E

™

LOS ANGELES, CA 90045

5 7 1 0 W M A N C H E S T E R B L V D

O F F E R I N G M E M O R A N D U M

L I S T P R I C E : $ 4 , 5 0 0 , 0 0 0

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5710MANCHESTER BLVD

T A B L E O F C O N T E N T S

E X C L U S I V E L Y L I S T E D B Y

Direct 310.919.5783 Mobile 727.385.3115 Nick.Day@matthews.com lic # 02045449 (CA)

N I C K D A YA S S O C I A T E

AREAOVERVIEW

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SURROUNDINGAREA

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PARCELMAP

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DENNY’SLEASE

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SALESCOMPARABLES

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INVESTMENTHIGHLIGHTS

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TABLE OF CONTENTS

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S I T E P L A N

SITE PLAN

W MANCHESTER AVE W MANCHESTER AVE

W 85TH PL

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A R E AO V E R V I E W

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L A X

H o w a r d H u g h e s C e n t e r

S i l i c o n B e a c h

A u t o m a t e dP e o p l e M o v e r

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LAX APPROVES $4.9 B AUTOMATED PEOPLE MOVER CONTRACT

“This historic investment will ensure that LAX is seamlessly connected with communities across the region. Making LAX the most passenger-friendly airport in the world means giving travelers what they need and have been asking for—reliable, convenient transportation to and from the terminals.”- Mayor Eric Garcetti

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PROJECT WILL BREAK GROUND THIS YEAR WITH SERVICE ANTICIPATED TO BEGIN IN MARCH 2023Manchester Square will transform into the highly anticipated Automated People Mover (APM) facility. Los Angeles World Airports was recently granted Eminent Domain to purchase the remaining parcels in what’s known as Manchester Square. Once a vibrant LAX community, has in recent years turned to a ghost town as LAX prepares the land for development.

Project will break ground Q1 2019. Service expected March 2023.

The Los Angeles Board of Airport Commissioners on Aug. 16 approved lease agreements of up to 25 years with seven major car rental companies operating near Los Angeles International Airport to move into a consolidated car rental facility east of the airport when it is slated to open in 2023. LAX is the second-largest rental car market among airports in the U.S.

CLICK VIDEO TO VIEW TRANSFORMATION OF MANCHESTER SQUARE

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SILICON BEACHAs Silicon Beach continues to heat up, so will competition, pushing personal service and healthcare clinics into the less competitive South Bay markets. Cities like Culver City, El Segundo, Inglewood, and Westchester have typically been the attractive lower priced alternative but have already benefitted from the wave of medical and general office users who can no longer afford Silicon Beach rents. As Los Angeles continues to densify, space will be increasingly harder to find. Companies like Google, YouTube, Imax, Snapchat, Red Bull, and Tesla are creating an expanding workforce along the coast, which has directly impacted Multifamily development. With the prior success of other industry leaders, Los Angeles has proven to be the intersection for collaboration and partnerships. Silicon Beach is quickly developing into an international tech hub and will continue to see a cultural revolution from the world’s best tech pioneers.

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HOWARD HUGHES CENTERThe Promenade at Howard Hughes Center is a two-level outdoor mix-used center that features a blend of entertainment, dining, and shopping venue located at the Howard Hughes Center in Westchester and adjacent to Playa Vista both Westside Los Angeles districts in the city of Los Angeles. The center is part of a 70-acre business campus that includes mixed-use office, retail, healthcare type tenants. Pepperdine University has a satellite campus, while corporations like Universal Studios, Univision, and Sony all headquarter here. With over 297,000 passing CPD on the 405, this area serves as the 50-year line between the Westside and South Bay.

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4THBusiest Airport

84 Million Annual Passengers

PREMIER GATEWAY ACROSS THE PACIFIC

Deep connections to Asia and Latin America

2ND MOST POPULATED CITY IN THE US

18.6 million CSA populations

LOS ANGELES INTERNATIONAL AIRPORT (LAX)Majority of the land surrounding LAX is zoned for light industrial, such as manufacturing, warehouse/distribution and automotive related commercial. Many of the businesses depend on LAX either for air shipments or for customers for rental car facilities. LAX Airport handles more “origin and destination” passengers than any other airport in the world. In terms of international passengers, LAX is the third busiest in the US with other 80M annual passengers.

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THE CITY OF CHAMPIONSThe City of Champions Revitalization Project is a 298-acre, mixed-use real estate development being built on the former site of the Hollywood Racetrack and Casino: This is the largest parcel of undeveloped land in the Greater Los Angeles area. Set into motion by the NFL Rams relocating to Inglewood, the Los Angeles Clippers expected to have their new arena in Inglewood by 2024. Clippers owner Steve Ballmer will finance the stadium 100% with private money, after recently buying the team for $2 billion.Also, to be added: 780,000 SF of high-end office space, 800,000 SF of retail and dining space, 2,500 residential units, a hotel and a movie theater. An 80,000 seat NFL Specification stadium that has a capacity of 100,000, this stadium will be the largest and most expensive arena in the world at 3 million SF and $2.66 billion dollars. With the ability to host Super Bowls, Final Fours, concerts, and potentially the 2024 Summer Olympics, the stadium will bring additional revenue into Inglewood and the Greater Los Angeles area.

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LOS ANGELES MSALos Angeles is the third largest metropolitan economy in the world, with a population of 13 million and a GDP of over $700 billion. L.A.’s rise to global prominence in such a short time is a testament to the can-do spirit of its residents and businesses, and to a culture of thinking big. Los Angeles has always been an incubator of new ideas, and the scale of its economy reflects the impact that L.A.’s brand of creativity and innovation has had on the world. And it’s a way of thinking that cuts across industries.

The Los Angeles economy is exceptionally diversified, with established industry clusters ranging from Aerospace, entertainment, and fashion to biomedical services, consumer products, and tourism.

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The LAX/Inglewood line is nearing it’s anticipated 2019 opening date and will extend the existing Exposition Line at Crenshaw and Exposition Blvd. The line will travel 8.5 miles and serve cities like Inglewood, Westchester, El Segundo, and portions of unincorporated Los Angeles County. The new Metro Rail extension will offer an alternative transportation option to congested roadways and provide significant environmental benefits, economic development and employment opportunities throughout Los Angeles County. Riders will be able to make easy connections within the entire Metro Rail system, municipal bus lines and other regional transportation services. In addition to the alternative transportation option to congested roadways, the project will also provide significant environmental benefits, economic development and employment opportunities. The Crenshaw/LAX Project is one of 12 transit projects funded by Measure R, the half-cent sales tax approved by Los Angeles County voters in 2008.

LAX/INGLEWOOD TRANSIT LINE

PROPERTY DEMOGRAPHICSPOPULATION 1-MILE 3-MILE 5-MILE2023 Projection 19,412 235,272 700,510

2018 Estimate 19,180 232,776 691,709

2010 Census 17,925 223,143 662,339

Growth 2010-2018 7.00% 4.32% 4.43%

HOUSEHOULDS 1-MILE 3-MILE 5-MILE2023 Projection 7,557 87,847 278,603

2018 Estimate 7,268 84,706 268,138

2010 Census 6,632 78,667 250,709

Growth 2010-2018 9.59% 7.68% 6.95%

INCOME 1-MILE 3-MILE 5-MILE2018 Avg. Household Income $100,700 $96,595 $97,265

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METRO STATION

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HAPPENING IN THE AREAThere is very little open space in the planning area, particularly west of the 405 freeway. The area remains very automobile-oriented; neither the streets nor the land uses are conducive to pedestrian activity. Pedestrian and bicycle connections across the freeway are dangerous and uncomfortable. Important potentials for the area include encouraging higher density transit-oriented uses, establishing a local point for the district along Manchester Boulevard west of the 405 freeway, potentially reusing sites currently occupied by rental car facilities when these facilities move into the new LAX consolidated rental car facility and improving pedestrian and bike circulation throughout and across the freeway. New development will likely push current Inglewood residents out of the city. Demand for new housing will limit supply, change prices, and make the area unaffordable for many. The city is offering “density bonuses”, which gives housing developers the right to build taller and larger building then zoning codes allow. They must provide a certain percentage of affordable housing to apply. Other plans include adding a foundation for a dense walkable residential and commercial development district. Included are hotels, live/work units, 6 story Office buildings, breweries, shops, and even an area designated for a future art district. The plan includes adding more trees to better protect bike lanes and pedestrians. Manchester could also turn into “green boulevards”, With a median and protected Bike Lane on each side.

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HOTEL DEVELOPMENT: WHERE IT’S HAPPENING

5959 W. CENTURY BOULEVARD 9800 S. SEPULVEDA BOULEVARD

1. Office Building Hotel

2. Zoned: LAC2

3. Airport Center Bldg. 2

1. Office Building Hotel

2. Zoned: LAC2

3. Land: 26,964 SF

LAX/Westchester is a community undergoing tremendous change. City officials have become less restrictive with zoning ordinances in an effort to provide a more purposeful community. 5710 W Manchester Ave has a sufficient argument as to why the change is necessary and appropriate. Property has no height restrictions, setbacks, or infractions that would prevent this type of development. Increase demand for lodging travelers, lack of options, and a handful of major development projects by LAX, has spurred investors to build more hotels near the airport.

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HOTEL DEVELOPMENT: 5710 W MANCHESTER AVE » Huge number of variables to consider in determining cost to build a hotel. For this example, well use the below figures.

» According to USA Today, the average hotel room is roughly 325sf.

» According to Hawkins research, a 115-room hotel with an average sqft of 325 will require 48,000sf and cost on average $22.2 M to complete. (Not including demolition and land acquisition)

PARKING RATIO

First 30 guestrooms 1 per unit

Next 30 guestrooms 1/2 per unit

Remaining 1/3 per unit

PARKING STRUCTURE

Keep both exsisting buildings and use 12,000sf on the back end of parcel to build a 2-story parking structure.

360/sf per stall 66.66 Parking space 24,000sf Denny’s City Assigned Parking Ratio: 1 per 500sf (Renewed CUP, grandfathered parking ratio from the 60’s)*parking ammendment in the lease gives landlord full authority to dictate how parking is determined.

Assume the Structure costs $45/sf: $1,080,000

51-ROOM HOTEL

AVERAGE HOTEL ROOM IS 325SF

Average Cost Per Room: $145,000

(Upper Midscale) $445/sf

30 Rooms: $4,350,000

Exsisting Office Building: 6,988sf

Average cost to repurpose unit: $75,000

21 Rooms (325sf): $1,575,000

Total All in to Convert: $5,925,000 RENT COMPSADDRESS LEVELS QUALITY RATE8620 Airport Blvd, Los Angeles 6 Floors 3 Star Hotel $138/Night

640 W Manchester, Inglewood 4 Floors 2 Star Hotel $134/Night

9901 S La Cienega Blvd, Los Angeles 12 Floors 3 Star Hotel $139/Night

5005 W Century Blvd, Inglewood 4 Floors 2 Star Hotel $139/Night

Per/Night: Upper Midscale Hotel $130/Night

According to Statista, average hotel occupancy rate was 65.9%For the example, well use a much lower statistic, and say the building has an average occupancy rate of 50%

365 Days 25 rooms(50% Occupancy) 25 rooms

Gross Operating Income: $1,186,250

ANALYSIS

Acquisition $4,500,000

Parking Structure $1,080,000

Hotel $5,925,000

All In Cost: $11,505,000

Gross Operating Profit:(Hotel Only) $1,186,250

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S U R R O U N D I N G A R E A

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P A R C E L M A P

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DENNY’S LEASE

RENT(ANNUAL)

$61,464

SQFT

2,160 SF

LEASE20+ Years Remaining

(Through 2039)

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SALES COMPARABLES

LAND VALUE DISTANCE FROM SITE DATE SOLD SALE PRICE PRICE/SQFT LOT NOTES

8600 Aviation Blvd, Inglewood .2 miles Apr-17 $3,382,000 $238 14,208 Identical corner lot.

8621 Bellanca Ave, Los Angeles Next door Aug-18 $4,445,000 $211 20,980 Next door and share a property line.

7125 W Manchester Ave, Los Angeles 2.2 miles Jun-18 $1,200,000 $239 5,009Retail on Manchester. Farther

west, but in line and not as signalized of a location

355 E Manchester Blvd, Inglewood 1.9 miles Sep-17 $2,000,000 $229 8,712Corner or Locust and

Manchester. Older style building, limited parking

AVERAGE: $229

5710 W Manchester Ave $4,500,000 $214 20,968

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INVESTMENT HIGHLIGHTS

• Allowable Uses: Creative Office, Medical Office/Clinic, Cannabis Cultivation/Collective, flex, light industrial, retail. Hotel and multifamily development possible.

• 6,988sf Office Building (Zoned LAMR1) and a 2,160sf Denny’s sitting on a 20,968sf lot. Parking attached on site (43) stalls total.

• Automated People Mover (APM) is a consolidated car rental facility expected to start serving in 2023. Passengers/travelers looking for a hotel close by have limited options, thus creating a need for lodging.

• Metro Station (Light Rail) will be completed in 2019 with a stop on Florence Ave, only 0.4 miles away from the property. The LAX/Inglewood transit line will lessen parking requirements and make development more achievable.

• Neighboring building, Jack Nadal International HQ was recently re-purposed from a storage warehouse, to a world-class creative office. The project cost $2.3M in renovations and includes state of the art fixtures.

• Close proximately to Los Angeles Rams new $5 Billion stadium project. LA Clippers are pursuing plans and moving forward with an 18,000-seat arena at the corner of S Prairie Ave and W Century Blvd.

• Delivers vacant. Perfect for development or value add strategist.

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CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of 5710 W Manchester Blvd, Los Angeles CA 90045 (“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 andconduct 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 detrimentalto 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.

5710MANCHESTER BLVD

F O R T W O R T H , T E X A S

E X C L U S I V E L Y L I S T E D B Y

™Direct 310.919.5783 Mobile 727.385.3115 Nick.Day@matthews.com lic # 02045449 (CA)

N I C K D A YA S S O C I A T E

LOS ANGELES, CA 90045

5 7 1 0 W M A N C H E S T E R B L V D

L I S T P R I C E : $ 4 , 5 0 0 , 0 0 0

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