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

ANDREW LEFFSenior AssociateDirector, National Retail GroupTel: (818) 212-2815Fax: (818) 212-2710andrew.leff@marcusmillichap.comLicense: CA #01865688

16830 Ventura Blvd. Suite 100, Encino, CA 91436www.marcusmillichap.com

G R O U P

BRANDON MICHAELS

SOUTHERN CALIFORNIA'S PREMIER SALES TEAM

PROPERTY OVERVIEW

FINANCIALS

COMPARABLES

AREA OVERVIEW

INVESTMENT ADVISORS

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Current rent in the area has created an affluent community surrounding Koreatown, Los Angeles, making this an ideal time to purchase property in the center of Koreatown. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors.

Median age: 35.6

Median household income within a 5-mile radius: $74,182

Population within a 5-mile radius: 1,113,269

Los Angeles is always evolving, but some neighborhoods change faster than others. Projecting a few years forward, it’s hard to imagine any part of the city looking as different as Koreatown. With new buildings going up left and right, entire blocks could be nearly unrecognizable in a relatively short amount of time.

Much of the area's development activity is concentrated around the Wilshire corridor, but a number of projects are also popping up to the north and south. And one developer in particular—Jamison Services—seems to be on a mission to singlehandedly reinvent the neighborhood. The firm recently wrapped up work on its first new construction project in the area, and plenty more are on the way.

SIGNIFICANT OPPORTUNITY

NEIGHBORHOOD

DEVELOPMENT BOOM

DEMOGRAPHICS

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Koreatown has more large malls than any similar sized area in America with an emphasis on markets, skin care, home goods and the best k-pop stores in LA. Peppered among the shops, whether in a mall or side street, are entertainment venues, trendy dessert shops, coffeehouses, and restaurants. K-town is also known for having one of the largest concentration of nightclubs and 24-hour businesses and restaurants in the country.

632 N Western Avenue has a score of 90/100 for Walkability, and 62/100 for Bike-ability. Discover great selections of dining, shopping, and accommodations.

The Los Angeles Metro is affordable, relatively easy to use, and services most of Los Angeles County and its top attractions. The public transit system consists of Metro Buses, DASH Buses, and Metro Rail Trains.

You can get to Koreatown by Bus, Subway or Light Rail. These are the lines and routes that have stops nearby - Subway: Subway - PURPLE LINE; Bus: Bus - 20, Bus - 710, Bus - DASH, Bus - R7.

SHOPPING & DINING

GETTING AROUND

WEATHER

WALKABILITY

While other parts of the world may experience brutal winters and hot humid summers, Los Angeles is fortunate to enjoy bright blue skies, stunning sunsets, and cool breezes year round. This near-perfect weather allows an active and relaxing lifestyle throughout the entire year. KO

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Marcus & Millichap has been selected to exclusively market for sale 4406 West 2nd Street, a mixed-use property located on the southwest signalized corner of South Western

Avenue and West 2nd Street in the high demand Koreatown sub-market of Los Angeles, CA.

The property consists of a 11,016 square-foot mixed-use retail/office building situated on a 9,280 square-foot corner lot, currently 98% occupied by mostly long-term tenants. The majority of the tenants are currently renting on a fully triple-net basis with current NET charges of ~$0.73/month per-foot, so an increase in property taxes post-sale will not substantially impact the rent-roll. As such, 4406 West 2nd Street offers a rare opportunity to purchase a stabilized, low risk investment opportunity in one of the most highly sought-after areas of Los Angeles.

4406 West 2nd Street boast excellent visibility from all directions in a densely populated area (over 1.2 million people within 5 miles) and traffic counts of nearly 45,000 cars per day. The property sits within walking distance from some of Koreatown’s most popular bars, restaurants, and shopping. Koreatown is one of the most rapidly developing submarkets within Los Angeles, with the majority of new development activity just minutes from the subject property centered around the Wilshire corridor.

Koreatown is a neighborhood in Central Los Angeles, California, centered near Eighth Street and Irolo Street, west of MacArthur Park. The rectangular areacovers about 150 blocks, spanning 10 streets and 15 avenues (east-west). Despite the origins with Korean culture, the residents are a broad mix, with halfLatino and a third Asian.Koreatown is the most-densely populated district by population in Los Angeles County, with 120,000 residents in 2.7 square miles (7.0 km2). Despite thename evoking a traditional ethnic enclave, the community is complex and has an impact on areas outside the traditional boundaries. While the neighborhoodculture has historically been oriented to the Korean immigrant population, Korean business owners are creating stronger ties to the Latino community inKoreatown. The community is highly diverse ethnically, with half the residents being Latino and a third being Asian. Two-thirds of the residents were bornoutside of the United States, as a high figure compared to the rest of the city.

A rare opportunity to acquire a mixed-use retail/office property located in the heart of Koreatown

Traffic Volume Counts of 33,793on the intersection of N Western Ave

and Melrose Ave

33,79372 Surface Spaces

Ratio of 1.9/1,000 SF

7268,096 Businesses in a

5-mile Radius

68,096A walking score of

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◆ Stabilized Investment Opportunity in Prime Koreatown

◆ 98% Occupied by Long Term Tenants on Fully Triple-Net Leases

◆ Current NNN Charges ~$0.73/SF – Increased Property Taxes Won’t Hurt Tenants

◆ Signalized Corner with Excellent Visibility and Nearly 45,000 Cars Per Day

◆ Rapidly Developing Submarket – Thousands of New Units and Commercial Space Planned & Under-Construction

◆ 52 Development projects currently in process in Koreatown

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$72,401Average Household Income Within 1-mile Radius

440,334Households Within 5-mile Radius

1,222,724Population Within 5-mile Radius

S WESTERN AVE

The property sits within walking distance from some of Koreatown’s most popular

bars, restaurants, and shopping. Koreatown is one of the most rapidly developing

submarkets within Los Angeles, with the majority of new development activity just

minutes from the subject property centered around the Wilshire corridor.

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ADDRESS 4406 W 2nd StreetLos Angeles, CA 90004

PRICE $3,600,000

CAP RATE 4.93%

PRO FORMA CAP RATE 5.28%

PRICE/SF $327

PRICE/SF (LAND) $388

CURRENT OCCUPANCY 98%

BUILDING SF 11,016

LAND SF 9,280

ZONING LAC2

APN NUMBER 5517-001-001

YEAR BUILT 1923

TYPE OF OWNERSHIP Fee Simple

PROPERTY INFORMATION

SUMMARY OF TERMSInterest Offered:100% fee simple interest in a 11,016 SF retail property located at 4406 W 2nd , Los Angeles, CA 90004.

Terms of the Sale:Property is being offered on a free and clear basis.

Property Tours:Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must be coordinated through the listing broker.

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LOCATION4406 W 2nd StreetLos Angeles, CA 90004

SITEThe subject property is located on the southwest corner of W 2nd Street and S Western Avenue.

SQUARE FOOTAGESThe total building SF is 11,016 SF. The total lot size is 9,280 SF.

YEAR BUILTThe property was built in 1923.

CROSS STREETSThe cross streets are S Western Avenue (North/South) and W 2nd Street (East/West).

TRAFFIC COUNTSThe traffic volumes on the intersection of W 2nd Street and S Western Avenue are 39,876 vehicles per day.

ZONINGThe zoning is LAC2.

APN NUMBERThe APN number is 5517-001-001.

PARCEL MAP

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RENT ROLLUNIT TENANT SF BLDG % LEASE

STARTLEASE

EXPIRATIONBASE RENT

BASE RENT/SF NNN NNN

RENT/SFLEASE TYPE OPTIONS PRO FORMA

RENTPRO FORMA

RENT/SF

201-203 L.A. Mattress Plus* 2,967 26.97% 9/1/2014 4/30/2020 $6,237.90 $2.10 $2,165.91 $0.73 NNN NOT < 3% 1 - 5 Year $6,425.04 $2.17

205 Michael Lane* 1,810 16.45% 10/1/2018 4/30/2022 $2,423.50 $1.34 $1,321.30 $0.73 NNN NOT < 3% $2,496.21 $1.38

4408-4414 Michael Lane* 3,247 29.51% 5/1/2017 4/30/2022 $3,686.36 $1.14 $2,370.31 $0.73 NNN 3% NO CAP 1 - 2 Year $3,796.95 $1.17

201 Trap Noir 273 2.48% 12/1/2018 11/30/2019 $356.68 $1.31 $199.29 $0.73 NNN $477.75 $1.75

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Douglas Thomas 390 3.54% 12/1/2017 11/30/2019 $375.90 $0.96 $284.70 $0.73 NNN 3.00% $682.50 $1.75

203 Masashi Kobari 175 1.59% 5/1/2018 4/30/2019 $346.34 $1.98 $127.75 $0.73 NNN $346.34 $1.98

205 Rubens Carnicelli, Jr. 182 1.65% 2/1/2001 1/31/2002 $219.42 $1.21 $0.00 GROSS CPI M2M $318.50 $1.75

207 Noe Montes 209 1.90% 8/1/2018 7/31/2020 $356.11 $1.70 $152.57 $0.73 NNN 3% NO CAP $366.79 $1.75

208 & 210 Michael Lane 1,092 9.92% 5/1/2017 4/30/2019 $1,079.93 $0.99 $797.16 $0.73 NNN 3% NO CAP 1-5 Year $1,112.33 $1.02

209 VACANT 191 1.74% $334.25 $1.75 $0.00 $0.00 $334.25 $1.75

211-215 Charles K. Rosenberg 467 4.24% 1/1/2018 12/31/2022 $538.01 $1.15 $340.91 $0.73 NNN 3% NO CAP $554.15 $1.19

Water Machine

FKB Incorporated $220.00 $220.00

TOTAL 11,003 100.00% $16,174.40 $1.47 $7,759.90 $0.73 $17,130.80 $1.56

OPERATING EXPENSES PER YEAR PER SF

Taxes @ 1.25% $45,000 $4.08

Insurance $11,639 $1.06

Utilities $9,202 $0.84

HVAC Maintenance $510 $0.05

Plumbing $225 $0.02

Licenses & Permits $200 $0.02

Repairs & Maintenance $4,025 $0.37

Supplies $398 $0.04

Pest Control $932 $0.08

Cleaning $11,100 $1.01

Roof $415 $0.04

Trash $7,619 $0.69

Management $11,646 $1.06

Painting $1,485 $0.13

Locksmith $191 $0.02

Electrical Repair $2,102 $0.19

Total $106,689 $9.68/$0.81

CURRENT PRO FORMA

Scheduled Lease Income $194,093 $205,570

NNN Charges $104,925 $106,689

Effective Gross Income $299,017 $312,259

Vacancy $14,951 $15,613

Expenses $106,689 $106,689

Net Operating Income $177,377 $189,957

ADDRESS 4406 W 2nd StreetLos Angeles, CA 90004

PRICE $3,600,000

CAP RATE 4.93%

PRO FORMA CAP RATE 5.28%

PRICE/SF $327

PRICE/SF (LAND) $388

BUILDING SF 11,016

LAND SF 9,280

INCOME AND EXPENCE EXPENSES BREAKDOWN

PRICING

FINANCIALS

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# ADDRESS SALE PRICE PRICE/SF PRICE/SF(LAND) BLDG SF LAND SF ZONING CLOSE OF

ESCROW

1 3966-3980 W 6th StLos Angeles, CA 90020 $3,450,000 $375.53 $316.80 9,187 10890 LAC2 Under

Contract

2 234 S Oxford AveLos Angeles, CA 90004 $1,950,000 $511.01 $269.67 3,816 7,231 C2 06/12/2018

3 207 N Vermont AveLos Angeles, CA 90004 $5,500,000 $347.88 $382.61 15,810 14,375 C2 12/28/2018

4 629 N Western AveLos Angeles, CA 90004 $3,100,000 $516.67 $444.79 6,000 6969.6 LAC2 In Escrow

5 174 S Western AveLos Angeles, CA 90004 $2,050,000 $350.43 $235.31 5,850 8,712 C2-1 9/18/2018

6 3630 Wilshire BlvdLos Angeles, CA 90010 $5,250,000 $506.95 $547.83 10,356 9583.2 C4-2, PB-2 09/21/2018

Average $3,550,000 $434.75 $366.17 8,503 9626.8 - -

8930-8968 Corbin Ave. Northridge

8727 Tampa Ave. Northridge

8920-9068 Tampa Ave. Northridge

9301 Tampa Ave. Northridge

9346 Corbin Ave. Northridge

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3966-3980 W 6th St. Los Angeles234 S Oxford Ave. Los Angeles207 N Vermont Ave. Los Angeles629 N Western Ave. Los Angeles174 S Western Ave. Los Angeles3630 Wilshire Blvd. Los Angeles4406 W 2nd St. Los Angeles

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SALES COMPARABLES

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# ADDRESS RENT/SF/MONTH RENT/SF/YEAR LEASABLE AREA LEASE TYPE

1 153 S Western AveLos Angeles, CA 90004 $1.65 $19.80 4,320 Modified Gross

2 4355-4365 W 3rd StLos Angeles, CA 90020 $2.25 $27.00 10,334 Modified Gross

3 4155-4157 W 5th StLos Angeles, CA 90020 $2.50 $30.00 15,000 Modified Gross

4 422 S Western AveLos Angeles, CA 90020 $2.25 $27.00 10,000 NNN

5 400 S Western AveLos Angeles, CA 90020 $2.25 $27.00 16,337 NNN

6 451-467 N Western AveLos Angeles, CA 90004 $2.50 $30.00 19,280 Modified Gross

Average $2.23 $26.80 12,545 -

RENT COMPARABLES8930-8968 Corbin Ave. Northridge

8727 Tampa Ave. Northridge

8920-9068 Tampa Ave. Northridge

9301 Tampa Ave. Northridge

9346 Corbin Ave. Northridge

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153 S Western Ave. Los Angeles4355-4365 W 3rd St. Los Angeles4155-4157 W 5th St. Los Angeles422 S Western Ave. Los Angeles400 S Western Ave. Los Angeles451-467 N Western Ave. Los Angeles4406 W 2nd St. Los Angeles

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THE WILTERN

The Wiltern is another of LA’s most famous theatres. Most recently, the Wiltern’s façade was featured in the promotions for the premiere of Lana Del Rey’s new video, ‘Freak,’ and it was also the location of Adele’s pre-Grammy concert in February 2016. Originally designed to be a multi-tiered movie theater, the space operates now as a concert venue with seated balcony space and a floor space that’s typically standing and general admission.

KOREATOWN PLAZA

This Asian-styled shopping mall is the place to hang out. It’s a hotspot for teenagers who live in the neighborhood, but for good reason. The Koreatown Plaza has a wide range of shops, including ones you find in standard American and Korean malls. It also has an impressive food court on the bottom floor, making it convenient for grabbing a nice lunch or afternoon snack. This plaza is a great reflection on the shopping culture of Koreatown.

CHAPMAN MARKET

The Chapman Market is another gem on Wilshire Boulevard. The 1929 Spanish Revival style fortress is home to dozens of shops all snuggled around a cozy courtyard. It is famously known as the first ‘drive-through’ grocery store when it first opened. Here you can find various floral shops, salons, cafés, and restaurants all in one spot.

KOREAN AMERICAN NATIONAL MUSEUM

The Korean American National Museum is one of the finest museums in Los Angeles. Their exhibits include the stories of the many people who live in this neighborhood, and tell the tale of generations before them. A visit to this museum will allow you to gain more empathy and understanding of the Korean culture. The museum is also deeply involved in community activities, and serves as a good resource for upcoming events in the area.

There are a number of exciting things to do near the Hyman Center. From historical sites to cultural attractions, explore the exhaustive list of all other local attractions in Koreatown.

Just south of Hollywood and west of Downtown Los Angeles lies Koreatown, a bustling and culturally diverse 3-square-mile neighborhood that never seems to sleep. Unlike the majority of Los Angeles, which tends to wrap up a night out by 2 a.m. (at the latest), Koreatown is known for its energetic nightlife and for having the city’s largest concentration of 24-hour bars, clubs, restaurants, and karaoke hotspots.

K-Town, as it’s commonly known, has an equally vibrant history as well. Once a hotbed of old-school Hollywood glam, the district was home to celebrity enclaves, including the original Brown Derby restaurant, the Cocoanut Grove nightclub, and the Ambassador Hotel, which hosted a half dozen Academy Awards ceremonies between 1930 and 1943.

While these legendary spots are no more, today’s K-Town is home to dozens of prized L.A. establishments. For a trendy overnight stay, consider the Hotel Normandie, a boutique property built in the 1920s, or The Line Hotel, an industrial-chic hotel which not only has its own design-driven shop, Poketo, but also an ’80s-themed bar, Break Room 86, with karaoke suites and boozy push-pops. There’s the art deco masterpiece The Wiltern, a designated historical landmark, which lives on as one of the largest, most legendary music venues in the city.

Koreatown is home to several multilevel shopping malls, such as KTP, Koreatown Plaza, which melds upscale boutiques with more standard apparel and cosmetics shops. Refuel in the food court, a K-Town staple in its own right, with many of its stalls slinging authentic, inexpensive Korean street food.

KOREATOWN, LOS ANGELES TOP ATTRACTIONS

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Total Population of Koreatown, Los Angeles.The median age is 37.4.

MALE

High School Associates Degree Bachelor’s Degree Grad Degree

FEMALE

39,881

52%48%

4.29%7.71% 23.28% 11.02%

EDUCATION

BUSINESSES

Olympic Boulevard has blocks dominated by Korean-language signs and new blue-tile-roofed shopping centers. This initial Korean business area has spread to an area bounded by Olympic Boulevard, Vermont Avenue, 8th Street and Western Avenue. The Korean business area also sprawls to the north and south along Western and Vermont for three miles, and to the east and west along Olympic for two miles. South Korean investment has been a large contributor to the neighborhood economy since the 1960s. Since the early 2000s, that investment has increased greatly, ballooning to an estimated $1 billion in new construction investment. The area also has a vibrant nightlife with many lively restaurants and clubs, especially Korean barbeque restaurants and karaoke bars.

94,561Owner Occupied Households

within 5-m radius

371,974Renter Occupied Households

within 5-m radius

69,969Businesses within a 5-m radius

$72,401Average HH income within 5-m radius

$44,919Median HH income within 5-m radius

1,195,694Population within 5-m radius

DEMOGRAPHICS

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

ANDREW LEFFSenior AssociateDirector, National Retail GroupTel: (818) 212-2815Fax: (818) 212-2710andrew.leff@marcusmillichap.comLicense: CA #01865688