THE VICTORIAN: AN OFFICE BUILDING INVESTMENT1 9 7 1 7 - 1 9 7 2 5 S H E R M A N W A Y , C A N O G A P A R K , C A 9 1 3 0 6

Bruce FrascoSenior Managing DirectorPhone 818.304.8389Mobile 818.298.2900email bfrasco@cag-re.comLic. #00639403

Commercial Asset Group, Inc.4558 Sherman Oaks Ave, 2nd FloorSherman Oaks, CA 91403 Fax 818.385.1470www.cag-re.comLicense #01876070

Commercial Asset Group and Loramar Equities are pleased to offer “THE VICTORIAN” for sale to a value added Investor, Real Estate Developer or User. Situated along busy Sherman Way in the Winnetka/Canoga Park area of the San Fernando Valley, part of the City of Los Angeles, this 33,970 sq ft. office building offers unique and creative architecture in the form of classic Victorian style. Built in 1982 using steel/wood engineering and with authentic Victorian components, such as doors, windows, stained glass, chandeliers, steel radiators, some of which are over 100 years old were incorporated into the design. This unique building offers all modern conveniences, including sufficient power, fiber optics, business cable, energy saving lighting, water conserving restroom fixtures and drought resistant landscaping. The building materials used in the construction were “renewable and sustainable” long before its current importance to today’s ecology.

THE VICTORIAN is centrally located at Corbin and Sherman Way minutes from Ventura Blvd., 101 Freeway, 405 Freeway, and the 118 Freeway. Additionally, the Metro Rail station is located 10 minutes to the North and the Orange Line park and ride is three (3) minutes to the South. Local bus service is available all day and night along Sherman Way.

The building is offered for sale at $5,825,000 well under its replacement value, and may be suitable for a user/investor to occupy half the building enabling them to take advantage of low SBA loan rates which prevail today. Also there exists the possibility to develop multifamily or senior housing on this 26,382 sq. ft. site while enjoying in place income during the Entitlement period.

Please review the following detailed offering memorandum. We look forward to your questions and comments.

Investment Highlights: • Efficient,highqualityofficebuildingwithstrongidentityandconvenientaccess

• DistinctiveVictorianarchitecture

• Pricedwellbelowreplacementcost

• Nearallservices,restaurants,banksandpublictransportation

• Upside:Thebuildingofferslowerrentsandvalueaddupsideexiststoasavvyinvestor.Additionalshorttermleasesofferanopportunityforauser/investortooccupymorethanhalfthebuilding. A developer may elect to pursue construction of multi-family or senior housing and enjoy in place income while new entitlements are obtained. Existing tenants are creative type financial planners, CPA’s, attorneys, real estate and insurance brokers, non-profits and others who enjoy the uniqueness of this Victorian design.

Asking Price: $5,825,000

Net Rentable Area: +/- 33,970 sq ft

Year Constructed: 1982; Renovated in 2013 and 2014

Number of Buildings: One 3 story, with 4th floor bonus areas

Land Area: +/- 26,382 sq ft on 3 contigious parcels

Percentage Leased: 95%

Parking: Total available 116 spaces at 3.45/1000 ratio

2016 Projected NOI: $388,605

Average Rent: $1.57 PSF

Price Per Square Foot: $171.50

EXECUTIVE SUMMARY1 9 7 1 7 - 1 9 7 2 5 S H E R M A N WAY, W I N N E T K A , C A 9 1 3 0 6

“THE VICTORIAN” is an authentic reproduction of a classic style dating to the 1890s. The building uses authentic design components from old buildings demolished in Los Angeles

famed Bunker Hill and Angeleno Hights area. Doors, windows, stained glass, chandeliers used in construction are over 100 years old. The individual suites throughout the building differ

completely, many offering 14 or 15 foot ceilings, balconies, mezzanines with quarter sawen oak stair casing and custom woodwork, many have sinks or kitchen areas.

Despite its “retro” look, the Victorian offers all modern conveniences including programmable air conditioning, ATT fiber optics, Time Warner Cable, closed circuit Lamaran security,

access control system and Enterguard after hours intercom.

Unlike many office buildings today, as a result of design and architecture, tenant improvements are usually limited to paint and floor coverings upon lease turnover, and at far less cost

than traditional office buildings which may require new walls and remodeling.

This building attracts creative type small businesses, most of whom have stayed here many years. Turnover is low.

DESIGN AND ARCHITECTURE

CONFIDENTIALITY AND EXCEPTION AGREEMENTT H E V I C T O R I A N - 1 9 7 1 7 - 1 9 7 2 5 S H E R M A N WAY, W I N N E T K A , C A 9 1 3 0 6

Commercial Asset Group, LLC and Loramar Equities “Broker” has been retained by 19725 Sherman Way LLC (together with its affiliates, “Owner” to represent the offering of Owner’s interest in the property located at 19717-19725 Sherman Way, Winnetka, CA 91306 collectively, the “Building”. The undersigned (whether one or more, Recipient) hereby acknowledges and agrees that certain confidential information regarding the Building “Confidential Information” has been or may be disclosed to Recipient by Owner or Broker in the future and that such Confidential Information is intended solely for Recipient’s own limited use in considering whether to pursue negotiations to acquire the Building or any portion thereof.

Neither Owner nor Broker nor any of their respective officers, directors, employees or agents has made nor will make any representation or warranty, expressed or implied, as to the accuracy or completeness of the Confidential Information and no legal liability is assumed or shall be implied with respect thereto. The Confidential Information has been or will be gathered from sources that are deemed reasonably reliable, but Owner and Broker do not warrant or represent that the Confidential Information is true or correct. Recipient is strongly advised to verify the Confidential Information independently. Owner and Broker reserve the right to change the price, or any Confidential Information provided or to withdraw the Building or any portion thereof from the market at any time without notice.

Recipient agrees that the Confidential Information provided is confidential, that Recipient will hold and treat it in the strictest of confidence, that Recipient will not, directly or indirectly, disclose or permit anyone else to disclose the Confidential Information to any other person, firm or entity without prior written authorization of Owner and that you will not use or permit to be used, this information in any fashion or manner detrimental to the interest of the Owner or Broker. Photocopying or other duplication of the Confidential Information is strictly prohibited. Recipient agrees not to contact the Owner, tenants, leasing brokers or property management staff of the Building or any portion thereof in connection with recipient’s review of the Confidential Information, without the prior written approval from the Owner, which approval Buyer shall request, and said approval shall not be unreasonably withheld.

While Owner and/or Broker may discuss the purchase and sale of the Building or any portion thereof with Recipient, either Owner or Broker, in their sole and absolute discretion, may terminate discussions at any time and for any reason or for no reason. Recipient acknowledges that Owner has no obligation to discuss or agree to the sale of the Building or any portion thereof. The discussions may be lengthy and complex, notwithstanding that Owner, Broker and/or Recipient may reach one or more oral understandings or agreements on one or more issues they are discussing, neither Owner nor Broker nor Recipient shall be bound by any oral agreement of any kind and no rights, claims, obligations or liabilities of any kind, either expressed or implied, shall arise or exist in favor of or be binding upon either Owner or Broker except to the extent expressly set out in a written agreement signed by the party to be bound. Recipient understands that Broker has no power or authority to bind Owner to any agreement.

Recipient is advised that Broker is acting on behalf of Owner in connection with the sale of the Building. Should the Recipient elect to have representation by a Co-broker, Recipient hereby agrees that any fees earned by or owed to Co-broker in connection with any sale of the Building or any portion thereof to Recipient or its affiliate will be paid wholly by Owner and/or Broker in accordance with separate written Agreement with said Co-Broker. Said fee must be acknowledged in any proposed offer to purchase. Recipient and Co-broker agree to defend, indemnify and hold harmless Broker, Owner and their respective affiliates, successors and assigns, employees, officers and directors against and from any loss, liability or expense, including reasonable attorney’s fees, arising out of any claim or claims by any other Co-broker, finder or any similar agent for commissions, fees or other compensation except as agreed herein, for bringing about any sale of the Building or any portion thereof to Recipient or its affiliate.

THE OWNER EXPRESSLY RESERVES THE RIGHT AT ITS SOLE DISCRETION TO REJECT ANY OR ALL PROPOSALS OR EXPRESSIONS OF INTEREST IN THE BUILDING AND TO TERMINATE DISCUSSIONS WITH ANY PARTY AT ANY TIME WITH OR WITHOUT NOTICE.

If you do not wish to pursue negotiations leading to this acquisition, or if in the future you discontinue such negotiations, you agree to return all Confidential Information to Owner or Broker. Otherwise, please execute belowandreturnviafacsimileorEmail:

Attn: Bruce Frasco at (818) 385-1470, bfrasco@cag-re.com, at your earliest convenience.

THE CONFIDENTIAL INFORMATION SHALL NOT BE DEEMED AS REPRESENTATIVE OF THE STATE OF AFFAIRS OF THE BUILDING OR ANY PORTION THEREOF OR CONSTITUTE AN INDICATION THAT THERE HAS BEEN NO CHANGE IN THE BUSINESS OR AFFAIRS OF THE BUILDING OR ANY PORTION THEREOF SINCE THE DATE OF PREPARATION OF THE CONFIDENTIAL INFORMATION.

AGREED and ACCEPTED, this day of , 2016.

RECIPIENT(S): (Please write legibly)

Co-Broker Principal

Company Company

Address Address

Signature Signature

Name Name

It’s It’s

Telephone Telephone

Fax Fax

E-mail E-mail

For more information, please call.

Bruce FrascoSenior Managing DirectorPhone 818.304.8389Mobile 818.298.2900email bfrasco@cag-re.comLic. #00639403

Commercial Asset Group, Inc.4558 Sherman Oaks Ave, 2nd FloorSherman Oaks, CA 91403 Fax 818.385.1470www.cag-re.comLicense #01876070

These materials are based on information and content provided by others, which we believe are accurate. No guarantee, warranty or representation is made by Commercial Asset Group, Inc. or its personnel. All interested parties must independently verify accuracy and completeness. As well, any projections, assumptions, opinion, or estimates are used for example only and do not represent the current or future performance of the identified property. Your tax, financial, legal and toxic substance advisors should conduct a careful investigation of the property and its suitability for your needs, including land use limitations. The property is subject to prior lease, sale, change in price, or withdrawal from the market without notice.