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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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 />
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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