GILL | BURNS | YOOLOS ANGELES, CA

FOR SALE | EXCEPTIONAL PURCHASE OPPORTUNITY IN LA ARTS DISTRICT

1738 INDUSTRIAL

• LAST ICONIC INDUSTRIAL BUILDING FOR SALE IN THE ARTS DISTRICT

• ENDLESS POSSIBILITIES FOR AN OWNER-USER AND/OR INVESTOR

• THE DISTINGUISHED ARCHITECTURE OFFERS MARKET APPEAL AND POTENTIAL

• LOCATED IN THE OPPORTUNITY ZONE AND ADLA BID

• INDUSTRIAL STREET CAPTURES THE ESSENCE AND ALLURE OF THE NEIGHBORHOOD

• ±6,000 SF OF BONUS SQUARE FOOTAGE (COVERED LOADING DOCK)

• DIRECTLY NEXT DOOR TO AVALON BAY’S AND CAMDEN’S BRAND NEW MIXED-USE PROJECTS (±795 UNITS)

• NOTABLE NEIGHBORS INCLUDE WARNER MUSIC GROUP, SPOTIFY, PAYPAL (HONEY SCIENCE), APPLE, FOX/DISNEY, ADIDAS, USC, ACCENTURE, HYPERLOOP, HAUSER & WIRTH, SCI ARC AND SOHO HOUSE

• WALKING DISTANCE TO REVERED RESTAURANTS, BARS AND OTHER AMENITIES

• ONE BLOCK FROM FUTURE METRO STATION AT 7TH ST AND ALAMEDA ST (WEST SANTA ANA BRANCH)

HIGHLIGHTS

TOTAL BUILDING: ±35,970 SF

FLOOR PLAN:1ST FLOOR2ND FLOOR

±21,245 SF±14,725 SF

LAND AREA: ±29,880 SF

NO. OF STORIES: 2 STORIES (NO BASEMENT)

YEAR BUILT: 1923

POWER: HEAVY POWER

CLEAR HEIGHT: 10’ - 14’

LOADING: DOCK HIGHGROUND LEVEL

PARKING: AT GRADE AND ROOFTOP

CONSTRUCTION: CONCRETE

APN: 5164-022-011

ZONING: M3-1

E 7TH ST

IND

USTR

IAL ST

MILL ST

PROPERTY SPECS

PHOTOS

REGIONAL MAP

NM

ILL

ST

INDUSTRIAL ST

7TH ST

PARCEL MAP

Downtown Los Angeles is one of the hottest development markets in the country. This boom is fueled by a number of factors, including an influx of high-income residents flocking to the amenities an urban lifestyle affords. The city’s renaissance, which began in the mid-1990s, has accelerated. Downtown LA is home to many award-winning restaurants, numerous entertainment and performing arts venues, a powerful business district, some of the world’s finest sports franchises, and a growing number of stunning art museums.

Among its many strengths, Downtown LA is diverse, in all meanings of the word. This diversity is apparent in the rich array of neighborhoods. From the Historic Core/Old Bank District and Broadway, to Bunker Hill and the Financial District, the Arts District and Little Tokyo, to South Park and the Fashion District, Downtown compacts a world of goods, services, and experiences into an efficient urban cluster.

DE

MO

GR

AP

HIC

S

80% $99,000

500K+ 70K+

OF RESIDENTS WITH A COLLEGE DEGREE OR HIGHER

WEEKDAY POPULATION

MEDIAN HOUSE-HOLD INCOME OF RESIDENTS

PEOPLE WHO LIVE DOWNTOWN

DTLA

18,700

2000 2006 2008 2010 2012

28,878

39,537

43,601

48,433

DTLA POPULAT ION GROWTH

2013

52,400

2014

57,797

2015 2016

60,618

65,043

2017

67,324

2018

71,000

OV E R $ 3 1 B I L L I O N T OTA L I N V E ST M E NTI N D OW NT OW N L A F R O M 1 9 9 9 T O P R E S E NT

DOWNTOWN LA

ARTS DISTRICT

CIVIC CENTER

HIS

TOR

IC C

OR

E

LITTLE TOKYO

INDUSTRIAL DISTRICT

FASHIONDISTRICT

SOUTHPARK

FINANCIALDISTRICT

LO

S A

NG

EL

ES

RIV

ER

*Dimensions are approximate. For discussion purposes only.

CHINATOWN

DISTRICTS OF DOWNTOWN LOS ANGELES

676 MATEO

TOY LOFTS

DIAMOND

WALNUT

ICA LA

6AM

AT MATEO

AMP LOFTS

FORD FACTORY

2117

VIO

LET

7TH &

BR

IDG

E

SOUTH S

ANTA F

E AVENUE

MATEO STREET

MATEO STREET

ALAMEDA STREET

EAST 7 TH STREET

VIOLET STREET

VIOLET STREET

EAST 7 TH STREET

641 IMPERIAL

6 TH STREET VIADUCT REPLACEMENT

640 SANTA FE

670 MESQUIT

ENGINE CO. 17

BISCUIT LOFTS

1800 E 7 TH

520 MATEO

MAXWELL

4 TH & TRACTION

FACTORY ARTS COMPLEX

THE ALISO

BARKER BLOCK

silver lake wine

LA KRETZ

AVA ARTS DISTRICT

CAMDEN

T H E N E I G H B O R H O O D

The Arts District’s distinctive architecture, ample opportunity, and lively demographic base has transformed the neighborhood into a one of a kind cultural mecca. The Arts District is an ever-changing and adapting community that’s now home to galleries, artisan retail shops, breweries, trendy bars and entertainment, and several of the hottest restaurants in Los Angeles.Over the past decade, the Arts District has captivated investors and developers, both locally and globally, creating a buzz about the area. Fueled with private and institutional capital, The Arts District has become one of the most sought out markets and is the new “it” place to be.

The future of the Arts District is headed towards a total metamorphosis as the pipeline is filled with major developments in addition to those that are already in progress. These developments will soon provide a multitude of potential creative office, residential, and retail options, luring cool and hip companies and residents to the area. Although the market is evolving with adaptive re-use and new developments, the intent of the developers and the local community is to keep the integrity, character, culture, and aesthetics intact for the most unique district of Los Angeles.

ARTS DISTRICT

1736-1738 Industrial Street was incorporated into the

ADLA on January 1, 2019. It now benefits from the

supplemental services the ADLA provides.

Arts District BID - The Arts District Los Angeles Business Improvement District (ADLA) is a formally recognized non-profit organization dedicated to ensure the neighborhood is clean, safe and ever improving. The efforts are funded by a special assessment paid by the property owners in the district. Reestablished in 2014, the Arts District BID is a 501(c) 3 non-profit managed by the Arts District Board of Directors. The Board of Directors is made up of large, medium and small property owners and community stake-holders. ADLA’s full-time staff manages the day-to-day

operations of ADLA’s initiatives and programs. The ADLA Executive Director—Miguel Vargas–works closely with the

City to implement the Arts District Los Angeles Management plan. The primary function of ADLA is to keep the neighbor-

hood clean and safe.

FOR DISCUSSION PURPOSE ONLY. THE MATERIALS PROVIDED ARE FOR GENERAL INFORMATIONAL PURPOSES ONLY.

www.artsdistrictla.org/about/bid-map

ADLA BID

37

31

3332

34

36

38

25

27

28

30

29

26

35

4

619

1716 15

20 2122

13

10

9

8

5

1814

1211

23

24

7

1

3

RESIDENTIAL CREATIVE OFFICELOFT 7267TH AND BRIDGEBAY STREET CROSSINGART HOUSETHE SAVOY 1800 EAST 7TH STREET2101 EAST 7TH STREETBINFORD LOFTSBEACON LOFTSBARKER BLOCK LOFTSBARKER BLOCK WAREHOUSEMOLINO STREET LOFTS

SPOTIFY (AT MATEO)HONEY SCIENCE, SUBSIDIARY OF PAYPAL

ACCENTURE AND WEWORK500 SOUTH SANTA FELUCKY BRAND HQRANCHO COLD STORAGE1926 EAST 7TH STREET718-726 MATEO STREETASBWARNER MUSIC GROUP HQONNILOWE / RELATED

ROW DTLAPRODUCE LA

520 MATEO527 COLYTON6AMINDUSTRIAL668 SOUTH ALAMEDA5TH & SEATONDIAMOND WALNUTBISCUIT LOFTSTOY FACTORY LOFTSBRICK LOFTS676 MATEOAMP LOFTS

1.2.3.4.5.6.7.8.9.10.11.12.

25.26.27.28.29.30.31.32.33.34.35.36.

37.38.

13.14.15.16.17.18.19.20.21.22.23.24.

2

NEIGHBORHOOD PROJECTS AND DEVELOPMENTS

COPYRIGHT © 2017 R&A

PROJECT NO:

RR&&AA AARRCCHHIITTEECCTT4200 SEPULVEDA BLVD, STE 104, CULVER CITY, CA 902302P.310.730.6698

NOT TO SCALESCALE:

PRELIMINARYNOT FOR

CONSTRUCTION

# DESCRIPTION DATE ISSUED

SEP. 07, 2017SD SET FOR REVIEW

SEP. 29, 2017ISSUE FOR PRELIMINARY PRICING

FEB. 01, 2017100% SCHEMATIC DESIGN

CPC EXHIBIT A JULY 12, 2018

CPC-2016-3575-GPA-VZC-HD-MCUP-DB-SPR-WDI

A094

AVA ARTS DISTRICT668 S ALAMEDA STLOS ANGELES, CA 90021 253

LLAANNDDSSCCAAPPEERRCCHH

CCIIVVIILLKKPPFFFF700 S. FLOWER STREET, STE 2100, LOS ANGELES, CA 90017P.213.418.0201

639 N. LARCHMONT BLVD, STE 100, LOS ANGELES, CA 90004P.325.785.1800

RENDERING

FEB 01, 2017ENTITLEMENT

RE: 12" = 1'-0"11 CCOORRNNEERR VVIIEEWW IINNDDUUSSTTRRIIAALL SSTT // AALLAAMMEEDDAA SSTT

COPYRIGHT © 2017 R&A

PROJECT NO:

RR&&AA AARRCCHHIITTEECCTT4200 SEPULVEDA BLVD, STE 104, CULVER CITY, CA 902302P.310.730.6698

NOT TO SCALESCALE:

PRELIMINARYNOT FOR

CONSTRUCTION

# DESCRIPTION DATE ISSUED

SEP. 07, 2017SD SET FOR REVIEW

SEP. 29, 2017ISSUE FOR PRELIMINARY PRICING

FEB. 01, 2017100% SCHEMATIC DESIGN

CPC EXHIBIT A JULY 12, 2018

CPC-2016-3575-GPA-VZC-HD-MCUP-DB-SPR-WDI

A091

AVA ARTS DISTRICT668 S ALAMEDA STLOS ANGELES, CA 90021 253

LLAANNDDSSCCAAPPEERRCCHH

CCIIVVIILLKKPPFFFF700 S. FLOWER STREET, STE 2100, LOS ANGELES, CA 90017P.213.418.0201

639 N. LARCHMONT BLVD, STE 100, LOS ANGELES, CA 90004P.325.785.1800

RENDERING

FEB 01, 2017ENTITLEMENT

11 VVIIEEWW OOFF TTHHEE LLAANNDDIINNGG AALLOONNGG IINNDDUUSSTTRRIIAALL

A 3.75-acre development consisting of 475 apartments, 55,703 SF of commercial space and a 843 space subterranean parking structure.

Camden’s 2.75-acre development site will consist of 344 live/work apartments, 25,000 SF of office, and 4,000 SF of restaurant space.

668 S ALAMEDA STREET 1525 INDUSTRIAL STREET

CAMDEN INDUSTRIALAVA ARTS DISTRICT

NEIGHBORING DEVELOPMENT PROJECTS

WEST SANTA ANA BRANCH(7TH AND ALAMEDA METRO STOP)

Metro will attempt to complete 28 projects in anticipation of the 2028 Summer Olympics. One of those projects is the West Santa Ana Branch which will connect Union Station and Artesia (originally to be completed by 2041). There are 4 proposed Metro routes through Downtown LA with a stop at 7th and Alameda. (One block from 1738 Industrial Street).

Games Venue

TWENTY-EIGHT BY ‘28

The $482 million Sixth Street Viaduct Replacement Project is the largest bridge project in the history of Los Angeles. The design of the bridge, known as “The Ribbon of Light”, embraces a vision that accommodates cars, incorporates significant new bicycle connections, and also increases connectivity for pedestrians to access the viaduct.

The spectacular design of the new bridge and the many parks, open spaces and community features on, next to and below the bridge, is bringing together a working collaboration of residents, elected officials, business leaders, schools, labor unions, cyclists, neighborhood activists and artists and many more, never before seen in a public infrastructure project in Los Angeles.

The project is expected to create hundreds of jobs, adding to the already vital economy of central Los Angeles and its neighbors. Construction began in February 2015 and is expected to be completed in 2022.

6TH STREET VIADUCT

MEASURE MIn November 2016, voters passed a permanent sales tax increase to fund a

major expansion of the county’s public transit system. By adding a county-

wide half-cent increase to the sales tax, Measure M will bring in $860 million

annually for decades. This will fund projects like a rail line to LAX, a subway

under the Sepulveda Pass, and a Purple Line extension to Westwood.

METRO BIKE SHARESince going live on July 7 2016, Metro Bike Share has racked up over 180,000

trips with 65 stations and about 700 bikes. There is a station located directly

across Industrial Street at the Toy Factory Lofts - making 1820 Industrial

easily accessible via bike share.

REGIONAL CONNECTOR

“TWENTY-EIGHT BY ’28” - WEST SANTA ANA BRANCHMetro will attempt to complete 28

projects in anticipation of the 2028

Summer Olympics. One of those

projects is the West Santa Ana

Branch which will connect Union

Station and Artesia (originally to

be completed in 2041). There are

4 proposed alignments through

Downtown LA, and a metro stop

at 7th and Alameda is very likely.

The Metro Regional Connector

Project extends from the Metro

Gold Line Little Tokyo/Arts District

Station to the 7th Street Metro

Center Station in Downtown LA,

allowing passengers to transfer

to Blue, Expo, Red, and Purple

Lines, bypassing Union Station. It

includes 3 new stations: 1st St &

Central Ave (Arts District), 2nd St

& Broadway, and 2nd Pl & Hope St.

POTENTIAL ALIGNMENTS FOR WEST SANTA ANA BRANCH

TRANSPORTATION

Deferral of Capital Gains on Federal Tax through a Qualified Opportunity Fund.

Step-up in Basis (up to 15%) Depending on Holding Period.

Allows for real estate, as well as securities, partnership interests to be invested inOpportunity Zones via Opportunity Funds.

No capital gains tax on the Opportunity Zone investment itself for funds that have been held for at least 10 years.

OPPORTUNITY FUND TAX BENEFITS

*For Discussion Purposes Only. Please consult your own accountant(s) and/or attorney(s) for details. The information contained has been obtained from sources believed to be reliable but no warranty or representation, expressed or implied, is made as to the content referenced herein or as to the accuracy or completeness of the information contained herein.

DAY 0 Within 180 days of sale, Investor deploys all gains into a Qualified Opportunity Fund (“QOF”) which has at least 90% of its asses within Qualified Opportunity Zone investments.

DAY 0 - YEAR 5 If investor sells the QOF investment and does not reinvest in the same or another QOF, capital gain on the original investment becomes taxable.

YEAR 5 - year 7 Taxable gain on the original investment is reduced by 10%.

12/31/2026Hard Assessment Date:

Capital gain tax assessed on the original gain, regardless of whether QOF investment has been sold.

YEAR 10 and Onward Investor can sell QOF interest without incurring any tax liability on capital gain generated by QOF Investment.

2.5 years • Must invest capital into property • Double acquisition cost, minus land basis

YEAR 7 - year 10 Taxable gain on the original investment is reduced by 15%.

Y10Y9Y8Y7Y6Y5Y4Y3Y2Y1

OPPORUNITY C

LOCK

OPPORTUNITY ZONE INVESTMENT

BRANDON GILL Executive Director

+1 213 629 6528brandon.gill@cushwake.comDRE 01262330

BRANDON BURNS Executive Director

+1 213 629 6541brandon.burns@cushwake.comDRE 01194796

JAE YOO Executive Director

+1 213 629 6551jae.yoo@cushwake.comDRE 01503567

KEE KWON Owner, Investment Sales Broker

+1 213 220 7904 keekwon@northamericanprop.comDRE 01273476

©2020 Cushman & Wakefield. All rights reserved. The material in this presentation has been prepared solely for information purposes, and is strictly confidential. Any disclosure, use, copying or circulation of this presentation (or the information contained within it) is strictly prohibited, unless you have obtained Cushman & Wakefield’s prior written consent. The views expressed in this presentation are the views of the author and do not necessarily reflect the views of Cushman & Wakefield. Neither this presentation nor any part of it shall form the basis of, or be relied upon in connection with any offer, or act as an inducement to enter into any contract or commitment whatsoever. NO REPRESENTATION OR WARRANTY IS GIVEN, EXPRESS OR IMPLIED, AS TO THE ACCURACY OF THE INFORMATION CONTAINED WITHIN THIS PRESENTATION, AND CUSHMAN & WAKEFIELD IS UNDER NO OBLIGATION TO SUBSEQUENTLY CORRECT IT IN THE EVENT OF ERRORS.