N. CROFT AVE. LOS ANGELES, CA MATTHEW KANNER The Kanner Group KW Commercial 9000 W. Sunset Blvd., Suite 1100 West Hollywood, CA 90069

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1 925 N. CROFT AVE. LOS ANGELES, CA MATTHEW KANNER The Kanner Group KW Commercial 9000 W. Sunset Blvd., Suite 1100 West Hollywood, CA 90069

2 925 N. CROFT AVE. 925 N. Croft Avenue is a charming, well-kept, triplex located in the Melrose district of Los Angeles adjacent to West Hollywood. Due to the attractive zoning and prime location, this is an exceptional development opportunity in an extremely high demand condo/multi-family market. The property sits on a 6,499 Sq. Ft. lot with (Q) LAR3-1 zoning, a 45 foot height restriction, and a 3:1 floor area ration (FAR). Built in 1923, the unit mix consists of 2 two bedroom two bath units 2 (2+2) and 1 one bedroom one bath unit 1 (1+1). At least two of the units can be delivered vacant. Due to the zoning, minimal development restrictions, and prime location this is a great investment opportunity for a condo/multi-family developer. UNIT MIX UNIT MIX $2,500 $ % 67% $2,000 $1,500 $1,000 $500 $2.15 $2.10 $2.05 $2.00 $1.95 $1.90 $1.85 $ $ Rent Per Month Rent Per Sq. Ft. / Month

3 MELROSE DISTRICT LOCATION Bordered by West Hollywood to the north, Fairfax District to the east, West Hollywood and Beverly Hills to the west, and Beverly Boulevard and The Grove to the south, the Melrose area is one of the most desirable locations to live in Los Angeles. 925 N. Croft Avenue is located immediately outside the West Hollywood border, just north of Melrose Avenue and between La Cienega Boulevard and Fairfax Avenue. The surrounding area is known for its diverse clothing and interior design boutiques, restaurants, and antique stores which align Melrose. Local shopping selections such as Vince, Fred Segal, Alexander McQueen, Helmut Lang, and Theory are all within a 5 blocks of the property. Trendy dining options such as Ink Sac, Urth Café, Sweet Lady Jane, and Fig and Olive are just a few blocks away. Beautiful outdoor recreation facilities can be found throughout the area Kings Road Park is 0.2 miles north, West Hollywood Park 1 mile southwest, and Poinsettia Recreation Center/Plummer Park 1.5 miles east. The West Hollywood Park is located in the Melrose Triangle and boasts brand new facilities that include two lighted tennis courts, 2 lighted basketball courts, an indoor gym, roomy grass/picnic areas, and playgrounds for children. The Melrose Triangle is southwest of the property at the intersection of Santa Monica Boulevard and Melrose Avenue. Fine dining and exciting nightclubs can be found along both Santa Monica Boulevard and Robertson Boulevard. This area is also home to the Pacific Design Center and the West Hollywood Public Library. The library opened less than two years ago and offers state-of-the-art amenities. The Sunset Strip 1 mile northwest of the property boasts the Skybar/Mondrion, Viper Room, Roxy Theater, Key Club, Rainbow Room, Sunset Tower, and Sunset Marquis. Also on the strip, chic Sunset Plaza, a two-block section of sidewalk cafes and boutiques features hot spots as Eveleigh, Le Petit Four, Chin Chin, and Mirabelle. The Beverly Center, 1 mile south of the property, is a premier fashion destination with 160 boutiques. Just 1.9 miles to the southeast is the Grove, a beautiful retail and entertainment complex which is also home to the original famers market. In addition to its proximity to the trendy nightlife, incredible shopping, and popular restaurants on Melrose Avenue and Sunset Boulevard, 925 Croft Avenue is conveniently situated just blocks from the major thoroughfares of Santa Monica and La Cienega Boulevards as well as 0.9 miles from San Vicente Boulevard. Nearby Runyon Canyon, LA s premier hiking trail, offers stunning 360 views of the city. The Hollywood Bowl, the most prominent outdoor concert venue in Los Angeles, is 3.7 miles from the property near the Highland on-ramp of the 101 freeway.

4 MELROSE DISTRICT LOCATION Adjacent West Hollywood is 1.9 square miles with a population of approximately 37,000 residents. Cultural landmarks of the city include Chateau Marmont, the Sunset Tower, the Troubadour, and Whiskey a Go-Go. Richly steeped in history and old Hollywood glamour, West Hollywood boasts a high concentration of landmark 1920s Spanish Revival and Art Deco apartment buildings. The historic neighborhood has been home to many celebrities and Hollywood legends, including Frank Sinatra, Errol Flynn, John Wayne and Howard Hughes. With so many pedestrian-friendly streets lined with upscale dining, nightlife, and shopping options West Hollywood and the adjacent Melrose District have become a premier location to reside.

5 AERIAL VIEW

6 EXTERIOR PICTURES

7 PLAT MAPS

8 RENT ROLL UNIT # UNIT TYPE RENT EST. SQ. FT. $/SF MARKET RENT MARKET $/SF $2, $1.95 $2,800 $ $2, $2.38 $2,800 $ $1, $1.93 $2,100 $2.80 Total $5,886 2,800 $7,700 UNIT TYPE # OF UNITS EST. SQ. FT. MONTHLY RENT/UNIT MONTHLY INCOME $2,218 $4, $1,450 $1,450 Total 3 $5,886 Monthly Total Scheduled Rent: $5,886 Annual Scheduled Gross Income: $70,632

9 INVESTMENT SUMMARY Multi-Residential - Investment Summary Pricing Summary Property Description Listed Price: $ 2,030,000 Picture Address: 925 N. Croft Ave. Down Payment: 74.0% $ 1,502,200 Los Angeles, CA Cost per Legal Unit: $676,667 Number of Units: 3 Current GRM: Year Built: 1923 Market GRM: Approx. Lot Size: 6,499 Current CAP: 1.56% Approx. Gross SF: 2,809 Market CAP: 2.47% Parking Spaces: 4 Cost per Gross Sq. Ft.: $ APN#: Cost per Lot Sq. Ft.: $ Map Zoning: (Q)LAR3-1 Cost per Buildable Unit: $253, Buildable Units: 8 % Income Upside: 30.82% FAR: 3 to 1 Loss to Lease %: 23.56% Height Restriction: 45 feet Property Highlights Proposed Financing Super prime Melrose Place / West Hollywood New First Loan: $ 527,800 adjacent location--walkscore of 92. Interest Rate: 2.900% (Q) LAR3 zoned condo/multi-family Amortization: 30 Development Opportunity. Monthly Payment: $ 2, Maximum # of 8 buildable units Debt Conv. Ratio: 1.20 Annualized Operating Data Current Market Scheduled Gross Income: $ 70,632 $ 92,400 Less Vacancy Rate Reserve: $ (2,119) 3.0% $ (4,620) 5.0% Gross Operating Income: $ 68,513 $ 87,780 Less Expenses: $ (36,787) 52.1% * $ (37,658) 40.8% * Net Operating Income: $ 31,726 $ 50,122 Less Loan Payments: $ (26,362) $ (26,362) Pre-Tax Cash Flow: $ 5, % ** $ 23, % ** Plus Principal Reduction: $ 11,275 $ 11,275 Total Return Before Taxes: $ 16, % ** $ 35, % ** ** As a percentage of Down Payment. * As a percentage of the Scheduled Gross Income Scheduled Income Estimated Annualized Expenses Current Rents Market Rents Current Market No. Bdrms/ Approx. Monthly Monthly Monthly Monthly Taxes: Rate 1.250% $ 25,375 $ 25,375 of Units Baths Sq.Ft. Rent/Unit Income Rent/Unit Income Insurance Est $ 2,500 $ 2, ,025 $2,218 $4,436 $2,800 $5,600 Utilities Est $ 2,000 $ 2, $1,450 $1,450 $2,100 $2,100 Maintenance 3% $ 2,119 $ 2,772 Gardening Est $ 1,000 $ 1,000 On-Site Manager* 0.0% $ - $ - Off-site Manager* 3.0% $ 2,119 $ 2,119 Reserves* 1.0% $ 706 $ 924 Avg. Rent/Gr. Sq. Ft. $2.10 $2.74 Trash $120/Unit $ 360 $ 360 Total Scheduled Rent: $5,886 $7,700 SCEP & RSO fees $36/Unit $ 108 $ 108 Laundry: $0 $0 Pest Control Est $ 500 $ 500 Storage: $0 $ Monthly Scheduled Gross Income: $5,886 $7,700 Total Expenses: $ 36,787 $ 37,658 Annual Scheduled Gross Income: $70,632 $92,400 Per Net Sq. Ft.: $13.10 $13.41 Per Unit: $12, $12,552.65

10 LAND SALES COMPARABLES Subject Property Price # of Units Zoning Unit Mix # Buildable $ Buildable /Unit CAP Rate Price / Lot SF Lot SF 2 (2+2) 925 N. Croft Ave. $2,030,000 3 (Q) LAR3-1 8 $253, % $ ,499 1 (1+1) Los Angeles, CA Close of $ Buildable Price / Lot Lot SF Sales Comparables Escrow Price # of Units Zoning Unit Mix # Buildable /Unit CAP Rate SF # Blackburn Ave. 8/1/2013 $2,000,000 Land LAR3-1 Land 9 $222,222 N/A $ ,984 Los Angeles, CA # N. Alfred St. 6/9/2014 $1,900,000 Land WH-R3C Land 6 $316,667 N/A $ ,903 West Hollywood, CA #3 142 S. Hayworth Ave. 3/7/2014 $2,000,000 Land LAR3-1 Land 9 $222, N/A $ ,405 Los Angeles, CA Sale Comparable Averages $2,662,500 N/A N/A N/A $252,778 N/A $280 9,226

11 SALES COMPARABLES Subject Property 925 N. Croft Ave. Los Angeles, CA Zoning: (Q) LAR3-1 Lot Square Feet: 6499 Price per Lot Sq. Ft. $ Buildable Units: 8 Price per Buidable: $ 253,750 Sale Price: $2,030,000 Sales Comp #2# Blackburn Ave. Los Angeles, CA Zoning: Lot Square Feet: Price per Lot Square Feet: Buildable Units: Price per Buildable Unit: 21 LAR3-1 6,984 $ $222,222 Sale Price: Closing Date: Sales Comp #3 # N. Alfred St. West Hollywood, CA Zoning: Lot Square Feet: Price per Lot Square Feet: Buildable Units: Price per Buildable Unit: $2,000,000 8/1/ WH-R3C 7,903 $ $316,667 Sale Price: Closing Date: $1,900,000 6/9/2014

12 SALES COMPARABLES Sales Comp #4 #3 142 S. Hayworth Ave. Los Angeles, CA Zoning: Lot Square Feet: Price per Lot Square Feet: Buildable Units: Price per Buildable Unit: 43 LAR3-1 7,405 $ $222,222 Sale Price: Closing Date: $2,000,000 3/7/2014