A 98-UNIT, 21 BUILDING VALUE-ADD INVESTMENT OPPORTUNITY IN EL SERENO (LOS ANGELES), CA

Holliday GP Corp. (“HFF”), California Bureau of Real Estate License #01385740.

HUNTINGTON DRIVEDOWNTOWNLOS ANGELES

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ExEcutivE SummaryHFF is pleased to present for sale, El Sereno Apartments (the “Property”), a 98-unit, 21 building garden style multi-housing community located in the El Sereno neighborhood in the City of Los Angeles. Built in 1964/1965 on 5 acres of land and nestled in a residential pocket off Huntington Drive, El Sereno Apartments boasts spacious one to four-bedroom floorplans with an average unit size of +731 square feet. Situated just steps from Huntington Drive, the Property is located just a quick walk from a number of restaurants and daily conveniences, and is just a quick 10-minute drive away from High-land Park’s abundant amenities. The Property represents a true value-add opportunity with 70 of the 98 units in original condition and current rents 63% below market for renovated units. The balance of the units have been re-cently renovated featuring wood inspired flooring, quartz countertops, new cabinetry and stainless-steel appliances. Additionally, the property is 42% vacant (41 units) and 28 of these units are renovated which ownership has kept vacant. Over the last three years, the submarket has experienced sig-nificant rent growth of 8.7%, while simultaneously sustaining a low vacancy rate of 3.1%. With virtually no new supply on the horizon due to extremely high barriers to entry, El Sereno Apartments is poised to benefit from a high demand rental market and is forecasted for continued low vacancy and strengthening rents for years to come.

7%7 Units

82%80 Units

9%9 Units

2%2 Units

1 BED | 1 BATH

2 BED | 1 BATH

4 BED | 2 BATH

3 BED | 1 BATH

uNit mix

PROPERTY OVERVIEW

PROPERTY ADDRESS 4601-4689 Grey Drive, Los Angeles, CA 90032 4609-4611 Twinning Street, Los Angeles, CA 90032

3404-3424 Edloft Avenue, Los Angeles, CA 90032

UNITS 98

BUILDINGS 21

GROSS SQUARE FOOTAGE ±71,634 (±731 avg. sq.ft./unit)

YEAR BUILT 1964-1965

OCCUPANCY 58%

ACREAGE 5.00

APNS 5213-020 -009 through 011 5213-020-014 through 020 5213-021-017 through 020

5213-021-023 5213-022-001 through 012

PARKING 126 spaces (88 single / 38 tandem)

PARKING RATIO 1.26 per unit

ZONING LARD1.5/LARD2

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DOWNTOWNLOS ANGELES

RENTER-OCCUPIED DWELLINGS

57.3%(3-MILE RADIUS)

RESIDENTS ARE BETWEEN 18-34

29%(90032 AREA CODE)

AVERAGE VACANCY RATE

3.4%(FORECASTED -> 2022)

EAST LA/ALHAMBRA/MONTEBELLO/PICO RIVERA

AVERAGE HOUSEHOLD INCOME

$79,504(3-MILE RADIUS)

$635,000 AVERAGE HOME

PRICE

$750,000AVERAGE HOME

PRICE7-Minute Drive

LINCOLN HEIGHTS

DODGER STADIUM

HIGHLAND PARK10-minute drive

$825,000 AVERAGE HOME

PRICE

MERCURY AVE.

HUNTINGTON DRIVE

ASCOT HILLS PARK

FOREVER 21 Headquarters &

Distribution Center

LA BIOSCIENCE CORRIDOR ±8,500 jobs

USC HEALTH SCIENCES CAMPUS

LAC+USC MEDICAL CENTER

ROSE HILL RECREATION CENTER

BLAZING STONE PIZZA

DON PEDRO’S PALENQUES

LINCOLN HEIGHTS AMENITIES:

FAHRENHEIT LA PIZZA

IDEAL RENTER DEMOGRAPHICS

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RENOVATED29%

28 Units

UNRENOVATED71%70 Units

A M E N I T Y & J O B R I C H

E N V I R O N M E N T

El Sereno is situated among the emerging and highly sought-after markets of Lincoln Heights, Highland Park and Eagle Rock, and the already established economic centers of Downtown Los Angeles, Pasadena, and Alhambra. Less than 5 miles from DTLA, the neighborhood enjoys direct connectivity to the city center yet maintains the characteristics of a residential neighborhood. El Sereno is becoming an increasingly popular destination for food tenants such as Fahrenheit LA (0.4 miles away) which opened in March 2018 and has been an immediate success in the area serving wood-fired Neapolitan pizza, and Dough Box (0.7 miles away) which has been coined “LA’s Best Deep-Dish Pizza”, and the 4.5 Star Yelp rated Holy Grounds Coffee and Tea (1.5 miles away), all of which speaks to the increasing strength of the neighborhood. El Sereno Apartments also greatly benefits from the dense and rich amenity base of other surrounding neighborhoods—those of which include Lincoln Heights, Highland Park, Monterey Park, and Alhambra.

E X C E L L E N T VA L U E

C R E AT I O N O P P O R T U N I T Y

New ownership has the opportunity to implement a renovation program to achieve significant rent premiums. 71% of the units remain in original condition, and new ownership will have the opportunity to renovate the balance of the units to raise rents by a projected 63%. Additionally, the Property is 42% vacant (41 units) and 28 of these units are renovated which ownership has kept vacant.

rENOvatEDuNit mix

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S T R O N G “ B U I L T - I N ”

T E NA N T B A S E

El Sereno benefits from its exceptional location in the area now being referred to as the LA Bioscience Corridor, which employ over ±8,500 professionals. The LA Bioscience Corridor is anchored by HATCH (a future multi-tenant lab scape), the USC Health Science Campus (2.7 miles away), the LAC+USC Medical Center (2.6 miles away), and LA BioSpace, the future LA County/Cal State LA incubator (2.7 miles away); all of which are located within a 10-minute drive from the Property. USC’s Health Sciences Campus, home to both the university’s two hospitals and medical school, employs nearly 4,000 staff and faculty and has over 1,200 students, and LAC + USC Medical Center includes more than 1,500 attending physicians from the USC Keck School of Medicine, over 900 medical interns, and nearly 3,000 nurses offering El Sereno Apartments a strong “built-in” tenant base. Through cross-sector collaborations and initiatives, the LA Bioscience Corridor is on its way to becoming Los Angeles’ next high-growth cluster.

El Sereno Apartments also benefits from proximity to some of the largest employment centers such as DTLA (+500,000 jobs; 5.6 miles away), Pasadena (+70,000 jobs; 7.4 miles way), and Alhambra (+30,000 jobs; 4.2 miles away). Strategically positioned in close proximity to the I-5, I-10 and I-710 freeways, El Sereno allows commuters easy access to all of these job centers and to the Greater Los Angeles area.

H I G H B A R R I E R S T O E N T R Y

With the majority of El Sereno zoned for single family residences, and only a finite area along Huntington Drive and Eastern Avenue zoned for com-mercial and multi-housing, there is limited opportunity for entry into this already supply constrained market. Within a 1-mile radius of the Property there are just 1,334 multi-housing units and more than 4,790 owner-occu-pied units. According to Axiometrics, there are 0 market rate multi-housing units scheduled to deliver through 2022.

R I S I N G H O M E P R I C E S

D I S C O U N T T O

H O M E O W N E R S H I P

Within El Sereno, home prices have risen at an exponential rate. Since 2012, median home price have increased two-fold from $261,000 in 2012 to over $595,000 in 2018 . Homes values in El Sereno have increased 14.4% over the last year, and are predicted to increase another 14.8% within the next 12 months (Zillow). This rising cost has put homeownership out of reach for many individuals, while renting at El Sereno Apartments presents a much more affordable option to homeownership with a 27% discount to owner-ship.

SINCE 2012 MEDIAN HOME PRICES HAVE

INCREASED TWO-FOLD

FROM $261,000 TO OVER $595,000

IN 2018A rendering of HATCH, (BAM Architecture)

BLAKE A. ROGERSManaging Director310.407.2138brogers@hfflp.comCA Lic. 01866591

ALEXANDRA CANIGLIAAssociate310.407.2122acaniglia@hfflp.comCA Lic. 01994543

MARC SCHILLINGER Managing Director 310-407-2119 mschillinger@hfflp.com CA Lic# 01846580

FINANCING ADVISOR:INVESTMENT SALES ADVISORS:

Holliday Fenoglio Fowler, L.P. acting by and through Holliday GP Corp. a California licensed real estate broker California License Number 01385740 (“HFF”). HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change.

©2016 HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.

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