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4108 Deeboyar Ave Positioning Analysis

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MARKETING & POSITIONING ANALYSIS<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


CONFIDENTIALITY & DISCLAIMER<br />

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving<br />

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<br />

Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the<br />

subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation,<br />

and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance<br />

of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos,<br />

the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects<br />

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<br />

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<br />

herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the<br />

accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.<br />

NON-ENDORSEMENT NOTICE<br />

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of<br />

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,<br />

its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing<br />

tenant lessee information about this listing to prospective customers.<br />

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.


CONTENTS<br />

PROPERTY DESCRIPTION........................................................................................................................5<br />

FINANCIAL ANALYSIS..............................................................................................................................11<br />

COMPARABLES.......................................................................................................................................... 21<br />

MARKET OVERVIEW.................................................................................................................................29<br />

MARKETING PLAN.....................................................................................................................................37


PROPERTY DESCRIPTION<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


INVESTMENT SUMMARY<br />

THE OFFERING<br />

Property Address<br />

<strong>4108</strong> <strong>Deeboyar</strong> <strong>Ave</strong>nue<br />

Lakewood, CA 90712<br />

Units 12<br />

Rentable SF 10,382<br />

Lot Size (SF) 18,137<br />

Year Built 1978<br />

APN 7151-008-046<br />

UTILITIES<br />

Electric<br />

Gas<br />

Water<br />

Trash<br />

Tenant<br />

Tenant<br />

Landlord<br />

Landlord<br />

HIGHLIGHTS<br />

nn<br />

Four One-Bedroom Units and Eight Two-Bedroom Units<br />

CONSTRUCTION<br />

nn<br />

nn<br />

Significant Rental Upside | 20-25 Percent<br />

19 Enclosed and Detached Revenue-Generating Garages<br />

Foundation<br />

Framing<br />

Exterior<br />

Concrete<br />

Wood<br />

Stucco<br />

nn<br />

nn<br />

All Units Separately Metered for Gas and Electricity<br />

Repositioning Opportunity to Surrounding Market Levels<br />

Roof<br />

Flat<br />

Parking Spaces<br />

19 Garages<br />

6


Marcus & Millichap is pleased to present <strong>4108</strong> <strong>Deeboyar</strong> <strong>Ave</strong>nue, a 12-unit apartment complex located in the city of Lakewood, California. The subject property<br />

consists of two buildings totaling 10,382 square feet on a large 18,137-square foot lot. The subject property also has 19 detached garages available to tenants,<br />

which along with laundry generate $1,100 per month. Parking is in high demand in the area; an immediately adjacent property charges its tenants $100 per<br />

month for two-car carports.<br />

The property features a favorable unit mix: four one-bedroom/one-bath, four two-bedroom/one-and-three quarter bath, and six two-bedroom/one-and-one half<br />

bath units. Many units feature outdoor patios, and all have access to the well-maintained courtyard.<br />

As one of the relatively few apartment communities in Lakewood, <strong>4108</strong> <strong>Deeboyar</strong> <strong>Ave</strong>nue benefits from its unique location. Overall, the city is a predominantly<br />

owner-occupied (approximately 72 percent), single-family community: 85 percent of its housing units are single-family detached homes. The property is highly<br />

visible from Carson Street, a busy transportation artery with over 30,000 cars passing per day. Marketing could benefit from a rental sign on its exterior immediately<br />

facing Carson Street.<br />

The property is surrounded by multiple larger apartment complexes, many of which have recently undergone significant rehabilitation and set a clear market for<br />

peak rents. While <strong>4108</strong> <strong>Deeboyar</strong> <strong>Ave</strong>nue may not have the common area amenities of its local competitive set, it is perfectly positioned as a secondary, slightly<br />

lower cost option for local tenants. Market rents of surrounding buildings are approaching $1,800 for two-bedroom units and $1,450 for one-bedroom units.<br />

After repositioning, the subject property could demand rates accordingly.<br />

<strong>4108</strong> <strong>Deeboyar</strong> <strong>Ave</strong>nue is an ideal opportunity to purchase a well-maintained asset in a high-demand rental area, with significant long-term appreciation and<br />

cash flow potential.<br />

7


8<br />

LOCATION


SUBJECT PROPERTY<br />

CARSON STREET<br />

PARAMOUNT BOULEVARD<br />

9


FINANCIAL ANALYSIS<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


FINANCIAL SUMMARY<br />

<strong>4108</strong> DEEBOYAR AVENUE<br />

LAKEWOOD, CA 90712<br />

Price $2,725,000<br />

Units 12<br />

Rentable SF 10,382<br />

Price/Unit $227,083<br />

Price/SF $262.47<br />

Lot Size (SF) 18,137<br />

Year Built 1978<br />

VITAL DATA<br />

Net Operating Income (Historic) $116,558<br />

Cap Rate (Historic) 4.28%<br />

GRM (Historic) 15.48<br />

Net Operating Income (Current) $116,558<br />

Cap Rate (Current) 4.28%<br />

GRM (Current) 15.48<br />

Net Operating Income (Market) $157,693<br />

Cap Rate (Market) 5.79%<br />

GRM (Market) 12.48<br />

12


HISTORIC<br />

ANNUALIZED OPERATING DATA<br />

CURRENT<br />

(PRO FORMA)<br />

PRO FORMA<br />

(MARKET)<br />

All Units at Market Rent $175,992 $218,400 $218,400<br />

Less: Loss to Lease $0 $42,408 $0<br />

Gross Potential Rent $175,992 $175,992 $218,400<br />

Less: Vacancy Reserve $5,280 $5,280 $6,552<br />

Other Income $13,200 $13,200 $13,200<br />

Gross Operating Income $183,912 $183,912 $225,048<br />

Less: Expenses $67,355 $67,355 $67,355<br />

NET OPERATING INCOME $116,558 $116,558 $157,693<br />

13


INCOME & EXPENSES<br />

SCHEDULED INCOME<br />

UNITS<br />

TYPE<br />

HISTORIC<br />

RENT<br />

MONTHLY<br />

TOTAL<br />

CURRENT<br />

(PRO FORMA) RENT<br />

MONTHLY<br />

TOTAL<br />

4 1BR / 1 BA $975 $3,900 $1,300 $5,200<br />

6 2 BR / 1.5 BA Townhome $1,323 $7,938 $1,600 $9,600<br />

2 2 BR / 1.75 BA $1,414 $2,828 $1,700 $3,400<br />

12 TOTAL $14,666 $18,200<br />

EXPENSES<br />

HISTORIC<br />

CURRENT<br />

(PRO FORMA)<br />

PRO FORMA<br />

(MARKET)<br />

Real Estate Taxes $33,580 $33,580 $33,580<br />

Insurance $3,526 $3,526 $3,526<br />

Utilities $8,475 $8,475 $8,475<br />

Repairs & Maint $7,040 $7,040 $7,040<br />

Marketing $880 $880 $880<br />

Management Fee $8,800 $8,800 $10,920<br />

Pest Control $600 $600 $600<br />

Landscaping $2,054 $2,054 $2,054<br />

CAPEX/Reserves $2,400 $2,400 $2,400<br />

Total $67,355 $67,355 $67,355<br />

Per Unit $5,613 $5,613 $5,613<br />

Per SF $6.49 $6.49 $6.49<br />

14


RENT ROLL<br />

UNIT<br />

NO.<br />

UNIT<br />

TYPE<br />

CURRENT<br />

RENT<br />

PRO FORMA<br />

RENT<br />

1 1BR / 1 BA $975 $1,300<br />

2 1BR / 1 BA $975 $1,300<br />

3 1BR / 1 BA $975 $1,300<br />

4 1BR / 1 BA $975 $1,300<br />

5* 2BR / 1.5 BA $1,272 $1,600<br />

6* 2BR / 1.5 BA $1,350 $1,600<br />

7* 2BR / 1.5 BA $1,317 $1,600<br />

8* 2BR / 1.5 BA $1,375 $1,600<br />

9* 2BR / 1.5 BA $1,272 $1,600<br />

10* 2BR / 1.5 BA $1,350 $1,600<br />

11 2BR / 1.75 BA $1,428 $1,700<br />

12 2BR / 1.75 BA $1,400 $1,700<br />

12 TOTAL $14,664 $18,200<br />

*Townhome-style unit<br />

15


NOTES<br />

INCOME<br />

Pro forma rents represent all units at adjusted market rents. Market rent levels underwritten using comparable market rents and assumes<br />

that the buyer will continue to upgrade the units to market levels, with similar features, upgrades, and amenities as surrounding area properties.<br />

OTHER INCOME<br />

Other Income is based on a current parking rent roll and historic monthly laundry operations. Laundry income is underwritten at $250 per<br />

month, and garages at $850 per month.<br />

ECONOMIC LOSSES<br />

Pro forma vacancy loss is underwritten at 3%, which is common for an asset located in this area. Loss-to-lease is underwritten as market<br />

rents, less the properties current rent roll.<br />

REAL ESTATE TAXES<br />

Real Estate Taxes are calculated on proposed pricing at an ad valorem rate of 1.124997% on the full value of the land and improvements<br />

and $2923.91 for special assessments which was obtained from the LA County Tax Assessors Office.<br />

INSURANCE<br />

Pro forma insurance is underwritten as provided from historical operations.<br />

UTILITIES<br />

Pro forma utilities is underwritten as provided from historical operations.<br />

REPAIRS & MAINTENANCE<br />

Pro forma repairs and maintenance is underwritten as provided from historical operations, and is well over $500 per unit, a standard R&M<br />

expense for an asset of this size and age.<br />

MARKETING<br />

Pro forma marketing is underwritten as 0.5% of current gross potential rent. The property currently does not have a marketing program or<br />

expense in place.<br />

MANAGEMENT FEE<br />

Pro forma management fee expense is underwritten as 5% of gross potential rent which is industry standard for an asset of this size in this<br />

location.<br />

LANDSCAPING<br />

Pro forma landscaping is underwritten as provided from historical operations.<br />

CAPEX/RESERVES<br />

Pro forma replacements and reserves is underwritten at $200 per unit, and represents industry standards for an asset of this size and age.<br />

16


10-YEAR CASH FLOW<br />

INCOME<br />

1 2 3 4<br />

DEC-16 DEC-17 DEC-18 DEC-19<br />

All Units at Market Rent $218,400 $224,952 $231,701 $238,652<br />

Gain (Loss)-to-Lease ($42,408) ($33,926) ($25,445) ($16,963)<br />

GROSS POTENTIAL RENT $175,992 $191,026 $206,256 $221,688<br />

GROSS POTENTIAL INCOME $175,992 $191,026 $206,256 $221,688<br />

Vacancy/Collection Allowance * ($5,280) ($5,731) ($6,188) ($6,651)<br />

Other Income $13,200 $13,596 $14,004 $14,424<br />

EFFECTIVE GROSS INCOME $183,912 $198,891 $214,072 $229,462<br />

EXPENSES<br />

Real Estate Taxes $33,580 $33,580 $33,580 $33,580<br />

Insurance $3,526 $3,632 $3,741 $3,853<br />

Utilities $8,475 $8,729 $8,991 $9,261<br />

Repairs & Maintenance $7,040 $7,251 $7,469 $7,693<br />

Marketing & Promotion $880 $906 $934 $962<br />

Management Fee $9,195.61 $9,945 $10,704 $11,473<br />

Pest Control $600 $618 $637 $656<br />

Landscaping $2,054 $2,116 $2,179 $2,244<br />

Replace & Reserves $2,400 $2,472 $2,546 $2,623<br />

TOTAL EXPENSES $67,751 $69,249 $70,780 $72,344<br />

NET OPERATING INCOME $116,162 $129,642 $143,292 $157,118<br />

18


5 6 7 8 9 10<br />

DEC-20 DEC-21 DEC-22 DEC-23 DEC-24 DEC-25<br />

$245,811 $253,185 $260,781 $268,604 $276,663 $284,962<br />

($8,482) $0 $0 $0 $0 $0<br />

$237,330 $253,185 $260,781 $268,604 $276,663 $284,962<br />

$237,330 $253,185 $260,781 $268,604 $276,663 $284,962<br />

($7,120) ($7,596) ($7,823) ($8,058) ($8,300) ($8,549)<br />

$14,857 $15,302 $15,761 $16,234 $16,721 $17,223<br />

$245,066 $260,892 $268,719 $276,781 $285,084 $293,637<br />

$33,580 $33,580 $33,580 $33,580 $33,580 $33,580<br />

$3,969 $4,088 $4,210 $4,337 $4,467 $4,601<br />

$9,539 $9,825 $10,120 $10,423 $10,736 $11,058<br />

$7,924 $8,161 $8,406 $8,658 $8,918 $9,186<br />

$990 $1,020 $1,051 $1,082 $1,115 $1,148<br />

$12,253 $13,045 $13,436 $13,839 $14,254 $14,682<br />

$675 $696 $716 $738 $760 $783<br />

$2,312 $2,381 $2,453 $2,526 $2,602 $2,680<br />

$2,701 $2,782 $2,866 $2,952 $3,040 $3,131<br />

$73,943 $75,578 $76,837 $78,135 $79,472 $80,849<br />

$171,123 $185,315 $191,882 $198,645 $205,612 $212,788<br />

19


COMPARABLES<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


SALES COMPARABLES<br />

5<br />

2<br />

1<br />

3<br />

4<br />

22


1<br />

2<br />

SUBJECT PROPERTY<br />

<strong>4108</strong> DEEBOYAR AVENUE<br />

LAKEWOOD, CA 90712<br />

20702 SEINE AVENUE<br />

LAKEWOOD, CA 90715<br />

181628 ARLINE AVENUE<br />

ARTESIA, CA 90701<br />

Price $2,725,000<br />

Units 12<br />

Price/Unit $227,083<br />

Price/SF $262.47<br />

Cap Rate 4.28%<br />

GRM 15.48<br />

Year Built 1978<br />

Sale Date 5/15/2015<br />

Price $1,790,000<br />

Units 7<br />

Price/Unit $255,714<br />

Price/SF $214.99<br />

Cap Rate 4.68%<br />

GRM 13.65<br />

Year Built 1988<br />

Sale Date 9/30/2015<br />

Price $1,150,000<br />

Units 5<br />

Price/Unit $230,000<br />

Price/SF $271.74<br />

Cap Rate<br />

N/A<br />

GRM<br />

N/A<br />

Year Built 1977<br />

UNITS<br />

TYPE<br />

4 1BR / 1 BA<br />

6 2BR / 1.5BA<br />

2 2 BR / 1.75 BA<br />

UNITS<br />

TYPE<br />

6 2BR / 2 BA<br />

1 3BR / 2 BA<br />

UNITS<br />

TYPE<br />

4 2BR / 1 BA<br />

1 3BR / 1 BA<br />

23


SALES COMPARABLES<br />

3<br />

4<br />

5<br />

4303 ELM AVENUE<br />

LONG BEACH, CA 90807<br />

3810 MARRON AVENUE<br />

LONG BEACH, CA 90807<br />

9316 PALM STREET<br />

BELLFLOWER, CA 90706<br />

Sale Date 2/11/2015<br />

Price $2,800,000<br />

Units 14<br />

Price/Unit $200,000<br />

Price/SF $226.39<br />

Cap Rate 5.10%<br />

GRM 12.48<br />

Year Built 1987<br />

Sale Date 11/3/2015<br />

Price $1,430,000<br />

Units 7<br />

Price/Unit $204,286<br />

Price/SF $215.75<br />

Cap Rate<br />

N/A<br />

GRM<br />

NA<br />

Year Built 1953<br />

Sale Date 1/21/2015<br />

Price $3,900,000<br />

Units 16<br />

Price/Unit $243,750<br />

Price/SF $239.70<br />

Cap Rate 4.94%<br />

GRM 13.77<br />

Year Built 2004<br />

UNITS<br />

TYPE<br />

10 2BR / 2 BA<br />

4 3BR / 2 BA<br />

UNITS<br />

TYPE<br />

4 1BR / 1 BA<br />

3 2BR / 1 BA<br />

UNITS<br />

TYPE<br />

16 2BR / 2 BA<br />

24


PRICE/UNIT<br />

CAP RATE<br />

PRICE/SF<br />

GRM<br />

25


RENT COMPARABLES<br />

3<br />

4<br />

6<br />

1<br />

2<br />

5<br />

26


1<br />

2<br />

3<br />

2425 CARSON STREET<br />

LAKEWOOD, CA 90712<br />

4101 DEEBOYAR AVENUE<br />

LAKEWOOD, CA 90712<br />

2301 MARKET STREET<br />

LONG BEACH, CA 90805<br />

UNIT TYPE<br />

RENT<br />

1BR / 1 BA $1,245<br />

2BR / 1 BA $1,545<br />

UNIT TYPE<br />

RENT<br />

1BR / 1 BA $1,450<br />

2BR / 1.5 BA* $1,695<br />

2BR / 2 BA $1,750<br />

UNIT TYPE<br />

RENT<br />

2BR / 2.5BA $1,650<br />

4<br />

5<br />

6<br />

4701 CLAIR DEL AVENUE<br />

LONG BEACH, CA 90807<br />

2525 CARSON STREET<br />

LAKEWOOD, CA 90712<br />

4130-4124 PIXIE AVENUE<br />

LAKEWOOD, CA 90712<br />

UNIT TYPE<br />

RENT<br />

1BR / 1 BA $1,400<br />

2BR / 1 BA $1,635<br />

UNIT TYPE<br />

RENT<br />

1BR / 1 BA $1,247<br />

2BR / 1 BA $1,527<br />

UNIT TYPE<br />

RENT<br />

1BR / 1 BA $1,250<br />

27


28<br />

AVERAGE RENTS


MARKET OVERVIEW<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


DEMOGRAPHIC SUMMARY<br />

POPULATION<br />

In 2014, the population in your selected geography is 705,418. The population has changed by 3.42% since 2000. It is estimated that the population<br />

in your area will be 710,809 five years from now, which represents a change of 0.76% from the current year. The current population is 48.86% male<br />

and 51.13% female. The median age of the population in your area is 33.3, compare this to the Entire US average which is 37.3. The population<br />

density in your area is 8,980.74 people per square mile.<br />

HOUSEHOLDS<br />

There are currently 234,549 households in your selected geography. The number of households has changed by 4.65% since 2000. It is estimated<br />

that the number of households in your area will be 237,225 five years from now, which represents a change of 1.14% from the current year. The<br />

average household size in your area is 2.95 persons.<br />

INCOME<br />

In 2014, the median household income for your selected geography is $49,716, compare this to the Entire US average which is currently $51,972.<br />

The median household income for your area has changed by 27.17% since 2000. It is estimated that the median household income in your area<br />

will be $58,606 five years from now, which represents a change of 17.88% from the current year.<br />

The current year per capita income in your area is $23,906, compare this to the Entire US average, which is $28,599. The current year average<br />

household income in your area is $71,117, compare this to the Entire US average which is $74,533.<br />

RACE & ETHNICITY<br />

The current year racial makeup of your selected area is as follows: 43.15% White, 14.04% Black, 1.15% Native American and 13.14% Asian/Pacific<br />

Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.<br />

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 45.95% of the current year population in your<br />

selected area. Compare this to the Entire US average of 17.13%.<br />

EMPLOYMENT<br />

In 2014, there are 228,741 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 58.45%<br />

of employees are employed in white-collar occupations in this geography, and 41.53% are employed in blue-collar occupations. In 2014, unemployment<br />

in this area is 10.61%. In 2000, the average time traveled to work was 30.1 minutes.<br />

30


1 Mile 3 Miles 5 Miles<br />

2000 Population 16,701 210,341 682,037<br />

2010 Population 17,640 217,007 687,961<br />

2014 Population 18,009 221,749 705,418<br />

2019 Population 18,137 223,514 710,809<br />

2000 Households 6,622 70,567 224,112<br />

2010 Households 6,700 71,382 225,797<br />

2014 Households 6,937 73,841 234,549<br />

2019 Households 6,982 74,483 237,226<br />

2014 <strong>Ave</strong>rage Household Size 2.60 2.97 2.95<br />

2014 Daytime Population 5,722 79,673 228,742<br />

2000 Owner Occupied Housing Units 59.98% 53.37% 43.58%<br />

2000 Renter Occupied Housing Units 36.67% 42.84% 52.07%<br />

2000 Vacant 3.34% 3.79% 4.35%<br />

2014 Owner Occupied Housing Units 59.63% 54.19% 44.49%<br />

2014 Renter Occupied Housing Units 40.37% 45.81% 55.51%<br />

2014 Vacant 0.90% 1.84% 2.77%<br />

2019 Owner Occupied Housing Units 59.58% 54.12% 44.35%<br />

2019 Renter Occupied Housing Units 40.42% 45.88% 55.65%<br />

2019 Vacant 0.77% 1.73% 2.70%<br />

$ 0 - $14,999 7.6% 11.8% 13.8%<br />

$ 15,000 - $24,999 7.4% 10.0% 11.7%<br />

$ 25,000 - $34,999 7.5% 9.3% 10.7%<br />

$ 35,000 - $49,999 13.8% 13.4% 14.1%<br />

$ 50,000 - $74,999 17.7% 18.6% 17.7%<br />

$ 75,000 - $99,999 14.7% 12.5% 11.6%<br />

$100,000 - $124,999 11.7% 9.4% 8.0%<br />

$125,000 - $149,999 7.3% 5.7% 4.6%<br />

$150,000 - $199,999 7.3% 5.2% 4.4%<br />

$200,000 - $249,999 1.8% 1.6% 1.3%<br />

$250,000 + 3.3% 2.6% 2.2%<br />

2014 Median Household Income $68,951 $56,666 $49,717<br />

2014 Per Capita Income $35,292 $26,325 $23,907<br />

2014 <strong>Ave</strong>rage Household Income $91,550 $78,558 $71,118<br />

Demographic data © 2012 by Experian.<br />

31


32<br />

POPULATION DENSITY


EMPLOYMENT DENSITY<br />

33


34<br />

AVERAGE HOUSEHOLD INCOME


TOTAL CRIME RISK<br />

35


36<br />

TRAFFIC COUNTS


MARKETING PLAN<br />

<strong>4108</strong> DEEBOYAR AVENUE | LAKEWOOD, CA


MARKETING PLAN<br />

LEAVING NO STONE UNTURNED IN MARKETING YOUR PROPERTY<br />

nn<br />

nn<br />

nn<br />

Expert Underwriting<br />

Access To More Investors Than Any Other Source<br />

A Tightly Managed Marketing Campaign<br />

At Marcus & Millichap, our mission is to help each client achieve their investment<br />

goals. Through our investment expertise and extensive research capabilities, our<br />

agents develop optimal positioning, pricing and marketing strategies for each<br />

property.<br />

While experience and knowledge of a market creates value in the representation of<br />

a client, the quality of exposure to the marketplace determines the final outcome.<br />

Marcus & Millichap’s time-tested marketing system ensures that each listing will<br />

be presented to an expanded marketplace, creating the broadest buyer interest<br />

and maximizing value for our clients.<br />

EXPOSURE | EXPERTISE | RESULTS<br />

38


INVESTOR PROFILES<br />

There are three primary investor tiers in the marketplace, and Marcus & Millichap has<br />

the track record and relationships to effectively access each of these buyer pools.<br />

investor profiles<br />

1<br />

1st-Tier Investors<br />

This group consists of pension<br />

funds, advisors, banks, REITs and<br />

life insurance companies that tend<br />

to own large portfolios with<br />

properties in multiple markets<br />

nationwide. They typically focus on<br />

larger properties in major markets.<br />

Through our national specialty<br />

groups, Marcus & Millichap<br />

maintains long-term relationships<br />

with these investors. We frequently<br />

facilitate transactions that bring<br />

institutions and private investors<br />

together.<br />

2<br />

2nd-Tier Investors<br />

Professional investors who focus<br />

the majority of their time actively<br />

operating and selling investment<br />

properties, such as syndicators,<br />

developers, merchant builders and<br />

general partnerships, are included<br />

in this group. These investors<br />

typically focus within a region,<br />

investing in larger properties and<br />

larger markets than 3rd-Tier<br />

investors.<br />

3<br />

3rd-Tier Investors<br />

PAYS<br />

HIGHEST<br />

PRICE<br />

This group, mostly private,<br />

individual investors, typically<br />

acquires one or two properties per<br />

year. Many of these investors<br />

operate below other broker’s radar<br />

screens. Marcus & Millichap has<br />

relationships with the industry’s<br />

largest pool of 3rd-Tier investors,<br />

who account for the lion’s share of<br />

transactions in the market and are<br />

instrumental in driving value in<br />

the market.<br />

39


ACHIEVING OPTIMAL RESULTS<br />

LARGEST BUYER POOL<br />

Our clients receive access to<br />

thousands of investors who are in<br />

constant dialogue with our sales<br />

force. The sheer size and market<br />

reach of our sales force, the largest<br />

nationally, generates marketing<br />

momentum for each property we<br />

represent.<br />

REAL-TIME MARKETING<br />

Each property we represent is<br />

matched against our active buyer<br />

database through a sophisticated,<br />

proprietary system, MNet. The<br />

system automatically starts a<br />

perpetual, real-time search for<br />

qualified investors.<br />

maximizing<br />

value<br />

ADVERTISING<br />

Marcus & Millichap actively<br />

advertises its exclusive property<br />

listings in national, regional, and<br />

local publications to expand the<br />

exposure to potential investors.<br />

INTERNAL NETWORK<br />

We leverage our entire sales force<br />

through regional meetings, teleconferences<br />

and multi-media presentations<br />

to maximize exposure. We are a<br />

dominant participant in industry<br />

trade shows and conferences and<br />

spare no effort in reaching potential<br />

buyers.<br />

DIRECT MARKETING<br />

We have more than 40 years of<br />

relationships with the industry’s<br />

largest pool of qualified investors.<br />

Our clients trust in our ability and<br />

success at creating value for them<br />

with each transaction.<br />

BROKERAGE COMMUNITY<br />

Through cutting-edge marketing<br />

tools, we utilize the entire brokerage<br />

community to access potential<br />

buyers. Listing websites, professional<br />

brochures, e-presentations and e-mail<br />

campaigns are used to access buyers<br />

and brokers.<br />

40


THE OFFERING MEMORANDUM<br />

A complete Offering Memorandum is prepared immediately after execution of the<br />

“Exclusive Right to Sell” agreement. Thereafter, we distribute a detailed information<br />

package to sales professionals in our offices throughout the United States.<br />

Offering Memorandum Contents:<br />

nn<br />

nn<br />

nn<br />

nn<br />

nn<br />

nn<br />

Property Description-Overview, Highlights, Summary, Photos, Maps, Site<br />

Plan, Floor Plans, Aerial Photos, etc.<br />

Market Profile-MSA and Local Market Overviews<br />

Rent Comparables-Summary, Graphs and Map<br />

Recent Sales-Summary, Graphs and Map<br />

Financial <strong>Analysis</strong>-Argus Modeling, 10-Year Cash Flow Projection, Tenant<br />

Summary and Lease Abstract, Income & Expense Summary<br />

Demographic Information-Summary of Local Market Population’s Statistical<br />

Characteristics, Reports, Maps<br />

41


ELECTRONIC MARKETING & DEAL PORTAL<br />

MARKETING BUDGET - PLANNING FOR SUCCESS<br />

Marcus & Millichap designs its marketing budget to effectively target<br />

the right pool of investors. Employing cutting-edge marketing tools<br />

and state-of-the-art communications, we ensure the broadest possible<br />

exposure for each listing.<br />

EMPHASIS ON CLIENT COMMUNICATION - LIAISON<br />

Marcus & Millichap emphasizes proactive transaction management<br />

and client communication. We will give you regular updates on the<br />

pending sale of your asset. These reports will include progress status<br />

of interested parties, objections from uninterested parties, marketing<br />

activity updates and copies of all advertisements and dates when<br />

placed.<br />

Clients also have the option of utilizing Marcus & Millichap’s Marketing<br />

Liaison. This Web-based collaboration platform provides clients the<br />

convenience of online access to transaction progress reports and<br />

documents on a 24/7 basis. Agents and clients can also use the<br />

secured Internet meeting place as another means of communication.<br />

42


TIMELINE<br />

43


MAXIMUM EXPOSURE<br />

INTERNAL INFORMATION SHARING<br />

- MNet<br />

Each listing is entered into Marcus & Millichap’s proprietary property<br />

database (MNet) and the information is instantaneously transmitted<br />

to the firm’s nearly 1,500 agents throughout the U.S. and Canada.<br />

Employing the “Buyer Needs” function of MNet, an agent specifies<br />

a client’s property investment criteria; when a matching property is<br />

listed, the agent is immediately notified.<br />

- Sales Meetings<br />

At our weekly local office sales meetings, a PowerPoint presentation<br />

will promote the property to the entire sales force. Agents will be<br />

instructed on how to reinforce the property’s strong points and overcome<br />

any shortcomings. Properties are further promoted internally<br />

through our monthly property specialty group conference calls, where,<br />

for example, members of our National Multi Housing Group or National<br />

Retail Group confer on market trends and investment opportunities.<br />

DIRECT MARKETING<br />

Offering memorandums and promotional materials are utilized to<br />

present the opportunity to a broad base of investors. Using “My<br />

Marketplace,” an automated Web application, Marcus & Millichap<br />

agents can easily produce high-quality marketing materials and get<br />

properties to market quicker. Through MNet’s “Buyer Needs” function<br />

and their personal databases of investor relationships, our investment<br />

professionals identify qualified potential buyers. After specific<br />

investors are identified, a direct marketing campaign is initiated, which<br />

includes mailings followed by personal contact with each potential<br />

buyer.<br />

44


ADVERTISING<br />

Marcus & Millichap actively advertises its exclusive property listings in national, regional and local publications to expand the exposure to potential<br />

investors.<br />

INVESTOR SYMPOSIUMS<br />

Marcus & Millichap’s local offices host regular investor symposiums throughout the United States. These invitation only events feature property<br />

presentations where the merits of each investment opportunity are discussed with the large group of qualified investors in attendance.<br />

BROKER COOPERATION<br />

We contact all brokers who possess the expertise and qualifications to contribute to a property’s marketing. These contacts include brokers who<br />

have been involved in the sale of similar types of properties within the past 24 months and brokers who represent clients qualified to acquire such<br />

properties. As part of our initial marketing campaign, a mailer serves to notify qualified brokers of the offering.<br />

INTERNET<br />

Marcus & Millichap utilizes the vast reach of the Internet to ensure maximum exposure of a listing. With the seller’s permission, exclusive listings<br />

are promoted through the Marcus & Millichap website.<br />

INDUSTRY EVENTS AND TRADE SHOWS<br />

Marcus & Millichap is a leading participant and sponsor of key real estate industry events, the majority of which are organized by property type. Our<br />

commitment to industry events and our presence at key gatherings of investors result in additional exposure of investment properties to potential<br />

investors. Our agents and management interact with the nation’s most prominent investors, as well as numerous local investors, at events such<br />

as ICSC, NAIOP, NMHC, ULI, Inside Self-Storage, ALFAA, AAHOA and Western Manufactured Housing.<br />

45


THE INDUSTRY’S MOST...<br />

COMPREHENSIVE SUPPORT SYSTEMS<br />

PRODUCTION<br />

Marketing Material<br />

Advertising<br />

Direct Marketing<br />

On-Site Tour Coordination<br />

Due Diligence Packaging<br />

Broker Correspondence<br />

Progress Updates<br />

TRANSACTION TEAM<br />

44 Years of Investment Real Estate<br />

Experience<br />

Property Specialization<br />

Local Market Expertise<br />

Local/National Marketing<br />

Investor Relationships<br />

Expert Valuation<br />

Proactive Negotiation<br />

Transaction Management<br />

RESOURCES OF<br />

AN INDUSTRY<br />

leader<br />

MAJOR ACCOUNT SERVICES<br />

Property Brochures<br />

Property Marketing Packages<br />

High-End Postcards<br />

Electronic Marketing Materials<br />

Customized Marketing Materials<br />

Financial Modeling<br />

RESEARCH<br />

Market <strong>Analysis</strong><br />

Submarket <strong>Analysis</strong><br />

Supply-Demand <strong>Analysis</strong><br />

Demographic <strong>Analysis</strong><br />

Economic <strong>Analysis</strong><br />

Overview Reports<br />

TECHNOLOGY<br />

MNet = 1,500+ Agents<br />

My Marketplace<br />

Liaison<br />

E-Brochure<br />

iMpact<br />

Internet Marketing<br />

Automated Buyer Match<br />

MMCC FINANCING<br />

Capital Markets Access<br />

Special Loan Programs<br />

Lender Affiliates<br />

Underwriting<br />

Asset Evaluation<br />

Buyer Qualification<br />

Transaction Management<br />

Funding<br />

46


POWERFUL MARKETING PLATFORM<br />

INTERNAL MARKETING<br />

MNet = 1,500+ Agents<br />

Sales Meetings<br />

Regional Office Presentation<br />

Buyer Needs<br />

Specialty Group Conference Calls<br />

EXTERNAL MARKETING<br />

Advertising<br />

Cooperating Brokers<br />

E-Brochure<br />

Executive Summary<br />

Investor Symposiums<br />

Offering Memorandum<br />

Property Tours<br />

maximizing<br />

value<br />

FOR EACH PROPERTY<br />

ADVERTISING<br />

National Publications<br />

Targeted Local Publications<br />

Business Journals<br />

Trade Publications<br />

Internet<br />

FOLLOW THROUGH<br />

Property Tours<br />

Multiple Offers<br />

Offer Summary<br />

Qualify Buyers<br />

Transaction Management<br />

DIRECT MARKETING<br />

Postcards<br />

E-Brochure<br />

Executive Summary<br />

Offering Memorandum<br />

E-Presentation<br />

ACCOUNTABILITY<br />

Liaison (Collaboration Website)<br />

Written Updates<br />

Marketing Timeline<br />

Copies of Marketing Materials<br />

47


EXCLUSIVELY LISTED BY<br />

STEVE “BOGIE” BOGOYEVAC<br />

First Vice President Investments<br />

(562) 257-1231<br />

steve.bogoyevac@marcusmillichap.com<br />

BRETT SANSON<br />

Senior Associate<br />

(818) 212-2785<br />

brett.sanson@marcusmillichap.com

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