OFFERING MEMORANDUM2222 Cambridge Street | Los Angeles, CA 90006

davidweinberger@kw.com azunder@kw.com

EXCLUSIVELY LISTED BY:DAVID WEINBERGER

REAL ESTATE ADVISOR818-970-0915

ADAM ZUNDERREAL ESTATE ADVISOR818-554-5560

davidweinberger@kw.com azunder@kw.com

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesDISCLAIMER

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to deter-mine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE

Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent profession-als. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transactionAll data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consul-tants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

Executive Summary

Property Overview

Market Overview

Financials

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesTABLE OF CONTENTS

2222 Cambridge Street “The Cambridge” is a 9,064 SF multifamily property located in a growing Los Angeles submarket called Harvard Heights, which is known for its plethora of historic two story craftsman style homes. The property resides on a 6,250 square foot lot.

The comparable sales approach was utilized, which factors in similar property types, location, price per square foot, condition of the property, year built, rents associated with the property, lease terms, tenants, and metrics such as the capitalization rate, Gross Rent Multiplier, and Price Per door.

2222 Cambridge St, Los Angeles, 90006

5074-012-011

One

1926

Apartments

LAR2

2

Property Address:

Assessors Parcel Number:

Buildings:

Year Built:

Land Use:

Zoning:

Stories:

PROPERTY DETAILS

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesEXECUTIVE SUMMARY

04

The Cambridge, built in 1912, is in historic Harvard Heights, a Los Angeles submarket

known for its cultural diversity, multitude of historic craftsman style homes, and eclectic

retail and food options.

The Cambridge is comprised of sixteen studio apartments and two 1 bedroom + 1 bathroom units.

Seven of the units have been renovated and are setting the bar for rental comps in the immediate area.

An onsite manager provides ease of management for the tenants and ownership.

History runs deep for the location of this property. Harvard Heights is a designated Historic Preservation Overlay Zone

(HPOZ) which is great a situation for the owner of this building, because the amount of multifamily buildings that can

be built is limited, resulting in less competition. Cambridge Street is lined with Craftsman style and Victorian homes built in

the early 1900’s. Directly across from the subject property is the Lucy Wheeler house, built in 1905 and designated as Historic

Cultural Monument #991.

The property is located in the middle of Los Angeles which provides quick access to anything a potential tenant might want. Downtown L.A.

for working professionals, , USC for students, Koreatown for nightlife activities such as The Wiltern are all minutes away and the 10 freeway

can be accessed to head to the beach on a sunny day.

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesPROPERTY DESCRIPTION

05

THE OPPORTUNITY:

The Cambridge is a rare opportunity to acquire a character building in a stellar location with less competition from other multifamily owners due to the HPOZ.

VALUE ADD OPPORTUNITY:This is a true value-add opportunity, where the astute investor can take advantage of a proven concept set forth by the current owners to relocate tenants and renovate units to achieve market rents

GREAT WALKABILITY:With a 91 Walk Score, 2222 Cambridge is a “Walker’s Paradise” location where daily errands do not require the use of a car. Residents can walk to their favorite restaurant, bar, grocery store or one of the many music venues close by.

 EXCEPTIONAL FINANCING / LOAN OPTIONS:Buyers can acquire the property with low down payment options coupled with historically low interest rates and attractive financing options.

HARVARD HEIGHTS HAS IT ALL:Residents enjoy the history, architecture, diversity, community, walkability, food options, and freeway access this area provides. Residents and tenants alike what to live the urban lifestyle.

LOCATED NEAR NEW DEVELOPMENT:A five-story building which would feature 55 apartments is slated for construction near the intersection of St. Andrews Place and Pico Boulevard. Another project is planned to build 180 apartments next to the Food4Less shopping center located at the intersection of venice Boulevard and Wester Avenue.

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesPROPERTY HIGHLIGHTS

06

SITE DESCRIPTION

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesPROPERTY INFORMATION

07

UTILITIES

Units

Gross Square Footage

Parcel Size

Parking

Water

Sewer

Electricity

Gas

Master Metered- LADWP

Master Metered- LADWP

Master Metered – LADWP

Master Metered – LADWP

CONSTRUCTION

Foundation

Framing

Exterior

Roof

Topography

Foundation Retrofitted

/ Raised Foundation

Wood Frame

Stucco

Pitched / Flat

Flat

MECHANICAL

HVAC

Fire Protection

Water Heaters

Wall Heaters

Smoke Detectors

Central Boiler

18

9,064

6,250

0

INTERIOR PHOTOSOFFERING MEMORANDUM | 2222 Cambridge St, Los Angeles

08

09

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesINVESTMENT HIGHLIGHTS

Offering Price: $3,345,000

Current CAP: 4.3%

Market CAP: 6.5%

Current GRM: 13.5%

Market GRM: 10.3

Cost Per SF: $369

Cost Per Unit: $185,833

Cash on Cash Return: 4.3%

Expenses Per Unit: $5,586

Expenses Per Sq Ft: $11.090Parking Spaces

18Units

1926Year Built

6,250Lot Sq Ft

9,064Blddg Gross Sq Ft

OnSite Manager: Given a $500 a month rent credit (provided by owner)

Repairs & Maintenance: Pest Control & Landscaping based upon $250 per month; Waste Removal based upon $260 per unit per year

Contract Services: Based upon $250 per month

Utilities: Based upon $1,000 per unit per year

Property Management Fee: Projected at 5% of Total Annual Income

Real Estate Taxes: Taxes have been underwritten based on a tax rate of 1.22%

Property Insurance: Based upon actual figures

Reserves & Replacements: Based upon $200 per unit per year

01

02

03

04

05

06

07

08

10

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesFINANCIALS

NOTATIONS:

Offering Price $3,345,000 New Property Taxes $40,140 # of Units Unit Type Avg. Rent Total Avg. Rent IncomeDown Payment #REF! Gas Utilities $3,600Current CAP 4.3% Water, Sewer & Electrical $18,600 2 1 Bed / 1 bath $1,230 $2,460.41 $1,850 $3,700Market CAP 6.5% Waste Removal $4,800 16 Studios $1,030 $16,480 $1,450 $23,200Current GRM 13.5 Property Insurance $7,200Market GRM 10.3 Repairs & Maintenance $3,000 Total Rental Income $20,437 $26,900Cost Per SF $369 Pest Control & Cleaning $1,200Cost Per Unit $185,833 Onsite Management $6,000 Laundry Income $250 $250

Offsite Management (5%) $12,412Cash on Cash Return 4.3% Reserves & Replacements $3,600 Total Monthly Income $20,687 $27,150Expenses Per Unit $5,586 Total Estimated Expenses -$100,552 Total Annual Income $248,246 $325,800Expenses Per Sq Ft $11.09

Units 18 Scheduled Gross Income $248,246 $325,800Year Built 1926 Less Vacancy 2.0% ($4,965) 2.0% ($6,516)Lot Sq Ft 6,250 Gross Operating Income $243,281 $319,284Bldg Gross Sq Ft 9,064 Less Expenses 41% ($100,552) 31% ($100,552)Parking Spaces 0 Net Operating Income $142,729 $218,732

BUILDING DATA

FINANCIAL INDICATORS ESTIMATED ANNUALIZED EXPENSES

CURRENT MARKET

SOURCE OF INCOME

EST. ANNUALIZED OPERATING DATA

CURRENT RENTS MARKET RENTS

11

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesRENT ROLL

UNIT STATUS UNIT TYPE NOTATIONS

1 Occupied 1 Bed / 1 Bath $1,204 $1,9002 Occupied Studio Renovated $1,392 $1,5003 Occupied Studio Renovated $1,280 $1,5004 Occupied Studio $970 $1,5005 Occupied Studio Renovated $1,268 $1,5006 Occupied Studio Renovated $1,458 $1,5007 Occupied Studio $902 $1,5008 Occupied Studio $919 $1,5009 Occupied Studio $903 $1,500

10 Occupied 1 Bed / 1 Bath $1,256 $1,90011 Occupied Studio $903 $1,50012 Occupied Studio On site manager $1,431 $1,50013 Occupied Studio $948 $1,50014 Occupied Studio Renovated $1,450 $1,50015 Occupied Studio Renovated $1,470 $1,50016 Occupied Studio $860 $1,50017 Occupied Studio $889 $1,50018 Occupied Studio $934 $1,500

0 $20,437 $27,800

POST RENOVATION MARKET RENT

CURRENT RENT

12

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesAERIAL MAP

13

S W

este

rn A

ve (4

0,13

9 VP

D)Venice Blvd (41,782 VPD)

W Washington Blvd (24,306 VPD)

WESTERN PLAZA SHOPPING CENTER

KOREATOWN GALLERIA

OLYFORD PLAZA

GOLD PLAZA

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesRETAIL MAP

14

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesMARKET OVERVIEW

The City of Los Angeles holds many distinctions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums,

and a paradise of idyllic weather. From tourist attractions like the Walk of Fame’s collection of stars (numbering more than 2,614 and growing by

one or two a month) to career opportunities like those presented in the expanding tech industry, Los Angeles is the place to be. It is the only city in

North America to have hosted the Summer Olympics twice. Downtown L.A. is the largest government center outside of Washington, D.C. Los

Angeles has the only remaining wooden lighthouse in the state (located in San Pedro’s Fermin Park) and the largest historical theater district on

the National Register of Historic Places (located Downtown on Broadway).

Los Angeles is on the leading edge of several growth industries. L.A. County, with more than 87,000 jobs in the fashion industry, has surpassed

New York’s fashion district workforce. The L.A. five-county area also has more than 700,000 people at work in health services/biomedical

activities and 190,000 people in aerospace/technology. Here are some more facts and figures about Los Angeles: the city, the county and the

region.

15

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesHARVARD HEIGHTS

Harvard Heights is a densely populated, mixed-income neighborhood of 20,000+ people in Central Los Angeles, California. Within in it lies a municipally

designated historic overlay zone designed to protect its architecturally significant single-family residences, including the only remaining Greene and

Greene house in Los Angeles.

Harvard Heights has been called a "preservationist's dream come true," a neighborhood characterized by the Craftsman houses built on the heights

southwest of downtown, primarily between 1902 and 1910.

According to a 2005 Los Angeles Times headline, Harvard Heights was "a stately turn-of-the-century neighborhood that has been undergoing a

restoration boom after decades of hard times. [The] [e]xquisite woodwork, high ceilings, formal dining rooms, cozy inglenooks and stained-glass windows

are some of the features that attract residents to [the] spacious two-story homes" found in the area."

For those who work downtown, the area's

proximity to the city and the Santa Monica

Freeway make it an easy commute.

The architecture of the neighborhood has

also made the area a favorite for film and

television location scouts

16

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesDEMOGRAPHICS

2,341Total Businesses

16,271Total Employees

KEY FACTS

BUSINESS

$35,060Median Household

IncomeAverageHousehold Size

77,361

Median Age

34.8

3.0

5 Miles

1 Mile

3 Miles

2018 Summary 1 Mile 3 Miles 5 MilesPopulation 77,361 632,595 1,343,404Households 25,463 221,044 494,200Families 16,757 129,548 262,833Average Household Size 2.98 2.79 2.63Owner Occupied Housing Units 3,156 34,507 98,269Renter Occupied Housing Units 22,307 186,537 395,931Median Age 34.8 33.5 34.6Median Household Income $35,060 $37,797 $42,232Average Household Income $49,708 $59,816 $69,691

2023 Summary 1 Mile 3 Miles 5 MilesPopulation 80,605 661,851 1,402,492Households 26,525 232,490 517,663Families 17,434 135,256 273,838Average Household Size 2.98 2.77 2.63Owner Occupied Housing Units 3,643 38,771 110,039Renter Occupied Housing Units 22,881 193,719 407,624Median Age 36.0 34.4 35.6Median Household Income $40,247 $45,242 $51,302Average Household Income $60,738 $72,873 $84,450

17

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesRENT COMPS - STUDIOS

D

H

L

GC

J

I

A

B

F

E

Address City State ZipDistance

(miles)Price Size (SF) $/SF Bedrooms Baths Property Type List Date

A 939 S Gramercy Pl Los Angeles CA 90019 0.97 $1,325 400 $3.31 0 1.0ba Apartment 2/28/19B 1111 S Norton Ave Los Angeles CA 90019 1.22 $1,295 550 $2.35 0 1.0ba Apartment 2/28/19C 894 S Oxford Ave Los Angeles CA 90005 0.96 $1,395 0 1.0ba Apartment 2/10/19D 2960 James M Wood Blvd Los Angeles CA 90006 1.32 $1,450 0 1.0ba Apartment 2/6/19E 808 S Hobart Blvd Los Angeles CA 90005 1.09 $1,495 0 1.0ba Apartment 1/12/19F 1310 S Wilton Pl Los Angeles CA 90019 0.54 $1,250 405 $3.09 0 1.0ba Apartment 12/28/18G 840 S Hobart Blvd Los Angeles CA 90005 1.01 $1,325 0 1.0ba Apartment 12/22/18H W Olympic Blvd & S Catalina St Los Angeles CA 90006 1.09 $1,550 500 $3.10 0 1.0ba Apartment 12/22/18I 914 S Wilton Pl Los Angeles CA 90019 1.02 $1,524 384 $3.97 0 1.0ba Apartment 11/10/18J 849 Gramercy Dr Los Angeles CA 90005 1.09 $1,200 350 $3.43 0 1.0ba Apartment 11/10/18K 849 Gramercy Dr Los Angeles CA 90005 1.09 $1,200 350 $3.43 0 1.0ba Apartment 10/15/18L 756 Normandie Ave Los Angeles CA 90005 1.25 $1,550 450 $3.44 0 1.0ba Apartment 8/3/18

18

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesRENT COMPS - 1 BEDROOM

D

G

E

B

C

F

I

A

Address City State ZipDistance

(miles)Price Size (SF) $/SF Bedrooms Baths Property Type List Date

A 1250 S Mariposa Ave Los Angeles CA 90006 0.62 $1,895 800 $2.37 1 1.0ba apartment 3/2/19B Venice Blvd & S Gramercy Pl Los Angeles CA 90019 0.43 $1,500 1 1.0ba apartment 2/15/19C 2177 W 25th St Los Angeles CA 90018 0.99 $1,795 1 1.0ba apartment 2/15/19D 1507 3rd Ave Los Angeles CA 90019 0.94 $1,925 650 $2.96 1 1.0ba apartment 2/14/19E 1500 S Gramercy Pl Los Angeles CA 90019 0.41 $1,500 1 1.0ba apartment 2/14/19F 2731 W 15th St Los Angeles CA 90006 0.4 $1,495 600 $2.49 1 1.0ba apartment 1/31/19G 1310 S Wilton Pl Los Angeles CA 90019 0.53 $1,575 602 $2.62 1 1.0ba apartment 1/29/19H 1310 S Wilton Pl Los Angeles CA 90019 0.53 $1,550 625 $2.48 1 1.0ba apartment 1/29/19I W Olympic Blvd & S Oxford Ave Los Angeles CA 90006 0.69 $1,798 700 $2.57 1 1.0ba apartment 1/23/19

19

OFFERING MEMORANDUM | 2222 Cambridge St, Los AngelesSALES COMPS

Property2222 Cambridge St Los Angeles 90006

525 S Gramercy PlLos Angeles 90020

3900 Ingraham StLos Angeles 90005

765 Irolo StLos Angeles 90005

941 S KenmoreLos Angeles 90006

1110 S Lake StLos Angeles 90006

1121 S NortonLos Angeles 90019

1057 S Western AveLos Angeles 90006

YearBuilt

1926 1928 1940 1929 1923 1917 1928 1926

Units 18 45 24 24 24 27 20 76

BuildingSQ. FT.

9,065 26,102 10,754 20,120 13,800 14,580 10,291 51,116

Price $3,300,000 $9,000,000 $5,000,000 $3,500,000 $3,750,000 $2,800,000 $12,560,000

PricePer Unit

$183,333 $200,000 $179,167 $208,333 $145,833 $138,889 $140,000 $165,263

PricePer SF

$364 $344 $399 $248 $253 $257 $272 $245

COE GRM 14.41 14.23 14.55 N/A N/A 11.1 15.56 13.22

COECap Rate

3.80% 3.77% 4.70% N/A N/A 4.96% 4.04% 4.19%

COE N/A 11/8/18 10/12/18 8/14/18 3/13/18 12/17/18 12/10/18 2/15/2019

$4,300,000

OFFERING MEMORANDUM2222 Cambridge Street | Los Angeles, CA 90006

EXCLUSIVELY LISTED BY:DAVID WEINBERGER

REAL ESTATE ADVISOR818-970-0915

ADAM ZUNDERREAL ESTATE ADVISOR818-554-5560

davidweinberger@kw.com azunder@kw.com