Normandie Apartments

This Investment Summary has been prepared for use by a limited number of parties and does not necessarily purport to provide an accurate summary of the property, the investment, or any of the documents related thereto. Nor does it purport to be all-inclusive or to contain all of the information which prospective investors may need or desire.

Additional information regarding the property and the investment will be made available upon request by interested and qualified prospective investors. The Managing Members expressly reserve the right, at their sole discretion, to reject any and all expressions of interest, or offers regarding the investment and/or to terminate discussions with any person or entity at any time with or without notice.

disclaimer

Acquisition

An affiliate of West Realty Group, Inc. purchased a fee simple interest in two parcels of land. The subject sites are now entitled and combined they are approximately 1.03 acres. The project will consist of 83 market rate micro studio units totaling approx. 33,600 sf. Both sites will have an on-grade garage multi-level parking system. The Subject sites are rectangular in shape and exhibits generally level topography. The Subject sites will both have frontage along Normandie Avenue. The sites were obtained at from on and off market sources.

Location

Most necessary services and amenities are located less than 2.0 mile from the Subject sites and the sites offers good access to both public bus transportation and average rail public transportation. Highway 105 is an east/west highway that runs along the northern portion of Gardena and is located approximately 1.5 and 3.3 miles north of the Subject sites. Highway 110 is a north/south highway that runs along the eastern border of Gardena and is located approximately 0.8 and 0.9 miles east of the Subject sites. Lastly, Highway 405 is another north/south highway that is located approximately 3.1 and 1.3 miles from the Subject sites. Overall, the Subject sites have excellent access to highways.

We are unaware of any detrimental influences that may affect the

value of the property

Demand/Absorption

Based on the Subject’s proposed unit mix, amenity package, and close proximity to locational services and employment, the marketability of the Subject is sound in relation to the comparable properties. The business plan assumes completion of the subject property and leasing within 18 months. That includes an absorp-tion rate of 10-15 units per month over a 6 -8 month period for stabilization of operations. in contrast to market study projections, conservative assumptions have been used to include limited rent growth and an above market vacancy factor of 5%

The Subject has an average overall capture rate of 15.75 percent, which is mod-erate and indicates sufficient demand. Likewise, the indicated penetration rate is 8.9 percent and is considered practical.

opportunityProperty Address: 13919 & 16819 Normandie AveMarket Area: North / South

Parking Ratio: 1 Per unit - 2 for Manager

Building Size/ # Units/ Land Size: 33,600 sf / 83 SRO Units / 1.03 acres

Completion Year: 2019

Amenities:

Gated ongrade multi-level parking structure

Fitness center, Elevator

Spacious gated bicycle parking

Community courtyard seating and lounge

Unit Features:

350 square feet each - Private outdoor yards,

balcony or patio, Vaulted ceilings, Concrete or

vinyl planking wood flooring, Italian Style cabinetry,

Quartzite or Granite Countertops, Imported Tile,

Stainless steel appliances – limited package, All-in-one

washer/dryer unit, High Tech internet wiring CAT 5,

Prewired for Cable TV,Split A/C Heat System

Green Special Features:

Low VOC paints, Energy Star Appliances, Construction

Waste Management, High Efficiency irrigation systems

drought resistant plants, Energy Star Fixtures, Low Flow

Toilets, Energy Efficient AC Equipment, Programmable

Thermostats

overviewThe Subject sites will consist of two locations and are located 1.9 miles apart from each other along Normandie Avenue. Normandie Avenue is a heavily-trafficked, four-lane road that traverses Gardena in a north/south direction and provides the Subject site with excellent access to a number of highways. Both Subject sites are located within close proximi-ty to a number of locational amenities, including schools, grocery stores, and retail. Overall, this Subject sites are located in a neighborhood with heavy traffic flow and excellent access.

The first Subject site is located at 13919 Normandie Avenue, Gardena, CA. and consists of 20 units. The Subject site is located in the northern central portion of Gardena, approximately 12.8 miles south of the city of Los Angeles. Approximately 1.5 miles north of the Subject site, Normandie Avenue intersects with Highway 105. Approximately 3.1 miles south of the Subject site, Normandie Avenue intersects with U.S. 405. Additionally, 0.8 miles east of the Subject site is U.S. 110.

The second Subject site is located at 16819 Normandie Avenue, Gardena, CA and consists of 63 units. The Subject site is located in the southern portion of Gardena, approximately 15.5 miles south of the city of Los Angeles The Subject site is located at the intersection of Normandie Avenue and W 169th Street. Approximately 1.3 miles south of the Subject site, Normandie Avenue intersects with U.S. 405. Approximately 3.3 miles north of the Subject, Normandie Avenue intersects with U.S. 105. Additionally, U.S. 110 is located approximately 0.9 miles east of the Subject site.

AGENT 54%

WEBSITE 39%

local submarket The City of Gardena is an incorporated city within the County of Los Angeles, State of California. Established in 1930, Gardena’s size is 5.9 square miles and has a diverse population of approximately 60,000 (density of 10,301 per sq mi). Dubbed the “Freeway City,” it is located west of the 110 Fwy, south of the 105 Fwy and northeast of the 405 Fwy, with the 91 Fwy ending at its city limits. It is also 10 miles south of downtown Los Angeles, 6 miles southeast of the Los Angeles International Airport and 14 miles north of San Pedro (aka Port of Los Angeles) with the nearest beach only 5 miles west of Gardena.

Home to a large labor pool, Gardena can provide employers with qualified and well educated workers. Nearly 40% of adults age 25 and older have four years’ college, a number almost double the statistics for the five-county Southern California region. The work force is extremely diverse, including men and women with a wide variety of job capabilities, from entry-level to technical, supervisory and management skills. Their One Stop Employment and Training Center can assist employers in filling a variety of jobs customized to their specific needs including, but not limited to, clerical, office administration, accounting, computer operators, retail sales, truck drivers and other technicians.

local brands

Nissin Foods – A Japanese company and the largest maker of instant noodles and cup noodles, famous for its Top Ramen and Cup Noodle brands, makes plans to become a global company by 2021.

Goal: During the 2016 Fiscal Year, plans were revealed to achieve 1 trillion yen (approx US$9 trillion) market cap by 2021.

Strategy: Strengthen product sales and brands based on an awareness of diversifying food needs with more healthy ingredients in the U.S.

Anticipated Growth: Approaching clearly defined target markets with initiatives including design, flavor and promotion with the aim of expanding more efficiently and effectively, and increasing overseas CUP NOODLES sales (units) by 50%.

SpaceX – A private American company owned by billionaire Elon Musk positioned to become the leader in aerospace manufacturing, space transport services and telecommunications.

Goal: Provide services for space transport and tourism on a global scale for both government and private sectors with future services for worldwide broadband internet to countries without access.

Strategy: After being awarded $2.6 billion from NASA, continue research, production and testing of reusable rockets and transportation of flight crews to and from the International Space Station, with each success bringing commercial and interplanetary space travel closer to reality; plans to send 4,100 satellites into orbit to bring internet services to all, including impoverished nations.

Anticipated Growth: Current valuation of the company is at $21.2 billion and will continue to grow as the company continues its current business of launching rockets into orbit for other commercial businesses as well as successful testing of their transport system in bringing the company closer to putting humans on Mars.

local economy Tesla – A private American company owned by billionaire Elon Musk that specializes in electric automobiles, energy storage and solar panel manufacturing with the aim of using alternative and green resources.

Goal: To become a global leader in the transportation sector using electric and solar energies; name recognition in providing electrical storage and backup systems for residential and commercial buildings; global manufacturer of solar panels for all uses.

Strategy: Continued avocation of greener and self-reliant systems by remodeling the automobile industry using “complex coordination” where innovative designs and vertical integration are implemented to streamline costs and product awareness while at the same time creating technologies primarily for electric vehicles that can be used in other industries.

Anticipated Growth: In 2017, the company has sold over 250,000 cars and already has reservations for 400,000 automobiles to be delivered in 2018 thanks to its synonymous branding of its name as the electric vehicle; and with the expected completion of its Nevada lithium-ion battery factory (a.k.a. Gigafactory 1) this year along with construction of Gigafactory 2 in New York, it is poised to become the leader in electric storage and solar panels in years to come.

Hustler and Lucky Lady Casinos – Owned by Larry Flynt, publisher of Hustler Magazine, the casinos have been among the few most successful and well-known casinos in California.

Goal: To become a world-renown casinos outside of Las Vegas that provides a full complement of gambling with full service food and entertainment.

Strategy: Provide weekly and monthly tournaments with progressive jackpots to entice locals and tourists to play at their many tables while continued improvement on interior decor and services.

Anticipated Growth: While the casinos have enjoyed tax breaks from the City of Gardena, plans are in place to build a hotel adjacent to the Lucky Lady Casino to provide a complete accommodation and entertainment facility that will not only attract new visitors, but increase jobs and revenue that will benefit both the casinos and the local economy, leading to gentrification among the surrounding area.

El Camino College – Established in 1947, this community college is one of the most diverse campuses in the nation, serving nearly 23,000 students.

Goal: To continue its excellent diverse programs while implementing changes to coincide with the ever changing technology that continues to transform society.

Strategy: The college has recently published its 2017 Comprehensive Master Plan for the next five years, encompassing both changes to its education programs as well as plans to build new facilities, upgrade existing ones, and improve the process for both student education and faculty qualifications and hiring.

Anticipated Growth: The Master Plan addresses the need for more state funding that will allow the campus to become more efficient and technologically savvy while addressing the needs of student education and instructor qualifications, thus allowing the institution to accommodate more students and faculty while offering online

WEST REALTY GROUP, INC.

11901 Santa Monica Blvd #530

Los Angeles, CA 90025 Lee Johnson - M 310.892.2244 Lee@WestRealtyGroup.com

Marios Savvides - M 310.261.2093 MariosSavvides@aol.com