OFERRING MEMORANDUM

DEVELOPMENT OPPORTUNITY

BUILD 6 ADDITIONAL UNITS ON AN EXISTING FOURPLEX PROPERTY (10 UNITS IN TOTAL)

READY TO ISSUE PERMITS | HIGH CASH FLOW

7.11% STABILIZED CAP RATE

4008 WOODLAWN AVE.

LOS ANGELES, CA 90011

OFFERED AT $950,000.00

BROKER CONTACT

CARLOS HERNANDEZ

(805) 304-7060

MYTRUEREALESTATE@YAHOO.COM

CALBRE# 01921315

All material and information received from Century 21 Plaza its directors, officers, agents, advisors, affiliates, and/or any third-party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither Century 21 Plaza, its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any material or information provided, derived or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILINGENCE.

CONFIDENTIALITY & DISCLAIMER4008 WOODLAWN AVE. LOS ANGELES, CA 90011

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents, and reports, and consulting appropriate independent professionals. Century 21 Plaza makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Century 21 Plaza does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or preperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accounting or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, other consultants and governmental agencies. All properties and services are marketed by Century 21 Plaza in compliance with all applicable fair housing and equal opportunity laws.

TABLE OF CONTENTS 01 PROPERTY OVERVIEW

02 THE OFFERING

03 MAP

04-05 RENDERINGS

06 ARIAL VIEW

07 SITE PLAN

08 FIRST FLOOR PLAN

09 SECOND FLOOR PLAN

10 THIRD FLOOR PLAN

11-12 PLANNING REQUIREMENTS & COMPLAINCE

13 EXIT & DEMOS

14 ELEVATIONS

15 BUILDING SECTIONS

16 STAIR AND ROOF PLAN

17 PRO FORMA

18 RENT ROLL & RENTAL COMPS

19 SCHOOLS

20-21 POINTS OF INTEREST

22-23 OUR NEIGHBORHOOD

PROPERTY OVERVIEW

1

FIRST FLOOR

UNIT # BED BATH MONTHLY RENT $RSF AVG. UNIT SIZE

1 1 1 $1,450.00 2.83 512

2 1 1 $1,450.00 2.94 493

3 1 1 $1,450.00 3.14 462

TOTAL SQUARE FOOT : 1467

SECOND FLOORUNIT # BED BATH MONTHLY RENT $RSF AVG. UNIT SIZE

4 1 1 $1,450.00 2.83 512

5 1 1 $1,450.00 2.94 493

6 1 1 $1,450.00 3.14 462

7 1 1 $1,400.00 3.71 377

TOTAL SQUARE FOOT: 1844

THIRD FLOORUNIT # BED BATH MONTHLY RENT $RSF AVG. UNIT SIZE

8 1 1 $1,450.00 2.83 512

9 1 1 $1,450.00 2.94 493

10 1 1 $1,500.00 2.01 745

TOTAL SQUARE FOOT: 1750

PARCEL SUMMARY

4008 WOODLAWN AVE. LOS ANGELES, CA 90011

APN SF (LOT SIZE) ZONING OFFERED AT

5113027004 7,122.5 ft² [Q]C2-1VL $950,000.00

PROPERTY DESCRIPTION

LEVEL SCHOOL ADRESS

K-8 ACCELERATED SCHOOL (CHARTER) 4000 S MAIN ST. LOS ANGELES, CA 90037

K-6 ACCELERATED ELEMENTARY SCHOOL (CHARTER) 3914 S MAIN ST. LOS ANGELES, CA 90011

K-5 RICARDO LIZARRAGA ELEMENTARY SCHOOL (PUBLIC) 401 E 40TH Pl. LOS ANGELES, CA 90011

6-8 WILLIAM JEFFERSON CLINTON MIDDLE SCHOOL (PUBLIC) 3500 S HILL ST. LOS ANGELES, CA 90007

9-12 SANTEE EDUCATION COMPLEX (PUBLIC) 1921 MAPLE AVE. LOS ANGELS, CA 90011

SPECIFIC PLAN AREA

SOUTH LOS ANGELES ALCOHOL SALES

JURISDICTION

CITY OF LOS ANGELES

GENERAL PLAN DESIGNATION

GENERAL COMERCIAL

ZONING DESIGNATION

[Q]C2-1VL

COMMUNITY PLAN AREA

SOUTHEAST LOS ANGELES

AREA PLANING COMMISION

SOUTH LOS ANGELES

NEIGHBORHOOD COUNCIL

ZAPATA-KING

COUNCIL DISTRICT

CD 9 – CURREN D. PRICE, JR.

BROKER CONTACT

CARLOS HERNANDEZ

(805) 304-7060

MYTRUEREALESTATE@YAHOO.COM

CALBRE# 01921315

TOTAL 10 BR/10 BA APPX 5,061 ft² RENT $14,500.00/MO

* EXISTING UNITS ARE CURENTLY VACANT

THE OFFERINGI am pleased to announce this amazing development opportunity for creative investors

or developers for a brand-new (Q)C2 property in prime area of “East of Los Angeles.”

This apartment building is adjacent to USC University, Exposition Park, LA Memorial

Coliseum, and much more.

This property will be built on an existing 2 stores building. The building is comprised of

three floors as follow:

FIRST FLOOR 3 Units of 1 bed and 1 bath build on an area of 1,467 SF

approximately of an existing first floor of 2 units.

SECOND FLOOR: 4 Units of 1 bed and 1 bath build on an area of 1,844 SF

approximately of an existing second floor of 2 units.

THIRD FLOOR: 3 units of 1 bed and 1 bath built on an area of 1,750 SF

approximately. This property also offers a community laundry room, 5 parking

spaces, and a recreation room where the tenants can use to enjoy with their

families and friend any special event they could have.

Situated in great area of East LA. This prime LA Property is close to the 110 Freeway

and has a easy access to public transportation. Several Elementary, Middle and High

Schools including Charter Schools like The Accelerated School K-12 Charter, SEA

Charter School South Central, Accelerated Elementary Charter School Animo Jackie

Robinson Charter High School and more. This property is also close to Natural History

Museum of LA, California African American Museum, California Science Center and

the famous Exposition Park Rose Garden and LA Memorial Coliseum. Thera are many

restaurants, malls, markets, and parks where the tenants can go and spend the day

with their families.

New construction project are a great find and when available lease at higher rates

than competing older properties. The proforma rents are strong from the

neighborhood bringing 7.11% Cap Rate to this property. An excellent opportunity to

invest in a sought after area of Los Angeles.2

MAP

3

RENDERINGS

FRONT4

BACK

5

RENDERINGS

FIRST FLOOR SECOND FLOOR

THIRD FLOOR

6

AREAL VIEW

7

SITE PLAN

FIRST

FLOOR

8

SECOND

FLOOR

9

THIRD

FLOOR

10

PLANNING REQUIREMENTS

& COMPLAINCE

11

PLANNING REQUIREMENTS

& COMPLAINCE

12

13

EXIT & DEMOS

SITE PLAN FLOOR PLAN

14

ELEVATIONS

15

BUILDING SECTION

16

STAIR AND ROOF PLAN

PRO FORMA

17

Purchase Price (Property) $ 950,000.00

Closing Cost 1.50% $ 14,250.00

Total Purchase Price $ 964,250.00

Construction Cost - Adjusted for Existing Home

Construction Units Cost 3051 $ 120.00 $ 366,120.00

Laundryroom 83 $ 90.00 $ 7,470.00

Recreation Room 193 $ 90.00 $ 17,370.00

Remodeling Existing Units 2010 $ 100.00 $ 201,000.00

Total Construction Cost $ 591,960.00

Soft Cost(Architect, Engineer,

Permits) 8% $ 47,356.80

Leasing Cost $ 16,000.00

TOTAL CONSTRUCTION COST $ 655,316.80

TOTAL PROJECT COST $ 1,619,566.80

FINANCING

Construction LTV (from total Project Cost) 70%

Loan Amount $ 1,133,696.76 Monthly # of Months

Construction Interest Rate 6.00% $ 5,668.48 8

Debt Points 2% $ 22,673.94

TOTAL FINANCING $ 68,021.81

PROFORMA # UNITS MONTHLY YEARLY

Revenue - Rental 10 $ 14,500.00 $ 174,000.00

Revenue Laundry Room $ 333.00 $ 3,996.00

Vacancy 3% $ 435.00 $ 5,220.00

GROSS REVENUE $ 14,398.00 $ 172,776.00

EXPENSES

RE Taxes 1.25% $ 1,687.05 $ 20,244.59

Insurance $ 250.00 $ 3,000.00

Utility $ 300.00 $ 3,600.00

Trash $ 100.00 $ 1,200.00

Water $ 300.00 $ 3,600.00

Landscaping $ 80.00 $ 960.00

Repairs & Maintenance 3% $ 435.00 $ 5,220.00

* RSO $ 98.04 $ 1,176.48

Property Management 8% $ 1,151.84 $ 13,822.08

$ -

TOTAL EXPENSES 31% $ 4,401.93 $ 52,823.15

NET INCOME (NOI) $ 9,996.07 $ 119,952.86

Stabilized Cap Rate 7.11%

SALE PRO FORMA

Net Operating Income $ 119,952.86

Exit Capitalizition Rate 4.50%

Suggested Sale Price $ 2,665,619.00

BUDGED OVERVIEW

Pruchase Price $ 964,250.00

Construction Cost $ 655,316.80

Financing Expenses $ 68,021.81

TOTAL COST $ 1,687,588.61

18

RENT ROLLUNIT # BED BATH MONTHLY RENT $RSF AVG. UNIT SIZE

1 1 1 $ 1,450.00 2.83 512

2 1 1 $ 1,450.00 2.94 493

3 1 1 $ 1,450.00 3.14 462

4 1 1 $ 1,450.00 2.83 512

5 1 1 $ 1,450.00 2.94 493

6 1 1 $ 1,450.00 3.14 462

7 1 1 $ 1,400.00 3.71 377

8 1 1 $ 1,450.00 2.83 512

9 1 1 $ 1,450.00 2.94 493

10 1 1 $ 1,500.00 2.01 745

Laundry Room $ 333.00 4.01 83

10 10 Bed 10 Bath $ 14,833.00 3.03 5144

FOR PROPOSED PROJECT LOCATED AT: PROPOSED:

4008 WOODLAWN AVE., LOS ANGELES, CA 90011 6 NEW UNITS + EXISTING 4 UNITS COMPLETELY RENOVADED

Location Rental Price Distant From Subject (Miles) Unit Make Up Property Type

4254 McKinley Ave. Los Angeles, CA 90011 $ 1,500.00 1 miles 1 Bed/ 1 Bath Multifamily

3834 Maple Ave. Los Angeles, CA 90011 $ 1,400.00 0.1 miles 1 Bed/ 1 Bath Multifamily

3712 Maple Ave. Los Angeles, CA 90011 $ 1,350.00 0.3 miles 1 Bed/ 1 Bath Multifamily

183 E 35th St., Los Angeles, CA 90011 $ 1,300.00 0.5 miles 1 Bed/ 1 Bath Multifamily

371 E 32nd St. Los Angeles, CA 90011 $ 1,350.00 0.6 miles 1 Bed/ 1 Bath Multifamily

4151 S Main St. Los Angeles, CA 90037 $ 1,400.00 0.3 miles 1 Bed/ 1 Bath Multifamily

320 E 25th St., Los Angeles, CA 90011 $ 1,400.00 1.1 miles 1 Bed/ 1 Bath Multifamily

RENTAL COMPS

SCHOOLS P

19

POINTS OF

INTEREST

20

21

POINTS OF INTEREST

PARKS ERRANDS

PP

22

OUR NEIGHBORHOOD

MARKETS MINI MARKETS

P

P

23

OUR NEIGHBORHOOD