The Next Chapter of Redevelopment in DTLA...Los Angeles St and Maple Ave Enable specialized...

Paul HermanPresidentThe Herman Company2000 W. Magnolia Blvd. Suite 100Burbank, CA 91506

(o) 818.748.3411(c) [email protected] Lic. #02065550

The Next Chapter of Redevelopment in DTLA1800 S. Hill Street, Los Angeles, CA 90015

M2 to C2 Downzone CPIO | Regional Transit Oriented Development (TOD) | Opportunity Zone Location

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Table of Contents

Overview 2-3

Property Description 4-5

Zoning Information 6-7

Redevelopment Opportunity 8-12

Sales Comps 13-19

DTLA Multi-Family Market Info 20

Vacancy 21

Rent Schedule 22

Location Highlights 23-24

Demographics 26-27

Aerial Maps 28

Broker Disclaimer 29

About Paul Herman 30Offering Memorandum - For Sale1800 S. Hill Street, Los Angeles, CA 90015

Listed Exclusively by:

The Herman Company

3

For Sale: 1800 S. Hill Street Highlights

• 6 Contiguous Parcels Totaling 83,336 Sq. Ft. of Unentitled Land• Downzoned from M2 to C2 via Community Plan Implementatio

Overlay (CPIO)• Mixed Use Residential Redevelopment Projects Now Conform• Blank Slate for Prospective Developer• Regional TOD Density Bonus and Development Standards• Nearly 2 Acres of Land Assembled (¾ of a City Block)• 6:1 FAR

• 12 Story Height Conforming• Unimpeded View of DTLA Skyline• Located within a Federally Mandated Opportunity Zone Area• CA State Enterprise Zone• Possibility of Accelerated Tax Advantages• Owner Will Consider Carrying• $55K Gross Monthly Income in Place to Help Cover Soft/Carry Costs• No Long Term Leases (All Tenants Min. 6 Mo. Out Clause)

4

Property Description

The subject property consists of six contiguous parcels of C2 zoned land totaling 83,336 sq. ft.

There are currently four separate warehouse/manufacturing buildings of varying age and construction type totaling 69,883 sq. ft.

Address Year Built Building SF Land SF Zoning APN

1 1800 S. Hill St. 1947 28,682 14,770 LA M2 5126-028-001

2 148 W. 18th St. 1954 8,120 8,147 LA M2 5126-028-002

3 144 W. 18th St. 1946 5,956 8,011 LA M2 5126-028-003

4 1805 S. Broadway 6,353 LA M2 5126-028-011

5 1821 S. Broadway 1952 800 19,602 LA M2 5126-028-005

6 1830 S. Broadway 1940 26,325 26,453 LA M2 5126-028-009

Total 69,883 83,336

5

Property Description

6

Over a decade ago the Los Angeles Department of City Planning embarked on an effort to update the Southeast Community Plan in order to encourage redevelopment and revitalize the area in which the subject property lies. As a result 1800 S. Hill Street has been rezoned from M2-2-0 to C2-2D-0-CPIO.

CPIO Critical Dates:Planning Commission Approval: June 22, 2017Planning and Land Use Management Committee Approval: Nov. 21, 2017City Council Plan Adoption: Nov. 22, 2017LA CPIO and Zoning Ordinances Effective Date: Dec. 29, 2018

*LA City Council instructed the City Attorney to review the CPIO ordinance for form and legality.

Please visit http://slaplans.wixsite.com/openhouse for more information

SA# 29Existing Land Use: Light ManufacturingExisting Zone: M2-2-0Proposed Land Use: Community CommercialProposed Zone: C2-2D-O-CPIOCPIO: TOD Regional

Zoning

Subject PropertyChange Matrix

Area #29

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3132

http://slaplans.wixsite.com/openhouse

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SA No.

Existing GP LU Designation

Proposed GP LU Designation

Existing Zoning

Proposed Zoning

Building SF

Proposed FAR

Existing Height

Proposed Height Location Proposed Changes CPIO Subarea Applicable Ordinance

20Limited Manu-facturing, Pub-

lic FacilitiesPublic Facilities

C2-2-0, M1-2-0, R4-2-0

PF-1-O 6:1 1.5:1 NL NLsouth side of Washington Blvd between Flower St. and Grand Ave

Bring zone and land use category into consistency with current use of subject parcels.

n/a none

25 Community Commercial

Community Commercial

[T][Q]C2-2-O-SN

[T][Q]C2-2-O-SN-CPIO

6:1 6:1 NL NLsouth side of Washington Blvd between Hill St and Main St

Enable specialized transit-oriented development parameters for proper-ties within transit station areas.

TOD Regional

CPC-2014-1771-GPA-VZC-SN-VCU-MCUP-CUX-ZV-SPR-MSC: GPA to

Community Commercial and zone change from M1-2-O, [Q]M1-2-O to

[T][Q]C2-2-O-SN.

29 Light Manufacturing

Community Commercial M2-2-O C2-2D-O-

CPIO 6:1 6:1 NL NLnorth side of Washington Blvd between Hill St and Trinity St


TOD Regional none

30 Limited Manufacturing


CPIO 6:1 6:1 NL NLsouth side of Washington Blvd between Main St and Maple Ave


TOD Regional none



CPIO 6:1 6:1 NL NLsoutheast corner of Washington Blvd and Los Angeles St


TOD Regional CPC-2008-3258-ZC to [TQ]M1-2-O Dev standards.



(T)(Q)C2-1-O, M1-2-O

(T)(Q)C2-2D-O-

CPIO1.5:1 6:1 NL NL

south side of Washington Blvd midblock between Los Angeles St and Maple Ave


TOD Regional case conditions

35* Community Commercial


C2-1VL-O,

C2-1L-O

C2-2D-O-CPIO 1.5:1 6:1 45 ft,

75 ft NL northeast corner Figueroa and Adams


TOD High none

38* Community Commercial

Community Commercial C2-1L C2-2D-

CPIO 1.5:1 6:1 75 ft NL southeast corner Figueroa and Adams


TOD High none

Southeast Los Angeles Community Plan Proposed Change Areas Matrix

Zoning

8

Development Opportunity

M

M

M

TOD Subareas

Subarea E – TOD Low Subarea F – TOD Medium Subarea G – TOD High Subarea H – TOD RegionalSubject Property

9

Development Opportunity

• TOD Regional Center• Build Up to 500,000 Sq. Ft. of Residential Mixed Use (6:1 FAR)• General Commercial Uses (incl. Restaurant, Retail,

and Creative Office) Permitted on First Two Floors• Opportunity Zone Project Area• Strategically Located Near Intermodal Transit Points• 10 Freeway Adjacent (Views of DTLA Skyline will Never be Lost)• The Heart of the Next Evolution of Redevelopment in DTLA• Located Across the Street from Future Reef Project

www.reefprojectla.com• Owner Will Consider Carrying or Possible JV

Subarea Density Max. Height Max. FAR Max. Incentives/Clarifications

H (TODRegional Center)

R3

R4 (maximum density)fot Density Bonus projects

Unlimited for Mixed Incore or 100%Affordable Housing

2 Stories minimum,

12 Stores maxi-mum

Conditional use for additional heightover 12 stories.

1.5:1 2.25:1

6:1 Mixed-Incomeor 100%AffordableHousing

General commercial uses (Le< retail< restaurant, entertainment uses) are permitted within the first two floors.

Project may apply for a conditional use for additional height (over 12 stories) pursuant to LAMC Section 12:24W

Table 2-2 Residential/Mixed-Use Density, Far, And Height* Continued

10

Opportunity Zones

Q. What is an Opportunity Zone?A. An Opportunity Zone is an economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via his delegation authority to the Internal Revenue Service.

Q. Who created Opportunity Zones?A. Opportunity Zones were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017.

Q. Have Opportunity Zones been around a long time?A. No, they are new. The first set of Opportunity Zones, covering parts of 18 states, were designated on April 9, 2018.

Q. What is the purpose of Opportunity Zones?A. Opportunity Zones are an economic development tool—that is, they are designed to spur economic development and job creation in distressed communities.

Q. How do Opportunity Zones spur economic development?A. Opportunity Zones are designed to spur economic development by providing tax benefits to investors. First, investors can defer tax on any prior gains until the earlier of the date on which an investment

is sold or exchanged, or December 31, 2026, so long as the gain is reinvested in a Qualified Opportunity Fund. Second, if the investor holds the investment in the Opportunity Fund for at least ten years, the investor would be eligible for an increase in basis equal to the fair market value of the investment on the date that the investment is sold or exchanged.

Q. What is a Qualified Opportunity FundA. Qualified Opportunity Fund is an investment vehicle that is set up as either a partnership or corporation for investing in eligible property that is located in an Opportunity Zone and that utilizes the investor’s gains from a prior investment for funding the Opportunity Fund.

Q. Do I need to live in an Opportunity Zone to take advantage of the tax benefits?A. No. You can get the tax benefits, even if you don’t live, work or have a business in an Opportunity Zone. All you need to do is invest in a Qualified Opportunity Fund.

Q. I am interested in investing in an Opportunity Zone. Is there a list of Opportunity Zones available?A. Yes. The current list of approved Opportunity Zones can be found at Opportunity Zones Resources. This list will continue to be updated as more Opportunity Zones are approved. A complete list of approved Opportunity Zones will be published later this spring after all Opportunity Zones have been nominated, certified and designated.

Opportunity Zones Frequently Asked Questions

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Opportunity Zones

Q. How does a taxpayer become certified as a Qualified Opportunity Fund?A. To become a Qualified Opportunity Fund, an eligible taxpayer self certifies. (Thus, no approval or action by the IRS is required.) To self-certify, a taxpayer merely completes a form (which will be released in the summer of 2018) and attaches that form to the taxpayer’s federal income tax return for the taxable year. (The return must be filed timely, taking extensions into account.)

Q. I sold some stock for a gain in 2018, and, during the 180- day period beginning on the date of the sale, I invested the amount of the gain in a Qualified Opportunity Fund. Can I defer paying tax on that gain?A. Yes, under § 1400Z-2(a)(1) of the Internal Revenue Code, you may elect to defer the tax on some or all of that gain. If, during the 180-day period, you had invested in one or more Qualified Opportunity Funds only an amount that was less than your entire gain, you may still elect to defer paying tax on part of the gain, up to the amount that you invested in that way.

Q. How do I elect to defer my gain on the sale of the stock?A. You may make an election to defer the gain, in whole or in part, when filing your 2018 Federal Income Tax return in 2019 (that is, you may make the election on the return on which the tax on that gain would be due if you do not defer it).

Q. I sold some stock on December 15, 2017, and, during the required 180-day period, I invested the amount of the gain in a Qualified Opportunity Fund. Can I elect to defer tax on that gain?A. Yes, as long as it was invested in the 180-day period, under

§ 1400Z-2(a)(1) of the Internal Revenue Code, you may elect to defer the tax on that gain. A deferral election may be made on your 2017 Federal Income Tax return. Information about the sale of your stock is required to be included in that return using IRS Form 8949. Precise instructions on how to use that form to elect deferral of the gain for your 2017 return will be forthcoming shortly.

Q. Can I still elect to defer tax on that gain if I have already filed my 2017 tax return?A. Yes. You may elect to defer the gain, but you will need to file an amended 2017 return. As part of that amended return, you will follow the election procedure described in the answer to the preceding question.

Q. I have comments that I would like to make on § 1400Z-2. How can I share those comments with the IRS?A. Please send all comments to [email protected].

Q. How can I get more information about Opportunity Zones?A. Over the next few months, the Treasury Department and the Internal Revenue Service will be providing further details, including additional legal guidance, on this new incentive. More information will be available at Treasury.gov and IRS.gov.

Disclaimer These FAQs are not included in the Internal Revenue Bulletin, and therefore may not be relied upon as legal authority. This means that the information cannot be used to support a legal argument in a court case. Page Last Reviewed or Updated: 07-Jun-2018.

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Opportunity Zones

Opportunity Zone MapSubject Property

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Sales Comps – Land

1 1135-1145 W 7th St - The Seven Apartments SOLDLos Angeles, CA 90017Sale Date: 06/26/2017Sale Price: $26,000,000 - Full Value$/SF Land Gross: $780.99 ($34,020,009.78/AC)Parcel No: 5143-021-007, 5143-021-016Comp ID: 3946855Research Status: Full Value

Land Area:Lot Dimensions:Proposed Use:

Sale Conditions:

Los Angeles County33,106 SF (0.76 AC)-MultiFamily

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2 502 N Bunker Hill Ave (Part of Multi-Property) SOLDLos Angeles, CA 90012Sale Date: 02/02/2017Sale Price: $13,800,507 - Allocated$/SF Land Gross: $509.21 ($22,181,023.29/AC)Parcel No: Comp ID: 3829180Research Status: Allocated

Land Area:Lot Dimensions: Proposed Use:

Sale Conditions:

Los Angeles County27,007 SF (0.62 AC)-MultiFamily

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3 1029-1031 S Grand Ave SOLDLos Angeles, CA 90015Sale Date: 10/25/2017 (596 days on mkt)Sale Price: $15,173,500 - Confirmed$/SF Land Gross: $659.72 ($28,737,292.08/AC)Parcel No: 5139-008-006, 5139-008-007, 5139-008-008Comp ID: 4050226Research Status: Confirmed

Land Area:Lot Dimensions: Proposed Use:

Sale Conditions:

Los Angeles County23,087 SF (0.53 AC)-Parking Lot

Exercise of Option

4 732 S Main St - Former Deardens Parking Lot SOLDLos Angeles, CA 90014Sale Date: 12/22/2017 (244 days on mkt)Sale Price: $12,000,000 - Confirmed$/SF Land Gross: $315.77 ($13,755,066.74/AC)Parcel No: 5145-001-008, 5145-001-009, 5145-001-010, 5145-001-011Comp ID: 4232567Research Status: Confirmed


Sale Conditions:

Los Angeles County50,530 SF (1.16 AC)-Industrial

-

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5 701-717 Maple Ave SOLDLos Angeles, CA 90014Sale Date: 07/05/2018Sale Price: $17,314,500$/SF Land Gross: $343.57 ($14,965,863.62/AC)Parcel No: 5145-002-006, 5145-002-012, 5145-002-013, 5145-002-014, 5145-002-015, 5145-002-016Comp ID: 4430951Research Status: In Progress


Sale Conditions:

Los Angeles County50,530 SF (1.16 AC)-Industrial

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6 1040-1050 Olive St SOLDLos Angeles, CA 90015Sale Date: 02/08/2018 (112 days on mkt)Sale Price: $12,000,000 - Confirmed$/SF Land Gross: $600.69 ($26,166,091.88/AC)Parcel No: 5139-011-011, 5139-011-016Comp ID: 4130414Research Status: Confirmed


Sale Conditions:

Los Angeles County20,038 SF (0.46 AC)-Apartment Units [Partial List]

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7 224 W Olympic Blvd SOLDLos Angeles, CA 90015Sale Date: 01/24/2017Sale Price: $18,500,000 - Full Value$/SF Land Gross: $640.27 ($27,890,222.28/AC)Parcel No: 5139-013-003, 5139-013-004, 5139-013-005, 5139-013-015Comp ID: 3822675Research Status: Full Value


Sale Conditions:

Los Angeles County28,750 SF (0.66 AC)--

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8 361 S Spring St - CitizenM Hotel SOLDLos Angeles, CA 90013Sale Date: 01/18/2018 (1,006 days on mkt)Sale Price: $13,500,000 - Confirmed$/SF Land Gross: $675.07 ($29,405,941.18/AC)Parcel No: 5149-019-034Comp ID: 4124833Research Status: Confirmed


Sale Conditions:

Los Angeles County20,038 SF (0.46 AC)-Hotel-


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1 - King Edward SOLDLos Angeles, CA 90013 Los Angeles County

Sale Date: Sale Price:

Price/SF:Price/Unit:

Pro Forma CapActual Cap Rate:

Comp ID:Research Status:

04/25/2018$15,250,000 - Confirmed$250.09$101,667--4267684Confirmed

Bldg Type: Year Built/Age:

RBA:# of Units: Parcel No:

GRM/GIM:

Sale Conditions:

Class C Multi-FamilyApartmentsBuilt 1905 Age: 11360,979 SF1505148-009-008

-High Vacancy Property

2 121 E 6th St - Santa Fe Lofts SOLDLos Angeles, CA 90014 Los Angeles County








GRM/GIM:

Sale Conditions:

Class A Multi-FamilyApartmentsBuilt Built 1911 Renov 2006 Age: 107213,560 SF1425148-020-012

-Historical Site

3 138 N Beaudry Ave - Canvas SOLDLos Angeles, CA 90012 Los Angeles County





06/20/2018$88,275,000 - Confirmed$508.24$420,357-4.00%4343827Confirmed



GRM/GIM:

Sale Conditions:

Class A Multi-FamilyApartmentsBuilt 2008 Age: 10173,686 SF2105160-030-015

--

4 307-317 S Broadway - Grand Central Square Apartments (Part of Multi-Property) SOLDLos Angeles, CA 90013 Los Angeles County





11/01/2017$15,385,311 - Allocated$170.59$127,151--4045432Allocated



GRM/GIM:

Sale Conditions:

Class B Multi-FamilyApartmentsBuilt 1918 Age: 9990,187 SF121

--

Sales Comps – Multi-Family

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5 1050 S Flower St - Met Lofts SOLDLos Angeles, CA 90015 Los Angeles County





05/23/2017$128,500,000 - Confirmed$476.30$483,083-3.80%3912843Confirmed



GRM/GIM:

Sale Conditions:


-Debt Assumption

6 770 S Grand Ave - Eighth & Grand (Part of Portfolio) SOLDLos Angeles, CA 90017 Los Angeles County








GRM/GIM:

Sale Conditions:

Class A Multi-FamilyApartmentsBuilt 2015 Age: 2577,000 SF700

-Bulk/Portfolio Sale, Recapitalization

7 501 S Los Angeles St - Baltimore SOLDLos Angeles, CA 90013 Los Angeles County








GRM/GIM:

Sale Conditions:

Class C Multi-FamilyApartmentsBuilt 1911 Age: 10766,030 SF605148-019-012

-Redevelopment Project

8 801 S Olive St - Atelier (Part of Portfolio) SOLDLos Angeles, CA 90014 Los Angeles County








GRM/GIM:

Sale Conditions:

Class A Multi-FamilyApartmentsBuilt 2017 Age: 1320,000 SF363

-Bulk/Portfolio Sale, Recapitalization


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9 1001 S Olive St - Oakwood - Olympic & Olive SOLDLos Angeles, CA 90015 Los Angeles County





04/24/2017$110,000,000 - Full Value$589.25$547,2644.00%-3889466Full Value



GRM/GIM:

Sale Conditions:


--

10 800-810 E Traction Ave SOLDLos Angeles, CA 90013 Los Angeles County





05/10/2017 (792 days on mkt)$20,000,000 - Confirmed$305.34$1,250,000--3911441Confirmed



GRM/GIM:

Sale Conditions:

Class C Multi-FamilyApartmentsBuilt 1916 Renov 1990 Age: 10165,500 SF165163-013-001, 5163-013-002

-1031 Exchange, Historical Site


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DTLA Multi-Family Market Info

All Indications are that the apartment absorption after the last peak cycle of construction deliveries show continued demand as vacancies decline. DTLA is ready for the next cycle of residential redevelopment.

The ongoing evolution of Downtown LA is driving a building boom of historic proportions. More than 7,000 new units have delivered here since the start of 2014, and around 5,200 more are under construc-tion. Demand for this new product has been robust, al-though not strong enough to prevent a supply-driven vacancy expansion.With over 2,000 units delivered in 2017 and nearly 7,000 more expected to arrive by the end of the de-cade, supply pressures will likely continue to inflate

vacancies and weigh on rent growth. The healthy ab-sorption numbers of the past few years provide reason for optimism, though.

Downtown LA’s reputation as an up-and-cominglive/work/play community continues to grow, and if the submarket can continue to draw affluent renters, any softening of fundamentals should be short-term rather than structural. For now, though, the wealth of new options for renters has increased competition

and limited landlords’ abilities to push rents. Rent growth here is far below the metro average, ranking near the bottom of LA submarkets. Although very few assets changed hands here in 2017, a handful of major institutional trades pushed 2017 total sales volume past the $300 million mark for the third time in the past four years. Around mid-year 2018, some of Down-town’s newest, most highest-profile assets where involved in a major portfolio trade, boosting overall volume.

1.697 5.1%2.906 3.4%12 Mo. Delivered Units Vacancy Rate12 Mo. Absorption Units 12 Mo. Asking Rent Growth

Current Quarter Units Vacancy Rate Asking Rent Effective Rent Absorption Units Delivered Units Under Constr Units

4 & 5 Star 19,774 5.6% $2,877 $2,856 1,085 864 5,250

3 Star 5,196 4.5% $1,941 $1,930 1 0 0

1 & 2 Star 3,580 3.6% $1,107 $1,102 9 0 0

Submarket 28,550 5.1% $2,582 $2,564 1,095 864 5,250

Annual Trends 12 Month Historical Average Forecast Average Peak When Trough When

Vacancy Change (YOY) -4.9% 7.5% 6.1% 10.6% 2016 Q2 5.1% 2014 Q2

Absorption Units 2,906 870 1,557 2,601 2017 Q4 53 2001 Q1

Delivered Units 1,697 929 1,718 2,882 2015 Q2 0 2012 Q3

Demolished Units 26 10 148 92 2000 Q4 0 2016 Q4

Asking Rent Growth (YOY) 3.4% 2.5% 1.0% 8.3% 2001 Q1 -4.1% 2010 Q3

Effective Rent Growth (YOY) 5.7% 2.4% 1.4% 8.3% 2001 Q1 -4.7% 2011 Q1

Sales Volume $874 M $172.6 M N/A $937.5 M 2018 Q2 $7.3 M 2001 Q2

21

Vacancy

1,800

1,600

1,400

1,200

1,000

800

600

400

200

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

11%

10%

9%

8%

7%

6%

5%

4%

3%

2%

Vacancy

VacancyNet DeliveriesAbsorption Los Angeles Vacancy

Abso

rptio

n &

Del

iver

ed U

nits

Forecast

ABSORPTION, NET DELIVERIES & VACANCY

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Schedule of Rents

• Approximately $678,000 Gross Annual Income in Place• Helps to Cover Soft Costs/Carry Costs During Entitlements• All Leases Structured w/min. 6 Month Termination Clause

Address Tenant Expiration Date Mo. Rent

1827 S. Broadway California Thread 2 Yrs. COE $25,000.00

1822 S. Hill St. Dynamic SPS MTM $10,500.00

1811 S. Broadway Hi Young Kwak 06/30/19 $6,000.00

1808 S. Hill St. #202 FD Studio 12/31/19 $3,700.00

1808 S. Hill St. #204 FD Studio 12/31/19 $5,800.00

1802 S. Hill Street Dahae MTM $2,500.00

1808 S. Hill Street Probe MTM $3,000.00

Subtotal..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $56,500.00

Monthly Gross Income ...... . . . . . . . $56,500.00

Vacant ..... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0%

23

Location Highlights

The subject property is situated at the nexus of future development in DTLA.

Located adjacent to the burgeoning South Park District and a along a strategic corridor bridging USC with Downtown Los Angeles.

South Park is bounded to the North by the Financial District, to the West by 110 Freeway, and to the East by the Garment Mart; leaving the natural progression of development to move South towards 1800 S. Hill Street.

Located across the street from one of the most exciting developments in DTLA; the SoLA Village is a proposed 1.66 million square foot $1 billion dollar residential, retail, and hotel complex.

Situated in a well-oriented transit district with immediate bus, rail, and freeway access. The subject property is located between the Metro Blue Line and the 10 Freeway.

Just a few blocks from the Staples Center, Nokia Theater, and LA Live Entertainment Complex. The 1800 S. Hill Street site is a few minute drive to the Art, Fashion and Financial Districts.

24

Location Highlights

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Demographic Info

With over 90 projects currently underway and billions of dollars in investments pouring in;Downtown Los Angeles is undergoing an unparalleled urban renewal. Downtown is not only the hub of business and industry in Southern California, and boasts a thriving residential community as well.

26

2018 Downtown LA Survey

LIVE$ 98,900.00

MEDIAN INCOME

38MEDIANAGE

39MEDIANAGE

40MEDIANAGE

47%MARRIED/PARTNERED

59%FEMALE

41%MALE

80%

86%

COMPLETED 4 YEARSOF COLLEGE OR HIGHER

72%WANT MORESUPERMARKETS

54%WANT MORECLOTHING/APPAREL

$ 97,800.00MEDIAN INCOME


65%FEMALE

5%MALE

76%COMPLETED 4 YEARSOF COLLEGE OR HIGHER

64%WANT MORESUPERMARKETS

52%WANT MORECLOTHING/APPAREL

$ 71,300.00MEDIAN INCOME


70%FEMALE

30%MALE

65%COMPLETED 4 YEARSOF COLLEGE OR HIGHER

62%THINK DOWNTOWN LA ISMOVING IN THE RIGHT DIRECTION

65 000 Residents

WORK 500,000 Weekly Population

VISIT 19 Million Visitors

REGULARLY VISIT FIGAT7TH

66% ARE PASSIONTATE ABOUT DTLA

60% HAVE LIVED IN DIL FOR LESS THAN 5 YEARS

68% REGULARLY VISIT GRAND CENTRAL MARKET

54% ARE AT TOP, SENIOR, OR PROFESSIONAL STAFF LEVELS

36% HAVE LIVED WOULD CONSIDER LIVENG IN DTLA IN THE FUTURED

89% HAVE VISITED GRAND CENTRAL MARKET

86% HAVE VISITED LA LIVE

83% HAVE VISITED STRAPLES CENTER

27

Residental Growth

Q2 2018 Q2 2017

Apartment Occupancy Rate 94.0% 86.0%

Apartment Askng Rent Per Sq Ft $ 3.06 $2.94

Average Effective Rent Per Unit $ 2.603 $2.518

Condo Sales 88 423

Condo Price Per Sq Ft $654 $585

30,000 +

7,100 +

2,100 +

71,000 +Estimated Population

Units Constructed Since 1999

Apartments Under Construction

Condo Units Under Constructions

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Aerial Maps

29

Broker Disclaimer

The information contained herein does not purport to provide a complete or fully accu-rate summary of the Property or any of the documents related thereto, nor does it pur-port to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to mate-rial variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Addi-tional information and an opportunity to in-spect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the ac-curacy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by rea-son of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is sole-

ly the responsibility of the prospective buy-er, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all ex-pressions of interest or offers to purchase the Property and/ or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obliga-tions to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations there-under have been satisfied or waived.

This Marketing Package and its contents, ex-cept such information which is a matter of public record or is provided in sources avail-able to the public (such contents as so limit-ed herein called the “Contents”), are of a con-fidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package

and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institu-tional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Con-tents in any fashion or manner detrimental to the interest of the Owner or Broker.

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About Paul Herman

Principal – The Herman Company

A commercial real estate professional since 2001, Paul has commercial real estate in his blood as his Family has been in the industry in Southern California since 1947. With hundreds of lease and sales transactions under his belt, and experience man-aging a wide array of CRE types; Paul has the skill and experience to earn your trust.

“My goal in starting The Herman Company is to create a commercial brokerage sole-ly focused on building better relationships.”

Notable Highlights

• Graduate Cal Poly San Luis Obispo in 2001• Member American Industrial Real Estate Association since 2005• Licensed Real Estate Broker since 2011• Graduate Leadership Burbank 2015• Expert Witness related to Eminent Domain, Environmental, and Relocation cases

In addition to his professional career Paul is actively involved in his Community on a number of Boards including:

Board President – Boys and Girls Club of Burbank and the Greater East ValleyBoard Member – Burbank Water and PowerBoard Member – Burbank Noon Rotary

The Next Chapter of Redevelopment in DTLA...Los Angeles St and Maple Ave Enable specialized...

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