PRIME SOUTH BAY AUTO CENTER OFFERING

HAWTHORNE BOULEVARD 69,000+ VPD

Confidentiality AgreementThe information contained in the following offeringmemorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it fromMarcus & Millichap and it should not be made available toany other person or entity without the written consent ofMarcus & Millichap. By taking possession of and reviewing theinformation contained herein the recipient agrees to holdand treat all such information in the strictest confidence. Therecipient further agrees that recipient will not photocopy orduplicate any part of the offering memorandum. If youhave no interest in the subject property at this time, pleasereturn this offering memorandum to Marcus & Millichap.This offering memorandum has been prepared to providesummary, unverified financial and physical information toprospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The informationcontained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not madeany investigation, and makes no warranty or representationwith respect to the income or expenses for the subjectproperty, the future projected financial performance of theproperty, the size and square footage of the property andimprovements, the presence or absence of contaminatingsubstances, PCBs or asbestos, the compliance with local,state and federal regulations, the physical condition of theimprovements thereon, or the financial condition or businessprospects of any tenant, or any tenant’s plans or intentionsto continue its occupancy of the subject property. Theinformation contained in this offering memorandum hasbeen obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will notverify, any of the information contained herein, nor hasMarcus & Millichap conducted any investigation regardingthese matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness ofthe information provided. All potential buyers must takeappropriate measures to verify all of the information set forthherein. Prospective buyers shall be responsible for their costsand expenses of investigating the subject property.ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FORMORE DETAILS.

19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.MARCUSMILLICHAP.COM

EXCLUSIVELEYLISTED

Jack C. HopkinsSenior Vice President InvestmentsSenior Director, National Retail Group

(949) 419-3270 direct(949) 419-3200 main(949) 929-4198 mobile(949) 606-9396 fax

JHopkins@marcusmillichap.comLicense CA: 00814025

Jake J. HopkinsAssociate

(949) 419-3256 direct(949) 419-3200 main(714) 365-2151 mobile(949) 606-9396 fax

Jake.Hopkins@marcusmillichap.comLicense CA: 02026709

Table of Contents

INVESTMENT OVERVIEWInvestment Summary

Income & Expenses

Location Maps

Aerial Map

Regional Map

Zoning Information

COMPETITIVE PROPERTYSET

Sale Comparables

Sale Comparables Map

AREAOVERVIEWDemographics

Investment OverviewInvestment Summary

Income & Expenses

Location Maps

Aerial Map

Regional Map

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ADDRESS3730-3740 Spencer S t

Torrance, CA 90503

PRICE$2,400,000

LOT SIZE20,219 SF

TheOFFERING

BUILDING GLA6,625 SF

HAWTHORNE BOULEVARD 69,000+ VPD

SPEN

CER

STRE

ET 5

,000+

VPD

TheOFFERING

Financial SummaryPrice: $2,400,000

Price/SF: $362.26

Occupancy: Owner-User

Ownership: Fee Simple

Existing Loan (Can Be Assumed): ~ $974,644.28

Interest Rate: 4.5%

Amortization: 20 Years

Loan Due: 8/1/2027

Property SummaryProperty Name: Prime Torrance Auto Center

Address: 3730-3740 Spencer St Torrance, CA 90503

Gross Leasable Area: 6,625 SF

Zoning: General Commercial – Downtown Hawthorne Specific Plan

Assessor's Parcel Number: 7524-010-021

Year Built: 1975

Lot Size: 20,219 SF

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FINANCIALSummary

C U R R E N T P R O F O R M ABase Rent

Occupied Space (938 SF) $18,000 $22,500Owner Occupied Space (5699 SF) $136,500

Gross Potential Rent $18,000 $159,000

Tenant Expense Reimbursements $46,639

Gross Potential Income

Vacancy Factor (5%) ($10,282)

Effective Gross Income $18,000 $195,357

New Real Estate Taxes $21,131 $21,131 Insurance $10,200 $10,200Utilities $4,380 $4,380Landscaping $900 $900Repairs $2,500 $2,500Management (4%) $7,528

Total Expenses $39,111 $46,639

Net Operating Income ($21,111) $148,718

INC

OM

EA

NA

LYSI

SEX

PEN

SES

P r o - F o r m a A s s u m e s C e n t e r A s s u m e s C u r r e n t O w n e r - O c c u p i e d S p a c e L e a s e d a t C u r r e n t M a r k e t R e n t s ( $ 2 . 0 0 / S F ) o n N N N L e a s e s

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INVESTMENTHighlights

◆ Street Traffic On Hawthorne Blvd exceeds 69,000+ Cars Per Day

◆ 240 ,000+ Peop l e w i th in 3 -M i l es

◆ Two Blocks from 2.5 Million Square Foot Del Amo Mall, One of the Largest Malls in America

◆ $127,000 Average Household Income within 3-Miles

◆ Easement Creates a Second Point of Entry From Hawthorne Blvd

INVESTMENTOverview

Marcus & Millichap is pleased to present the remarkable opportunity for anowner/user or investor to acquire an Auto Service Shop totaling 6,625 sqft in thecity of Torrance. The property sits just off Hawthorne Blvd which is one of thebusiest and heaviest trafficked thoroughfares in Southern California, with streettraffic exceeding 69,000 cars per day. The Auto Service Shop’s location benefitsfrom being located on Spencer Street, which allows for easy ingress and egressfrom the signalized intersection of Hawthorne/Spencer. Furthermore, there isan easement that allows for direct access off Hawthorne Blvd.

There are more than 10 established automotive dealerships within very closeproximity to the site which proves demand for a service shop in this location isvery strong. With used car sales having a record boom this year, the auto serviceindustry is poised to improve as well.

The Hawthorne Boulevard commercial corridor runs approximately five milesfrom the 405 Freeway, to Pacific Coast Highway at the foothills of Palos Verdes.This busy commercial corridor known by locals as “The Boulevard”, is home tocountless nationally branded and local retail tenants, restaurants and shoppingcenters, professional and medical office buildings, car dealerships andautomotive related businesses, as well as hotel and recreational facilities. Thissection of Hawthorne Blvd is also home to the world famous Del Amo FashionMall, one of the largest and busiest malls in America with 2.5 million square feet.

◆ Close Proximity to 405, 110, 105, and 91 Freeways and Los Angeles International Airport

◆ Torrance is the Largest South Bay Beach Community and 8th Most Populous City of Los Angeles County’s 141 Cities

LOCATIONHighlights

The subject is one parcel off the extremely busy intersection of Hawthorne Boulevard (67,496 VPD)and Spencer Street (7,164 VPD). There are over 570,000 people within a 5-mile radius of the site,and this is expected to grow by 3.14% in the next four years. This section of Torrance is known asAutomobile Row, with a whole host of dealers surrounding this site including: Audi, Nissan, Honda,Cadillac GMC, Mini-Cooper, Hyundai, BMW, Chrysler; as well as the rental car companies of Hertz,Avis and Enterprise. The property is also two blocks away from Del Amo Fashion Mall, one ofAmerica’s largest shopping malls with 2.5 Million Square Feet of retail.

Current zoning for the subject property is C-Gen. However, the guidance for future development falls under the Hawthorne Boulevard Corridor Specific Plan. The subject is in the Promenade District (PR), which includes property on both sides of Hawthorne Boulevard and extends from 190th Street on the north to Maricopa Street on the South. This area has the largest variety of land uses, but is known for its heavy concentration of automobile sales and service land uses. Consolidated and well-planned automobile sales or service uses are included. Although the current use for the subject is the grandfathered Auto Repair use, any future facility would require a Conditional Use Permit and probably why very few of these uses remain in this very busy automotive zone.

Land prices are rising exponentially, as the car dealers have become more aggressive in their desire to congregate in this specific area of Torrance. Larger land parcels are even more valuable on a per square foot basis and are rare opportunities.

AERIALM a p

2.5M SF of Retail

Trade Area Demographics

+250k People$127k AVG HH Income

Median Age: 41

AERIALM a p

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REGIONALM a p

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ZONINGI n f o r m a t i o n

The parcel in this offering falls under the General Commercial zoning in the current City of Torrance General Plan. There isalso a Hawthorne Boulevard Corridor Specific Plan (HBCSP), which designates both parcels as having zoning of “PR”, orProminade Sub-District. The guidelines for PR zoning under the HBCSP allow for a wide variety of uses that fall under thefollowing designated categories within the plan:

1. Automotive Related Uses2. Eating and Drinking Establishments 3. Health Care Services 4. Communications and Transportation5. Residential (mixed-use is the only residential use allowed in this category) 6. Retail Trade7. Service Uses

The Prominade Sub-District or PR zoning under the HBCSP allows for the widest array of possible uses in the area. Whilemany of the sub-categories of specific uses are labeled as Permitted, some specific uses will require a Conditional UsePermit under the plan, and must be applied for with the city of Torrance Planning Department.

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PARCELM a p

Spencer Street

Easement to Hawthorne Blvd

Competitive Property Set

Sales Comparables

Sales Comparables Map

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PHOTO ADDRESS SALE PRICECAP

RATEClose

OfEscrow

Price/SF Lot Size YR BUILT DESCRIPTION

3730 Spencer StTorrance, CA 90503 $2,400,000 N/A TBD $362.26 0.46 AC 1975

1 $3,075,000 N/A 6/19/2020 $469.47 0.47 AC 1991

2 $2,350,000 4.10% 1/5/2020 $691.18 0.34 AC 1953

3 $3,375,000 N/A 12/13/2019 $500.00 0.33 AC 1956

4 $4,000,000 N/A 3/4/2020 $539.81 0.64 AC 1972

5 $3,300,000 N/A 10/18/2020 $504.97 0.27 AC 1970

6 $1,710,000 N/A 1/14/2020 $250.33 0.47 AC 1929

SALESComparables

4500 Manhattan Beach BlvdLawndale, CA 90260

Vacant Auto Repair

Operating Auto Repair

Vacant Just Tires

VacantFirestone

208 S Sepulveda BlvdManhattan Beach, CA 90266

9210 S Sepulveda BlvdLos Angeles, CA 90045

11524 South StCerritos, CA 90703

Vacant Auto Repair

1172 N Western AveLos Angeles, CA 90029

M-T-MService Tenants

3311 Mulford AveLynwood, CA 90262

Vacant Auto Repair

AVERAGES: $2,968,333 4.10% $492.63 0.42 AC 1962

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SALESComparables Map

1

S

2

3

4

3730 Spencer StTorrance, CA 90232

4500 Manhattan Beach BlvdLawndale, CA 90260

208 S Sepulveda BlvdManhattan Beach, CA 90266

9210 S Sepulveda BlvdLos Angeles, CA 90045

11524 South StCerritos, CA 90703

1172 N Western AveLos Angeles, CA 90029

5

1

S

2

3

4

5

3311 Mulford AveLynwood, CA 90262

6

6

Area Overview

Demographic Overview

Population Highlights

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DEMOGRAPHICOverviewOVERVIEWSOUTH BAY-LONG BEACH

PORT ACTIVITYThe ports of Los Angeles and Long Beach are the two busiest ports in the nation, underpinning employment in the trade, transportation and utilities sector.

EDUCATED LABOR POOLHigh educational attainment supports hiring in the business services and healthcare sectors. Roughly 37 percent of residents age 25 and older hold a bachelor’s degree.

STRATEGIC LOCATIONLos Angeles International Airport and two port facilities provide an ideal location for e-commerce and logistics companies.

The South Bay-Long Beach area of southwestern Los Angeles County

contains 21 miles of coastline between Long Beach and El Segundo and

includes Los Angeles International Airport, the Port of Los Angeles and

the Port of Long Beach. The region boasts a population of approximately

1.3 million and is projected to add roughly 9,700 residents through 2023.

High home values allow just half of households to afford to own their

home, generating a large rental market.

The area’s economy historically relied on the aerospace industry and defense-related technologies, including companies such as Boeing, Honeywell Aerospace and Raytheon.

Widespread diversification in recent years has produced a large contingent of professional and business services firms and corporate headquarters. Significant operations are held by American Honda Motor Co., BP, and Mattel.

A growing population base and public healthcare have supported gains in the education and healthcare sector thanks to both public and private employers.

DEMOGRAPHICS

ECONOMY

METRO HIGHLIGHTS

1.3M2019

POPULATION:

489K2019

HOUSEHOLDS:

38.52019

MEDIAN AGE:

$75,9002019 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:38.1

U.S. Median:$60,8002.3%

Growth2019-2024*:2.0%

Growth2019-2024*:

| 19 |

PopulationIn 2019, the population in your selected geography is243,418. The population has changed by 9.12% since2000. It is estimated that the population in your area willbe 249,002.00 five years from now, which represents achange of 2.29% from the current year. The currentpopulation is 49.41% male and 50.59% female. Themedian age of the population in your area is 41.07,compare this to the US average which is 37.95. Thepopulation density in your area is 8,608.25 people persquare mile.

HouseholdsThere are currently 96,852 households in your selectedgeography. The number of households has changed by7.18% since 2000. It is estimated that the number ofhouseholds in your area will be 99,268 five years fromnow, which represents a change of 2.49% from thecurrent year. The average household size in your area is2.50 persons.

IncomeIn 2019, the median household income for your selectedgeography is $88,829, compare this to the US averagewhich is currently $58,754. The median household incomefor your area has changed by 48.99% since 2000. It isestimated that the median household income in yourarea will be $101,975 five years from now, whichrepresents a change of 14.80% from the current year.The current year per capita income in your area is$50,813, compare this to the US average, which is$32,356. The current year average household income inyour area is $127,396, compare this to the US averagewhich is $84,609.

Race and EthnicityThe current year racial makeup of your selected area isas follows: 55.42% White, 3.34% Black, 0.40% NativeAmerican and 26.08% Asian/Pacific Islander. Comparethese to US averages which are: 70.20% White, 12.89%Black, 0.19% Native American and 5.59% Asian/PacificIslander. People of Hispanic origin are countedindependently of race. People of Hispanic origin makeup 21.27% of the current year population in yourselected area. Compare this to the US average of18.01%.

HousingThe median housing value in your area was $703,566 in2019, compare this to the US average of $201,842. In2000, there were 45,639 owner occupied housing units inyour area and there were 44,721 renter occupiedhousing units in your area. The median rent at the timewas $868.

EmploymentIn 2019, there are 127,516 employees in your selectedarea, this is also known as the daytime population. The2000 Census revealed that 75.27% of employees areemployed in white-collar occupations in this geography,and 24.68% are employed in blue-collar occupations. In2019, unemployment in this area is 4.07%. In 2000, theaverage time traveled to work was 31.00 minutes.

TORRANCE, CA

DEMOGRAPHICOverview

| 20 |

TORRANCE, CA

DEMOGRAPHICOverview

POPULATION 1 Miles 3 Miles 5 Miles 2023 Projection

Total Population 25,467 249,002 575,083 2018 Estimate

Total Population 25,249 243,418 570,047 2010 Census

Total Population 24,516 235,212 549,597 2000 Census

Total Population 23,681 223,075 533,092 Current Daytime Population

2018 Estimate 34,360 280,342 601,742HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2023 Projection

Total Households 10,159 99,268 213,649 2018 Estimate

Total Households 10,005 96,852 210,356Average (Mean) Household Size 2.49 2.50 2.68

2010 CensusTotal Households 9,624 92,694 200,949

2000 CensusTotal Households 9,597 90,360 198,774

Occupied Units2023 Projection 10,159 99,268 213,6492018 Estimate 10,243 98,586 214,215

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2018 Estimate

$150,000 or More 20.05% 24.58% 21.23%$100,000 - $149,000 18.22% 19.39% 17.57%$75,000 - $99,999 13.32% 14.20% 13.37%$50,000 - $74,999 18.43% 15.35% 16.16%$35,000 - $49,999 9.97% 8.65% 10.07%Under $35,000 20.01% 17.85% 21.59%

Average Household Income $113,499 $127,396 $117,669Median Household Income $77,508 $88,829 $78,673Per Capita Income $45,318 $50,813 $43,579

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $87,638 $91,449 $86,625 Consumer Expenditure Top 10 Categories

Housing $24,922 $26,543 $25,069Shelter $16,103 $17,185 $16,140Transportation $14,357 $15,083 $14,381Personal Insurance and Pensions $10,049 $10,477 $9,551Food $8,989 $9,333 $8,833Health Care $4,853 $4,993 $4,780Utilities $4,002 $4,148 $4,001Entertainment $3,390 $3,706 $3,491Apparel $2,407 $2,524 $2,381Household Furnishings and Equipment $2,262 $2,558 $2,408

POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2018 Estimate Total Population 25,249 243,418 570,047Under 20 21.59% 21.78% 23.16%20 to 34 Years 19.84% 19.37% 19.80%35 to 39 Years 7.02% 7.27% 6.83%40 to 49 Years 14.28% 15.63% 14.70%50 to 64 Years 20.90% 21.52% 20.68%Age 65+ 16.34% 14.43% 14.84%Median Age 41.16 41.07 40.15

Population 25+ by Education Level2018 Estimate Population Age 25+ 18,445 177,676 405,462Elementary (0-8) 1.49% 2.62% 4.64%Some High School (9-11) 3.21% 3.96% 6.05%High School Graduate (12) 17.16% 15.92% 18.55%Some College (13-15) 18.36% 19.97% 20.43%Associate Degree Only 8.37% 8.08% 7.69%Bachelors Degree Only 34.57% 31.41% 26.71%Graduate Degree 15.80% 16.97% 14.12%

19800 MACARTHUR BLVD., SUITE 150, IRVINE, CA 92612 WWW.MARCUSMILLICHAP.COM

EXCLUSIVELEYLISTED

Jack C. HopkinsSenior Vice President InvestmentsSenior Director, National Retail Group

(949) 419-3270 direct(949) 419-3200 main(949) 929-4198 mobile(949) 606-9396 fax

JHopkins@marcusmillichap.comLicense CA: 00814025

Jake J. HopkinsAssociate

(949) 419-3256 direct(949) 419-3200 main(714) 365-2151 mobile(949) 606-9396 fax

Jake.Hopkins@marcusmillichap.comLicense CA: 02026709