T E A M - C L I N E . C O M

GARDENA | CA

±25,000 SF INDUSTRIAL FOR SALELONG TERM LEASED INVESTMENT

LOCAL EXPERTISE. INTERNATIONAL REACH. WORLD CLASS.

The information contained herein is obtained from sources believed to be reliable. However, we have not verified it and make no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is used for example and is submitted subject to errors, omissions, change of price or conditions, and is subject to prior sale, lease or withdrawal without notice.

LEE & ASSOCIATES® - COMMERCE, INC.CORP ID 01125429

500 Citadel Dr, Suite 140Commerce, California 90040

P: 323.720.8484 | F: 323.720.8474LEE-ASSOCIATES.COM

T E A M - C L I N E . C O M

13300 ESTRELLA AVE | GARDENA LOCAL EXPERTISE. INTERNATIONAL REACH. WORLD CLASS.

FOR M

ORE IN

FORM

ATION

, PLEASE C

ON

TACT

Doug ClineSenior VP, Principal | LIC ID 01142005

dcline@lee-associates.com323.767.2116T E A M - C L I N E . C O M

Evan JurgensenAssociate | LIC ID 01967347

ejurgensen@lee-associates.com323.767.2032T E A M - C L I N E . C O M

Miles SolomonLIC ID 02099423

msolomon@lee-associates.com323.767.2053T E A M - C L I N E . C O M

Jack R. Cline, Jr.Senior VP, Principal | LIC ID 00854279

jcline@lee-associates.com323.767.2025T E A M - C L I N E . C O M

PROPERTY OVERVIEW

100% Net LeasedInvestment Property

High Credit Aerospace Tenant

Cell Tower Additional Income

18’ Clear / 2 Dock High Doors / Heavy Power

10 Year Corporate Guarantee Lease

Private Front/Back Yards

Excellent Location at the 110 & 105 Freeway Interchange

T E A M - C L I N E . C O M

13300 ESTRELLA AVE | GARDENA

ESTR

ILLA

AV

E

S HOOVER ST

110

DTLA

5

5

5

10

10

1010

15

15

5

5

110

105

710

710

605

605

405

405

215

215

215

210

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210

210

9191

91

60

60601

2

1

190

27

1

1 55

22

57 71

30

30

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1 74

73

103

133

241

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170

101

101101

ORANGE COUNTY

RIVERSIDE COUNTY

SAN BERNARDINO COUNTY

LOS ANGELES CO.

ORANGECOUNTY

LOSANGELES

SAN GABRIELVALLEY

MID COUNTIES

SOUTHBAY

CHINO/ONTARIO

CHINOAIRPORT

PORT OFLONG BEACH

PORT OFLOS ANGELES

VAN NUYSAIRPORT BURBANK

AIRPORT

LAX

LONG BEACHAIRPORT

JOHN WAYNEAIRPORT

ONTARIOINT'L AIRPORT

IRVINE

LAGUNANIGUEL

DANAPOINT

SANTA ANA

ORANGEGARDENGROVE

COSTAMESA

SANCLEMENTE

LONGBEACH

SANPEDRO

PALOSVERDES

TORRANCE

GLENDORAUPLAND

RANCHOCUCAMONGA

FONTANA

MIRALOMA

RIVERSIDE

SAN BERNARDINO

ONTARIO

CHINO

CITY OFINDUSTRY

POMONA

FULLERTON

ANAHEIM

BALDWINPARK

CORONA

BREA

NORWALK

HERMOSA BEACH

MANHATTAN BEACH

EL SEGUNDO

MARINA DEL REY

SANTAMONICA

CULVERCITY

GLENDALE

BURBANK

VAN NUYS

ENCINO

SANTA FESPRINGS

BEVERLY HILLS

STUDIO CITY

HUNTINGTONBEACH

NEWPORT BEACHBEACH

DIAMONDBAR

DOWNTOWNLOS ANGELES

PROPERTY LOCATION

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Port of Long Beach

Port of Los Angeles

ESTRILLA AV

E

S HOOVER ST

W 135TH ST

110

PARCEL MAP

T E A M - C L I N E . C O M

PROPERTY LOCATION 13300 ESTRELLA AVE | GARDENA

ESTRELLA AVE

WAREHOUSE

RR RR

OFFICE

WARE.OFF.

OFFICE

OFFICE OFFICE

OFFICE OFFICE

CONF.ROOM

OFFICE

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NNOTE: Drawing not to scale. All measurements and sizes are approximate.

PROPERTY SITE PLAN

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PRO

PERT

Y PH

OTO

S 13300 ESTRELLA AVE | GARDENA

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PRO

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Y PH

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S 13300 ESTRELLA AVE | GARDENA

T E A M - C L I N E . C O M

TENANT OVERVIEW

This Net Leased Investment property offers investors stable cash flow with fixed annual 3% rent increases over a 10 year Corporate Guaranteed lease term, plus additional cell tower income. The lease is backed by one of the world’s leading Aerospace, Defense, and Energy parts manufacturers, MEGGITT AIRCRAFT BRAKING SYSTEMS CORPORATION, and by NASCO AIRCRAFT BRAKE, INC, a wholly owned subsidiary.

This State-of-the-Art facility is located South of Downtown in Gardena, California. It is the Corporate Headquarters and Manufacturing Hub of NASCO. Here they have supplied the Department of Defense, US Air Force, Boeing, and other clients with aircraft wheel and brake components for over 50+ years. The 25,000sf site consists of a Class A office and staff facilities, and a production facility made up of computer controlled 2500-ton production presses, computer-controlled sintering furnaces, and on-site dynamometers to simulate landing conditions for various aircraft from the smallest single-engine plane to the largest Boeing 747. It is the first company to develop the technology to duplicate existing brake components and friction material linings and is currently the only brake and wheel designer with the in-house capability to produce sintered friction discs, sintered friction buttons and steel heat-sink parts in production quantities.

NASCO is the first and only company to obtain FAA certification for replacement commercial transport parts as a second source supplier. NASCO has produced FAA-approved steel brake rotors for commercial aircraft since 1989 and USAF-approved friction lining and steel brake components for more than 20 U.S. military aircraft since 1971. These components have recorded tens of millions of safe landings. NASCO was the first supplier to apply for a Supplemental Type Certificate on a commercial aircraft brake, the rotor used in the Boeing 727. Additionally, approval was obtained for the Boeing 737, 747, and is currently qualifying additional brake components for other commercial aircraft. Since 1971, NASCO has qualified high usage parts such as stators, rotors, pistons, wear pads, backing plates, keys, and insulators. These parts are used on numerous Military aircraft in the US and around the world such as the A-4, F-4, F-5, F-104, F-105, F-111, B-52, B-57, T-33, T-38, C-119, C-130, KC-135 and C-141. In 1986, NASCO was the only F-4 rotor supplier to the U.S. Air Force, saving millions of dollars by providing a cost efficient alternative. In addition, NASCO has sold brake parts to governments and distributors around the world, providing direct product support and substantially faster delivery than offered through Foreign Military Sales.

T E A M - C L I N E . C O M

MARKET OVERVIEW

Central Los Angeles Asking rents have continued to rise, up $0.02 per square foot (PSF) triple net (NNN) over the quarter and up 19.4% over the previous twelve months. Rising property values are driving up asking rents, especially for smaller industrial properties in the Central Los Angeles submarket. Vacancy has increased slightly over the past year but has begun to taper. There remains 840,400 square feet under construction, which may lead to a slight up-tick in the vacancy rate in future quarters. In Vernon, Prologis is developing a two-building industrial park at 5215 South Boyle Ave. with delivery expected in February of 2020. The demand for new inventory is there, but land to build it is not, and that has pushed the bulk of the region’s construction activity into the Inland Empire.

San Gabriel Valley The vacancy rate rose 70 basis points to 2.55% this quarter. This was due to the addition of 1,354,400 square feet of newly completed industrial space that was brought to the market. Net absorption was positive 264,400 square feet this quarter and 1,251,100 square feet for the year. Industrial demand has been positive all quarters in 2019 and is expected to remain positive for the near future. San Gabriel Valley has 17 buildings currently under construction totaling just over 2.1 MSF. Another 4.14 MSF is also underway throughout the county at large. The largest project in the pipeline is a speculative two-building industrial center being developed by Goodman. The buildings, located in El Monte, will add another 1.2 MSF of quality space to the market replacing a similar-sized but older distribution center formerly owned and occupied by Vons.

Mid-Counties Vacancy ended the quarter at 3.8%. Sales and leasing activity totaled 3,348,081 square feet this quarter, which is significantly above average for this market. The increase in volume can be largely attributed to the 1.1 MSF lease to UNIS at the old JC Penny site at 6800 Valley View in Buena Park.

Inland EmpireIncreased industrial demand has led to a rise in net absorption which registered a very strong 8.1 million square feet for the quarter and stands at 24.1 MSF for the year. Construction completions totaled 13.3 MSF this quarter, nearly halving the existing pipeline of supply, which now stands at only 16.9 MSF. More industrial projects than average were added to the base this quarter and new projects have not been started to replace them. Future quarters will see declining vacancy rates as demand remains positive. Overall average asking rents are expected to rise by another 3% in the coming year.

A Look AheadExpect LA’s industrial market to remain one of the tightest (in terms of vacancy) and one of the most expensive (in terms of asking rental rates). A conservative forecast calls for rents to increase by 6.0% in 2020. E-commerce companies and 3PLs (many of which support e-commerce operations) will continue to be dominant market players. The demand for infill industrial space will only continue apace as Amazon expands its national hub-and-spoke model of larger fulfillment centers and smaller locations near urban centers.

With an industrial base of over 1 billion square feet , the Los Angeles industrial market is one of the largest in the United States. It also has some of the highest asking rental rates, $0.95 per square foot, as well as one of the lowest vacancy rates (2.4%) in the nation. In recent quarters, net absorption has been soft, mainly due to lack of available inventory. Imports at the twin ports of Los Angeles and Long Beach, which handle roughly 40% of all imports into the country, continue to be a major industrial driver for the region. In addition, the region is the largest manufacturing center in the United States. For perspective, LA has more manufacturing jobs than the entire state of Illinois

. Consequently, demand is still very strong. Although developers are attempting to keep pace with demand, they are not able to do so because of the scarcity of buildable land. Total square feet under construction fell from 5.4 MSF in 2018 to just 4.7 MSF in 2019. Investors love the potential for rent growth and low vacancy in tight markets and they have been aggressively securing deals with a willingness to accept lower returns for the stability and upside potential of the Los Angeles market. Approximately $3.80 billion worth of industrial real estate traded hands in Los Angeles in 2019, setting a new high water mark for the region.

STRONG RENT GROWTH & STRONG DEMAND

FOR LOS ANGELES INDUSTRIAL BUILDINGS

SELECT STATS (10K AND UP)

T E A M - C L I N E . C O M

MARKET OVERVIEW

VACA

NC

Y RATE

VACANCY RATES

ASKING

LEASE RATE

Q1-2019 Q2-2019 Q3-2019 Q4-20190.000.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

Q 1 - 1 9 Q 2 - 1 9 Q 3 - 1 9 Q 4 - 1 9

Downtown LA 2.70 3.02 3.20 3.40

Commerce Area 2.60 2.68 2.09 2.42

Vernon Area 3.20 3.00 2.63 2.13

Mid-Counties 2.60 2.80 3.30 3.80

Q1-2019 Q2-2019 Q3-2019 Q4-20190.00

0.20

0.40

0.60

0.80

1.00

Q 1 - 1 9 Q 2 - 1 9 Q 3 - 1 9 Q 4 - 1 9

Downtown LA 0.89 0.90 0.90 0.85

Commerce Area 0.73 0.78 0.91 0.86

Vernon Area 0.73 0.80 0.83 0.84

Mid-Counties 0.84 0.90 0.93 0.97

BASE SF AVAILABILITY RATE (%) VACANCY RATE (%)

Commerce 48,672,434 3.48 ▲ 2.56 ▲

Los Angeles 78,372,945 3.40 ▲ 5.22 ▼

Montebello 10,052,026 2.84 ▲ 2.84 ▲

Pico Rivera 9,563,173 3.09 ▲ 2.06 ▲

Vernon 53,163,970 2.47 ▲ 2.12 ▼

BASE SF AVAILABILITY RATE (%) VACANCY RATE (%)

Buena Park 12,935,432 9.93 ▼ 9.52 ▲

Cerritos 12,863,680 4.81 ▼ 3.96 ▲

La Mirada 13,058,861 8.27 ▲ 7.03 ▲

Norwalk 4,017,815 1.57 ▼ 1.57 ▼

Santa Fe Springs 54,251,999 3.06 ▲ 1.56 ▼

T E A M - C L I N E . C O M

INVESTMENT ANALYSIS

Tenant NASCO AIRCRAFT BRAKE, INC

Lease Guarantor MEGGITT AIRCRAFT BRAKING SYSTEMS CORPORATION

Property Address 13300 Estrella Avenue, Gardena, CA 90248

Permitted Use Manufacturing, storage, and distribution of consumer related aerospace commercial and military products

Square feet ±25,000 SF

Lease Type NNN (Triple Net)

Lease Commencement New lease commences 04/01/2021

Initial Lease Term Ten (10) years

Option to Extend Three (3) additional five (5) year options at Fair Market Value

Base Net Rent Year 2 (commencement of new lease) $24,125 per month ($289,500 per year)

Cell Tower Additional Income $2,304 per month ($27,648 per year)*

Rent Escalations 3% Annually

Security Deposit N/A - Corporate Guarantee

Real Property Taxes Tenant will pay the landlord an amount equal to the Real Property Tax installment due at least 20 days prior to the applicable delinquency date.

Utilities Tenant shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the premises together with any taxes theron.

Termination Right Lessee shall have a one time right to cancel the Lease effective as of the end of the eighty-forth (84th) month of the Third Extension Term (the “Termination Date”), by written notice to Lessor given at least ten (10) months prior to the Termination Date in which event Lessor and Lessee shall be discharged from all of their obligations under the Lease from and after the Termination Date. If Lessee elects to cancel the Lease, Lessee shall pay to Lessor on or before the Termination Date an amount equal to three (3) months of the then Base Rent.

*Lease expires in 2025, new terms/rates can be renegotiated by buyer.

T E A M - C L I N E . C O M

INVESTMENT ANALYSIS

Insurance

Lessee shall pay for all insurance required under paragraph 8 except tro the extent of the cost attributed to liability insurance carried by Lessor under paragraph 8.2(b0 in excess of $2,000,000 per occurrence. Premiums for policy commencing prior to or extending beyond the lease term shall be prorated to correspond to the Lease term. Payment shall be made by lessee to lessor within 10 days following receipt of an invoice.

Repairs and Maintenance Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, except as set forth in the above referenced amendment to the lease.

Assignment/Subletting Except to affiliates or successors, Tenant may not assign this Lease and/or sublet all or any portion of the Premises without Landlord’s consent.

LEASE ABSTRACT

T E A M - C L I N E . C O M

RENT ROLL

NASCO AIRCRAFT BRAKE, INC. NET RENT SCHEDULE

Lease Year Months Annual Rent Monthly Rent PSF/MONTH PSF/YEAR Additional Cell Tower Annual Income Total Annual Income

Year 1(Months 1-2) 2/1/20 to 3/31/20 $33,222.00 $16,611.00 $0.66 $1.33 $4,608 $37,830

Year 1 -1.5(Months 4-16) 4/1/20 to 3/31/21 $205,308.00 $17,109.00 $0.68 $8.21 $27,648 $232,956

Year 2 4/1/21 to 3/31/22 $289,500.00 $24,125.00 $0.97 $11.58 $27,648 $317,148

Year 3 4/1/22 to 3/31/23 $298,185.00 $24,848.75 $0.99 $11.93 $27,648 $325,833

Year 4 4/1/23 to 3/31/24 $307,130.55 $25,594.21 $1.02 $12.29 $27,648 $334,779

Year 5 4/1/24 to 3/31/25 $316,344.47 $26,362.04 $1.05 $12.65 $27,648 $343,992

Year 6 4/1/25 to 3/31/26 $325,834.80 $27,152.90 $1.09 $13.03 $27,648 $353,483

Year 7 4/1/26 to 3/31/27 $335,609.84 $27,967.49 $1.12 $13.42 $27,648 $363,258

Year 8 4/1/27 to 3/31/28 $345,678.14 $28,806.51 $1.15 $13.83 $27,648 $373,326

Year 9 4/1/28 to 3/31/29 $356,048.48 $29,670.71 $1.19 $14.24 $27,648 $383,696

Year 10 4/1/29 to 3/31/30 $366,729.94 $30,560.83 $1.22 $14.67 $27,648 $394,378

Year 11 4/1/30 to 3/31/31 $377,731.84 $31,477.65 $1.26 $15.11 $27,648 $405,380

$3,557,323.06 $308,736 $3,866,059

25000 SF TOTAL RENTABLE SF ANALYSIS

The information contained herein is obtained from sources believed to be reliable. However, we have not verified it and make no guarantees, warranties or representations as to the completeness or accuracy thereof. The presentation of this property is used for example and is submitted subject to errors, omissions, change of price or conditions, and is subject to prior sale, lease or withdrawal without notice.

LEE & ASSOCIATES® - COMMERCE, INC.CORP ID 01125429

500 Citadel Dr, Suite 140Commerce, California 90040

P: 323.720.8484 | F: 323.720.8474LEE-ASSOCIATES.COM

LOCAL EXPERTISE. INTERNATIONAL REACH. WORLD CLASS.

T E A M - C L I N E . C O M

FOR M

ORE IN

FORM

ATION

, PLEASE C

ON

TACT

Doug ClineSenior VP, Principal | LIC ID 01142005

dcline@lee-associates.com323.767.2116T E A M - C L I N E . C O M

Evan JurgensenAssociate | LIC ID 01967347

ejurgensen@lee-associates.com323.767.2032T E A M - C L I N E . C O M

Miles SolomonLIC ID 02099423

msolomon@lee-associates.com323.767.2053T E A M - C L I N E . C O M

Jack R. Cline, Jr.Senior VP, Principal | LIC ID 00854279

jcline@lee-associates.com323.767.2025T E A M - C L I N E . C O M