5 5 2 6 - 5 5 3 2

h i g h l a n d p a r k

Figueroa

2 3

EXCLUSIVE ADVISORS

Dana S. Brody Senior Vice President T +1 213 239 6210 dana.brody@am.jll.com CA Lic. # 01429001

Nicole Mihalka Managing Director T +1 213 239 6076 nicole.mihalka@am.jll.com CA Lic. # 01322414

515 South Flower StreetSuite 1300Los Angeles, CA 90071

T A B L E O F

C O N T E N T S

I N V E S T M E N T O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

P R O P E R T Y D E TA I L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

A R E A O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 2

M A R K E T O V E R V I E W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 7

M A R K E T T R E N D S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4

A R E A D E V E L O P M E N T S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 6

V A L U A T I O N S U M M A R Y . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 9

5 5 2 6 - 5 5 3 2

h i g h l a n d p a r k

Figueroa

4 5

Investment Overviewj l l i s pl e a s e d to e xc l u s i v e l y o f f e r th e o ppo rtu n i ty to a c q u i re 5526 & 5532 n f i gu e ro a, tw o c o n ti gu o u s f re e s ta n d i n g b u i l d i n gs a t th e c o rn e r o f f i gu e ro a & ro s e l a w n, i n th e h e a rt o f h i gh l a n d pa rk .

Home to a number of LA’s hippest retail tenants, Highland Park is rapidly experiencing a gentrification like those seen previously in the now-thriving and trendy neighborhoods of Silver Lake and Echo Park.

Situated along Figueroa Street, the neighborhood’s main artery, the properties offer investors and owner/users a rare opportunity to acquire two vacant buildings located near some of Los Angeles’ trendiest retail and restaurant tenants.

With compelling fundamentals in the Highland Park market and impressive appreciating property values, these assets offer a strong opportunity for buyers interested in creating a footprint in a burgeoning and rapidly growing neighborhood market.

5 5 3 2 N F i g u e r o a A v e n u e

At a Glance

5 5 2 6 N F i g u e r o a A v e n u eProperty Address 5526 N Figueroa St, Los Angeles, CA 90042

Year Built 1963

Building Size: (SF) 2,464

Lot Size (SF) 5,510

Vacancy Vacant

Zoning LAC2

Parking Count 8 spaces

Property Address 5532 N Figueroa St, Los Angeles, CA 90042

Year Built 1987

Building Size: (SF) 6,637

Lot Size (SF) 5,192

Vacancy Can be delivered vacant

Zoning LAC2

Parking Count 10 spaces

6 7

Property Detail5526 n f i gu e ro a a v e n u e

Located next to 5532 N Figueroa, 5526 N Figueroa is an approximately 2,464 SF building built in 1963 on a 5,500 SF lot. With an attractive location along bustling Figueroa, this property will be delivered vacant and in shell condition. It has the potential to become a prime retail space, creative office or a restaurant.

Property Detail5532 n f i gu e ro a a v e n u e

5532 N. Figueroa offers over 6,637 SF of retail and office space, making it an excellent opportunity for an investor or owner/user. The recently improved creative office space on the second floor features exposed ceilings, polished concrete floors, and abundant glass and natural light throughout. All of the retail and office suites at the Property offer excellent income potential.

9

Property Detail

N FIGUEROA STREET

roselawn place

roselawn place

N FIGUEROA STREET

5532 n figueroa

5526 n figueroa

5532 n figueroa

5526 n figueroa

n ave 55

bank of america

rosty

raffi’s bicycles

retail

autozone

medical

medical

residential

10 11

Property Detail5532 n f i gu e ro a a v e n u e - c re a ti v e o f f i c e i n te ri o r

13

Gimme Gimme Records

mason’s dumpling shop

the greyhound

highland theaters

RAFFI’S BICYCLES

cafe birdie

highland park bowl

5532 N Figueroa

5526 N Figueroa

la m

etro

gol

d li

ne

hwy 110

N FIGUEROA ANIMAL HOSPITALTIERRA DE LA CULEBRA PARK

MYSTIC DHARMA BUDDHIST TEMPLE

HIGHLAND PARK HARDWARE

HIGHLAND PARK STATION

KITCHEN MOUSE

little cave

MISTER HOLMES BAKEHOUSE

S AVE 57

N FIGUER

OA STR

EET

BENNER STREET

S AVE 57

S AVE 55

S AVE 59

prelude & dawn

HAYES AVENUE

MONTE VISTA STREET

CHASE BANK

highland park wine hippo

checker hall

rosty

fig & fifty

otoÑo blind barber afters ice cream chops sonomama pacific union

Area Destinations

kindness & mischief

triple beam pizza

redcar development

14 15

Area Overvieww e l c o m e to h i gh l a n d pa rk

HIGHLAND PARK is a diverse enclave of traditional cultures and trendy new amenities. Known for its charming mix of old and new, the neighborhood is building a reputation as a mecca for artists. Trendy shops, galleries, bars and restaurants continue to open outposts along the area’s main thoroughfares of Figueroa Street and York Boulevard.

Highland Park is rapidly experiencing a gentrification like that that seen in the sought-after, trendy, and affluent neighborhoods of Venice, Silver Lake and Echo Park.

• 5526 & 5532 N Figueroa are located along Highland Park’s main walkable thoroughfare with strong foot traffic

• Rapid neighborhood gentrification not unlike that seen previously in Silver Lake, Echo Park and Venice

• Over 20 new trendy retailers opened in Highland Park since 2013, illustrating shifting neighborhood demographic

• $90,000 average household income within 3-mile radius bodes well for retail and apartment fundamentals

• Ideally located along the 110-Freeway between Pasadena and Downtown Los Angeles, offering a daily traffic count north of 105,000 vehicles

• Located within 10 minutes of both Downtown’s and Pasadena’s growing employment hubs, with over 500,000 and 110,000 jobs, respectively

• The Metro Gold Line stop two blocks away from the properties provides access into DTLA within 15 minutes

Location Highlights

As a result, the neighborhood has had an amenity base shift towards retailers, restaurants, fitness boutiques and music venues that cater to a higher-income demographic who are flocking to the area to benefit from its convenient location 10 minutes north of DTLA, attractive mix of authentic and hip destinations, and relative affordability.

16 17

Market Highlights

• 45.00 PSF NNN retail rent for newly signed leases, in line with neighborhood averages for Silver Lake

• 8.5% submarket apartment rent growth in 2017

• $42.00-$48.00 PSF asking rates for renovated office space with very limited supply

• Single-family home prices in Highland Park exceeding that of Greater LA for the first time

• Home prices in Highland Park have appreciated nearly 9% over 2016 prices, illustrating rapidly appreciating property values

• New construction townhomes selling out for over $700,000-$800,000 in record time on Figueroa, mere blocks from the Properties

HIGHLAND PARK CROSSFIT

MASON’S DUMPLING SHOP

GIMME GIMME RECORDS

SUNBEAM VINTAGE

POP PHYSIQUE

ETA

HOME STATE

HIGHLAND THEATERS

THE GREYHOUND GOOD HOUSEKEEPINGCIVIL COFFEE

HIGHLAND PARK BOWL

ROSTY

HIPPO

LITTLE CAVE

BASKIN ROBBINS

KINSHIP YOGA

LA PALAPA

AUTO ZONE

LA MONARCA BAKERY

HIGHLAND PARK FLORIST

THE BEARDED BEAGLE

IRIS BARBERSHOP

QUICK’R PRINT’R

AFTERS ICE CREAMSONOMAMA

MR HOLMES BAKEHOUSE

TINFOIL: LIQUOR & GROCERY

KITCHEN MOUSE

MOUNT ANALOG

DOWNTOWN LOS ANGELES

gold linehighland park

5526 N FIGUEROA & 5532 N FIGUEROA

n figueroa street

n figueroa street

HIGHLAND PARK WINE

PACIFIC UNION CHOPS MEAT

CAFE BIRDIE

CHECKER HALL

BLIND BARBEROTOÑO

KINDNESS AND MISCHIEF COFFEE

REDCAR DEVELOPMENT

18 19

“A walk down Highland Park’s Figueroa Street on a sunny Sunday afternoon reveals the Northeast Los Angeles neighborhood’s glorious mix: Mid-century modern furnishings spill out the front doors of antique shops; elote vendors sit at curbs across from record stores, hair salons, and pour-over coffee shops; groups of friends linger over brunch cocktails.”

-Vogue, May 2017

20 21

Highland Park offers one of Los Angeles’ most attractive collection of authentic storefronts and trendy destination retailers. The Figueroa corridor and connecting York Boulevard reveals signs of increasing gentrification while celebrating storied institutions. A number of new and exciting retail and restaurant hotspots have cropped up in Highland Park in recent months, including:

TRENDY NEW ADDITIONS HISTORIC MAINSTAYS

Mr. Holmes Bakehouse El Huarache Azteca

Tinfoil Liquor Galco's Soda Pop Stop

Mount Analog La Fuente Restaurant

Kitchen Mouse Divino Salvador

Sonomama Las Cazuelas Restaurant

Afters Ice Cream Fashion 21

The Blind Barber Highland Park Theater

Otoño

Pop Physique

The Juicy Leaf

ETA

Highland Park Bowl

Café Birdie

The Hermosillo

Sonny’s Hideaway

Hi Hat

Kindness & Mischief

Civil Coffee

Good Girl Dinette

Highland Park has just as many contemporary landmarks as it

does ones that pre-date the neighborhood’s distinction

as one of LA’s hippest.”– TimeOut Los Angeles

Los Angeles is a superior market driven by population growth, a powerful economy and a diverse employment base. The region’s strong economic environment, characterized by the increasingly low unemployment rate of 4.9% and the current 3.2% annual wage growth, has experienced a steady upward trend since the recession, indicating a sound investment climate for years to come which bodes well for all asset classes.

In Highland Park, the neighborhood’s recent renaissance has caused both home values and rents to appreciate dramatically, illustrating the desirability to live and spend time in the area. This upward value trajectory further supports the future performance of well-tenanted and well-maintained properties in Highland Park.

Market Overviewth e gre a te r l o s a n ge l e s re n a i ss a n c e

22 23

A Transit Oasish i gh l a n d pa rk e n j o ys q u i c k a c c e s s to th e re s t o f th e gre a te r l o s a n ge l e s a re a

Whether by car or high-speed rail, Highland Park connects directly to LA Metro’s Gold Line. The Properties in this collection sit within two blocks of the Highland Park Station.

METRO CENTER

UNION SQUARE

HIGHLAND PARK

5526-5532FIGUEROA

27

2829

30

M

PalmsPalms

WattsWatts

ResedaReseda

LennoxLennox

EncinoEncino

VeniceVenice

RivieraRiviera

La FresaLa Fresa

FlorenceFlorence

Van NuysVan Nuys

Je�ersonJe�erson

Je�ersonJe�erson

West HillsWest Hills

ChatsworthChatsworth

NorthridgeNorthridge

Sherman OaksSherman Oaks

La CrescentaLa Crescenta

Warner CenterWarner Center

West GlendaleWest Glendale

Playa del ReyPlaya del Rey

East La MiradaEast La Mirada

Ladera HeightsLadera Heights

North HollywoodNorth Hollywood

Hacienda HeightsHacienda Heights

Paci�c PalisadesPaci�c Palisades

West WhittierWest Whittier

VernonVernon

DuarteDuarte

ArtesiaArtesia

MaywoodMaywood

AltadenaAltadena

CommerceCommerce

La PalmaLa Palma

CalabasasCalabasas

San MarinoSan Marino

Baldwin ParkBaldwin Park

San FernandoSan Fernando

South El MonteSouth El Monte

Burbank

Norwalk

Gardena

Arcadia

El Monte

Alhambra

PasadenaGlendale

Lakewood

Whittier

La Habra

La Mirada

Inglewood

El Segundo

Montebello

West Covina

Santa Monica

Monterey Park

Beverly Hills

West Hollywood

P A C I F I C O C EA

N

118

134

10

10

5

5

405

210

110

101

Hippo

Sononoma

Rosty’sChecker Hall

Ontoño

Blind Barber

After Hours Ice Cream

Hippo

Sononoma

Rosty’sChecker Hall

Ontoño

Blind Barber

After Hours Ice CreamChops

Hippo

Sononoma

Rosty’sChecker Hall

Ontoño

Blind Barber

After Hours Ice CreamChops Hippo

Sononoma

Rosty’sChecker Hall

Ontoño

Blind Barber

After Hours Ice CreamChopsPacific Union

5526 N Figueroa

5532 N Figueroa

Nearby Attractions

24 25

Regional Demographic Trends f a s t f a c ts a b o u t h i gh l a n d pa rk

“With plenty of mom ‘n pop shops, vinyl stores and judgement-free strangers, Highland Park might just be the coolest neighborhood in LA.”

– C I T I Z I N E

$90,000AVERAGE HOUSEHOLD INCOME

WITHIN 3-MILES

41% HOUSEHOLDS

WITH INCOME $75,000+

15%PROJECTED HOUSEHOLD

INCOME GROWTH OVER THE NEXT 5 YEARS

$

Source: ESRI

As more amenities move into the area, Highland Park continues to attract an affluent new demographic, seeking to take advantage of the neighborhood’s unrivaled location, authentic charm and access to sought-after retail and restaurants. The neighborhood’s demographic trend therefore supports continued rent appreciation both for retail and office tenants.

Regional Demographic Trends a n e w, a f f l u e n t ge n e ra ti o n o f re n te rs

1-Mile Radius 2-Mile Radius 3-Mile Radius

po pu l a ti o n

2018 Population 44,286 129,911 266,932

2023 Population (Projected) 45,141 132,170 272,202

Annual Population Growth 2018-2023 0.38% 0.35% 0.39%

Median Age 33.8 35.9 36.6

Household Size 3.30 3.20 3.15

a v e ra ge h o u s e h o l d i n c o m e

2018 Household Income $70,905 $84,622 $90,377

2023 Household Income (Projected) $84,588 $101,183 $107,848

Highland Park Atwater Village/Silver Lake Echo Park LA Metro

SINGLE FAMILY HOME PRICE APPRECIATION

40.00%

30.00%

20.00%

10.00%

0.00%

-10.00%

-20.00%

-30.00%

Highland Park Atwater Village/Silver Lake Echo Park LA Metro

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

-11.60%

0.88%

5.75%

6.91%11.21%

13.93%17.28%

27.26%30.50%

27.54%

11.10%

4.39% 4.47%

16.44%

14.48% 13.86%11.94%

8.90%

0.31%

-18.97%

-5.99%

26 27

Market Trendss i n gl e-f a m i l y h o m e a ppre c i a ti o n d e m o n s tra te s i n c re a s i n g ge n tri f i c a ti o n

SINGLE FAMILY HOME PRICES

$1,000,000$900,000$800,000$700,000$600,000$500,000$400,000$300,000$200,000$100,000

$0

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Often an indication of gentrification and revitalization, the single-family home market in Highland Park paints a compelling argument in favor of rapidly appreciating real estate values.

Single-family home prices in Highland Park have begun exceeding those seen throughout the Greater LA Metro for the first time in history, averaging $701,000.

Market Trends

Single-family home prices in Highland Park have appreciated nearly 9% over 2016, rapidly outpacing greater Los Angeles at 4.7%. In fact, home appreciation in Highland Park nearly doubles that of Echo Park, and outpaces Silver Lake as well, neighborhoods that have undergone a similar revitalization and gentrification in recent years.

Highland Park

s i n gl e-f a m i l y h o m e a ppre c i a ti o n d e m o n s tra te s i n c re a s i n g ge n tri f i c a ti o n

28 29

>>

Development Map 5900 N FIGUEROA

TINFOIL: LIQUOR & GROCERY

KITCHEN MOUSE

MOUNT ANALOG

MR HOLMES BAKEHOUSE

figueroa & ave 50“FIG AND FIFTY”

29 SINGLE FAMILY HOMES

5101-5123 e echo

24 SINGLE FAMILY RESIDENCES

5711 N FIGUEROAAFTERS ICE CREAM

SONOMAMA6040 N figueroa

43,000 sf mixed-used campus

703 bridewell9 SMALL LOT HOMES

6845 N FIGUEROA

8 UNIT SMALL LOT SUBDIVISON

1414-1450 eaton

4 SINGLE FAMILY RESIDENCES

1118-1128 n ave 56

20 SINGLE FAMILY HOMES

4201-4207 n figueroa

16,000 SF MIXED-USE PROPERTY

3836 n figueroa

100 CONDOMINIUMS

Highland Park Develoment Map

5526 & 5532 n figueroa

PROPERTIES IN OFFERING MEMORANDUM

5015-5023 n figueroaREDCAR DEVELOPMENT

20,000 SF CREATIVE OFFICE & RETAIL

CONVERSION

30 31

Commercial Spaceh i gh l a n d pa rk’s s k yro c k e ti n g a n n u a l re n ta l ra te s

As supported by the host of new amenities moving in, recent retail and office rental rates along Highland Park’s Figueroa Street and York Boulevard have appreciated to begin competing with those seen along similar neighborhood main streets.

Newly signed retail leases are commanding strong rents upwards of $45.00 PSF NNN annually, helping to push the neighborhood average up to $38.20 PSF NNN. Upcoming renovated office product is being marketed between $42.00-$48.00 PSF with very little market supply.

In nearby Silver Lake and Echo Park, two neighborhoods that have previously undergone a similar gentrification to what Highland Park is experiencing now, luxury boutique retailers moving into the area, such as Le Labo, are paying annual rental rates of $78.00 PSF NNN, with an overall neighborhood average of $45.34 over 2017-2018.

$45 PSF NNN AVERAGE RETAIL

AND OFFICE RENTS AMONG NEWEST SIGNED

20+ NEW RETAIL TENANTS THAT HAVE OPENED IN HIGHLAND

PARK SINCE 2013

Valuation Summary

Unit Size (SF) Potential Income (NNN)

Suite 5534 649 $2,433/month - $4.00 NNN

Suite 5538 1,060 $3,710/month - $3.50 NNN

Suite 200 3,448 $10,344/month - $3.00 NNN

Suite 220 714 $2,677/month - $3.75 NNN

Suite 230 434 $1,736/month - $4.00 NNN

5526 N Figueroa 2,464 $10,472/month NNN

Total 8,769 SF $31,372/month NNN

$376,464 annual income

po te n ti a l i n c o m e

32

The offering of 5526-5532 N. Figueroa in Highland Park is being conducted exclusively by Jones Lang LaSalle (“JLL”). All questions and inquiries should be directed to JLL representatives listed in this Offering Memo-randum. Prospective investors are strongly discouraged from directly contacting Seller without the express written consent of JLL. Seller and JLL reserve the right to alter the Transaction Guidelines in their sole discretion. JLL will be available to assist prospective investors to arrange on-site inspections and to answer any questions related to information contained in this Offering Memorandum. The prospective investor will be selected by Ownership in its sole and absolute discretion based on a variety of factors including, but not limited to:

• Purchase price;• The source of capital, both equity and debt, for the transaction;• The amount of earnest money deposit;• Detail on the closing expenses to be borne by either buyer or seller

(i.e. escrow, title insurance, transfer taxes, etc.); and• A detailed schedule of the due diligence and requisite approval process.

DISCLAIMER: Materials contained in this Investment Offering Memorandum are confidential, furnished solely for the purpose of considering the purchase of The Fig Collection @ Highland Park (the “Property”) located in Los Angeles, California; described herein and are not to be used for any other purpose or to be made available to any other person without the express written consent of Jones Lang LaSalle (“JLL”). The material is based, in part, upon information supplied by Seller and, in part, upon information obtained by JLL from sources they deem to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather are outlines of some of the principal provisions contained therein. No warranty or representation, expressed or implied, is made by Seller, JLL or any of their related entities as to the accuracy or completeness of the information contained herein. Prospective investors should make their own investigations, projections and conclusions. Interest-ed buyers should be aware that the Seller is selling the Property in “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE. It is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engi-neering and environmental inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous materials used in the construction or maintenance of the Property. No representations, expressed or implied, are made as to the foregoing matters by Seller, JLL or any of their officers, employees, affiliates and/or agent. Information contained in this Investment Offering Memorandum is further governed by the Confidentiality Agreement.

Jones Lang LaSalle Americas, Inc., License # 19262 • California license # 01223413 • Copyright © Jones Lang Lasalle IP, Inc. 2018Aerial Photos: Next Image 3DPublication Design: J. Hallquist; Spire Creative

Transaction Guidelines

Dana S. Brody Senior Vice President T +1 213 239 6210 dana.brody@am.jll.com CA Lic. # 01429001

Nicole Mihalka Managing Director T +1 213 239 6076 nicole.mihalka@am.jll.com CA Lic. # 01322414

515 South Flower StreetSuite 1300Los Angeles, CA 90071

CONTACT INFORMATION