Raymond Avenue Apartments725 N. Raymond Ave., Pasadena, CA 91103

OFFERING MEMORANDUM

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PRESENTED BY

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PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Local Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Location Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Demographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

PRICING AND FINANCIAL ANALYSISFinancial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Property Photos . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-13

TABLE OF CONTENTS

David J. HarringtonNational Director - Multifamily

Direct +1.310.295.1170Mobile +1.310.497.5590david.harrington@matthews.comLicense No. 01320460

Michael AstorianAssociate - Multifamily

Direct +1.310.955.5817Mobile +1.818.926.8889michael.astorian@matthews.comLicense No. 01974130

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Property Overview

As a non-rent control asset, located in a great rental

market, the Raymond Avenue Apartments present an

opportunity for a new investor to capitalize on future

rent upside potential in a great metropolitan area.

The current ownership has implemented a reposition

strategy to upgrade units and enhance curb appeal.

This repositioning has been done without an e�ort

to push rent levels up to their maximum potential. All

tenants are month to month.

• 8 Units | Building: 4780 Sq Ft | Built: 1961

• Six 1BR + 1BA, Two 2BR + 1BA Units

• 6 of 8 Unit Interiors Have Been Upgraded

• New Kitchen Cabinets

• Laminate Floors

• Hallway Storage

• Granite Countertops

• Kitchen with Island (in select units)

• Black Appliance Packages

• Gated Tenant Parking | 14 Spaces

• High Rental Upside | 42%

• Not Subject to Rent Control Laws

Opportunity Property Description

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Local Description

The Raymond Avenue Apartments are in a highly desirable

area of Pasadena, CA. With proximity to Colorado Blvd.,

tenants have quick access to many restaurants and retail.

Pasadena is one of the strongest rental sub-markets in

the West San Gabriel Valley. The city has an area of 23.1

Square Miles, and a population of 140,881, ultimately

giving it a population density of 6,099 people per square

mile. This location has a high walk score meaning most

errands can easily be accomplished by foot.

The city of Pasadena is part of Los Angeles County and

is one of the primary cultural centers of the San Gabriel

Valley. It is known for housing the annual Rose Bowl

football game, and is home to many scientific centers

and cultural institutions; including the California Institute

of Technology (Cal Tech), the Jet Propulsion Laboratory

(JPL), Art Center College of Design and Norton Simon

Museum of Art. The demand of development in Downtown

Pasadena, coupled with the scarcity of developable land,

all but insures the future economic viability of a well

maintained, well located and competitively positioned

apartment building like 725 N. Raymond Avenue.

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725 N Raymond Ave

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Location Map

Population 1-Mile 3-Mile 5-Mile

2021 Projection 38,478 190,314 464,572

2016 Estimate 37,138 183,512 447,772

2010 Census 35,872 176,933 431,734

2000 Census 36,685 173,401 429,500

Growth 2016-2021 3.61% 3.71% 3.75%

Growth 2010-2016 3.53% 3.72% 3.71%

Growth 2000-2010 -2.22% 2.04% 0.52%

Households

2021 Projection 13,549 75,010 172,921

2016 Estimate 12,996 72,052 166,106

2010 Census 12,436 69,175 159,326

2000 Census 11,625 65,626 154,389

Growth 2016-2021 4.26% 4.10% 4.10%

Growth 2010-2016 4.50% 4.16% 4.26%

Growth 2000-2010 6.98% 5.41% 3.20%

2016 Est. Average Household Size 2.80 2.49 2.65

Income

$ 0 - $14,999 2,182 7,435 16,532

$ 15,000 - $24,999 1,300 5,432 13,933

$ 25,000 - $34,999 1,333 5,261 12,836

$ 35,000 - $49,999 1,863 7,544 17,682

$ 50,000 - $74,999 2,212 11,699 26,255

$ 75,000 - $99,999 1,258 8,449 19,526

$100,000 - $124,999 994 7,094 15,488

$125,000 - $149,999 563 4,771 10,858

$150,000 - $199,999 622 5,388 12,585

$200,000 - $249,999 261 2,658 6,067

$250,000 - $499,999 310 4,111 9,307

$500,000+ 98 2,208 5,037

2016 Average Household Income $70,752 $105,569 $104,539

2016 Median Household Income $48,553 $72,126 $71,015

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Demographics Report

Investment SummaryO�ering Price: $1,999,000 Number of Units: 8Property Address: 725 N. Raymond Avenue Year Built: 1961

Pasadena, CA 91103 APN: 5725-002-030Price Per Unit: $249,875 Gross Sq. Ft.: 4,780Price Per S.F.: $418.20 Average S.F. Per Unit: 598Cap (current / market): 2.90% / 4.91% Lot Size (Acres): 0.20GRM (current / market): 19.33 / 13.63 Density: 40

Unit MixTotal Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent

6 1+1 75% $1,008 $6,050 $1,450 $8,7002 2+1 25% $1,225 $2,450 $1,700 $3,400

Scheduled Monthly Rent: $8,500 $12,100Scheduled Yearly Rent: $102,000 $145,200

Rent Roll

# Unit Mix Rent Market Rent

1 1 2+1 $1,250 $1,700

2 2 1+1 $975 $1,450

3 3 1+1 $1,300 $1,450

4 4 1+1 $975 $1,450

5 5 2+1 $1,200 $1,700

6 6 1+1 $1,000 $1,450

7 7 1+1 $850 $1,450

8 8 1+1 $950 $1,450

Totals $8,500 $12,100

Averages $1,063 $1,513

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Financial Overview

Annualized Operating SummaryCurrent Market

Scheduled Gross Income: $102,000 42% upside $145,200Less Vacancy Reserve: 3.0% $3,060 3.0% $4,356Other Income: $1,440 $1,440Gross Operating Income: $100,380 $142,284Expenses: 41.6% $42,459 30.40% $44,135Net Operating Income: $57,921 $98,149Loan Payments: $46,347 $46,347Pre-Tax Cash Flow: 1.0% $11,574 4.35% $51,802Plus Principal Reduction: $14,247 $14,247Total Return Before Taxes: 2.17% $25,821 5.55% $66,049

* As a percent of Scheduled Gross Income

** As a percent of Down Payment

Other income is estimated at $15 per unit per month

Pro Forma Annual Operating ExpensesCurrent Per Unit % of SGI

*Taxes 1.119% x Sale Price $22,370 $2,796 22%O�-Site Management 4.0% x GOI $4,015 $502 4%*Insurance $0.35 x GSF $1,673 $209 2%Repairs & Maintenance & Turnover $500 x Units $4,000 $500 4%Landscaping $100 x 12 Months $1,200 $150 1%Utilities $850 x Units $6,800 $850 7%Trash $100 x 12 Months $1,200 $150 1%General Administration $150 x Units $1,200 $150 1.18%

Total Expenses $42,459 $5,307 41.6%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $24,043 $3,005 23.6%Total Expense with out Taxes $20,088 $2,511 19.69%

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Property Photos

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Property Photos

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Property Photos

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Property Photos

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CONFIDENTIALITY & DISCLAIMER STATEMENT

This informat ion has been secured from sources we bel ieve to be rel iable, however we make no representat ions or warrant ies, expressed or impl ied, as to the accuracy of the informat ion. References to square footage or age are approximate. Buyer must ver i fy the informat ion and bears a l l r isk for any inaccuracies.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Raymond Avenue Apartments located at 725 N. Raymond Avenue, Pasadena, CA 91103 (“Property” ) . I t has been prepared by Matthews Retai l Advisors . This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com

Raymond Avenue Apartments725 N. Raymond Ave., Pasadena, CA 91103

OFFERING MEMORANDUM

™

PRESENTED BY

David J. Harrington National Director - Multifamily

Direct +1.310.295.1170Mobile +1.310.497.5590david.harrington@matthews.comLicense No. 01320460

Michael Astorian Associate - Multifamily

Direct +1.310.955.5817Mobile +1.818.926.8889michael.astorian@matthews.comLicense No. 01974130