A Publication By Tony Maniscalchi, SIOR & Michael Maniscalchi, SIOR Stevenson Real Estate Services

Full Service Real Estate Brokerage FIRST QUARTER 2016

IN THIS ISSUE

Multifamily For Sale $23,000,000 Property Assets of Verdugo Mesa Corporation

The Offering: Tony Maniscalchi and Michael Maniscalchi have been selected to represent Verdugo Mesa Corporation and are seeking qualified buyers for its corporation containing the following assets: 1) Verdugo Mesa Apartments, 4221 - 4285 Verdugo Road, Los Angeles, CA 90065, 132 Units, 2A) 241 and 241 1/2 North Verdugo Road, Glendale, CA 91206, 1 - Duplex, 2B) 243 North Verdugo Road, Glendale, CA 91206, 1 - Single Family Residential, 3) 1322 East California Avenue, Glendale, CA 91206, 1 - Single Family Residential, 4) 1214 Romulus Drive, Glendale, CA 91205, 1 - Single Family Residential, and 5) 10915 Eldora Avenue, Sunland, CA 91040, 1 - Single Family Residential.

The total annual gross income for these assets is approximately $1,830,602 and is being offered for

sale at $23 million. We believe based on market information that there is a significant upside in

rents available for investors and qualified operators.

The intended transaction will be in the form of a stock transaction or merger between Verdugo

Mesa Corporation and any interested entity. This will not be a direct or traditional sale of real

estate. Because there are numerous shareholders of the corporation, we anticipate that the form

of the transaction will require a reverse subsidiary merger for cash. The purchase agreement will

provide for customary representations, warranties, covenants, and agreements from the

corporation.

For further information, please direct your attention to http://VerdugoMesaApartments.com/

The website will provide more detail and, for interested and qualified buyers, a confidential

disclosure agreement will be needed in order to provide financial statements and balance sheets of

Verdugo Mesa Corporation.

PAGE

Available Properties 1-4, 6

Glendale Retail 1,300 SF For Lease

2

1031 Exchanges 2

13 Warren Buffett Quotes

2-3

Closed/Pending Transactions

2-5

Sun Valley Industrial Unit A: 2,200 SF Unit C: 2,200 SF For Lease

3

Glendale Industrial 5,850 SF, 6,600 SF & 8,600 SF For Lease

3

Montrose Retail 5,280 SF For Lease

4

Burbank Office 1,403 SF For Sublease

4

Glendale Industrial 24,640 SF For Lease

6

Systems Property Management

Pullout

Tony Maniscalchi, SIOR President BRE #: 00630926 818.956.7001, x26 Maniscalchi@SBCGlobal.net

Michael Maniscalchi, SIOR Vice President BRE #: 01097943 818.956.7001, x35 MikeM@StevensonRealEstate.com

The information in this newsletter together with any projections or other data has been furnished from sources which we deem reliable, but for which we assume no liability, expressed or implied. Interested parties to conduct independent investigation of all information.

STEVENSON REAL ESTATE SERVICES 1111 North Brand Boulevard, Suite 200 ■ Glendale, CA 91202 ■ BRE #: 00983560 StevensonRealEstate.com ■ 818.956.7001

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STEVENSON REAL ESTATE SERVICES

13 Warren Buffett Quotes For Real Estate Investors

If you follow the news, it’s likely that you’ve become concerned about the state of today’s housing market. And it’s no wonder. Just open up the real estate section of any paper, and you’ll see nothing but negative headlines. To prove my point, here are some recent headlines: “Foreclosure Crisis Continues,” “Home Prices Tumble,” “Housing Woes Won’t End Soon.” I could go on. I’m not saying that these headlines and articles provide false information. For the most part, their statements are true. But what I am saying is that you should not be using this information to make your personal investing decisions. You must ask yourself: Am I investing in a market? Or am I investing in a DEAL? If the deal is right and your exit strategy is clear, then the market conditions become much less relevant.

For guidance on investing in troubled times, who better to turn to than Warren Buffett? I’ve taken 13 famous Warren Buffett quotes and listed them below. Then, I’ve translated them into practical advice for real estate investors like you. Let’s get going…

Quote #1: “Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it.” REI Translation: Today’s market fluctuations are your friend because they’ve scared off your competition–other investors. They’re also your friend because the fluctuations have created a flood of motivated sellers. And as any savvy investor knows, buying from motivated sellers is the only way to make it in this business.

Quote #2: “Only when the tide goes out do you discover who’s been swimming naked.” REI Translation: Keep plenty of tools (investing techniques) in your tool belt so that you can adapt to a changing market. What worked best in 2006 doesn’t work best in today’s market. Today, we’re seeing first hand that those with only one investing strategy are taking a beating.

Quote #3: “Our favorite holding period is forever.” REI Translation: To build true long-term wealth, you must buy and hold real estate.

Quote #4: “Risk comes from not knowing what you’re doing.” REI Translation: Those who don’t know how to properly analyze, enter and exit real estate transactions think today’s market is risky. Those who fully

Please see Warren Buffett, Page 3

1031 Exchanges 5 Things To Know About 1031 Like-Kind Exchanges 1. Section 1031, which allows for “like-kind exchanges,” has been in the tax code since 1924, with the most recent significant modification in 1991. It is a very well-established provision. 2. A 1031 like-kind exchange is not a tax “loophole,” but rather a deferral – the owner pays tax on the property when it is ultimately sold for cash, as opposed to when it is exchanged for another property. 3. Any cash you receive as part of the deal – for example, if the property you receive is valued lower than the one you exchange it for and you receive cash for the difference – is taxed as partial sales proceeds (usually at the capital gains rate). 4. 1031 exchanges are only allowed for investment or business property, but in some cases can be used for properties such as vacation homes, and for tenants in common real estate. 5. Timing is important. A “replacement property” must be designated within 45 days of the sale of your property, and you must close the deal on the new property within six months (180 days) of designating it. Source: Commercial Connections, Summer 2015 by Erin Stackley, Commercial Legislative Policy Representative, NAR

I

LEASED $1.25/SF, G

3332 Eagle Rock Boulevard Los Angeles, CA 90065

Industrial 3,180 SF Building On Part of a Larger

Parcel of Land Six (6) Parking Spaces

Excellent Exposure Minutes from the 2 and 5 Freeways

SOLD 2113 & 2121 N. San Fernando Rd.

Los Angeles, CA 90065 Art Deco Industrial Buildings

18,599 SF Building 22,000 SF Land

Small Fenced Yard in Back Near the L.A. Riverwalk Projects

Close to 110, 5, 2 and 134 Freeways

FOR LEASE $2.46/SF, Commercial/Industrial Gross

418 South Brand Boulevard ■ Glendale, CA 91204 Retail ■ 1,300 SF; Part of a Larger Building

Excellent Street Exposure ■ Near The Americana at Brand

PERSPECTIVE 3

STEVENSON REAL ESTATE SERVICES

‘

Quote #8: “We will reject interesting opportunities rather than over-leverage our balance sheet.” REI Translation: Sometimes the best real estate deals are the ones you don’t make.

Quote #9: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.” REI Translation: If you’re going to hold a property long term, it’s far better to buy a wonderful house at a fair price than a dump at a bargain.

Quote #10: “A public-opinion poll is no substitute for thought.” REI Translation: Most Americans think that now is a risky time to get into real estate investing. Do they know more than you? Most likely not. Only a handful of Americans know the specific techniques for profiting in today’s market. And that’s because they read articles like this, they buy REI courses, they attend their local REI meetings, etc. Most Americans get their “investing tips” from the daily paper. There couldn’t be a worse source. Do you think journalists know how to wholesale houses, do short sales, take over a loan Subject To, etc.? I think not.

Quote #11: “The most important quality for an investor is temperament, not intellect. You need a temperament that neither derives great pleasure from being with the crowd or against the crowd.” REI Translation: Don’t worry what the masses are doing. Follow the advice of successful real estate investors, and use their techniques to profit in today’s market.

Quote #12: “You ought to be able to explain why you’re taking the job you’re taking, why you’re making the investment you’re making, or whatever it may be. And if it can’t stand applying pencil to paper, you’d better think it through some more. And if you can’t write an intelligent answer to those questions, don’t do it.” REI Translation: Every deal must work on paper before it will ever work in real life.

Quote #13: “I really like my life. I’ve arranged my life so that I can do what I want.” REI Translation: Remember, that’s what real estate investing is all about. Arranging your life so that you can do what you want to do when you want to do it. □

Doug Smith has bought and sold over 40 properties using almost every method–wholesaling, rehabbing, landlording, subject to, lease options, and more. He is the founder and president of MyHouseDeals.com, a company that provides a constantly-updated list of bargain-priced investment properties in some of the nation’s largest metro areas.

Source: 13 Warren Buffett Quotes for Real Estate

Investors by Doug Smith, Apartment Owners Association

(AOA) News and Buyers Guide, San Fernando Valley,

June 2015.

13 Warren Buffett Quotes From P. 2

understand the intricacies of creative real estate investing continue to participate and profit.

Quote #5: “I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful.” REI Translation: Now’s the time to buy. In real estate and in life, it’s almost always best to act opposite to the herd.

Quote #6: “Today’s market fluctuations are your friend because they’ve scared off your competition and because the fluctuations have created a flood of motivated sellers. Wide diversification is only required when investors do not understand what they are doing.” REI Translation: Naive people are putting their money into stocks, bonds, and savings accounts right now. Smart people continue to invest in real estate, and they’re picking up more bargains than ever.

Quote #7: “Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good results.” REI Translation: If you’re concerned that you cannot sell for full value, then buy lower – at about 60% of value – and sell lower – at about 90% of value.

T

FOR LEASE $1.10, $1.20 & $1.25/SF, MG 4300, 4310 & 4310A San Fernando Road ■ Glendale, CA 91204

Industrial ■ 5,850 SF, 6,600 SF & 8,600 SF Building On Part of a Larger Parcel of Land

PENDING LEASE 320 West Cerritos Avenue

Glendale, CA 91204 Industrial

9,800 SF Building (Including 1,500 SF Office Space)

15,228 SF Land 16 Parking Spaces

Built in 1988

FOR LEASE $0.80/SF, MG

12165 Branford Street Sun Valley, CA 91352

Industrial Unit A: 2,200 SF & Unit C: 2,200 SF

Both Units Have 13’ Ceiling Height & 1 Loading Door

PERSPECTIVE 4

STEVENSON REAL ESTATE SERVICES

Referrals

It is important to remember that whether or not you have customers (product sales, one time or ongoing) or clients (more commonly associated with services, rather than products), in the end, what you have is people buying from people. And there is no better way to attract new business than to have it referred to you by someone who is already doing business with you.

Stop for a moment and think about how often you make a buying decision because a trusted family member, friend or business associate has made a recommendation. This ranges from “How did you like the movie?” to “Who is your attorney or commercial real estate broker?” If you ask a friend about a new restaurant, the response will go a long way toward determining whether or not your choose to dine there.

The same conversations are happening with regards to your business. You are either being recommended, ignored or, worst possible scenario, dismissed, which leads to the first step in the referral process.

Earn it. If you want people to recommend your business when the opportunity presents itself, or even unsolicited, then you need to earn it. This simply means that you provide a high-quality product or service with excellent customer relations.

Ask for it. This seems to be the one where people slip up.

Either they are embarrassed to ask, afraid to ask (see step one) or think they are too busy to ask. I had one business owner tell me, “I shouldn’t have to ask for referrals. My customers should want to give them.” Maybe, but that’s not the world we live in. Most of us are busy and don’t spend much time, if any, wondering how we can help someone else’s business grow. We are certainly willing to give our thoughts if asked but unprompted, we have far too many other things to worry about.

Reward it. If you want your business to be top-of-mind with your customers, give them a reason to think and speak of you often. The best way to do this is to reward those who take the time to refer business your way. It can be as simple as a thank you (phone, email or a nice card), a gift certificate to a favorite restaurant, a donation to their favorite charity or even a finder’s fee if the sale is substantial. But one way or the other, you need to recognize, thank, reward and encourage those who send you business.

So, if you’re looking for a simple, economical, powerful way to increase your business or income (regardless of what your business is), the easiest way is referrals. Just remember the three steps: earn the referral, ask for the referral and reward those who refer you. □

Source: Scott Harris, Mustang Marketing

SOLD $1,400,000 601 S. Glendale Ave. & 400 E. Chestnut St. ■ Glendale, CA 91204

Auto/Retail ■ 1,568 SF Building on 11,500 SF Land Used as Auto Repair with Four (4) 10’ x 10’ Loading Doors

Potential For Industrial Uses or Medical Conversion

FOR LEASE $1.98/SF, MG 2133 Verdugo Boulevard ■ Montrose, CA 91020

Retail ■ 5,280 SF Building Rare, Clearspan Building with Prime Visibility

13’ Ceiling Height, One (1) Loading Door & Five (5) Parking Spaces

FOR SUBLEASE $1.71/SF, MG 209 East Alameda Avenue ■ Burbank, CA 91502

Office ■ 1,403 SF Low-Rise, 2-Story, Multi-Tenant Building

Near Burbank Media Center ■ Close to 5 & 134 Freeways

SOLD $4,050,000 1139 North Brand Boulevard ■ Glendale, CA 91202

Office/Development Site ■ 4,513 SF Building 22,085 SF Land ■ Rare Owner/User Development Site

First Time on the Market in 60 Years

PERSPECTIVE

SYSTEMS PROPERTY MANAGEMENT (818) 500-4900

Enhance The Value of Your Investment

Systems Property Management maintains a diversified portfolio of properties in North Los Angeles and the Tri-Cities of Glendale, Burbank and Pasadena. Product types include industrial, office and multifamily.

Systems Property Management is a privately held company owned by Tony Maniscalchi, SIOR and Michael Maniscalchi, SIOR, two of the senior brokers at Stevenson Real Estate Services.

We provide over 35 years of experience in commercial, industrial and multifamily properties including development, construction, ownership and management. The management team at Systems will deliver the highest degree of integrity, excellence, teamwork and accountability to all of our clients.

We are experienced specialists in providing efficient, professional management services for properties of nearly any size and use. Services (Partial List) Management Planning & Strategies Full Maintenance & Grounds Supervision Financial Reporting & Accountability Value Add Services Advisory Services Systems Property Management http://www.SystemsPropertyManagement.com (818) 500-4900 Phone (818) 500-4903 Fax The properties below comprise a partial list of properties represented and managed by Systems Property Management.

4570 Colorado Boulevard Los Angeles, CA 90039

66,220 SF Industrial Building on 102,802 SF Land

320 West Cerritos Avenue Glendale, CA 91204

9,800 SF Industrial Building on 15,228 SF Land

4565-4571 Electronics Place Los Angeles, CA 90039

55,600 SF Industrial Building on 104,544 SF Land

421-429 Fernando Court Glendale, CA 91204

15,000 SF Industrial Building

PERSPECTIVE

SYSTEMS PROPERTY MANAGEMENT (818) 500-4900

209 East Alameda Avenue Burbank, CA 91502

15,000 SF Office Building on 24,000 SF Land Low-Rise, 2-Story, Multi-Tenant Building

710 South Central Avenue Glendale, CA 91204

40,461 SF Office Building on 22,618 SF Land

8319, 8321 & 8323 Lankershim Blvd. North Hollywood, CA 91605

3,000 SF Retail On Part of a Larger Parcel of Land 20,000 SF of Land with 1,200 SF of Various Structures

426-434 West Cypress Street Glendale, CA 91204

14,818 SF Industrial Building

425-431 South Victory Boulevard Burbank, CA 91502

8,975 SF of Office/Commercial Buildings

2738 Montrose Avenue Montrose, CA 91020

13,815 SF Multifamily Building on 18,038 SF Land ■ 18 Units

PERSPECTIVE 5

STEVENSON REAL ESTATE SERVICES

112 West Elm Court Burbank

4,250 SF Industrial Represented Seller $1,125,000—SOLD

444 West Cypress Street … Glendale …

20,000 SF Industrial … Represented Landlord & Tenant …

$0.73/SF, NNN—LEASED …

3516-3522 Eagle Rock Boulevard Los Angeles

8,635 SF Retail Represented Landlord & Tenant

$1.10/SF, G—LEASED

1275 Los Angeles Street … Glendale …

10,800 SF Industrial … Represented Landlord & Tenant …

$0.78/SF, NNN—LEASED …

4506 Cutter Street Los Angeles

10,000 SF Industrial Represented Landlord & Tenant

$1.20/SF, G—LEASED

629 Sonora Avenue … Glendale …

5,000 SF Industrial … Represented Landlord & Tenant …

$0.90/SF, G—LEASED …

8323 Lankershim Boulevard North Hollywood

3,000 SF Retail Represented Landlord & Tenant

$1.33/SF, MG—LEASED

11658 Sheldon Street, Unit B … Sun Valley …

2,000 SF Industrial … Represented Landlord … $0.75/SF, G—LEASED …

425 S. Victory Blvd., Suites C & D Burbank

2,000 SF Office Represented Landlord & Tenant

$1.40/SF, MG—LEASED

4526 San Fernando Road … Glendale …

1,900 SF Industrial … Represented Landlord …

$1.11/SF, MG—LEASED …

333 West Cerritos Avenue Glendale

3,950 SF Industrial Represented Landlord $1.11/SF, G—LEASED

2114 Floyd Street … Burbank …

2,283 SF Industrial … Represented Landlord …

$0.98/SF, MG—LEASED …

127 E. Saint Joseph St., Suite 102 Arcadia

1,320 SF Industrial Represented Landlord & Tenant

$0.95/SF, MG—LEASED

209 East Alameda Avenue … Burbank …

180 SF - 2,324 SF Office … Represented Landlord & Tenant …

$1.59/SF - $1.81/SF, MG—LEASED …

SOLD $2,950,000 3022-3034 North Coolidge Avenue ■ Los Angeles, CA 90039

Industrial ■ 10,505 SF of Buildings on 38,796 SF Land

SOLD $2,125,000 10675 Vanowen Street ■ North Hollywood, CA 91505

Industrial Investment ■ 10,080 SF Building on 40,071 SF Land

PERSPECTIVE 6

STEVENSON REAL ESTATE SERVICES

Tony Maniscalchi, SIOR President

BRE #: 00630926 818.956.7001, x26

Maniscalchi@SBCGlobal.net TonyManiscalchi.com

Michael Maniscalchi, SIOR Vice President

BRE #: 01097943 818.956.7001, x35

MikeM@StevensonRealEstate.com MikeManiscalchi.com

Stevenson Real Estate Services Sales ■ Leasing ■ Advisory

1111 N. Brand Blvd., Ste. 200 Glendale, CA 91202

818.956.7001 BRE #: 00983560

StevensonRealEstate.com

Stamp

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IF YOU THINK IT’S EXPENSIVE TO HIRE A PROFESSIONAL,

WAIT UNTIL YOU HIRE AN AMATEUR.

FLEX SPACE, MANUFACTURING OR WAREHOUSE

FOR LEASE $0.82/SF, Industrial Gross 823 Milford Street & 516 Commercial Street ■ Glendale, CA 91203 ■ Flex Space, Manufacturing or Warehouse

24,640 SF Building Total (823 Milford Street is 15,950 SF & 516 Commercial Street is 8,690 SF) Sublease Through 6/30/16 or New Direct Lease ■ Minutes to Studios ■ Adjacent to 5 & 134 Freeways