East Los Angeles

Interchange Vertex

Sir Leonard Blavatnik 227 Shorenstein 37 Michael Dell 130 Harridge Development 120 Hudson Pacific Properties 89 Bridge Development Partners 68 ASB Capital 47 Mehdi Soroudi 36 Tishman Speyer 35 Onni Group 34 York Capital 30 Ron Burkle 18 Continuum Partners 25 Carmel Partners 22 KOAR 13 Taban 11 Moussa Shaaya 10 Thor Equities 10 851

Subject Property

Warner Music Group

Spotify

Bridge Development Partners

Tishman Speyer

Honey

Carmel Partners

Michael Dell

Warner Music Group 240 Spotify + At Mateo 186 Honey 131 Virgin Hyperloop One 71 Michael Dell 253 Tishman Speyer 240 Onni 187 Carmel Partners 125 Lowe Enterprises 113 Taban 100 Continuum Partners 100 HPP Maxwell 99 1,775

T O P Capital inflow 2015 – 2019 in millions USD B O T T O M New + completing Class A office in SF 1=100,000 General Motors Building=1,647

Subject Property

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3,250’ from subject property Shorenstein - Sir Leonard Blavatnik/ Access Industries corporate campus - 777 S Santa Fe Avenue Los Angeles 90021

Warner Music Group Global Headquarters

Figures 240,000 sf completed April 2019 6 recording + publishing groups 800 employees + executives

WMG (Access Industries) $4 billion in revenue in 2018 2017-2018: net income doubled 4,500 employees in 50 countries Capital at the Highest Level

$25.7 billion net worth ^ Blavatnik $8.7 billion since 1992 ^ total equity ____commitment of Shorenstein’s ____closed-end investment funds $195 million ^ price Access paid ____Shorenstein for 777 S Santa Fe on ____3.29.19 in lieu of its 13-year lease $37 million ^ price Shorenstein paid in ____ ‘14 for former Ford factory on site 2014: $123 /sf bldg 2019: $759 /sf bldg

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2,250’ from subject property Tishman Speyer - Sir Richard Branson/ Virgin Group research hub - 2159 East Bay Street Los Angeles 90021 1024 S Santa Fe Ave Los Angeles 90021

Proposed Development by Tishman Speyer

2159 Bay St Figures 240,000 sf completing in 2021/2 3-stories 2015-present: Hyperloop One HQ value at $800/ sf ^ $192 million

Virgin Hyperloop One 85 scientists + executives on site 71,000 sf including separate 1024 S. site $295 million raised nascent growth: contracts in India+Ohio

Tishman Speyer/Purchase $88 billion ^ value of global portfolio 167 million sf developed since 1978 11.01.16 ^ $24.5 million $662 /sf bldg $329 /sf land

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3,550’ from subject property ASB Capital - Spotify campus office - 555 Mateo St Los Angeles 90021 high street retail - 2014-2028 E 7th St Los Angeles 90021

Spotify Figures

110,000 sf space 10-year lease at ~$50 /sf MG

NYSE: SPOT $26.0 billion market cap leading services organization in music 4,250 employees globally

At Mateo 186,000 sf Class A office project (retail component repositioned to office for 2020 completion upon Spotify lease)

ASB Capital Management/Purchase $18.8 billion in fixed income & $7.9 billion in real estate AUM JV at Mateo:Blatteis & Schnur 06.9.14 ^ $32.5 million $213 /sf land

ASB-only Retail Investment on 4.28.16 $14.9 million purchase from developer 22,400 sf renovated in 2015 100% leased $665 /sf bldg $519 /sf land

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Rendering: Moroudi’s 676 Mateo (at 7th St) develop-ment; a retail and multifamily project not included in this report. Graphic: Honey’s coupon animation

Honey Science Corp Global Headquarters

Figures/Purchase 131,700 sf space 10-year lease begins June 2019 5.26.2015 ^ $49.25 million $112/ sf bldg $933 /sf lot Honey 10 million users $40.8 million raised 165 employees at campus offices in London + Sydney

5,200’ from subject property Hudson Pacific Properties - Honey WeWork campus office - 963 E 4th St Los Angeles 90021 campus office - 405 Mateo St 1003 E 4th St Los Angeles 90021

NYSE: HPP $5.28 billion market cap 52 properties totaling 13.9 million sf 2nd largest owner in Silicon Valley after Alphabet

WeWork Maxwell

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Figures /Purchase 99,020 sf space to WeWork spanning a 1924 and 2019 building opens July 2019 8.18.2015 ^ $40 million as 64,000 sf factory and 2-story garage $835 /sf land

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3,150’ from subject property USAA Real Estate Co - Bridge Development Partners 1988-built industrial - 2425, 2445, 2460 & 2535 E 12th St Los Angeles 90021

Figures 11-unit Class C Industrial Service 2 vacancies 24’ clearing height 261,535 sf total 325,134 sf (7.46AC)

Purchase flag lot ^ shares street access with other owners 1.4.2019 ^ $68 million $260 /sf bldg $209 /sf land

Bridge Development Partners $4.7 billion in transactions since 2013 Case Study ^ 2033 S Normandie Ave, Torrance CA

7.1.2016 ^ purchases 20.33 AC industrial complex for $43 million 4.1.2018 ^ sells Nordstrom-leased 512,490 sf building for $102.5 million

Critically Needed Industrial Campus Developments (2)

Synopsis “Arguably the last pure industrial building located in such a proximity to the Arts District, and the vital business and residential districts of Downtown Los Angeles. We’re planning to transform the site into the premier industrial destination for forward-thinking tenants—including those that have been displaced in recent years.”

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4,280’ from subject property Tribune - Harridge Development sale-leaseback - 2000 E 8th St Los Angeles 90021

Synopsis Harridge Development purchased the 658,000 sf printing plant built in 1988 during Sam Zell’s controversial ownership of the Tribune Company. The created lease ends in 2023 and Harridge indicated it will pursue more site-intensive industrial uses to support development to the north.

Figures/Purchase 25.95-acre site $407 million ^ Harridge acquisitions in LA since 2014 9.29.16 ^ $120 million $106 /sf land

Financing $80 million ^ Blackstone Mortgage Trust

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From left to right:

Los Angeles Times Olympic Printing Plant,

Bridge Development Partners Campus,

Subject Property

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Clockwise from top left:

777 S Santa Fe Ave Warner Music Group HQ,

Onni Group Office and Apartments Development,

Lowe Enterprises development,

Subject Property,

Tishman Speyer site,

Albert Taban/Jade development,

Soho House,

Shaaya 2.08.2016 land purchase ($161.53/ sf lot)

Blavatnik $32 million 4.15.2019 warehouse/land purchase ($439.34 / sf lot)

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2,375’ from subject property Ronald Burkle/ Yucaipa Companies - York Capital hotel & private club - 1000 S Santa Fe Ave Los Angeles 90021

Soho Warehouse

Figures 65,000 sf built 1912 2020 completion

Soho House 23 clubs across the world 50,000+ members globally 30,000+ on waiting list 2012: purchased by Burkle

Yucaipa $30 billion in M&A since 1986 major Los Angeles landowner wholly owned by Burkle York $20 billion AUM 30% owned by Credit Suisse

Purchase 10.14.2015: Burkle $18 million $290 /sf bldg $757 /sf land 04.05.2017: York $30 million $483/ sf bldg $1,262 /sf land

2,300’ from subject property Taban Brothers/ Jade Enterprises mixed-use - 2110 Bay St Los Angeles 90021

Spec Campus Office

Figures 113,500 sf Class A office component 2021 completion

Jade Enterprises/Purchase Largest private owner in Downtown LA $2 billion: approx. value of CA portfolio 4.07.2015 ^ $11.5 million $149 /sf land

Spec Mid-Rise Office

2,925’ from subject property Onni Group mid-rise office - 2143 Violet St Los Angeles 90021

Figures Under review for 2022 completion 15-story mixed-use building including 187,000 sf of Class A office

Purchase 12.01.16 ^ 2143 Violet St for $10.1 million $264 /sf land 4.24.17 ^ 2118 & 2440 E 7th Pl for $34 million 75,000 loft office (not included in this report) $453 /sf bldg $583 /sf land

Onni Group 28 million sf under development globally 50 years: 15,000 houses; 7,200 apartments; 10 million sf office, retail and industrial built

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Spec Mid-Rise Office

2,925’ from subject property Lowe Enterprises mid-rise office - 2130 Violet St Los Angeles 90021

Lowe Enterprises 1972 ^ founded $15 billion ^ AUM including JV projects

Figures Under construction for 2020 completion 9-story 113,000 sf Class A office

Purchase 6.16.2015 ^ for $5,000,000 $154 /sf land

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2,800’ from subject property - 670 Mesquit St, at 7th St

Zach Vella and Vincent Gallo proposed the 307,907sf building in 2016. Its office component is unknown and thus the project is not included. Regardless, it would deplete 5 acres of industrial space if completed in any shape or form.

Top:

Top to bottom: Honey WeWork (Hudson Pacific Properties) 520 Mateo (Carmel Partners) Spotify (ASB)

Left to right: 6AM (SunCal / Michael Dell) Continuum Partners KOAR 28000 sf Class B Office 670 Mesquit St (Vella / Gallo)

3,800’ from subject property Continuum Partners campus office - 640 S Santa Fe Ave Los Angeles 90021

Figures 2020 completion; depleted 36000 sf cold-storage space 89,000 – 100,000 sf 4-story Class A Office component

Purchase 1997-built owner-user with short-term sale-leaseback 12.22.2016 ^ $25 million $624 /sf bldg $350 /sf land

Continuum A transformative, serious urban developer in Denver.

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Spec Campus Office

4,000’ from subject property Ron Zeff/ Carmel Partners campus office - 520 Mateo St Los Angeles 90021

Figures Approved with 2021 completion date Will deplete 80306 sf of industrial space Anchored by a 35-story residential tower 100,000-125,000 sf 6-story office component Purchase 1988-built owner-user 10.02.2015 ^ $24 million $299 /sf bldg $281 /sf land

Carmel Partners $2.9 billion in acquisitions, $4.6 billion in dispositions since 2014 developer of the largest mixed-use projects in two L.A. markets

Spec Office

6AM by Herzog & de Meuron

Capital at the Highest Level $28.6 billion net worth ^ Michael Dell Founded in 1930, SunCal is one of most prolific homebuilders in United States with

24,500 homes under planning + construction in 2018

Mr. Dell purchased a controlling stake in SunCal in the wake of the 2008 financial crisis

6,250’ from subject property SunCal - The Family Office of Michael Dell high-rise office - 6th at Alameda St Los Angeles 90021

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Figures 2.82 million sf complex 253,414 sf of tower office space in northern 58-story tower 3.25.15 ^ 130 million $204 /sf land Under environmental review as a three-phase project.

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The Parcels Land AC List Price

2321 Opal St 0.41 $3,100,000

2315 Opal St o.15 $1,000,000

1100 S Boyle Ave 0.45 $3,500,000

1120 S Boyle Ave 0.54 $4,000,000

2309 Opal St 0.14 $1,000,000

SUM

Private Land 1.70 $12,600,000

Condemned Cul-de-Sac 0.62 Free

Total Offering 2.32 $125/sf Lot

Total Buildable-as-Right at 1.5 FAR 152,000 sf

Value of New Building at $320 / sf $48,509,000

As the world’s most valuable companies, notably Apple, pivot to

services Los Angeles’ radically reorganized entertainment properties

will drive corporate grand strategy.

Visionaries of the post-Cold War economy straddling Leonard

Blavatnik, builder of Russia’s energy sector, and Michael Dell, whose

eponymous vendor controls 17% of the world market for computers,

choose to bypass Los Angeles’ debilitating urbanity:

The Arts District they are building in their image is in the center of

everything and in the middle of nowhere. Its ascent comes at the cost of

industrial space larger than many cities’ entire markets, precisely as Los

Angeles’ ports report record levels of imports.

East Los Angeles Interchange Vertex is as uncanningly isolated as it is

connected. Its 2.32 acres recommend multi-story industrial construction

at its most lucrative: helicopter and drone transport, data centers, and

last-mile logistics.

Unleashing collaboration and competition will be these projects’

contribution. If these values succeed, we hope one day the Arts District

will not be a unique proposition, but one of many.

New Cartographies Adlee Efraim 310 498 5193 cell Marcus \ Millichap