately 353,900 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.

Port of Los Angeles

Northrop Grumman

16



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.

PROFESSIONAL AND BUSINESS SERVICES

n 12 Fortune 500 Headquarters

n 620,400 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 620,400 jobs in November 2017, up

0.5% year over year.

Saatchi & Saatchi

Paramount Pictures

17



CONSTRUCTION AND DEVELOPMENT

n $12 Billion Development 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, a fire station, and a

park-and-ride lot. 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 $14 Billion in Capital Improvements n 121,000+ Construction Jobs

n $2.5 Billion Investment n 1,000 Permanent 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

will generate additional terminal renovations and provide the

growing number of airport passengers convenient connections

to public transportation from the airport.

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 2018.

LAX MODERNIZATION PROGRAM

CENTURY PLAZA

18




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

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

The first of three condominium towers was completed in July

2017 at Metropolis Los Angeles. The next phase of the $1

billion mixed-use development is underway with 40- and

56-story condo towers under construction. The entire project

will be comprised of the three condo towers, a 350-room

Hotel Indigo, retail space, and fine dining totaling 3.5 million

square feet. Completion of Metropolis Los Angeles is expected

in October 2019.

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. Once

work begins on the property, completion is expected within 24

to 30 months.

METROPOLIS LOS ANGELES MIXED-USE DEVELOPMENT

BROADWAY TRADE CENTER RENOVATION

19




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

This $2.5 billion sports and entertainment complex,

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-squarefoot

office tower for nearby creative firms.

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

20



RENT / OCCUPANCY

EFFECTIVE RENT

n $2,243 in the fourth quarter of 2017, up

2.8% from one year prior

OCCUPANCY RATE

n 96.0% in 4Q17, unchanged from one year prior

The average apartment occupancy rate in Los Angeles County was a high 96.0% at the end of 2017, unchanged

from the same period one year prior. With a number of new units scheduled to come on board by year-end 2018, the

occupancy rate is expected to drop slightly to 95.8% by year-end.

Effective rent in Los Angeles County was $2,243 per month in the fourth quarter of 2017, a 2.8% year-over-year

increase. By December 2018, effective rent is projected to reach $2,304 per month. Effective rent has increased

23.4% since 2012.

$1,817

$1,875

$1,981

$2,098

$2,182

$2,243

$2,304

$800

$1,200

$1,600

$2,000

$2,400

93%

94%

95%

96%

97%

2012 2013 2014 2015 2016 2017* 2018*

Occupancy & Ask Rent

Rent Occupancy* Projected

DELIVERIES / ABSORPTION

NEW DELIVERIES

n 6,400 units through 4Q17

NET ABSORPTION

n 11,302 units through December 2017

Builders delivered 6,400 apartment units in Los Angeles County through December 2017. An additional 18,780 units

are scheduled to come online by year-end 2018.

Operators recorded net absorption of 11,302 units through the fourth quarter of 2017, a 49.3% increase over the same

period last year and outpacing new units by 76.6%. By year-end 2018, absorption is expected to reach 13,150 units, up

16.4% from one year prior. Absorption has averaged 10,409 units over the past five years.

0

5,000

10,000

15,000

20,000

2012 2013 2014 2015 2016 2017* 2018*

Deliveries Absorption* Projected

LOS ANGELES COUNTY APARTMENT MARKET

LOS ANGELES COUNTY APARTMENT MARKET

21



EDUCATION

HIGHER EDUCATION

n 625,000 students metrowide

ANNUAL GRADUATES

n 60,000 produced by Metro Los Angeles universities each year

LOS ANGELES COUNTY, CA

HIGHER EDUCATION

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 2016

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 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

22



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.

BY THE NUMBERS

TOTAL POPULATION

2010 9,818,605

2017* 10,045,200

2022* 10,400,488

Growth Rate (2017 - 2022) 3.5%

TOTAL HOUSEHOLDS

2010 3,241,204

2017* 3,325,404

2022* 3,452,125

Growth Rate (2017 - 2022) 3.8%

MEDIA INCOME

2010 $53,082

2017* $60,265

2022* $66,411

Growth Rate (2017 - 2022) 10.2%

MEDIAN AGE

2010 34.8

2017* 36.6

2022* 37.9

MEDIAN HOME PRICE

November - 2016 $530,000

November - 2017 $567,000

Growth Rate Y-o-Y 7.0%

RENT VS. OWN

Average Mortgage Payment** $3,115

Average Rent $2,243

Difference $872

*Projected**30-yr fixed; 20% down; 4.15% interest rate; 1.75% property taxes;$1,000 homeowners insurance

23

DEMOGRAPHICS


Traffic Profile1326 5th Ave, Los Angeles, CA 90019

Traffic Map

# Street Cross St Dir Vol. Dist (mi) # Street Cross St Dir Vol. Dist (mi)1 W Pico Blvd 4th Ave E 22,663 0.1 11 2nd Ave Westchester Pl N 1,472 0.2

2 6th Ave W Pico Blvd NE 1,366 0.1 12 Westchester Pl 2nd Ave S 40,727 0.2

3 W 15th St 4th Ave E 590 0.1 13 3rd Ave Venice Blvd S 1,090 0.2

4 W 15th St 5th Ave E 331 0.1 14 Venice Blvd 6th Ave W 19,850 0.2

5 W Pico Blvd 3rd Ave E 23,325 0.1 15 W 15th St 2nd Ave W 1,190 0.2

6 W 15th St 3rd Ave E 1,042 0.1 16 2nd Ave W 15th St N 1,334 0.2

7 3rd Ave W 15th St S 973 0.1 17 12th Ave W 17th St SW 1,048 0.2

8 W Pico Blvd S Norton Ave E 26,615 0.1 18 W Pico Blvd Arlington Ave E 22,211 0.2

9 W 15th St 3rd Ave W 1,074 0.2 19 W Pico Blvd Crenshaw Blvd W 23,056 0.2

10 6th Ave W 15th St N 1,435 0.2 20 Venice Blvd 7th Ave W 17,026 0.2

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

26

DEMOGRAPHICS


DEMOGRAPHIC PROFILE2010 Census, 2017 Estimates & 2022 Projections

Calculated using Proportional Block Groups

2018-Mar-27

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1326 5th Ave, Los Angeles,CA 90019

Los Angeles-Long Beach-Anaheim, CA

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

Popu

latio

n

Area in square miles 3 28 78 4,849 3,537,439

Est. Population/square mile 18,168 20,213 16,603 2,721 93

2022 Projection 58,770 590,150 1,348,740 13,598,383 340,769,540

2017 Estimate 57,437 569,832 1,294,117 13,192,819 327,886,553

2010 Census 56,799 558,285 1,258,155 12,828,837 312,471,327

2000 Census 59,724 568,402 1,261,023 12,365,353 281,421,872

Growth 2017-2022 2.3% 3.6% 4.2% 3.1% 3.9%

Growth 2010-2017 1.1% 2.1% 2.9% 2.8% 4.9%

Growth 2000-2010 -4.9% -1.8% -0.2% 3.7% 11.0%

Hous

ehol

ds

2022 Projection 19,753 214,214 523,035 4,515,702 128,833,129

2017 Estimate 19,314 206,470 498,602 4,368,849 123,996,543

2010 Census 19,130 201,820 481,602 4,233,985 118,092,823

2000 Census 19,213 200,011 467,328 4,068,951 106,741,406

Growth 2022-2027 2.5% 3.2% 3.8% 2.9% 4.0%

Growth 2017-2022 2.3% 3.8% 4.9% 3.4% 3.9%

Growth 2010-2017 1.0% 2.3% 3.5% 3.2% 5.0%

Growth 2000-2010 -0.4% 0.9% 3.1% 4.1% 10.6%

2022 Proj. Pop. In Households 57,800 576,575 1,316,525 13,392,883 332,831,444

2017 Est. Pop. In Households 56,470 556,282 1,261,890 12,987,293 319,954,493

2022 Proj. Avg. HH Size 2.93 2.69 2.52 2.97 2.58

2017 Est. Avg. HH Size 2.92 2.69 2.53 2.97 2.58

Hous

ing Vacant Housing Units 1,176 6% 14,346 6% 38,312 7% 252,366 5% 15,111,482 11%

Occupied Housing Units 19,314 94% 206,470 94% 498,602 93% 4,368,849 95% 123,996,543 89%

Owner-Occupied 4,584 22% 41,925 19% 118,612 22% 2,206,008 48% 80,851,843 58%

Renter-Occupied 14,730 72% 164,545 75% 379,990 71% 2,162,841 47% 43,144,700 31%

Ethn

icity

Population by Ethnicity 57,437 569,832 1,294,117 13,192,819 327,886,553

White 15,488 27% 182,493 32% 526,940 41% 7,058,119 53% 238,639,225 73%

Black 10,342 18% 92,394 16% 196,449 15% 919,769 7% 40,849,681 12%

Asian 12,898 22% 103,573 18% 172,301 13% 1,966,153 15% 15,950,807 5%

Other 18,709 33% 191,372 34% 398,427 31% 3,248,778 25% 32,446,840 10%

Hispanic or Latino 29,312 51% 287,939 51% 606,674 47% 5,854,136 44% 57,364,718 17%

Educ

. Less than HS Diploma 11,756 30% 113,260 30% 242,376 27% 1,873,085 21% 29,634,484 14%

HS, Some Col. or Assoc. Deg. 16,973 44% 160,244 42% 360,087 41% 4,106,748 47% 124,268,749 57%

Bach. Degree or Higher 10,224 26% 104,137 28% 280,540 32% 2,775,962 32% 65,057,220 30%

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

27

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Lat/Long: 34.046554/-118.322071




Age

Total Population 57,437 569,832 1,294,117 13,192,819 327,886,553

Age 0 to 14 10,970 19% 109,017 19% 243,709 19% 2,430,584 18% 57,845,741 18%

Age 14 to 18 2,517 4% 24,005 4% 51,392 4% 651,031 5% 16,996,667 5%

Age 18 to 22 2,650 5% 35,271 6% 65,493 5% 794,693 6% 21,091,673 6%

Age 22 to 25 2,346 4% 23,898 4% 50,520 4% 560,716 4% 12,992,019 4%

Age 25 to 35 8,565 15% 88,219 15% 203,221 16% 1,821,415 14% 41,291,738 13%

Age 35 to 45 8,522 15% 89,740 16% 213,776 17% 1,786,660 14% 40,983,525 12%

Age 45 to 55 7,698 13% 75,216 13% 175,337 14% 1,798,923 14% 43,198,192 13%

Age 55 to 65 6,935 12% 60,516 11% 139,235 11% 1,588,601 12% 42,528,083 13%

Age 65 to 75 4,495 8% 38,198 7% 87,849 7% 1,036,515 8% 30,191,062 9%

Age 75 to 85 1,979 3% 18,578 3% 45,080 3% 517,135 4% 15,279,036 5%

Age 85 and over 761 1% 7,174 1% 18,504 1% 206,546 2% 5,488,817 2%

Median Age 36.9 35.5 36.5 36.9 38.3

Average Age 37.5 36.4 37.1 37.8 39.0

Fam

ily

Families by # of Workers 12,915 119,761 257,242 3,018,586 83,068,823

No workers 1,474 11% 13,830 12% 32,521 13% 352,432 12% 12,599,015 15%

1 worker 4,675 36% 46,698 39% 97,643 38% 1,029,999 34% 27,749,734 33%

2 workers 5,079 39% 45,770 38% 97,823 38% 1,199,434 40% 33,919,098 41%

3 or more workers 1,687 13% 13,464 11% 29,255 11% 436,721 14% 8,800,976 11%

Enro

llmen

t Total Population 57,437 569,832 1,294,117 13,192,819 327,886,553

Pre-High School 7,053 12% 67,473 12% 144,221 11% 1,770,822 13% 44,782,301 14%

High School 3,540 6% 29,636 5% 64,089 5% 791,721 6% 18,135,915 6%

College/Grad/Prof 4,148 7% 60,377 11% 118,031 9% 1,187,641 9% 25,063,968 8%

Not enrolled 42,696 74% 412,347 72% 967,775 75% 9,442,635 72% 239,904,369 73%

Per Capita Income $20,801 $23,379 $28,577 $31,009 $30,285

Empl

oym

ent

Total Pop. Age 16+ 45,261 448,961 1,025,033 10,439,570 261,553,341

Labor Force 30,773 68% 303,128 68% 687,905 67% 6,755,575 65% 165,944,995 63%

In Armed Forces 1 0% 12 0% 111 0% 5,301 0% 1,130,596 0%

Civilian, Employed 29,033 64% 286,204 64% 651,381 64% 6,431,549 62% 156,270,024 60%

Civilian, Unemployed 1,739 4% 16,912 4% 36,413 4% 318,725 3% 8,544,375 3%

Not in Labor Force 14,488 32% 145,833 32% 337,128 33% 3,683,995 35% 95,608,346 37%

Unemployment Rate 5.7% 5.6% 5.3% 4.7% 5.1%


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Empl

oyed

Pop

ulat

ion

Employed Pop. Age 16+ 29,033 286,204 651,381 6,431,549 156,270,024

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

2,357 8% 21,923 8% 39,904 6% 404,809 6% 12,769,235 8%

Manufacturing 2,128 7% 24,052 8% 57,093 9% 711,616 11% 16,304,847 10%

Wholesale & retail trade 3,790 13% 37,321 13% 84,676 13% 923,192 14% 22,306,902 14%

Transp. and warehousing,and utilities

1,080 4% 11,483 4% 24,114 4% 313,113 5% 7,767,475 5%

Information 1,102 4% 12,999 5% 41,225 6% 240,574 4% 3,295,137 2%

Fin., ins., RE & rental/leasing 1,336 5% 14,315 5% 34,203 5% 437,975 7% 10,278,798 7%

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

3,887 13% 36,148 13% 90,167 14% 825,446 13% 17,218,530 11%

Prof., sci., & technical svcs 1,505 5% 17,289 6% 52,079 8% 487,959 8% 10,402,817 7%

Mgmt of companies & ent. 1 0% 143 0% 350 0% 4,425 0% 124,879 0%

Admin, support & waste mgmt 2,381 8% 18,716 7% 37,739 6% 333,062 5% 6,690,834 4%

Educ., health and soc. svc 5,100 18% 51,040 18% 113,858 17% 1,302,746 20% 36,213,774 23%

Arts, ent., rec., accom. & food 4,789 16% 44,317 15% 97,981 15% 684,114 11% 14,840,888 9%

Other services (exceptpublic admin)

2,908 10% 27,117 9% 54,716 8% 389,477 6% 7,720,405 5%

Public Administration 556 2% 5,490 2% 13,444 2% 198,487 3% 7,554,033 5%

Employed Civilian Pop. Age 16 + 29,033 286,204 651,381 6,431,549 156,270,024

White Collar 14,513 50% 153,430 54% 381,094 59% 4,066,880 63% 98,837,825 63%

Blue Collar 14,519 50% 132,775 46% 270,287 41% 2,364,669 37% 57,432,199 37%

Whi

te C

olla

r Mgmt, Business, and Fin. Op. 2,995 10% 32,115 11% 83,599 13% 966,113 15% 23,000,666 15%

Professional & Related 4,648 16% 52,175 18% 141,397 22% 1,382,590 21% 34,286,665 22%

Healthcare support 543 2% 5,766 2% 12,086 2% 123,302 2% 3,865,503 2%

Sales & related 3,189 11% 31,386 11% 70,798 11% 735,398 11% 16,856,796 11%

Office & admin support 3,138 11% 31,987 11% 73,214 11% 859,477 13% 20,828,195 13%

Blue

Col

lar

Protective service 626 0% 5,478 0% 11,416 0% 118,451 2% 3,493,547 2%

Food prep & serving 3,142 0% 25,554 0% 51,302 0% 360,184 6% 8,930,589 6%

Building & grounds cleaning& maint.

3,183 2% 24,988 2% 45,025 2% 297,617 5% 6,249,300 4%

Personal care & service 1,379 11% 15,584 9% 34,156 8% 304,141 5% 5,752,417 4%

Farming, fishing, and forestry 18 11% 971 9% 2,291 7% 22,136 0% 1,147,801 1%

Constr., Extraction, & Maint. 2,569 5% 24,757 5% 45,757 5% 467,667 7% 12,857,731 8%

Prod., Transp., & Mat. Moving 3,602 0% 35,443 0% 80,340 0% 794,473 12% 19,000,814 12%


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Hous

ehol

d Si

ze

Households by HH Size 19,314 206,470 498,602 4,368,849 123,996,543

1-person household 4,801 25% 64,203 31% 180,294 31% 1,029,828 24% 33,022,416 27%

2-person household 4,807 25% 53,397 26% 132,646 26% 1,182,056 27% 40,569,495 33%

3-person household 3,455 18% 32,276 16% 67,087 16% 712,889 16% 19,989,607 16%



6-person household 846 4% 7,457 4% 16,020 4% 188,849 4% 3,267,253 3%

7 or more person household 807 4% 7,660 4% 17,963 4% 212,964 5% 2,400,213 2%

Hous

ehol

d Ty

pes

Households by Type 19,314 206,470 498,602 4,368,849 123,996,543

1 Person Households 4,801 25% 64,203 31% 180,294 31% 1,029,828 24% 33,022,416 27%

Family Households 12,915 67% 119,761 58% 257,242 58% 3,018,586 69% 83,068,823 67%

Married-couple family 7,287 38% 65,683 32% 148,074 32% 2,082,443 48% 60,676,012 49%

W/ own children < 18 yrs 3,239 17% 30,016 15% 64,730 15% 946,355 22% 24,271,234 20%

No own children < 18 yrs 4,048 21% 35,667 17% 83,344 17% 1,136,088 26% 36,404,778 29%

Male HHer: no wife present: 1,550 8% 16,792 8% 33,410 8% 284,920 7% 6,004,106 5%

W/ own children < 18 yrs 593 3% 6,547 3% 14,165 3% 116,063 3% 2,860,765 2%

No own children < 18 yrs 958 5% 10,244 5% 19,246 5% 168,857 4% 3,143,341 3%

Female HHer: no husband: 4,078 21% 37,286 18% 75,758 18% 651,223 15% 16,388,705 13%

W/ own children < 18 yrs 1,998 10% 18,464 9% 37,342 9% 314,000 7% 8,965,209 7%

No own children < 18 yrs 2,080 11% 18,822 9% 38,416 9% 337,223 8% 7,423,496 6%

Nonfamily Households 1,599 8% 22,506 11% 61,065 11% 320,435 7% 7,905,304 6%

Gro

up Q

uart

ers

2017 Est. Group Quarters 987 13,160 32,659 205,526 7,932,060

Institutionalized 457 46% 2,816 21% 6,876 21% 82,594 40% 3,993,867 50%

Non-Institutionalized 531 54% 10,344 79% 25,783 79% 122,932 60% 3,938,193 50%

College 63 6% 7,296 55% 8,209 55% 61,582 30% 2,522,758 32%

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

Other 468 47% 3,048 23% 17,574 23% 61,313 30% 1,077,252 14%

2010 Census Group Qtrs Pop. 1,032 0% 13,514 0% 33,411 0% 210,917 0% 8,025,278 0%

2017 Est. Group Qtrs Pop. 987 0% 13,160 0% 32,659 0% 205,526 0% 7,932,060 0%

2022 Proj. Group Qtrs Pop. 987 0% 13,159 0% 32,655 0% 205,500 0% 7,938,096 0%

Vehi

cles

Housing by Vehicles Avail. 19,314 206,470 498,602 4,368,849 123,996,543

None 3,961 21% 46,465 23% 103,715 23% 370,042 8% 11,336,503 9%

1 vehicle 7,747 40% 91,562 44% 224,949 44% 1,466,138 34% 41,927,828 34%

2 vehicles 5,367 28% 51,316 25% 129,345 25% 1,605,194 37% 46,344,682 37%

3 vehicles 1,459 8% 12,066 6% 29,179 6% 609,666 14% 17,054,193 14%

4 vehicles 477 2% 3,404 2% 7,694 2% 225,541 5% 5,313,590 4%

5 or more vehicles 304 2% 1,658 1% 3,720 1% 92,268 2% 2,019,747 2%

Avg. # of Vehicles Available 1.4 1.2 1.2 1.8 1.8


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Hous

ehol

d In

com

e

Households by HH Inc. 19,314 206,470 498,602 4,368,849 123,996,543

$0 to $24,999 5,855 30% 66,570 32% 150,333 30% 854,415 20% 26,991,439 22%

$25,000 to $34,999 2,407 12% 24,480 12% 52,313 10% 362,999 8% 12,079,507 10%

$35,000 to $49,999 3,440 18% 31,949 15% 68,149 14% 522,858 12% 16,399,948 13%

$50,000 to $74,999 3,266 17% 32,516 16% 77,012 15% 720,732 16% 22,028,823 18%

$75,000 to $99,999 1,490 8% 17,629 9% 46,854 9% 528,359 12% 15,306,276 12%

$100,000 to $149,999 1,459 8% 17,279 8% 51,613 10% 671,176 15% 17,107,107 14%

$150,000 to $249,999 947 5% 11,104 5% 35,019 7% 489,696 11% 10,247,960 8%

$250,000 or more 450 2% 4,943 2% 17,308 3% 218,614 5% 3,835,483 3%

Median Household Income $ 40,738 $ 40,012 $ 44,684 $ 64,562 $ 56,803

Average Household Income $ 60,709 $ 63,775 $ 73,113 $ 92,733 $ 78,939

Hous

ehol

ders

<25

yrs HHer < 25 yrs by HH Inc. 686 11,421 21,894 121,251 4,624,128

$0 to $24,999 180 26% 5,722 50% 10,326 47% 49,816 41% 2,130,476 46%

$25,000 to $34,999 127 18% 1,642 14% 2,910 13% 15,987 13% 670,982 15%

$35,000 to $49,999 123 18% 1,731 15% 3,221 15% 18,201 15% 719,244 16%

$50,000 to $99,999 245 36% 1,762 15% 4,092 19% 27,994 23% 893,573 19%

$100,000 or more 11 2% 564 5% 1,346 6% 9,253 8% 209,853 5%



Hous

ehol

ders

25-

44 y

rs HHer 25-44 yrs by HH Inc. 7,821 90,045 225,338 1,602,472 41,340,880

$0 to $24,999 2,063 26% 24,815 28% 54,531 24% 268,581 17% 7,378,350 18%

$25,000 to $34,999 1,050 13% 11,367 13% 24,132 11% 134,700 8% 3,758,783 9%

$35,000 to $49,999 1,674 21% 15,284 17% 32,548 14% 198,932 12% 5,503,800 13%

$50,000 to $99,999 1,988 25% 23,272 26% 62,724 28% 496,998 31% 13,849,726 34%

$100,000 or more 1,047 13% 15,306 17% 51,403 23% 503,261 31% 10,850,221 26%



Hous

ehol

ders

45-

64 y

rs HHer 45-64 yrs by HH Inc. 7,648 72,911 170,871 1,768,230 49,653,797

$0 to $24,999 2,230 29% 21,153 29% 48,325 28% 275,982 16% 8,612,521 17%

$25,000 to $34,999 943 12% 8,033 11% 16,982 10% 121,357 7% 3,855,002 8%

$35,000 to $49,999 1,240 16% 11,163 15% 23,683 14% 193,886 11% 5,755,626 12%

$50,000 to $99,999 1,931 25% 19,404 27% 42,905 25% 508,062 29% 15,427,391 31%

$100,000 or more 1,303 17% 13,158 18% 38,977 23% 668,943 38% 16,003,257 32%




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Hous

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> 6

5 yr

s HHer > 65 yrs by HH Inc. 3,160 32,093 80,499 876,896 28,377,738

$0 to $24,999 1,381 44% 14,880 46% 37,151 46% 260,036 30% 8,870,092 31%

$25,000 to $34,999 286 9% 3,438 11% 8,290 10% 90,955 10% 3,794,740 13%

$35,000 to $49,999 403 13% 3,771 12% 8,697 11% 111,839 13% 4,421,278 16%

$50,000 to $99,999 593 19% 5,706 18% 14,145 18% 216,037 25% 7,164,409 25%

$100,000 or more 496 16% 4,298 13% 12,215 15% 198,029 23% 4,127,219 15%



Hous

ing

Valu

e

Owner-Occ. Housing Units 4,584 41,925 118,612 2,206,008 80,851,843

$0 to $49,999 39 1% 446 1% 1,229 1% 41,901 2% 5,964,035 7%

$50,000 to $99,999 8 0% 210 1% 480 0% 29,226 1% 9,657,935 12%

$100,000 to $199,999 44 1% 691 2% 2,066 2% 58,588 3% 21,494,616 27%

$200,000 to $499,999 434 9% 9,471 23% 26,972 23% 519,390 24% 29,767,717 37%

$500,000 or more 4,059 89% 31,106 74% 87,864 74% 1,556,903 71% 13,967,540 17%

Median Housing Unit Value $ 907,389 $ 749,317 $ 776,927 $ 694,341 $ 220,374

Average Housing Unit Value $ 955,438 $ 917,043 $ 945,956 $ 829,716 $ 324,716

Workplace Establishments 979 15,232 49,143 393,296 8,302,391

Workplace Employees (FTE) 10,903 234,610 768,305 6,832,446 148,599,824

Mor

tgag

e R

isk

Mortgage by Mort.-Risk Ratio 527 4,959 14,901 265,969 9,795,597

Under 1.0 2 0% 21 0% 87 1% 3,795 1% 537,051 5%

1.0 to 2.0 29 5% 230 5% 989 7% 17,269 6% 2,430,997 25%

2.0 to 3.0 108 20% 979 20% 2,849 19% 54,325 20% 3,333,151 34%

3.0 to 4.0 159 30% 1,503 30% 4,330 29% 81,049 30% 2,174,695 22%

4.0 to 5.0 132 25% 1,403 28% 4,207 28% 72,072 27% 958,936 10%

5.0 and over 98 19% 823 17% 2,439 16% 37,459 14% 360,767 4%

Average Mortgage Risk 3.8 3.8 3.7 3.7 2.7


32

APARTMENT UPDATE


Data and images pertaining to employment, income, permits, population, rents, single-family housing, and occupancy are year-end figures. Absorption, construction, and apartment sales figures are full-year totals. Numbers for 2017 are estimated values, while 2018 figures are forecast projections. Apartment market data criteria and methodologies vary by market.

LOS ANGELES-WEST

Employers in Los Angeles County added

57,600 workers to payrolls in 2017, a 1.3%

year-over-year increase. Institutions in

the education and health services sector

led hiring, with 27,000 jobs illed, a 3.5%

annual gain. The greatest rate of growth

was present in the construction industry

as 8,800 jobs were created, an expansion

of 6.6%. The industry was supported by

major developments including the Wilshire

Grand Center, Metropolis Los Angeles, and

the Banc of California Stadium. Developers

concentrated multifamily development in the

urban core, as new inventory in the Central

L.A. and Westlake/Downtown/Silver Lake

submarkets accounted for 56% of deliveries

in Los Angeles West in 2017. Overall, 10,011

apartments were delivered, an increase

of more than 22% from 2016. Apartment

absorption trailed deliveries by 48%, resulting

in an 80-basis-point decrease in occupancy

to 95.1% in December. Monthly efective

rent increased to $2,687 by year-end, a 1.4%

annual gain, half the 2.8% rate of increase

countywide.

2017 REVIEW

Approximately 5,080 apartments are

scheduled for delivery in Los Angeles

West this year. More than 40 multifamily

communities will be completed. New product

will be distributed among all 10 submarkets,

ranging from 341 units in Santa Monica to 765

units in the Hollywood/Los Feliz area. The two

largest communities slated for delivery are

the 695-unit, The Lexington mid-rise project

in the Hollywood/Los Feliz submarket and

the 648-unit, 36-story Circa apartment tower

in the Central L.A. submarket. Employment

expansion and the perennial barriers to

homeownership will spur elevated apartment

demand. Net absorption of 7,842 apartments

is anticipated, fueling a 60-basis-point annual

increase in occupancy to 95.7% in December.

Unlike the northern and southern portions of

the county, rent appreciation in Los Angeles

West is forecast to accelerate from last year’s

rate of growth. A 3.5% year-over-year increase

in efective rent is projected, exceeding the

3.3% countywide gain. By year-end, monthly

efective rent in the region will average $2,781.

Expecting sustained apartment demand,

developers are projected to request permits

for 7,220 apartments this year, in line with the

ive-year average. Employment is forecast to

grow 1.5% during the year as 67,300 workers

are added to payrolls across the county.

2018 PREVIEW

1.3% YOY

EMPLOYMENT

57,600

1.4% YOY

$2,687

80 BPS YOY

95.1%

22.3% YOY

CONSTRUCTION

10,011 Units

40 BPS YOY

UNEMPLOYMENT RATE

4.7%

MARKET FACTS

POPULATION

10,173,700 $79,029HOUSEHOLDS

3,457,700 40.8%

*Estimate; **Forecast | Source: Berkadia, Moody’s Analytics

CAP RATE | PRICE PER UNIT

*Estimate | Source: Berkadia, CoStar Group

SALES ACTIVITY INDEX

*Estimate | Source: Berkadia, CoStar Group

EMPLOYMENT CHANGE

YE 2017 0.3% YOY YE 2017 1.0% YOY

Ind

ex V

alu

e (

Base Y

ear

20

10 =

10

0)

94.0%

94.5%

95.0%

95.5%

96.0%

96.5%

$2,300

$2,400

$2,500

$2,600

$2,700

$2,800

2014 2015 2016 2017* 2018**

Rent & Vacancy

$240,000

$270,000

$300,000

$330,000

$360,000

3.5%

4.0%

4.5%

5.0%

5.5%

2013 2014 2015 2016 2017*

Cap Rate & PPU

-240,000

-180,000

-120,000

-60,000

0

60,000

120,000

2009 2010 2011 2012 2013 2014 2015 2016 2017* 2018**

E ploy e t

0

3,000

6,000

9,000

12,000

2014 2015 2016 2017* 2018**

Permits & Deliveries

0

200

400

600

2013 2014 2015 2016 2017*

Sales Index

YE 2017 2.1% YOY YE 2017 30 BPS YOY

MEDIAN

HOUSEHOLD

INCOME

RENT

SHARE OF

WALLET

*Estimate; **Forecast | Source: Berkadia, Axiometrics, Moody’s Analytics

*Estimate; **Forecast | Source: Berkadia, Axiometrics, Moody’s Analytics

EFFECTIVE RENT AND OCCUPANCY ABSORPTION AND DELIVERIES

2017 PERFORMANCE HIGHLIGHTS

EFFECTIVE RENT

OCCUPANCY

5,241 UnitsABSORPTION

33

DISCLAIMER & CONFIDENTIALITY AGREEMENTThe material contained in this document is confidential, furnished solely for the purpose of considering investment inthe property described therein and is not to be copied and/or used for any purpose or made available to any otherperson without the express written consent of Berkadia Real Estate Advisors. 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 toestablish a preliminary level of interest in the property described herein. It does not, however, purport to present allmaterial information regarding the subject property, and it is not a substitute for a thorough due diligenceinvestigation. In particular, Berkadia Real Estate Advisors and seller have not made any investigation of the actualproperty, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of theproperty, including but not limited to any potential environmental problems that may exist and make no warranty orrepresentation whatsoever concerning these issues. The information contained in this information package has beenobtained from sources we believe to be reliable; however, Berkadia Real Estate Advisors and Seller have notconducted any investigation regarding these matters and make no warranty or representation whatsoever regardingthe accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions orestimates used are for example only and do not necessarily represent the current or future performance of the property.

BerkadiaREA and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of everyphysical and financial aspect of the property to determine if the property meets their needs and expectations. We alsorecommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that mayaffect 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 mayadversely affect the property and the health of some individuals. Berkadia Real Estate Advisors recommends, ifprospective 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 orobligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligationto any party until such time as Seller and any other necessary parties have executed a contract of sale containingterms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.

For more information on these and other Berkadia Real Estate Advisors exclusive listings, please call or visit our website atwww.BerkadiaREA.comBerkadia Real Estate Advisors is the nation’s largest real estate firm focused exclusively on the sale of multifamily properties. Allinformation contained herein is from sources deemed to be reliable; however, it is not guaranteed. Printed in the USA. All rightsreserved.Copyright © 2018 Berkadia Real Estate Advisors.

For Real-Time Property Information go to: 1326south5thave.BerkadiaREA.com

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