308-310 CORONADO AVENUE

LONG BEACH, CA

Craftsman 2:1

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: : OFFER ING MEMORANDUM

: : MULT I - FAMILY INVESTMENT OPPORTUNITY

Fo r more i n fo rma t i on , con ta c t :

: : Jack Levis Senior Associate +1 310 363 4919 jack.levis@cbre.com Lic. 01886278

: : Matt LevisAssociate +1 310 363 4787 matt.levis@cbre.com Lic. 01900634

308 CORONADO AVE

310 CORONADO AVE

NEWPORT/WILTON | A f f i l i a t ed Bus ine s s D i s c l o su re and Con f i den t i a l i t y Ag reemen t

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property

will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

© 2014 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. …308CoronadoAVe_OM_v04ED.indd

310 MASTER BEDROOM

310 BALCONY

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E X E C U T I V E S U M M A RY

CBRE is pleased to present the opportunity to purchase the

duplex located at 308-310 Coronado Ave. in the highly

desirable Belmont Heights section of Long Beach. This

pride of ownership building was first developed in 1912

and features original craftsmanship work and character.

Although original charm has been maintained, all systems

have been upgraded and the building features copper

plumbing and a new roof. The property consists of a

2-bedroom, 1-bathroom house, a detached 1980’s built

3-bedroom, 2.5-bathroom townhouse, and two 2-car

garages.

The property is conveniently located in Belmont Heights, a

pristine residential area, not far from the beach and bay.

In addition, 308-310 Coronado is in close proximity to

numerous tasteful shopping, dining, and entertainment

selections, including Long Beach’s renowned 2nd St.

This location offers easy access to both the 710 and 405

freeways, appealing to residents looking to commute to

LA or Orange County. Residents reap the benefits of a

comfortable setting and immediate access to the regions

primary transportation routes, an attractive combination that

few apartment buildings can replicate.

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OFFER SUMMARY

Asking Price: $1,050,000 Physical Address 308-310 Coronado Ave

Long Beach, CA

Number of Units 2

Cost Per Unit: $525,000

Cap Rate: 4.26%

Gross Rent Multiplier: 16.43

Price Per foot: $289.98

Building Area: ± 3,621

Land Area: ± 6,751

Year Built: 1912/1981

Parking: 2-Car Garages

Zoning: LBR2A

308 CORONADO AVE

310 CORONADO AVE

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Located in the highly desirable Belmont Heights area of

Long Beach, this two-on-one offers the highest quality of

living for tenants. It sits in close proximity to the renowned

shopping, dining, and entertainment of Long Beach’s

renowned 2nd St. and is just a short walk to the beach. This

Belmont Heights area has a mix of single family homes,

multifamily apartments, and condominiums; offering

residents a diverse and almost exclusively residential living

community. The location provides tenants with convenient

access to employers throughout Los Angeles County and

Orange County as well.

The subject property is priced substantially lower than all

sales comparables on a price per square foot basis. It

features a 3-bedroom, 2.5-bathroom house in front and

a 2-bedroom, 1-bathroom detached unit in back. Each

unit is separately metered for gas and electric and has

its own water heater. Because the original character of

the property has been maintained, this is a very unique

investment opportunity. While still featuring crown molding

finishes, all appliances in the kitchens are upgraded. The

bedrooms, living rooms, and bathrooms of each unit are

very spacious. The back unit features a large balcony off

of the master bedroom. This investment provides tenants

with extensive square footage and sits on a very large, well

maintained lot.

The rents in this submarket have steadily been on the rise

for the last 18 months. With the area and tenant base

constantly improving, this trend is not forecasted to slow

any time soon. The unit mix, presence of laundry in each

unit, and onsite parking allows for tenant stability in this

highly desirable location.

THE INVESTMENT

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LO C AT I O N M A P A E R I A L

308 CORONADO AVE

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PROPERTY ANALYSIS

SUMMARY

Price: $1,050,000Down Payment: 40% $420,000 Number of Units: 2Cost per Unit: $525,000 Current GRM: 16.43 Market GRM: 15.49

Current CAP: 4.26%Market CAP: 4.61%Approximate Age of Property: 1912/1981Approximate Lot Size: 6,751 Approximate Net RSF: 3,621 Cost per RSF: $289.98

PROPOSED FINANCING:

First Loan Amount $630,000

Term: 3.55% 5 Yrs Fixed360 months amortization due in 30 years.

Payment per month: $2,846.59

Principal deduction per year: $11,987.94

ANNUALIZED OPERATING DATA

Current Rents Market RentsScheduled Gross Income: $63,900 $67,800

Less Vacancy Rate Reserve: 5% $3,105 5% $3,300 Gross Operating Income: $60,795 $64,500 Less Expenses: 25.2% $16,115 23.8% $16,115 Net Operating Income: $44,680 $48,385 Less Loan Payments: $34,159 $34,159 Pre-Tax Cash Flow: 2.5% $10,521 3.4% $14,226 Principal Reduction: $11,988 $11,988 Total Return Before Taxes: 5.4% $22,509 6.2% $26,214

ANUALIZED EXPENSES

Taxes $11,506 Insurance $1,448 Utilities $1,061 R & M $1,500 Reserve $600

Total Expenses: $16,115 Per Net Sq. Ft.: $4.45 Per Unit: $8,057

SCHEDULED INCOME CURRENT RENTS MARKET RENTS

Number of Units Bd/Ba Approx SFMonthly Avg

RentMonthly Income Monthly Rent

Monthly Income

1 3/2.5 2,400 $3,300 $3,300 $3,400 $3,400

1 2/1 1,200 $1,875 $1,875 $2,100 $2,100

Total Rent $5,175 $5,500

Laundry:

Other Income: Parking $150 $150

Monthly Scheduled Gross Income: $5,325 $5,650

Annual Scheduled Gross Income: $63,900 $67,800

310 K I TCHEN

310 K I TCHEN308 K I TCHEN

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S A L E S C O M PA R A B L E S

ADDRESSYEAR BUILT UNITS

1 BED

2 BEDS

3 BEDS

4 BEDS

SALE PRICE

PRICE PER UNIT

LOT SF

BLDG SF

PRICE PER SF GRM

SALE DATE

SUBJECT PROPERTY308-310 Coronado AveLong Beach

1912/ 1981

2 0 1 1 0 $1,050,000 $525,000 6,751 3,621 $290 16.43 N/A

1. 4020 E Colorado StLong Beach

1919 2 0 1 1 0 $866,000 $433,000 5,205 2,666 $324 15.8 7/30/14

2. 121 Termino Ave.Long Beach

1959 2 0 1 1 0 $961,900 $480,950 6,502 2,683 $359 26.71 10/10/13

3. 265 Quincy Ave.Long Beach

1913 2 1 0 1 0 $930,000 $465,000 6,342 2,159 $430 20.4 3/14/14

4. 204 Mira Mar Ave.Long Beach

1923 2 0 2 0 0 $875,000 $437,500 6,501 2,116 $413 19.6 4/30/14

5. 245 Euclid St. Long Beach

1908 2 0 1 1 0 $939,000 $469,500 5,503 2,229 $421 18.8 7/11/13

6. 204 Termino Ave.Long Beach

1953 2 0 0 2 0 $1,075,000 $537,500 6,492 3,116 $344 18.1 2/5/14

7. 356 Gladys Ave.Long Beach

1910 2 0 1 0 1 $762,000 $381,000 6,500 2,424 $314 19.8 1/24/14

AVERAGE $457,779 $372 19.89

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S A L E S C O M PA R A B L E S M A P

© 2014 CBRE Limited. Data © TeleAtlas, Google, AerialExpress, DigitalGlobe, Landiscor, USGS, i-cubed. The information contained herein (the “Information”) is intended for informational purposes only and should not be relied upon by recipients hereof. Although the Information is believed to be correct, its accuracy, correctness or completeness cannot be guaranteed and has not been verified byeither CBRE Limited or any of its affiliates (CBRE Limited and its affiliates are collectively referred to herein as “CBRE”). CBRE neither guarantees, warrants nor assumes any responsibility or liability of any kind with respect to the accuracy, correctness, completeness, or suitability of, or decisions based upon or in connection with, the Information. The recipient of the Information should take suchsteps as the recipient may deem appropriate with respect to using the Information. The Information may change and any property described herein may be withdrawn from the market at any time without notice or obligation of any kind on the part of CBRE. The Information is protected by copyright and shall be fully enforced.

Layout ID:L01 MapId:1902230

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CITY OF LONG BEACH

2013 Population 482,609

2013 Total Households 172,419

2013 Median Household Income: $58,465

2013 Average Household Income: $76,918

Median Age: 33.7

LONG BEACH

The City of Long Beach is the second largest city in Los Angeles

County and the seventh largest city in California, with a 2013

population of 482,609 and an average household income

of $76,918. Because the city boasts an average home value

of $441,600, many households are priced out of the home

ownership market. Consequently, over 60 percent of households

reside in renter-occupied housing and the demand for

multifamily housing is expected to remain strong. Within a short

distance of the subject property, there are over 3,000 businesses

that employ over 30,000 people. The service industry, a prime

employment provider for the renter demographic, is the main

source of employment. This allows renters to work just a short

commute away from their residence.

PORT ACTIVITY

The Port Of Long Beach and the Port of Los Angeles, combine

to represent the eighth busiest container port in the world. They

are responsible for producing jobs, generating tax revenue, and

supporting retail and manufacturing businesses. Annually, the

Ports ship more than 66 million metric tons of cargo worth over

$95 billion. Combining to make the busiest port in the United

States, the Ports of Long Beach and Los Angeles have a robust

economic impact on the area.

• Close to $5.6 billion a year in state and local tax revenues

generated

DEMOGRAPHICS

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• The Ports support more than 30,000 jobs in Long Beach and

230,000 jobs in the City of Los Angeles. Over $14 billion in

related wages.

• Just shy of $50 billion in direct and indirect sales annually

TRANSPORTATION

Long Beach is served by Interstate 405 (San Diego Freeway)

and Interstate 710 (Long Beach Freeway) and the subject

property has outstanding access to both freeways. Convenient

major surface streets provide easy access to surrounding areas.

LA Metro’s light rail system is the second busiest light rail

transit system in the United States, with over 150,000 average

weekday passenger trips. The Metro Blue line provides the Long

Beach community with direct service between Downtown Long

Beach and Downtown Los Angeles and the Long Beach Transit

provides local public transportation services within Long Beach,

Lakewood, and Signal Hill.

MULTIFAMILY MARKET OVERVIEW

• Multifamily demand continues to soar and is providing a

steady expansion in multifamily rents that is expected to

continue over the next five years

• On a national scale, a combination of improving job

growth and a rising propensity to rent caused California

to have the strongest occupancy gains over the last 12

months

• Multifamily fundamentals are expanding at a strong

pace, with the rent growth of higher-quality product

continuing to beat the expectations of property owners

and managers

• Rentable multifamily completions are estimated to peak

in 2015 and to moderate slightly in the subsequent

years, leading to an increase in rental rates

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LO N G B E AC H R E N TA L A N D A B S O R P T I O N T R E N D S

LEASING UNITS SURVEY 5-YEAR AVERAGE

Vacant Units 837 985

Vacancy Rate 3.5% 4.1%

12 Mo. Absorption Units 118 236

Rents SURVEY 5-YEAR AVERAGE

Studio Asking Rent $833 $754

1 Bed Asking Rent $1,125 $1014

2 Bed Asking Rent $1,429 $1,270

3+ Bed Asking Rent $1,483 $1,283

Concessions 2.0% 3.2%

Source: CBRE Research

6.5%

6.0%

55%

5.0%

4.5%

4.0%

3.5%

3.0%

2.5%2009 2010 2011 2012 2013 2014

500

400

300

200

100

0

-1002009 2011 2012 2013 20142010

VACANCY RATE ABSORPTION UNITS

310 L IV ING ROOM

310 OFF ICE310 D IN ING ROOM

310 L IV ING ROOM

308 BEDROOM308 L IV ING ROOM

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F o r more i n fo rma t i on , con ta c t :

: : Jack Levis Senior Associate +1 310 363 4919 jack.levis@cbre.com Lic. 01886278

: : Matt LevisAssociate +1 310 363 4787 matt.levis@cbre.com Lic. 01900634