Stakeholder Analysis In order for this development to be successful we have to sell our idea to many government and non-profit organizations. CBRE is the listing agent - we will need them to be fully invested in our proposal because we need their patience while we get approval from LA’s community development, city planning, and housing resource departments. We will show all the stake-holders that we will excite the sidewalk, improve the building, and the neighborhood.

Power of 10 "It’s not enough to have just one great place in a neighborhood - you need a number of them to create a truly lively city or town." -PPS Density Los Angeles is the most populous city in California and the second most populous in America. In fact, Los Angeles was ranked the most dense city in America by the last census. People are always walking the streets making it a very desirable place to be for young professionals. Music Downtown LA is filled with concert houses and music clubs. Beatles “Blue Jay Way,” Crosby Stills & Nash’s “Our House,” and the Doors’ “Love Street” were all written about locations in the Hollywood Hills. People Every neighborhood has a great mix of diversity and culture. In addition, downtown Los Angeles is known for it's celebrities and high-net-worth individuals. You never know who you will run into while getting your morning coffee. Mixed use - Live/Work/Play Environment Downtown Los Angeles is notorious for its live/work/play environment. Within just minutes of the ComEx buliding iare restaurants, transit stops, and nightlife. Nonprofit Organizations The numerous nonprofits in Los Angeles create a sense of community by bringing its citizens togather for a common goal. For example, ‘ThinkLA’ hosts numerous events annually to better the image of Los Angeles. Tourist Destination Santa Monica, Hollywood, Culver City, West Hollywood, Century City, and Malibu are all nearby and are all famous tourist spots. Culture Los Angeles is the "creative capital of the world" because one out of every six six of its residents works in a creative industry. USC Stevens Institute for Innovation says, "There are more artists, writers, filmmakers, actors, dancers and musicians living and working in Los Angeles than any other city at any time in the history of civilization." Upscale LifeStyle Los Angeles offers its citizens a luxury lifestyle. From spas to high- rise penthouses to hospitality, LA is the place to be to be treated like a king or queen. Walkability & Transit Revolution The ComEx building has a walkscore of 92 which is reffered to as a "Walker's paradise". Los Angeles has a visionary mayor with a vision. He plans to add a mass-transit streetcar to make LA America's next great mass-transit city as well. Entertainment - media, sports, museums Last but not least Los Angeles is known for its slogan as "The entertainment capital of the world". This is attributed to Hollywood and the prominent radio, television, music, and filmmaking attractions in the area.

SWOT/ Circle of Risks S trength: *Great walkability with accessible mass transit. *LA is the most populous city in California and second most populous city in USA. *High rents *Historic tax credits. *This is a corner property with the tallest vertical sign in LA. O pportunity: *Distressed seller offers an opportunity to buy at a discounted price. *We believe we are hitting the real estate cycle in the right market with the right product at the right time. *There is a planned downtoan L.A. Street car. It is planned to be a modern, fixed-rail streetcar for downtown transportation - The worst property in the best neighborhood. It was rated one of "Downtown's 10 Worst Eyesores" W eakness: *Building has years of deferred maintenance and is vacant. *High renovation costs T hreats: Circle of Risks - And How We Combat Them 1. Economic growth: We are coming out of the bottom of a deep economic cycle and purchasing the property at a discount. 2. Environmental: We will get an extensive environmental analysis done (Phase I & II) because the building has been vacant. The listing agent does not have any environmental concerns. 3. Market Research: LA has one of the highest job growth and fastest growing populations in the country. Rents provide the returns we need. 4. Architecture & Design: Great design can double the profit margin. This is a historic building with great character. With some street appeal we will take advantage of the building’s design by exciting the sidewalk and creating a sense of community and pride for our residents. 5. Construction Costs: We have compared multiple construction estimates and created a sensitivity analysis. 6. Political Approvals: We will work with members of our stakeholder analysis and explain to them why rezoning the building will be beneficial for the government, community, and us as developers especially since there is not enough residential living in downtown. 7. Social & Community Goals: Los Angeles wants to grow its downtown for young professionals and we will help them do this. 8. Equity & Loans: 9. Taxes: We expect there to be major tax reform coming in the near future because of the fiscal cliff. Due to the the uncertainty of the economy, we think putting our money in urban real estate for long term cash flow is the best option (even though we show that we sell the building in a few years). 10. Sales & Leasing: We hope to pre-lease our office & retail space. There is more demand than supply for residential so we hope to capitalize on this. 11. Property & Asset Management: We will hire a property manager for daily management and leasing of the property. 12. Legal & Relationships: All four members will have an equal share of the entity with the option to be bought out if a diputes arises. 13. Personal & Family: Since we are all young professionals, we believe this is the best time for us to get started. We do not have families yet so we can work the long nights and weekends to really make this property succeed.

Residential Comparables

Retail and Commercial Comparables