1437Harvard Street | SANTA MONICA CA, 90404 7-UNIT VALUE-ADD INVESTMENT OPPORTUNIT Y LOCATED IN MID-CIT Y SANTA MONICA

CONFIDENTIALITY AND DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substi-tute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or represen-tation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provid-

ed. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICEMarcus & Millichap Real Estate Investment Services, Inc. (“M&M”) is not affiliated with, sponsored by, or endorsed by any commer-cial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to

prospective customers.Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing pack-age. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus

& Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTED By

NEEMA AHADIAN Senior Vice President Investments

Tel: (310) 909-5444 Fax: (435) 915-3662

nahadian@marcusmillichap.com License: CA 01346750

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Executive Summary

PROPERTY DESCRIPTION

FINANCIAL Analysis

MARKET COMPARABLES05

Area Overview

EXECUTIVE SUMMARY

Marcus & Millichap is pleased to present 1437 Harvard St, in Santa Monica, CA. Built in 1956, this 7-unit property is located on 9,021 SF lot in the Mid-City Santa Monica neighborhood. The two-story building features one-bedroom and

two-bedroom units.

This offering presents an investor the opportunity to capture over 17% rental upside through renovations. Two of the one-bedroom units shall be delivered vacant at the close of escrow. The subject property has nine total parking spaces with no

soft-story work required.

Santa Monica remains one of the most desirable addresses for both living and working. With a median household income of over $100,000 and average home value of $1.1 million, the demand for apartment units increases year-over-year.

The Mid-City Santa Monica neighborhood continues to grow at a rapid pace and attracts high-end residents with the unparalleled access to employment opportunities and entertainment amenities. The subject property has a walk score of 88

and the location allows for a quick commute to Downtown Santa Monica and Los Angeles.

1437 Harvard STREETS a n t a M o n i c a , C A , 9 0 4 0 4

PROPERTY Overview

FINANCIAL Overview

Cost per Unit $428,571 Current GRM 15.45

Market GRM 12.79

Current CAP Rate 4.47%

Market CAP Rate 5.67%

OFFERING PRICE $3,000,000 Number of Units 7

Zoning SMR2

Year Built 1956

Gross Square Feet 5,098 SF

Lot Size 9,021 SF

Ownership Fee Simple

Investment Highlights

◊ 1437 Harvard Street is a 7-unit value-add investment opportunity located in Mid-City Santa Monica neighborhood, just east of Santa Monica Boulevard between Centinela Avenue and 26th Street, a location that attracts high-end renters with an upscale, active lifestyle just minutes away from the beach and Downtown Santa Monica

◊ This is the first time the subject property have been on the market in over 30 YEARS

◊ The subject property features a two-story building consisting of five one-bedroom units, and two 2-bedroom units

◊ Located on a 9,021 square foot lot, current zoning is SMR2

◊ SIX covered parking spaces, and three uncovered space at the rear of the building with easy access by alleyway

◊ Significant rental upside with a current loss-to-lease of over 17%; two one-bedroom units shall be delivered vacant at the close of escrow

◊ The subject property has a secure, gated entrance and is within walking distance to the Expo line at 26th and Bergamot

◊ The subject property has an incredible walk score of 88, just down the street from Amazon Studios, Lionsgate Entertainment, and Red Bull North America

Property DESCRIPTION

1437 HARVARD STREET, SANTA MONICA, CA 90404APN 4267-019-016Number of Units 7Year Built 1956Number of Stories 2Gross SF 5,098Lot Size 9,021Type of Ownership Fee Simple

CONSTRUCTIONFoundation ConcreteFraming WoodExterior StuccoRoof PitchedParking Surface Asphalt

UTILITIESElectricity Seperately MeteredWater Master MeteredGas Seperately Metered

PARKINGNumber of Spaces 9 Spaces

SANTA MONICA OVERVIEW

From beautiful beaches to scenic hikes to gourmet restaurants, Santa Monica, the coastal neighborhood of Los Angeles has much to offer to any individual. With an environment of unparalleled natural beauty, the city is home to a mix of residential communities, commercial districts, and recreational venues. Recently named by National Geographic as one of the Top “10 Beach Cities in the World”, Santa Monica’s residential population

is approximately 93,000, increasing to an estimated 250,000 during the day with tourists, shoppers, and employees. With shops and attractions, such as the 3rd street promenade, Santa Monica Pier, The Fairmont Hotel, and Santa Monica Place Mall, the city grosses over 8 million visitors annually. The Neighborhood has become one of Los Angeles’ active areas and holds a large demand for office space, retail, and areas of living.

SOURCES: Time Out America, LLC, & Santa Moncia Travel & Tourism.

FINANCIAL ANALYSIS

Unit # Unit Type Actual Rents Proforma Rents Notes1 1 Bdrm / 1 Bth $1,774 $2,600

2 1 Bdrm / 1 Bth $1,900 $2,600

3 1 Bdrm / 1 Bth $2,600 $2,600 Vacant

4 2 Bdrm / 2 Bth $2,700 $3,250

5 1 Bdrm / 1 Bth $2,500 $2,600

6 1 Bdrm / 1 Bth $2,600 $2,600 Vacant

7 2 Bdrm / 2 Bth $2,068 $3,250

Total Units - 7

Total Scheduled Rent $16,142 $19,500

Additional Income - Laundry $35 $40

Monthly Scheduled Gross Income $16,177 $19,540

RENT ROLL

OPERATING EXPENSES CURRENTTaxes - 1.13% $33,900

Insurance $2,294

Utilities $3,100

Repairs & Maintenance $3,500

Landscaping $1,440

Waste Removal $1,440

Management - 4% $7,610

Pest Control $540

License & Fee's $2,200

Total Expenses: $56,024

Per Net Sq. Ft.: $10.99

Per Unit: $8,003.39

Income Current Rents Market Rents Scheduled Gross Income: $194,124 $234,480

Less Vacancy Rate Reserve: 2.0% ($3,882) 3.5% ($8,207)

Gross Operating Income: $190,242 $226,273

Less Expenses: 28.9% ($56,024) 25% ($57,465)

Net Operating Income: $ 134,218 $168,808

Reserves: ($2,500) ($2,500)

Less Debt Service: ($87,499) ($78,810)

Pre-Tax Cash Flow: 2.9% $44,219 4.8% $78,810

Plus Principal Reduction: $26,082 $26,082

Total Return Before Taxes: 4.7% $70,301 6.6% $104,891

Annualized Operating Data

Pricing Details

Price: $3,000,000

Down Payment: 50% $1,500,000

Number of Units: 7

Cost per Legal Unit: $428,571

Current GRM: 15.45

Market GRM: 12.79

Current CAP: 4.47%

Market CAP: 5.67%

Approx. Age: 1956

Approx. Lot Size: 9,021

Approx. Gross SF: 5,098

Cost per Net GSF: $588.47

New First Loan $1,550,000

Interest Rate 4.15%

Amortization 30

Monthly Payment $7,291.55

DCR 1.53

NEW POTENTIAL FINANCING

MARKET COMPARABLES

Sales Comparables | 1437 HARVARD STREET

Price Year Built PRICE/UNIT PRICE/SF CAP RATE GRM CLOSING DATE

1437 Harvard Street | Santa Monica , CA 90404 $3,000,000 1956 $428,571 $588.47 4.47% 15.45 N/A

1 1451 Frank l in Street | Santa Monica , CA 90404 $2,900,000 1965 $414,286 $383.80 N/A 17.08 3/28/2019

2 1311 19th Street | Santa Monica , CA 90404 $3,035,000 1956 $505,833 $479.77 N/A N/A 1/4/2019

3 914 20th Street | Santa Monica , CA 90403 $3,340,000 1952 $556,667 $860.38 3.75% 17.44 10/1/2018

4 1427-1431 21st Street | Santa Monica , CA 90404 $4,000,000 1947 $800,000 $711.49 2.21% N/A 9/19/2018

5 1508 Stanford Street | Santa Monica , CA 90404 $3,045,000 1959 $507,500 $533.09 N/A N/A 7/31/2018

6 1028 18th Street | Santa Monica , CA 90403 $2,900,000 1965 $580,000 $481.01 N/A N/A 7/31/2018

7 1317 18th Street | Santa Monica , CA 90404 $2,780,000 1955 $463,333 $599.14 3.93% N/A 4/6/2018

8 1444 15th Street | Santa Monica , CA 90404 $3,035,000 1962 $433,571 $369.81 4.55% N/A 12/6/2018

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7 UNITS

1 4 3 7H a rva r d S t r e e t

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7

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1 1451 Franklin Street Santa Monica , CA 90404

Sales Price $2,900,000

Sale Date 3/28/2019

Year Built 1965

Price per Unit $414,286

Price per SF $383.80

CAP Rate 6.18%

GRM 17.08

1437 Harvard Street Santa Monica , CA 90404

Offering Price $3,000,000

Year Built 1956

Price per Unit $428,571

Price per SF $588.47

CAP Rate 4.47%

GRM 15.45

2 1311 19th Street Santa Monica , CA 90404

Sales Price $3,035,000

Sale Date 1/4/2019

Year Built 1956

Price per Unit $505,833

Price per SF $479.77

CAP Rate N/A

Sales Comparables | 1437 HARVARD STREET

3 914 20th StreetSanta Monica , CA 90403

4 1427-1431 21st StreetSanta Monica , CA 90404

1 5 0 8 S ta n f o r d S t r e e tSanta Monica , CA 90404

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Sales Price $3,340,000

Sale Date 10/1/2018

Year Built 1952

Price per Unit $556,667

Price per SF $860.38

CAP Rate 3.75%

GRM 17.44

Sales Price $4,000,000

Sale Date 9/19/2018

Year Built 1947

Price per Unit $800,000

Price per SF $711.49

CAP Rate 2.21%

Sales Price $3,045,000

Sale Date 7/31/2018

Year Built 1959

Price per Unit $507,500

Price per SF $533.09

CAP Rate N/A

1028 18th StreetSanta Monica , CA 90403

7 1317 18th StreetSanta Monica , CA 90404

1 4 4 4 1 5 t h S t r e e t Santa Monica , CA 90404

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Sales Price $2,900,000

Sale Date 7/31/2018

Year Built 1965

Price per Unit $580,000

Price per SF $481.01

CAP Rate N/A

Sales Price $2,780,000

Sale Date 4/6/2018

Year Built 1955

Price per Unit $463,333

Price per SF $599.14

CAP Rate 3.93%

Sales Price $3,035,000

Sale Date 12/6/2018

Year Built 1962

Price per Unit $433,571

Price per SF $369.81

CAP Rate 4.55%

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rent Comparables | 1437 HARVARD STREET

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Unit Type SF Price PSF Price

1 2728 Ar izona Avenue #3 | Santa Monica , CA 90404 1+1 602 $4.24 $2,550.00

2 1341 Stanford Street | Santa Monica , CA 90404 1+1 N/A N/A $2,750.00

3 1232 Harvard Street #6 | Santa Monica , CA 90404 1+1 N/A N/A $2,350.00

4 2821 Colorado Avenue | Santa Monica , CA 90404 2+2 1 ,250 $2.80 $3,495.00

5 1127 18th Street | Santa Monica , CA 90403 2+1 1 ,000 $3.50 $3,495.00

6 1434 18th Street | Santa Monica , CA 90404 2+1 .5 1 ,000 $3.30 $3,295.00

7 1517 19th Street #6 | Santa Monica , CA 90404 2+2 900 $3.17 $2,850.00

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EXCLUSIVELY LISTED By

NEEMA AHADIAN Senior Vice President Investments

Tel: (310) 909-5444 Fax: (435) 915-3662

nahadian@marcusmillichap.com License: CA 01346750

1437Harvard Street