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2530 SANTA FE AVE.LONG BEACH, CA 90810

Christopher [email protected]

Christopher KensingerDirector / [email protected]

4425 Atlantic Ave STE A25Long Beach, CA 90807http://www.nrecommercial.com/

PROPERTY HIGHLIGHTS

5.67% Current CAP Rate6.50% Pro Forma CAP Rate Quickly Attainable7.50% CAP Rate Attainable in 3rd Year of Ownership

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Combined Owner User/Investment OpportunityUnits 2538-2542 (Vacant + MTM Restuarant) - IdealRestaurant Opporunity

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~24,000 CPD Traffic Count120' of Frontage Along Santa Fe Ave. with PylonSignage

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Utilities Separately Metered (including water)New Roof in 2017Value Add Opportunity

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Table of Contents

Investment Details .................................................................................... 3

Annual Property Operating ................................................................. 4

Financial Indicators .................................................................................. 5

Executive Summary .................................................................................. 6

Pro Forma Summary ................................................................................ 7

Lease Rent Roll ......................................................................................... 8

Rough Site/Floor Plan .............................................................................. 9

Quick Comp Report .................................................................................. 10

Demographics ........................................................................................... 11

Location Map ............................................................................................. 12

Investment Details

Westside Shopping Center2530 Santa Fe Ave. • Long Beach, Ca 90810

Christopher KensingerContact Listing Broker

4425 Atlantic Ave STE A25 • Long Beach, CA 90807 | www.nrecommercial.com [email protected] 562 423 8134| P:E:

ANALYSIS

Analysis Date March 2018

PROPERTY

Property Westside Shopping Center

Property Address 2530 Santa Fe Ave.Long Beach, Ca 90810

Year Built 1959

FINANCIAL INFORMATION

Down Payment $525,000

Closing Costs $17,000

PURCHASE INFORMATION

Property Type Shopping Center

Purchase Price $1,500,000

Fair Market Value $1,500,000

Tenants 7

Total Rentable Sq. Ft. 7,700

Resale Valuation 0.5% (annual appreciation)

Resale Expenses 7.0%

LOANS

Type Debt Term Amortization Rate Payment LO Costs

Fixed $975,000 25 years 25 years 4.75% $5,559

INCOME & EXPENSES

Gross Operating Income $119,601

Monthly GOI $9,967

Total Annual Expenses ($34,710)

Monthly Expenses ($2,893)

Contact Information



Patricia Conejos562.881.4107

01294186

page 3 of 12

Annual Property Operating DataWestside Shopping Center2530 Santa Fe Ave. • Long Beach, Ca 90810



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Rental Income $123,300 $123,814 $126,909 $129,542 $129,542 $129,542 $129,542

GROSS SCHEDULED INCOME $123,300 $123,814 $126,909 $129,542 $129,542 $129,542 $129,542

General Vacancy ($3,699) ($3,714) ($3,807) ($3,886) ($3,886) ($3,886) ($3,886)

GROSS OPERATING INCOME $119,601 $120,099 $123,102 $125,656 $125,656 $125,656 $125,656

Expenses

Property Management Fee ($5,980) ($6,005) ($6,155) ($6,283) ($6,283) ($6,283) ($6,283)

Building Insurance ($2,150) ($2,150) ($2,150) ($2,150) ($2,150) ($2,150) ($2,150)

Gardening ($1,200) ($1,200) ($1,200) ($1,200) ($1,200) ($1,200) ($1,200)

License and Permits ($280) ($280) ($280) ($280) ($280) ($280) ($280)

Repairs & Maintenance ($3,500) ($3,500) ($3,500) ($3,500) ($3,500) ($3,500) ($3,500)

Misc & Reserves ($2,500) ($2,500) ($2,500) ($2,500) ($2,500) ($2,500) ($2,500)

Taxes - Real Estate ($18,750) ($18,750) ($18,750) ($18,750) ($18,750) ($18,750) ($18,750)

Utilities ($350) ($350) ($350) ($350) ($350) ($350) ($350)

TOTAL OPERATING EXPENSES ($34,710) ($34,735) ($34,885) ($35,013) ($35,013) ($35,013) ($35,013)

NET OPERATING INCOME $84,891 $85,364 $88,217 $90,643 $90,643 $90,643 $90,643

page 4 of 12

Financial IndicatorsWestside Shopping Center2530 Santa Fe Ave. • Long Beach, Ca 90810



Description Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7

Gross Rent Multiplier 12.23 12.24 12.00 11.81 11.87 11.93 11.99

Capitalization Rate 5.66% 5.69% 5.88% 6.04% 6.04% 6.04% 6.04%

Cash On Cash Return b/t 3.36% 3.44% 3.97% 4.42% 4.42% 4.42% 4.42%

Cash On Cash Return a/t 3.36% 3.44% 3.97% 4.42% 4.42% 4.42% 4.42%

Debt Coverage Ratio 1.27 1.28 1.32 1.36 1.36 1.36 1.36

Gross Income per Sq. Ft. $16.01 $16.08 $16.48 $16.82 $16.82 $16.82 $16.82

Expenses per Sq. Ft. ($4.51) ($4.51) ($4.53) ($4.55) ($4.55) ($4.55) ($4.55)

Net Income Multiplier 17.76 17.75 17.26 16.88 16.97 17.05 17.14

Operating Expense Ratio 29.02% 28.92% 28.34% 27.86% 27.86% 27.86% 27.86%

Loan To Value Ratio 63.29% 61.54% 59.73% 57.86% 55.93% 53.95% 51.89%

* b/t = before taxes; a/t = after taxes

page 5 of 12

Executive Summary




Acquisition Costs

Purchase Price, Points and Closing Costs $1,517,000

Investment - Cash $542,000

First Loan $975,000

Investment Information

Purchase Price $1,500,000

Price per Tenant $214,286

Price per Sq. Ft. $194.81

Income, Expenses & Cash Flow

Gross Scheduled Income $123,300

Total Vacancy and Credits ($3,699)

Operating Expenses ($34,710)

Net Operating Income $84,891

Debt Service ($66,704)

Cash Flow Before Taxes $18,187

Financial Indicators

Cash on Cash Return Before Taxes 3.36%

Debt Coverage Ratio 1.27

Capitalization Rate 5.66%

Gross Income / Square Feet $16.01

Gross Expenses / Square Feet ($4.51)

Operating Expense Ratio 29.02%

page 6 of 12

Pro Forma Summary




TENANT MONTHLY SCHEDULED INCOME

Tenant Actual Market Luisa & Son Bakeshop $2,300 $2,530Hair Salon $1,500 $2,250Atlas Door (MTM) $1,100 $1,100Wellness Center (MTM) $1,000 $1,100Vacant (MTM) $1,275 $1,285Edna's Rest. (MTM) $3,100 $3,800N/A $0 $0TOTALS $10,275 $12,065

ANNUALIZED INCOME Description Actual Market

Gross Potential Rent $123,300 $144,780Less: Vacancy ($3,699) ($4,343)Effective Gross Income $119,601 $140,437Less: Expenses ($34,710) ($35,969)Net Operating Income $84,891 $104,468Debt Service ($66,704) ($66,704)Net Cash Flow after Debt Service $18,187 $37,764Principal Reduction $20,841 $20,841Total Return $39,028 $58,605

ANNUALIZED EXPENSES Description Actual Market

Property Management Fee $5,980 $7,239Building Insurance $2,150 $2,150Gardening $1,200 $1,200License and Permits $280 $280Repairs & Maintenance $3,500 $3,500Misc & Reserves $2,500 $2,500Taxes - Real Estate $18,750 $18,750Utilities $350 $350Total Expenses $34,710 $35,969Expenses Per RSF $4.51 $4.67

INVESTMENT SUMMARY Price: $1,500,000

Year Built: 1959

Tenants: 7

RSF: 7,700

Price/RSF: $194.81

Lot Size: 13,210 sf

Floors: 1

Parking Spaces: 1.5

APN: 7401-001-005

Cap Rate: 5.66%

Market Cap Rate: 6.96%

FINANCING SUMMARY Loan Amount: $975,000

Down Payment: $525,000

Loan Type: Fixed

Interest Rate: 4.75%

Term: 25 years

Monthly Payment: $5,559

DCR: 1.27

page 7 of 12

Lease Rent RollWestside Shopping Center2530 Santa Fe Ave. • Long Beach, Ca 90810



Suite Tenant Start Date Expire Date RSF $/RSF AnnualizedRent

TenantImprovement Commissions Renewal

TermRenewalIncrease Notes

2530 Luisa & Son Bakeshop 06/01/2017 12/31/2021 1,488 $18.55 $27,600 $0.00 $0.00 1 year $0.00

2532 Hair Salon 08/01/2016 12/31/2021 1,450 $12.41 $18,000 $0.00 $0.00 1 year $0.00

2534 Atlas Door (MTM) 03/01/2012 12/31/2021 600 $22.00 $13,200 $0.00 $0.00 1 year $0.00

2536 Wellness Center (MTM) 02/01/2013 12/31/2021 600 $20.00 $12,000 $0.00 $0.00 1 year $0.00

2538 Vacant (MTM) 01/01/2018 12/31/2021 828 $18.48 $15,300 $0.00 $0.00 1 year $0.00

2540-42

Edna's Rest. (MTM) 04/01/2012 12/31/2021 2,588 $14.37 $37,200 $0.00 $0.00 1 year $0.00

Storage

N/A 03/01/2017 12/31/2021 80 $0.00 $0 $0.00 $0.00 1 year $0.00

page 8 of 12

Borrower/ClientProperty AddressCityLender

County State Zip Code

Form SKT.BldSkI — "TOTAL for Windows" appraisal software by a la mode, inc. — 1800ALAMODE

Building Sketch (Page 1)Client: Christopher Kensinger2530 Santa Fe Avenue

Long Beach Los Angeles CA 90810N/A

Comments:

AREA CALCULATIONS SUMMARYCode Description Net Size Net TotalsGBA1 First Floor 7552.8OTH

7552.8Storage 80.0#2530 1487.5#2532 1449.0#2534 600.0#2536 600.0#2538 828.0#25402542 2588.3 7632.8

Net BUILDING Area (Rounded) 7553

Breakdown SubtotalsBUILDING AREA BREAKDOWN

First Floor0.5 x 2.5 x 9.0 11.30.5 x 5.0 x 5.0 12.5 5.0 x 55.0 275.0 21.0 x 69.0 1449.0 20.0 x 60.0 1200.00.5 x 2.5 x 10.0 12.5 10.0 x 47.5 475.0 50.0 x 50.0 2500.0 13.0 x 47.5 617.5 19.0 x 49.0 931.0 1.0 x 69.0 69.0

11 Items (Rounded) 7553

Sketch by Apex IV™

12.0' 12.0' 12.0'

#2530#2532#2534#2536#2538#2540#2542

10.0'

8.0'

Storage

Parking Lot

Luisa & SonBakery

Recy's' Alteration

& Beauty Salon

Atlas ShippersInternational

The HealthyStop

VacantFilipino Food

20.0'21.0'

38.0'

55.0

'

25.0'

9.0'

21.0'

19.0

'

69.0

'

Edna's Original HomemadeGeneral Merchandise

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Demographics




Population Characteristic 1 Mile 3 Mile 5 Mile

Ages 0-4 1,603 14,054 33,226

Ages 5-9 1,997 17,017 39,873

Ages 10-14 1,922 16,023 36,878

Ages 15-19 1,973 16,019 36,561

Ages 20-24 2,056 16,846 38,691

Ages 25-29 2,048 16,915 39,698

Ages 30-34 1,928 16,263 39,757

Ages 35-39 1,826 15,783 40,215

Ages 40-44 1,719 15,374 40,516

Ages 45-49 1,688 14,809 39,948

Ages 50-54 1,557 13,383 36,424

Ages 55-59 1,366 11,539 31,615

Ages 60-64 1,108 9,302 25,738

Ages 65-69 889 6,953 19,650

Ages 70-74 659 4,860 14,089

Ages 75-79 480 3,194 9,576

Ages 80-84 344 1,958 6,097

Household Income 1 Mile 3 Mile 5 Mile

Median Household Income $52,546 $43,833 $50,365

< $10000 481 4,952 11,055

$10000-$14999 482 5,554 12,196

$15000-$19999 524 4,816 10,165

$20000-$24999 434 4,599 10,562

$25000-$29999 430 4,065 9,891

$30000-$34999 226 3,246 9,691

$35000-$39999 245 3,315 9,329

$40000-$44999 401 2,800 8,342

$45000-$49999 252 2,771 7,310

$50000-$60000 561 5,169 14,695

$60000-$74000 574 6,044 18,438

$75000-$99999 1,010 6,629 20,531

$100000-$124999 572 4,335 13,820

$125000-$149999 262 2,011 7,581

$150000-$199999 331 2,422 7,569

> $200000 85 1,561 4,507

Race Characteristic 1 Mile 3 Mile 5 Mile

Non Hispanic White 6,351 69,912 197,623

Population Black 3,062 25,846 72,941

Population Am In/AK Nat 69 451 1,031

Characteristic Housing 1 Mile 3 Mile

Housing Units 7,436 71,097

Occupied Housing Units 7,135 65,596

Owner Occupied Housing Units 3,604 24,289

Renter Occupied Housing Units 3,531 41,307

Vacant Housing Units 301 5,501

page 11 of 12

Location Map




page 12 of 12

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