OFFERING MEMORANDUM

15301 PRAIRIE AVE

L A W N D A L E , C A

2 15301 Prairie Avenue

“We are fixated on one objective: redefining what clients should expect from their broker.

We accomplish this by combining a ‘roll up your sleeves’ work-ethic with an entrepreneurial hunger for innovation.

In essence, we want to do it better than it has ever been done before.”

- Kyle Matthews, Chairman & CEO

LISTED BY

NABIL AWADAAssociate, Multifamily+1 (310) 844-9362nabil.awada@matthews.comLicense No. 02046840 (CA)

DAVID HARRINGTONEVP & Managing Director+1 (310) 295-1170david.harrington@matthews.comLicense No. 01320460 (CA)

BROKER OF RECORDKyle MatthewsLicense No. 1972189 (CA)

3Lawndale, CA

04 Property Overview

06 Area Overview

12 Financial Overview

TABLE OF CONTENTS

4 15301 Prairie Avenue

0 1PROPERTY OVERVIEW

15301 PRAIRIE AVE

L A W N D A L E , C A

5Lawndale, CA

PROPERTY HIGHLIGHTS• 11 Units | Built in 1960.

• Gross Building Square Footage of 10,520.

• Lot Size of 11,519 Square Feet.

• Consists of (1) Three-Bed/Two-Bath, (1) Three-Bed/One-Bath, (1) Two-Bed/Two-Bath, and (8) Two-Bed/One-Bath units.

• Carport Parking in front with (11) Tandem Parking Spaces and Storage Areas.

• Secured Building with Gated Entrance | On-Site Laundry Room

• Individually metered for gas and electricity.

• Short distance to the South Bay Galleria Re-Development Project

• (2) Units to be delivered vacant.

THE OPPORTUNITYMatthews Real Estate Investment ServicesTM is proud to offer 15301 Prairie Ave, an 11-unit apartment building in the heart of Lawndale, California. This investment property is an opportunity to own a value-add asset in a high demand rental market with tremendous growth potential. Located Less than 2 miles away from the South Bay Galleria redevelopment project that will soon revitalize a nearly 30-acre property at the southwest corner of Artesia and Hawthorne Boulevards. The site will feature a 150-room hotel, 300 apartments, and an additional 217,000 sq. ft. of retail space and up to 175,000 sq. ft. to be used for offices.

The property consists of a desirable unit mix of (1) three-bedroom/two-bathroom, (1) three-bedroom/one-bathroom, (1) two-bedroom/two-bathroom, and (8) two-bedroom/one-bathroom units. Two-bedroom units in the immediate area are currently renting from $2,050 to $2,250. As the area continue to experience growth, a buyer can capitalize on the tight rental market and rents in this neighborhood by implementing a strategic unit interior renovation plan, which will upgrade the units and allow the buyer to command top of the market rents. Rents at the high end of the range result in 45% upside.

6 15301 Prairie Avenue

0 2AREA OVERVIEW

15301 PRAIRIE AVE

L A W N D A L E , C A

7Lawndale, CA

LOS ANGELES MSA

As the second-largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

LOS ANGELES IS THE 2NDMOST POPULOUS CITY IN THE U.S.

#36.6B2019 L.A. TOURISM REVENUE

±68,000NEW JOBS CREATED IN LA COUNTY 2019

LAWNDALE, CALIFORNIA Lawndale, CA is a city in Los Angeles County, California. Lawndale is part of

the South Bay Region of the Greater Los Angeles area. Lawndale’s location is

what makes it such an attractive place to be. Just 17 miles from downtown Los

Angeles and 3-4 miles from both Manhattan, Hermosa, and Redondo Beach

make it an ideal suburb to live.

POPULATION 1-MILE 3-MILE 5-MILE

2025 Projection 45,087 295,495 678,0502020 Estimate 44,497 290,624 665,5312010 Census 44,099 284,805 650,396Growth 2019-2025 1.33% 1.68% 1.88%Growth 2010-2020 0.90% 2.04% 2.33%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2025 Projection 14,037 101,464 234,3242020 Estimate 13,848 99,750 229,9592010 Census 13,715 97,723 224,916Growth 2019-2025 1.36% 1.72% 1.90%Growth 2010-2020 0.97% 2.07% 2.24%

INCOME 1-MILE 3-MILE 5-MILE

2020 Avg. Household Income $83,203 $103,832 $109,582

PROPERTY DEMOGRAPHICS

8 15301 Prairie Avenue

The South Bay is an industrial hub near the Ports of LA and Long Beach and LAX. It is a region of the Los Angeles metropolitan area, located in the southwest corner of Los Angeles County. The name stems from its geographic location stretching along the southern shore of Santa Monica Bay. The South Bay contains fifteen cities plus portions of the City of Los Angeles and unincorporated portions of the county. The area is bounded by the Pacific Ocean on the south and west and generally by the City of Los Angeles on the north and east.

SOUTH BAY

• The South Bay is the epicenter of Southern California’s thriving Industrial, Shipping & Exporting & manufacturing industry.

• The area is home to several major Class A office campuses occupied by some of the world’s leading aerospace and research & manufacturing companies. Area employers include Space X, Tesla, Boeing, Northrop Grumman, US Air Force, Aerospace Corporation, Raytheon Space and Airborne Systems, and many others.

• Millennials are flocking to area for its work/live/play environment.

• Area gives immediate access to Los Angeles International Airport (LAX), Hawthorne Airport. Port of Los Angeles and Port of Long Beach.

Forest City’s South Bay Galleria Mall in Redondo Beach is the latest dying mall headed for redevelopment. The Redondo Beach City Council unanimously approved a large-scale redevelopment of the mall that will add new retail space and hundreds of residential units, according to Urbanize.

Forest City is teaming with Australian developer QIC to add 300 rental units, a 150-key hotel and 217,000 square feet of retail space to the mall’s 30-acre property. The partnership will likely break ground this year, with construction expected to be completed by 2023. Gensler is designing the redevelopment. The site is next to both alignment options for the extension of the Metro’s Green Line. Both scenarios would put a station next to the site, Urbanize reported. Forest City built the mall in 1985. The space has suffered amid declining brick-and-mortar sales and a bigger consumer shift to online retail. It’s one of a handful of malls in the Los Angeles area that being redeveloped.

SOUTH BAY GALLERIA REDEVELOPMENT

9Lawndale, CA

LOS ANGELES ECONOMY

Famously known for a heavy entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

TOP EMPLOYERS

10 15301 Prairie Avenue

S U B J E C TP RO P E R T Y

405INTERSTATE

11Lawndale, CA

12 15301 Prairie Avenue

0 3FINANCIAL OVERVIEW

15301 PRAIRIE AVE

L A W N D A L E , C A

13Lawndale, CA

15301 PRAIRIE AVELAWNDALE, CA 90260

Number of Units: 11Year Built: 1960APN: 4076-002-019Gross Sq. Ft.: 10,520Avg S.F. Per Unit: 956Lot Size (Acres): 0.27Zoning: LNR3YY

LIST PRICE

PRICE/UNIT

PRICE/FOOT

CURRENT PRO FORMA MARKET

CAP RATE GRM CAP

RATE GRM CAP RATE GRM

$3,200,000 $290,909 $304.18 3.71% 16.33 3.71% 16.33 6.27% 11.28

TOTALUNITS

UNIT MIX

UNIT MIX%

CURRENT MARKET

AVG RENT MONTHLY RENT RENT MONTHLY RENT

8 2+1 73% $1,401 $11,208 $2,050 $16,400

1 2+2 9% $2,150 $2,150 $2,150 $2,150

1 3+1 9% $1,458 $1,458 $2,550 $2,550

1 3+2 9% $1,512 $1,512 $2,650 $2,650

Scheduled Monthly Rent: $16,328 $23,750

Scheduled Yearly Rent: $195,936 $285,000

INVESTMENT SUMMARY

UNIT MIX

14 15301 Prairie Avenue

CURRENT PRO FORMA MARKET

Scheduled Gross Income: $195,936 $195,936 Current Rent $283,800 45% UpsideLess Vacancy Reserve: $5,878 3.0% $5,878 3.0% $8,514 3.0%Gross Operating Income: $190,058 $190,058 $275,286Expenses: $71,372 36.43% $71,372 36.43% $74,781 26.35% *Net Operating Income: $118,686 $118,686 $200,505Loan Payments: $98,921 $98,921 $98,921Pre-Tax Cash Flow: $19,764 1.39% $19,764 1.39% $101,583 7.15% **Plus Principal Reduction: $32,730 $32,730 $32,730Total Return Before Taxes: $52,494 3.70% $52,494 3.70% $134,313 9.46% *** As a percent of Scheduled Gross Income** As a percent of Down Payment

PRO FORMA ESTIMATES % OF SGI CURRENT PER

UNIT* PRO

FORMAPER UNIT MARKET PER

UNIT % OF SGI

Property Taxes 1.179% x Sale Price 19.85% $37,728 $3,430 $37,728 $3,430 $37,728 $3,430 13.3%Off-Site Management 4.0% x GOI 4.00% $7,602 $691 $7,602 $691 $11,011 $1,001 3.9%Insurance $0.35 x GSF 1.94% $3,682 $335 $3,682 $335 $3,682 $335 1.3%Repairs & Maintenance $500 x Units 2.89% $5,500 $500 $5,500 $500 $5,500 $500 1.9%Landscaping $60 x Units 0.35% $660 $60 $660 $60 $660 $60 0.2%Utilities $900 x 12 months 5.68% $10,800 $982 $10,800 $982 $10,800 $982 3.8%Trash $300 x 12 months 1.89% $3,600 $327 $3,600 $327 $3,600 $327 1.3%General Administration $150 x Units 0.95% $1,800 $164 $1,800 $164 $1,800 $164 0.6%Total Expenses 37.55% $71,372 $6,488 $71,372 $6,488 $74,781 $6,798 26.4%

CURRENT PER UNIT % OF SGINon-controllable expenses: Taxes, Ins., Reserves: $41,410 $3,765 21.13%Total Expense without Taxes $33,644 $3,059 17.17%

ANNUAL OPERATING SUMMARY

PRO FORMA ANNUAL OPERATING EXPENSES

15Lawndale, CA

# MIX RENT NOTES MARKET RENT

1 3+1 $1,458 $2,550

2 2+1 $1,053 $2,050

3 3+2 $1,512 $2,650

4 2+1 $1,296 $2,050

5 2+1 $1,296 $2,050

6 2+1 $1,296 $2,050

7 2+1 $2,050 Vacant $2,050

8 2+2 $2,150 Vacant $2,150

9 2+1 $1,625 $2,050

10 2+1 $1,296 $2,050

11 2+1 $1,296 $2,050

Totals11

$16,328 $23,750

Averages $1,484 $2,159

RENT ROLL

Loan Amount: $1,780,000 Terms: 30Down Payment: 45% $1,420,000 Interest: 3.75%Yearly Pmt: $98,921 Monthly Pmt: $8,243Debt Coverage: 1.20

FINANCING

16 15301 Prairie Avenue

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17Lawndale, CA

ADDRESS UNITS YR BUILT

GLA (SF)

LOT AREA (SF)

PRICEPRICE

PER UNIT

PER FOOT

CAP RATE GRM SOLD

DATEUNIT MIX

15301 Prairie Ave, Lawndale, CA 90260 11 1960 10,520 11,557 $3,200,000 $290,909 $304.18 3.71% 16.33 None

(1) - 3+2 (1) - 3+1 (1) - 2+2 (8) - 2+1

4033 W 135th Street, Hawthorne, CA 90250 6 1964 7,169 8,699 $1,768,000 $294,667 $246.62 4.44% 14.66 1/10/20 (3) - 3+2

(3) - 2+1

13632 Cerise Ave, Hawthorne, CA 90250 6 1959 4,980 19,524 $1,720,000 $286,667 $345.38 4.57% 15.29 10/16/19 (6) - 2+1

4364 W 141st Street, Hawthorne, CA 90250 5 1959 4,450 8,717 $1,430,000 $286,000 $321.35 4.67% 15.89 10/16/19 (1) - 3+2

(4) - 2+1

3444-50 Redondo Beach Blvd, Torrance, CA 90504 10 1956 7,088 6,568 $2,625,000 $262,500 $370.34 3.20% 21.89 4/30/19 (4) - 2+1

(6) - 1+1

4029 W 142nd Street, Hawthorne, CA 90250 6 1964 6,401 8,712 $1,705,000 $284,167 $266.36 4.53% 13.55 3/25/19

(2) - 3+2 (2) - 2+2 (1) - 2+1 (1) - 1+1

16129 Prairie Ave, Lawndale, CA 90260 8 1986 8,266 6,534 $2,900,000 $362,500 $350.83 4.53% 15.25 8/28/18 (1) - 3+1.75

(7) - 2+1.5

4539 W 159th Street, Lawndale, CA 90260 10 1987 8,772 9,583 $3,400,000 $340,000 $387.60 3.27% 19.00 7/26/18 (4) - 3+1.75

(6) - 2+1

AVERAGES $302,357 $326.93 4.17% 16.50

SALES COMPARABLES

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18 15301 Prairie Avenue

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19Lawndale, CA

ADDRESS NUMBER OF UNITS YEAR BUILT FLOOR PLAN ASKING

RENTSQUARE

FEET RENT PSF

15301 Prairie Ave, Lawndale, CA 90260 11 1960 3+2

3+1$1,512$1,458 - -

4430 W 172nd Street, Lawndale, CA 90260 31 1984 3+2 $2,750 990 $2.78

4539 W 159th Street, Lawndale, CA 90260 10 1987 3+2 $2,695 995 $2.71

4079 W 142nd Street, Hawthorne, CA 90250 7 1962 3+2 $2,550 918 $2.78

4364 W 141st Street, Hawthorne, CA 90250 5 1959 3+2 $2,695 900 $2.99

AVERAGES $2,673 951 $2.81

RENT COMPARABLES - 3 BEDROOM

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20 15301 Prairie Avenue

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21Lawndale, CA

ADDRESS NUMBER OF UNITS YEAR BUILT FLOOR PLAN ASKING

RENTSQUARE

FEET RENT PSF

15301 Prairie Ave, Lawndale, CA 90260 11 1960 2+2

2+1$2,150$1,401 - -

4539 W 159th Street, Lawndale, CA 90260 10 1987 2+1 $2,095 730 $2.87

16111 Prairie Ave, Lawndale, CA 90260 39 1972 2+2 $2,095 973 $2.15

4609 W 159th Street, Lawndale, CA 90260 12 1987 2+2 $2,100 800 $2.63

4629 W 159th Street, Lawndale, CA 90260 12 1987 2+2 $2,250 1,000 $2.25

14600 Inglewood Ave, Lawndale, CA 90260 38 1984 2+2 $2,025 960 $2.11

AVERAGES $2,113 893 $2.40

RENT COMPARABLES - 2 BEDROOM

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22 15301 Prairie Avenue

CONFIDENTIALITY AGREEMENT & DISCLOSUREThis Offering Memorandum contains select information pertaining to the business and affairs of 15301 Prairie Avenue located in Lawndale, CA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner

detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

23Lawndale, CA

L ISTED BY

15301 PRAIRIE AVEL A W N D A L E , C A

NABIL AWADAAssociate, Multifamily+1 (310) 844-9362nabil.awada@matthews.comLicense No. 02046840 (CA)

DAVID HARRINGTONEVP & Managing Director+1 (310) 295-1170david.harrington@matthews.comLicense No. 01320460 (CA)

BROKER OF RECORDKyle MatthewsLicense No. 1972189 (CA)