L O S A N G E L E S , C A 9 0 0 6 1Exclusively Listed By: D E R E K S T E P H E N S & Z A C H A R Y Z A N E L L O

13103 SOUTH BROADWAY

NON-ENDORSEMENT & DISCLAIMER NOTICECONFIDENTIALITY & 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 substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, 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 provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C EMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial 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 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.

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N L Y.P L E A S E C O N S U L T Y O U R M A R C U S & M I L L I C H A P A G E N T F O R M O R E D E T A I L S .

OFFICES THROUGHOUT THE U.S. AND CANADAwww.marcusmillichap.com

Marcus & Millichap is pleased to present this Exclusive Offering for the sale of 13103 South Broadway, a single-tenant building of approximately 5,586 square feet in the City of Los Angeles, California. The building is situated on approximately 8,050 square feet of industrial zoned land. The subject property was built in 1961 of concrete block construction. This fa-cility has historically enjoyed a very high occupancy level and is currently 100 percent occupied. The interior build-out has been reconfigured to meet the tenant’s operational requirements.

The property is currently leased to LA Hydro, a cannabis cultivation com-pany that has committed to a long-term lease of 5 years. Under the terms of the lease, the Landlord is only responsible for the property taxes and insurance, which makes the tenant solely responsible for the maintenance of the building including the roof, structure, parking, mechanical systems and utilities.

The sale represents a rare opportunity for an investor to acquire a 100 percent occupied single-tenant investment with a growth oriented tenant in the cannabis industry. The State of California has the largest cannabis economy in the world, supported by the state government and populous. LA Hydro currently cultivates and distributes cannabis for their two legal dispensaries in Southern California.

The property is located in a highly desirable area on the southwest corner of South Broadway and West 131st Street, with nearly 200’ of combined frontage. It is approximately one-half mile east of the 110 freeway and roughly one mile south of the 110-105 freeway interchange. The property resides within the 90061 zip code where industrial vacancy rates are at an all-time low of 2.9 percent.

E X E C U T I V E S U M M A R Y 3

EXECUTIVE SUMMARY

TABLE OF

CONTENTS

01 02 03OFFERING SUMMARY MARKET COMPARABLES MARKET OVERVIEW

13103 South BroadwayLOS ANGELES , CA 90061

SECTION 1 OFFERING SUMMARY

1 3 1 0 3 S O U T H B R O A D W A Y

» Rare Single-Tenant Industrial Investment Opportunity

» Attractive Year 1 CAP Rate of 7.94%

» Brand New 5-Year Personally Guaranteed Lease

» 3% Rental Increases Annually

» Lessor Only Responsible for Property Tax & Insurance

ABOUT THE INVESTMENTTHE OFFERING

Purchase Price $1,500,000

Price/SF $268.53

Cap Rate 7.94%

Net Operating Income $119,098

Monthly Rent/SF $2.15

» Strong Location Fundamentals with Very Low Industrial Vacancy Rates at 2.9%

» Hard Corner Location with Substantial Frontage

» Immediate Access to the 110 Freeway

» Approximately 1 Mile to the 110-105 Freeway Interchange

» Proximity to Downtown Los Angeles, LAX, and the Ports of Los Angeles and Long Beach

ABOUT THE LOCATIONCURRENT INCOME STATEMENT

Gross Rents Collected $144,000

Real Estate Taxes (1) ($19,995)

Property Insurance (2) ($4,907)

Net Operating Income $119,098

(1) 1.29% of the purchase price(2) Actual expense for an extended policy with Farmers Insurance.

INVESTMENT HIGHLIGHTS

O F F E R I N G S U M M A R Y6

RENT SCHEDULE

Lease Year Annual Rent Monthly Rent Rent Escalation

1 $144,000 $12,000

2 $148,320 $12,360 3%

3 $152,770 $12,731 3%

4 $157,353 $13,113 3%

5 $162,073 $13,506 3%

LEASE SUMMARY

Property Type Industrial Warehouse

Tenant LA Hydro

Guarantor Personal Guarantee

Lease Commencement 4/15/2019

Lease Expiration 4/14/2024

Lease Term Remaining 5 Years

Lease Type Modified Gross (MG)

Current Annual Rent $144,000

Rental Increases 3%

LEASE STRUCTURE - MODIFIED GROSS

Roof Tenant

Structure Tenant

HVAC Tenant

Common Area Maintenance Tenant

Parking Tenant

Utilities Tenant

Property Taxes Landlord

Property Insurance Landlord

LEASE SUMMARY

O F F E R I N G S U M M A R Y 7

1 3 1 0 3 S O U T H B R O A D W A Y

PROPERTY DESCRIPTION

Construction/MechanicalYear Built 1961

Construction Type Concrete Block

Number of Floors 1

Mezzanine None

Clear Height 14’ - 15’

Sprinklers None

Ground Level Doors (2)10’w x 10’h

Parking Surface Paved Asphalt

Power 1200a

PROPERTY ADDRESS13103 South Broadway Los Angeles, CA 90061 APN: 6132-011-017

Site DescriptionType of Ownership Fee Simple

Rentable Square Feet 5,586

Lot Size Square Feet 8,050

Floor Area Ratio (FAR) 0.69

Zoning M1 1/2-B1

Landscaping None

Parking Spaces 4

Parking Ratio 0.71/1000 SF

Street Frontage 64’ on South Broadway, 127’ on West 131st Street

Cross Street West 131st Street

O F F E R I N G S U M M A R Y8

PARCEL MAP

N

O F F E R I N G S U M M A R Y 9

1 3 1 0 3 S O U T H B R O A D W A Y

LOCAL MAP

N

SUBJECT PROPERTY

13103 SOUTH BROADWAY

O F F E R I N G S U M M A R Y10

ASubject Property to DTLA10.2 Miles Driving Distance

BSubject Property to 110 Freeway0.9 Miles Driving Distance

CSubject Property to LAX8.2 Miles Driving Distance

DSubject Property to Port of Los Angeles15.1 Miles Driving Distance

REGIONAL MAP

N

SUBJECT PROPERTY

13103 SOUTH BROADWAY

A

C

10.2 Miles

8.2 Miles

15.1 MilesD

B0.9 Miles

O F F E R I N G S U M M A R Y 11

13103 South BroadwayLOS ANGELES , CA 90061

SECTION 2MARKET COMPARABLES

1 3 1 0 3 S O U T H B R O A D W A Y

N

SUBJECT PROPERTY

13103 SOUTH BROADWAY

4

6 3

5

SALES COMPARABLES13103 SOUTH BROADWAY

1 2990 MARTIN LUTHER KING JR BOULEVARD

2 5415 MAYWOOD AVE

3 120 WEST 131ST STREET

4 422 WEST ROSECRANS AVENUE

5 1522 WEST 135TH STREET

6 1735-1739 WEST 132ND STREET

7 215 WEST 134TH STREET

1

2

7

M A R K E T C O M P A R A B L E S14

$380.00

$360.00

$340.00

$320.00

$300.00

$280.00

$260.00

$240.00

$220.00

$200.00

$180.00

13103 SOUTH BROADWAY

Average Price Per SF

120 WEST 131ST STREET

422 WEST ROSECRANS

AVENUE

1522 WEST 135TH STREET

Avg $278.86

SALES COMPARABLES

2990 MARTIN LUTHER KING JR

BOULEVARD

5415 MAYWOOD AVENUE

1735-1739 WEST 132ND STREET

215 WEST 134TH STREET

M A R K E T C O M P A R A B L E S 15

1 3 1 0 3 S O U T H B R O A D W A Y

SALES COMPARABLES

1 3 1 0 3 S O U T H B R O A D W A Y Los Angeles, CA 90061

Proposed List Price $1,500,000

Rentable SF 5,586

Price/Rentable SF $268.53

CAP Rate 7.94%

Year Built 1961

Lot Size SF 8,050

1 2 9 9 0 M A R T I N L U T H E R K I N G J R B O U L E VA R D Lynwood, CA 90262

Sale Price $3,000,000

COE 1/2/2018

Rentable SF 8,304

Price/Rentable SF $361.27

Year Built 1950

Lot Size SF 32,405

2 5 4 1 5 M A Y W O O D A V E N U E Maywood, CA 90270

Sale Price $5,600,000

COE 2/22/2018

Rentable SF 18,104

Price/Rentable SF $309.32

Year Built 1989

Lot Size SF 30,492

Note: Cannabis cultivation facility. Note: Cannabis cultivation facility.

M A R K E T C O M P A R A B L E S16

3 1 2 0 W E S T 1 3 1 S T S T R E E T Los Angeles, CA 90061

Sale Price $2,400,000

COE 11/13/2019

Rentable SF 10,000

Price/Rentable SF $240.00

Year Built 1960

Lot Size SF 19,014

4

Sale Price $2,359,000

COE 11/13/2018

Rentable SF 9,350

Price/Rentable SF $252.30

Year Built 1968

Lot Size SF 18,295

4 2 2 W E S T R O S E C R A N S A V E N U E Gardena, CA 90248

5 1 5 2 2 W E S T 1 3 5 T H S T R E E T Gardena, CA 90249

Sale Price $1,650,000

COE 4/12/2018

Rentable SF 6,150

Price/Rentable SF $268.29

Year Built 1957

Lot Size SF 14,000

Note: Exclusively listed and represented the Seller.

M A R K E T C O M P A R A B L E S 17

1 3 1 0 3 S O U T H B R O A D W A Y

SALES COMPARABLES

6 1 73 5 - 1 73 9 W E ST 1 3 2 N D ST R E E T Gardena, CA 90249

Sale Price $3,950,000

COE 3/4/2019

Rentable SF 16,200

Price/Rentable SF $243.83

Year Built 1973

Lot Size SF 39,640

7 2 1 5 W E ST 1 3 4 T H ST R E E TLos Angeles, CA 90061

Sale Price $3,129,500

COE 10/31/2019

Rentable SF 12,036

Price/Rentable SF $260.01

Year Built 1978

Lot Size SF 22,216

M A R K E T C O M P A R A B L E S18

1

2

SUBJECT PROPERTY

13103 SOUTH BROADWAY

ON MARKET COMPARABLES13103 SOUTH BROADWAY

1 12819 MAIN STREET

2 422 ROSECRANS AVENUE

M A R K E T C O M P A R A B L E S 19

1 3 1 0 3 S O U T H B R O A D W A Y

$330.00

$320.00

$310.00

$300.00

$290.00

$280.00

$270.00

$260.00

$250.00

$240.00

$230.00

Average Price Per SF

Avg $298.00

ON MARKET COMPARABLES

13103 SOUTH BROADWAY

422 ROSECRANS AVENUE

12819 MAIN STREET

M A R K E T C O M P A R A B L E S20

ON MARKET COMPARABLES

2 4 2 2 W E S T R O S E C R A N S A V E N U EGardena, CA 90248

Sale Price $2,498,000

On Market 143 Days

Rentable SF 9,350

Price/Rentable SF $267.17

Year Built 1968

Lot Size SF 18,295

1 3 1 0 3 S O U T H B R O A D W A Y Los Angeles, CA 90061

Proposed List Price $1,500,000

Rentable SF 5,586

Price/Rentable SF $268.53

CAP Rate 7.94%

Year Built 1961

Lot Size SF 8,050

1 1 2 8 1 9 M A I N S T R E E TLos Angeles, CA 90061

Sale Price $1,700,000

On Market 190 Days

Rentable SF 5,170

Price/Rentable SF $328.82

Year Built 1966

Lot Size SF 6,970

M A R K E T C O M P A R A B L E S 21

13103 South BroadwayLOS ANGELES , CA 90061

SECTION 3MARKET OVERVIEW

1 3 1 0 3 S O U T H B R O A D W A Y

M A R K E T O V E R V I E W24

West Rancho Dominguez is sandwiched between Gardena and Compton in the South Bay, with most industrial inventory located within unincor-porated LA County. This is a well-located industrial submarket with close proximity to LAX and the twin ports. It also sits along major transportation corridors that run toward Downtown LA, San Diego, and the Inland Empire.

Despite its convenient location, the tenant base is mostly comprised of lo-cal businesses and distribution facilities. Very few industrial properties in West Rancho Dominguez exceed 200,000 SF, and many lack sufficient clear heights, dock ratios, and other amenities necessary for modern logistics operations. There is a dense concentration of older industrial parks, how-ever.

Vacancies are tight here, thanks in part to a limited development pipeline. The only project to complete last year was a 112,000 SF speculative distri-bution facility in Gardena. The project delivered in December and was still seeking a tenant at the turn of the year.

Rent growth has been decelerating recently, as it has across LA. Gains stand at 3.9% over the past four quarters, in line with the wider L.A. average.

Only about 20 sales took place in 2019, a notable slowdown from the past two years. The largest trade of the year took place in September when Shop-core Properties acquired a 146,000 SF warehouse for $44.3 million, or about $300/SF. The property was owned and is occupied by AT&T, which leased back the building following the sale. The asset was part of a 33-prop-erty portfolio of AT&T owned and occupied assets that the telecom compa-ny put on the market in mid-2019.

In March, electric car maker Faraday Future sold their headquarters facil-ity, comprised of a 124,000 flex building and a 21,000 SF office building, to Atlas Capital Group for $29 million. The flex asset was valued at roughly $18.7 million.

FOURTH QUARTER 2019WEST RANCHO DOMINGUEZ SUBMARKET INDUSTRIAL OVERVIEW

Sales Attributes Low Average Median High

Sale Price $950,000 $7,934,327 $3,557,500 $44,300,000

Price Per SF* $135 $212 $237 $303

Time Since Sale in Months 0.2 5.1 4.6 11.2

Property Attributes Low Average Median High

Building SF 3,332 40,510 16,542 210,710

Ceiling Height 13' 17'2" 16' 32'

Docks 0 2 1 14

Year Built 1960 1972 1969 2012

SALE COMPARABLES SUMMARY STATISTICS

M A R K E T O V E R V I E W 25

Current Quarter RBA Vacancy Rate Market Rent Availability Rate Net Absorption SF Deliveries SF Under Construction

Logistics 16,022,213 2.3% $0.99 4.6% (19,466) 0 0

Specialized Industrial 8,980,946 1.1% $0.90 2.1% 5,048 0 0

Flex 486,410 0.8% $1.40 0.8% 0 0 0

Submarket 25,489,569 1.9% $0.97 3.6% (14,418) 0 0

Annual Trends 12 Month Historical Average

Forecast Average Peak When Trough When

Vacancy Change (YOY) -1.0% 3.0% 2.1% 5.7% 2011 Q1 1.1% 2001 Q4

Net Absorption SF 365 K 88,113 (13,222) 630,063 2005 Q4 (414,147) 2003 Q2

Deliveries SF 112 K 108,452 74,990 383,666 2017 Q1 0 2019 Q3

Rent Growth 3.9% 3.8% 2.3% 9.4% 2016 Q2 -5.3% 2009 Q4

Sales Volume $120 M $78.7M N/A $172.8M 2019 Q3 $12.4M 2010 Q1

KEY INDICATORS

LEASING VACANCY RATE

2014 2015 2016 2017 2018 2019

12%

10%

8%

6%

4%

2%

0%

SUBMARKET TRENDS

Specialized Industrial Logistics Flex West Rancho Dominguez Los Angeles

MARKET RENT PER SF

2014 2015 2016 2017 2018 2019

$1.60

$1.40

$1.20

$1.00

$0.80

$0.60

$0.40

Specialized Industrial Logistics Flex West Rancho Dominguez Los Angeles

SALES VOLUME & PRICE PER SF

2014 2015 2016 2017 2018 2019

$260 $240 $220 $200 $180 $160 $140 $120 $100

Sales Volume West Rancho Dominguez Price/SF Los Angeles Price/SF

Mar

ket S

ale

Pric

e/SF

$80 $70 $60 $50 $40 $30 $20 $10 $0

Sales Volume in M

illions

EXCLUSIVELY LISTED BY:

D E R E K S T E P H E N SNational Office and Industrial Properties Group

(213)943-1857 directderek.stephens@marcusmillichap.com

License: CA 01941251

Z A C H A R Y Z A N E L L ONational Office and Industrial Properties Group

(213)943-1842 directzachary.zanello@marcusmillichap.com

License: CA 02076813

Marcus & Millichap515 South Flower Street

Suite 500Los Angeles, CA 90071

L O S A N G E L E S , C A 9 0 0 6 1

13103 SOUTH BROADWAY