O F F E R I N G M E M O R A N D U M

D O W N T O W N R E T A I LI N V E S T M E N T O P P O R T U N I T Y

Plaza De La Fiesta H U N T I N G T O N P A R K , C A

Designated Opportunity Zone InvestmentSee Page 13 For Details

Click Here To View Property Drone Video

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap, Inc.

2Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

H U N T I N G T O N P A R K , C A

PLAZA DE LA FIESTA

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

Exclusively Listed By

Aria Pournazarian National Retail Group Downtown L.A. Office (213) 943-1874 direct aria.pournizarian@marcusmillichap.com License: CA 01918248

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct ron.duong@marcusmillichap.com License: CA 01438643

Ben Carlile Associate National Retail Group (949) 419-3304 direct ben.carlile@marcusmillichap.com License: CA 01949032

Joseph Lising First Vice President Investments National Retail Group (949) 419-3227 direct joseph.lising@marcusmillichap.com License: CA 01248258

Rainier Nanquil Associate Net Leased Properties Group (949) 419-3206 direct rainier.nanquil@marcusmillichap.com License: CA 01946959

3Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Executive Summary

4Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Executive Summary

Long-Term Operating History

Excellent tenant operating history - nearly 70% of the tenants have occupied the subject property for 8+ years, proving their commitment to the location 100% leased asset with major retail tenants including Yoshinoya (31+ years of occupancy), Baskin Robbins (13+ years of occupancy), and H. Kings Buffet (15+ years of occupancy)

Strong Real Estate Fundamentals Extremely dense, infill location with over 1,115,942 population within a five-mile radius Phenomenal average daily population of over 445,000 within three miles Multiple points of ingress and egress located on Florence Avenue, Rita Ave-nue, and Seville Avenue Unique three-building layout promoting positive co-tenant synergy and fu-ture repositioning for a wide variety of retail uses

Exceptional Opportunity Located in the Heart of Downtown Huntington Park High identity, signalized corner location at the intersection of Rita Ave-nue and Florence Avenue, with significant exposure and visibility from both pedestrian and vehicular traffic

Florence Avenue (daily traffic counts exceed 32,000 cars per day) is one of Huntington Park’s main retail thoroughfares, with multiple LA Metro bus stops in the immediate vicinity of the property

The subject property is located within the Downtown Huntington Park Area, which includes other major retail tenants such as In-n-Out, Starbucks, Chase Bank, and Rite Aid, Bank of America. The Downtown submarket is heavily patronized by local residents and the tremendous workforce in Huntington Park, giving tenants stable and reliable business on a daily basis

Close proximity to Pacific Boulevard, one of Los Angeles County’s top retail corridors. It consistently reports high levels of foot traffic, and is recognized as the area’s premier shopping and retail thoroughfare

Pacific Boulevard Retail/Medical/Office Center - Additional investment opportunity also available for sale in close proximity to the subject property. Please contact Agents for more details.

Prime Southern California Retail Opportunity

1,115,942 Population in a Five-Mile Radius

City-owned Parking Garage located adjacent to the Subject Prop-erty offers 250 additional parking spots available to the public, allowing for an excellent consumer shopping experience

Offered free and clear of debt at a 5.69% cap rate with excellent financing options available (7.01% cash on cash return in year 1)

Located in Huntington Park’s Opportunity Zone, which pro-motes strong potential for future developments and improve-ments to the submarket - please see page 13 for more details

5Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

PODIATRIST

APPARALREPAIR

PAWNSHOP

MEDICALCLINIC

CHECKCASHING

WALNUTMARKET

DOWNTOWN HUNTINGTON PARK

FLORENCE AVE

DOWNTOWN LOS ANGELES

SEVILL

E AVERITA AVE

162 UNITAPARTMENTS

79 UNITCONDOS

PHARMACY

250 PUBLICPARKING STALLS

PACIFIC BLVD.RETAIL-MEDICALALSO AVAILABLE

CONTACT AGENTSFOR DETAILS

INSURANCE

WESTERNUNION

Florence Light Rail Station63,000+ Daily Ridership

KINGSBUFFET

PHARMACY

CALEB’SWIRELESS

SPORTWEAR

BRIDALSALON

SubjectProperty

Slauson Light Rail Station62,000+ Daily Ridership

ACHCOLLEGE

DENTALLAND

Executive SummaryAerial Photo - Northwest(See Property Description Section for Additional Aerial Photos)

Click Here To View Property Drone Video

6Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Real Estate Taxes (1.3817% + $5,290) $216,688

Insurance $36,198

Water $26,121

Electric $16,192

Trash $14,471

Landscaping $7,004

Janitorial $3,257

Plumbing $5,150

Pest Control $3,852

Supplies $1,133

Repairs & Maintenance (Incl. $25,000 Reserve) $68,342

Maintenance Labor $18,540

Security $72,594

Management 5% / $46,155

TOTAL EXPENSES $535,697

Expenses/SF $13.99

Expenses

Financial Analysis Annualized Operating DataGross Potential Rent $923,099

Expense Reimbursements $526,955

Gross Potential Income $1,450,054

Vacancy/Collection Allowance 3% / $43,502

Effective Gross Income $1,406,552

Total Expenses $535,697

NET OPERATING INCOME $870,855

Debt Service (Year 1) $484,704

Cash Flow After Debt Service $386,151

CASH ON CASH RETURN (YEAR 1) 7.01%

Offering SummaryProperty Address 2661-2667 E. Florence Avenue

& 7119 Seville Avenue

Huntington Park, CA 90255

Assessor’s Parcel Number 6322-025-046/047/048/049

Current Occupancy 100%

Year Built 1966/1988/1993

Gross Leasable Area (GLA) ±38,284 Square Feet

Lot Size ±2.44 Acres (±106,375 Square Feet)

Parking Ratio 4.13:1,000 SF

Price $15,300,000

Cap Rate 5.69%

Price Per Square Foot $399.64

Pricing

Proposed Financing Information (New Loan)Down Payment 36% / $5,508,000

LTV/Loan Amount 64% / $9,792,000

Interest Rate 4.95%

Amortization 30 Years

Term 15 Years

Program Fixed for 7 Years

Interest Only for 3 Years

*Loan information is time sensitive and subject to change.

**In-place debt may be assumed by potential investors, offering higher leverage, no as-sumption fees and below-market interest rates. Contact Agents for more details.

***Additional financing options with lower interest rates and higher loan to value (70%) but no interest only period available - please contact Agents for more details.

7Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

SUITE TENANT NAMESQUARE

FEETPERCENT

OF GLATENANCY EXPIRES

MONTHLYRENT

RENTPER SF

INCREASESLEASETYPE

OPTIONS

A-A Baskin Robbins 966 2.52% 14 Years 12/31/2024 $1,911.92 $1.98 2% Annual NNN One, Seven-Year

A-B Cure4Feet Podiatry Group 1,183 3.09% 5 Years 04/30/2020 $2,135.37 $1.81 3% Annual NNN None

A-D H. Kings Buffet 10,987 28.70% 16 Years 12/31/2026 $23,164.48 $2.11 2% Annual NNN One, 10-Year

A-E Guadalupana - Nueva Vida 207 0.54% 11 Years 12/31/2019 $934.65 $4.52 3% Annual NNN None

A-F Alteraciones de Ropa Veloz 198 0.52% 3 Years 03/31/2019 $618.00 $3.12 3% Annual FSG None

A-G Income Tax/Travel Agency 265 0.69% 3 Years 12/31/2020 $682.95 $2.50 3% Annual FSG None

A-H Madam's Beauty Salon 174 0.45% 10 Years 08/31/2020 $476.22 $2.74 2% Annual NNN One, Five-Year

A-C1 Cingular Staffing 1,432 3.74% 7 Years 04/30/2020 $2,550.49 $1.78 3% Annual NNN None

A-D2 Pizza Restaurant 1,425 3.72% 1 Year 12/31/2026 $2,406.17 $1.69 2% Annual NNN One, Fifteen-Year

B-A Clinica Dental De Santa Mina 1,064 2.78% 24 Years 04/30/2024 $1,825.24 $1.72 3% Annual NNN One, Five-Year

B-B Gloria's Restaurant 1,073 2.80% 1 Years 08/31/2019 $1,273.45 $1.19 2% Annual NNN None

B-C CitiStaff Solutions Inc 1,005 2.63% 4 Years 03/31/2019 $1,326.41 $1.32 None NNN None

B-D Cameron Pharmacy 2,500 6.53% 14 Years 06/30/2019 $4,908.54 $1.96 3% Annual NNN One, Seven-Year

B-E Maytag Lavanderia 3,040 7.94% 7 Years 09/30/2021 $5,631.78 $1.85 3% Annual NNN Two, Five-Year

B-F Siete 7 Market 3,060 7.99% 8 Years 11/30/2023 $3,144.35 $1.03 3% Annual NNN One, Five-Year

C-A Hot Mariscos 1,675 4.38% 4 Years 10/31/2024 $3,963.68 $2.37 2% Annual NNN One, Ten-Year

C-B Los Pochos Restaurant 1,200 3.13% 1 Years 02/28/2023 $1,592.83 $1.33 3% Annual NNN One, Five-Year

C-C Youngevity 90 Vida 1,500 3.92% 1 Years 11/30/2019 $2,104.05 $1.36 3% Annual NNN None

C-D Freeway Insurance 1,200 3.13% 7 Years 05/31/2019 $3,084.24 $2.57 3% Annual NNN None

C-E1 Hashtag Coffee & Tea 750 1.96% 2 Years 04/30/2021 $1,709.14 $2.26 CPI Annual (3% Min) NNN One, Three-Year

C-E2 Fiesta Threading 750 1.96% 1 Years 06/30/2020 $1,328.95 $1.77 3% Annual NNN None

C-F1 Tropical Tours 630 1.65% 3 Years 08/31/2019 $1,152.00 $1.83 N/A NNN None

C-F2 Yoshinoya 2,000 5.22% 31 Years 07/31/2023 $9,000.00 $4.50 2% Annual NNN Two, Five-Year

# of Tenants: 23

Total Available:Total Occupied

0 SF38,284 SF

0%100%

Monthly:Annual:

$76,924.91$923,098.92

Average: $2.01/ SF

Financial AnalysisRent RollAs of February 1, 2019 for 38,284 Square Feet

*Lease extension pending. Please contact Agents for more details.

8Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Property Description

9Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

PACIFIC BLVD

FLORENCE AVE

SubjectProperty

17,000 +VPD

32,000 + VPD

AGENDAAUTO

GGBOUTIQUE

INCOMETAX

CHECKSCASHED

250 PUBLICPARKING STALLS

79 UNITCONDOS

162 UNITAPARTMENTS

PACIFIC BLVD.RETAIL-MEDICALALSO AVAILABLE

CONTACT AGENTSFOR DETAILS

FINEDISCOUNT

CASA DECAFE PIBE

SPORTSMICHAEL’SBOUTIQUE

UNITELLERTRAVEL

KING’SBUFFET

TROPICALTOURS

BARRERATAX

20/20 BAR& GRILL

CALEB’SWIRELESS

EL CHAMIZALRESTAURANT

MEDICALCLINIC

DENTALLAND

Property DescriptionAerial Photo - Northeast

Click Here To View Property Drone Video

10Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

RITA

AV

E

250 PUBLICPARKING STALLS

FLORENCE AVE

SEV

ILLE

AV

EPAC

IFIC

BLV

D

32,000+ VPD

MICHAEL’SBOUTIQUE

ALL

EYW

AY

ALL

EYW

AY

BBVABANCOMER

SIGUEMONEY

PHARMACY NAILSALON

17,0

00+

VPD

PAWNSHOP

MEDICALCLINIC

PAWNSHOP

CHECKCASHING

SIGNSTORE

PIBESPORTS

Yoshinoya

Viajes Income Tax

Fiesta Threading

Hashtag Co�ee

Freeway Insurance

Nutrition

Los Pochos

Hot Mariscos

Bask

in R

obbi

ns

Dia

betic

Sho

es

Job

Sour

ce

King

’s Bu

�et

Arc

ade

Gam

ing

Pizz

a

Dan

iel M

arke

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May

tag

Lava

nder

ia

Cam

eron

Pha

rmac

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CitiS

ta�

Solu

tions

Inc

Glo

ria’s

Rest

aura

nt

Den

tal

Natural Supplements

Income TaxAgency

Tailor

Beauty Salon

DENTALLAND

Property DescriptionAerial Photo - Birds-Eye View

11Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057*Site Plan is for representation purposes only and is not to scale.

Property DescriptionSite Plan

FLORENCE AVE

CF-2

CE-2CE-1

C-D

C-C

C-B

C-A

A-A

A-C

A-C

1A-DA-D

1A

-D2

RITA

AV

E

SEV

ILLE

AV

E

A-H

ALL

EYW

AY

A-F

A-G

A-E

SIG

N

ALL

EYW

AY

B-A

B-B

B-C

B-D

B-E

B-F

CF-1

TENANT OVERVIEW

Suite Tenant SF

A-A Baskin Robbins 966

A-C Cure4Feet Podiatry Group 1,183

A-D H. Kings Buffet 10,987

A-E Guadalupana - Nueva Vida 207

A-F Alteraciones de Ropa Veloz 198

A-G Income Tax/Travel Agency 265

A-H Madam's Beauty Salon 174

A-C1 Cingular Staffing 1,432

A-D2 Pizza Restaurant 1,425

B-A Clinica Dental De Santa Mina 1,064

B-B Gloria's Restaurant 1,073

B-C CitiStaff Solutions Inc 1,005

B-D Cameron Pharmacy 2,500

B-E Maytag Lavanderia 3,040

B-F Siete 7 Market 3,060

C-A Hot Mariscos 1,675

C-B Los Pochos Restaurant 1,200

C-C Youngevity 90 Vida 1,500

C-D Freeway Insurance 1,200

C-E1 Hashtag Coffee & Tea 750

C-E2 Fiesta Threading 750

C-F1 Tropical Tours 630

C-F2 Yoshinoya 2,000Note: Site plan is for reference purposes only and is not to scale.

12Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Market Overview

13Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Opportunity Zones

History & Overview During December 2017, Congress established the Tax Cut and Jobs Act as an innovative approach to spur long-term investment into low-income urban and rural communities. The program is based on the Investing in Opportunity Act. The program is a vehicle for investors with capital gains tax liabilities across the country to receive favorable tax treatment for investing in Opportunity Funds that are certified by the U.S. Treasury Department.

These Opportunity Funds use the capital invested to make equity investments in businesses and real estate in Opportunity Zones designated by each state. It is estimated that the private investment sector currently holds more than $2.3 trillion in unrealized capital gains. This represents a significant resource for economic develop-ment, as the Opportunity Funds will allow these investors throughout the country to deploy their capital as Opportunity Zone investments.

Market OverviewNEW Program Connecting Low Income Communities with Private Investment

Investment Length Benefits Received

Fewer than 5 years Deferred payment of existing capital gains until date the Opportunity Fund investment is sold or exchanged

5 - 7 years Includes benefits of Fewer than 5 years, plus 10% of tax on existing capital is canceled

7 - 10 years

Deferred payment of existing capital gains until Devember 31, 2026 or the date that the opportunity Fund investment is sold or exchanged, plus 15% of tax on existing capital

gain is canceled

Greater than 10 yearsIncludes benefits of 7-10 year investment,

plus investments are exempt from any capital gains beyond those which were previously deferred

OPPORTUNITY FUND REQUIREMENTS: Investments must be made in Qualified Opporunity Funds to receive above benefits.

Must be certified by the U.S. Treasury Department.

Must be organized as a corporation or partnership for the purpose of investing in Qualified Opportunity Zone Property.

Must hold at least 90% of their assets in Qualified Opportunity Zone Property.

Qualified Opportunity Zone property includes newly issued stock, partnership interests, or business property in a Qualified Opportunity Zone business.

Opportunity Fund investments are limited to equity investments in businesses, real estate, and business assets that are located in a Qualified Opportunity Zone. Opportunity Fund investments in real estate are subject to a substantial rehabilitation requirement.

Note: This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property.

Subject Property

The subject property is located in Opportunity Zone Tract #06037533103.

14Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Location Overview

The City Of Huntington Park

Named for prominent industrialist Henry E. Huntington, Hun-tington Park was incorporated in 1906 as a streetcar suburb for workers in the rapidly expanding industries housed to the south-east of downtown Los Angeles.

One of about two dozen municipalities known as the “Gateway Cities” in southeast Los Angeles County, located approximately

five miles from Downtown Los Angeles. To this day, about 30% of its residence work at factories in nearby Vernon and Commerce.

The stretch of Pacific Boulevard in downtown Huntington Park was a major commercial district serving the city’s largely working-class residents, as well as those of neighboring cities such as Bell, Cudahy, South Gate, and Downey. Pacific Boulevard, which expanded as the city’s commercial hub in the 1930s, is now a thriving retail strip serving residents throughout southeastern Los Angeles County.

The changes that shaped Los Angeles from the late 1970s onward—the decline of American manufacturing that began in the 1970s; the rapid growth of newer suburbs in Orange County, the eastern San Gabriel, western San Fernando and Conejo valleys; the collapse of the aerospace and defense industry at the end of the Cold War; and the implosion of the Southern California real estate boom in the early 1990s ultimately resulted in the wholesale departure of virtually all of the white population of Huntington Park by the mid-1990s. The vacuum was filled almost entirely by two groups of Latinos: upwardly mobile families eager to leave the barrios of East Los Angeles, and recent Mexican immigrants. Today, Pacific Boulevard is once again a thriving commercial strip, serving as a major retail center for working-class residents of southeastern Los Angeles County—but unlike its previous heyday of the 1930s, the signs along the avenue’s storefronts are now primarily in Spanish.

Source: https://en.wikipedia.org/wiki/Huntington_Park,_California

Market Overview

Los Angeles

Around Town

Commute To Downtown Los Angeles

Anaheim San Diego Santa Monica Riverside

6 miles

22 miles

116 miles

19miles

59 miles

30min

20min

30min

Distance To

15Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

Carnaval PrimaveraOne of Southern California’s largest Three-Day Spring Festivals, “Carnaval Primavera Downtown Festival” is presented in the month of April. The major Hispanic Market event attracts thousands of attendees to the downtown area. “Carnaval Primavera” offers a large Hispanic Market for Corporations to promote their services and products, with over 100 corporate exhibits, retail commercial booths, food, arts & crafts, a free health fair, children’s mask contest, a main stage for live entertainment and two areas of amusement rides for all ages. Source: www.wikipedia.org/wiki/Dodger_Stadium

Location Overview

Universal Studios Hollywood is a film studio and theme park in the San Fernando Valley area of Los Angeles County, California. About 70% of the studio lies within the unincorporated county island known as Universal City while the rest lies within the city limits of Los Angeles, California. Universal Studios is the first of many full-fledged Universal Studios Theme Parks located across the world. The park hosted approximately 8,100,000 guests last year, showing a 14% growth rate from 2016, ranking it 15th in the world and 9th among North American parks. Source: http://justfunfacts.com/interesting-facts-about-universal-studios-hollywood/

Dodger Stadium is a baseball park located in the Elysian Park neighborhood of Los Angeles, California, the home field to the Los Angeles Dodgers, the city’s Major League Baseball franchise. Opened 56 years ago on April 10, 1962, it was constructed in less than three years at a cost of US$23 million, financed by private sources. Dodger Stadium is currently the oldest ballpark in MLB west of the Mississippi River. Source: www.wikipedia.org/wiki/Dodger_Stadium

Staples CenterStaples Center, officially stylized as STAPLES Center, is a multi-purpose arena in Downtown Los Angeles. Adjacent to the L.A. Live development, it is located next to the Los Angeles Convention Center complex along Figueroa Street. The arena opened on October 17, 1999, and is one of the major sporting facilities in the Greater Los Angeles Area. Staples Center is only a part of a 4,000,000-square-foot development by Anschutz Entertainment Group (AEG) adjoining Staples Center and the Los Angeles Convention Center. The development, known as L.A. Live, broke ground on September 15, 2005. Source: www.wikipedia.org/wiki/Staples_Center

Surrounding Local Attractions

Universal Studios Dodger Stadium

16Plaza De La Fiesta | Marcus Millichap | Activity ID: ZAA0100057

POPULATION 1-MILE 3-MILES 5-MILES

2022 Population 65,328 437,961 1,100,020

2017 Population 67,627 445,620 1,115,942

2010 Population 65,626 430,201 1,073,158

2000 Population 67,325 422,462 1,040,912

HOUSEHOLDS 1-MILE 3-MILES 5-MILES

2000 Households 16,099 98,606 251,713

2010 Households 16,153 100,768 260,951

2017 Households 16,623 103,899 270,717

2022 Households 16,654 105,127 275,453

INCOME 1-MILE 3-MILES 5-MILES

$150,000 or More 2.68% 2.17% 2.57%

$100,000 - $149,000 7.31% 6.86% 6.84%

$75,000 - $99,999 8.23% 8.98% 8.67%

$50,000 - $74,999 16.22% 17.17% 16.68%

$35,000 - $49,999 18.62% 17.04% 16.06%

Under $35,000 46.93% 47.78% 49.15%

Average Household Income $49,075 $48,272 $48,536

Median Household Income $36,885 $36,659 $35,675

Demographic Summary

Market Overview

1,115,942 Population in a Five-Mile Radius

HUNTINGTON PARK GENERAL INFORMATION

Incorporated 9/1/1906

Form of Government Five-Member Council

City Area-Square Miles 3.003

Huntington Park Registered Voters 19,466

Average Household Income $37,711

City Flower Poinsettia

Summer Average Temperature 84°

Winter Average Temperature 65°

Annual Rainfall 15"

Elevation 170'

Latitude 33°59'N

Longitude W118° 13'W

Population (2017 Census) 61,348

Listed by Exclusively

Plaza De La Fiesta Retail Investment Opportunity

O F F E R I N G M E M O R A N D U M

2661-2667 E. Florence Avenue& 7119 Seville Avenue

Huntington Park, CA 90255

Aria Pournazarian National Retail Group Downtown L.A. Office (213) 943-1874 direct aria.pournizarian@marcusmillichap.com License: CA 01918248

Ron Duong Senior Vice President Investments Senior Director, National Retail Group (949) 419-3233 direct ron.duong@marcusmillichap.com License: CA 01438643

Ben Carlile Associate National Retail Group (949) 419-3304 direct ben.carlile@marcusmillichap.com License: CA 01949032

Joseph Lising First Vice President Investments National Retail Group (949) 419-3227 direct joseph.lising@marcusmillichap.com License: CA 01248258

Rainier Nanquil Associate Net Leased Properties Group (949) 419-3206 direct rainier.nanquil@marcusmillichap.com License: CA 01946959