01 23 19 Catalina IM Catalina Entitlement Fund PDF

100 – 132 N Catalina Avenue
Redondo Beach, CA 90277

$2.45 MM Equity Investment Opportunity
30 Unit Mixed Use Development
and 15,000 SF Retail
Catalina Entitlement Fund LLC
PRESENTED EXCLUSIVELY BY:

TABLE OF CONTENTS
• Executive Summary
• Site and Urban Context
• Market Overview
• Land Use + Design
• Economics
• Sponsorship Overview
BEACH CITY CAPITAL

1240 Rosecrans Ave, Suite 120
Manhattan Beach, CA 90266
(424) 226-7780
invest@beachcitycapital.com
www.beachcitycapital.com
100 - 132 N Catalina Ave. Redondo Beach, CA
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Beach City Capital (the “Sponsor”) is pleased to present the opportunity to invest in the development of a 30 unit
for-sale mixed-use project with 15,000 sf of retail located at 100-132 N Catalina in Redondo Beach, CA (the
"Project"). The site covers 1.2 acres with 34,500 sf of existing cash-flowing retail. The total Project deal size is
$39 MM, of which $26.8 MM will be debt and $12.2 MM will be equity. The Project is currently offering a $2.4
MM investment into Beach City Capital’s syndicate fund Catalina Entitlement Fund LLC (CEF). Two classes of
investment are offered, Class B and Class C, which will yield average IRR’s of 24.6% and 32%, respectively.
Beach City Capital’s syndicate vehicle Catalina Entitlement Fund LLC (CEF) will provide 20% of the Project’s
equity, and the remaining 80% will be provided by a Family Office/JV equity partner (Class A). The JV equity
partner will receive an 8% preferred annual return and a 60% profit split. The syndicate fund will receive an 8%
preferred annual return and a 40% profit split. The Project will yield a profit of $10.1 MM.
The entire site acquisition will be in two phases, with a purchase completion of the first phase in March 2019 and
completion of the second phase in May 2019. The timeline of total equity needs is $2.55 MM by March 2018,
$6.3 MM by May 2019, and $3.4 MM in March 2020 to start construction.
PROPERTY OVERVIEW
Property Summary Project Costs
Location Redondo Beach, CA
Land Costs $12,250,000
Property Address 100-132 N Catalina Ave Hard Costs $15,861,102
90277 Soft Costs $11,006,624
Land Square Footage 55,350
Total Cost $39,117,726
Proposed Units 30
Average SF/Unit 1,723
Existing Retail 34,500
Proposed Retail SF 15,000
Capital Structure
Senior Debt 70% $26,851,386
Equity 30% $12,226,340
Total Cost 100% $39,117,726
Equity Structure
JV Equity Partner – LP 80% $9,813,072
Beach City Capital – GP 20% $2,453,268
Total Equity Required 100% $12,266,340
Return Summary
Project Level Returns
Exit Optionality
Project IRR 30.8%
BASE CASE EM Profit
Class B IRR 24.6%
Entitle, Build & Sell 1.83x $10,167,869
Class C IRR 32.0%
PLAN B
Equity Multiple 1.83x
Sell at Entitlement Approval 1.31x $1,900,000
ROI (30 Months) 82.9%
Total Profit $10,167,869
Development Timeline 30 Months
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
• Legal Structure
For this project, Catalina Fund LLC is the shell company offering a total of $12,266,340 in Equity Investments and
will have two members: (1) JV Equity Partner (Class A) and (2) Beach City Capital’s syndicate vehicle Catalina
Entitlement Fund (CEF) LLC (Classes B&C). Beach City Capital Management is the General Manager.
• Strong Return Profile

The Sponsor’s conservative underwriting yields project levered returns of a 30.8% IRR, an equity multiple of
1.83x, a margin of 26.0% and a profit of $10.1 MM. JV equity partner (Class A) will provide 80% of the project’s
equity needs ($9.8 MM), and will receive an 8% preferred return, as well as 60% of the project’s upside. Beach
City Capital’s syndicate (CEF) will provide the remaining 20% of the equity, which will consist of two classes B
and C. In addition to the 8% preferred return, the 40% profit split will be distributed among Class B and Class C.
Breakdown of CEF IRR ROI Pref Profit Split
CEF will provide 20% of Class B: 45% equity provided 24.6% 73.6% 8% 20%
project’s total equity Class C: 45% equity provided 22.0% 100.4% 8% 30%
requirement: Sponsor: 10% equity provided 50%
*Project reports will be sent monthly and will include quarterly financial reports
• Project Location
South Redondo is the charm of the South Bay in Los Angeles County. The Redondo Beach Pier is tucked in
against the Palos Verdes Peninsula and has a beautiful 2-mile coastline with an esplanade strip just above its
white sandy beaches. This community offers luxurious coastal living and an award-winning public school system.
The culture is vibrant and family oriented, and the local economy benefits from a diverse marketplace as it is
close to LAX with convenient access to Downtown and West Los Angeles.
• Land Use
Current zoning allows low-density multifamily development, which permits 22 residential units on the 55,000 sf site.
Utilizing the State Affordable Density Bonus Program SB1818 would allow an additional 8 units, for a total of 30 residential
units. The site currently has 34,500 sf of retail, which will be reduced and renovated to 15,000 sf with a net
reduction in trip counts.
• Exit Optionality
The base case business plan is to develop the 30 unit project in 30 months with an equity multiple of 1.83x and a
profit of $10.1 MM. As a backstop, the project includes optionality to exit after entitlement approval at 15 months.
• Base Case: Develop 30 units – Yields a 1.83x equity multiple and $10.1 MM profit in 30 months.
• Plan B: Sell at Entitlement Approval – Yields a 1.31x equity multiple and a $1.9 MM profit in 15 months.
SITE / URBAN CONTEXT
CATALINAVILLAGE | SITE REVIEW

REDONDO BEACH
EXECUTIVE SUMMARY (ENTIRE SITE)

100 - 132 N Catalina Avenue | Redondo Beach
Price $12,250,000
Acres 1.26 Acres
Square Feet (Land) 55,000 SF
Price per SF $223 per land SF
EXECUTIVE SUMMARY – Lot 1
100, 112, 116 & 132 N Catalina Ave | Redondo Beach

Price $8,250,000
Acres 0.80 Acres
Master leased until Acquisition May 2019 Close
EXECUTIVE SUMMARY - Lot 2

LOT 1
126 & 124 N Catalina Avenue | Redondo Beach
LOT 2
Price $4,000,000
Acres 0.46 Acres LOT 1

March 2019 Close
CATALINAVILLAGE
REDONDO BEACH
LAND SUMMARY
100 - 132 N Catalina Avenue | Redondo Beach, CA
Price $12,250,000 LOT 1
Acres 1.26 Acres
LOT 2
Price per SF $223 per land SF LOT 1
DEVELOPMENT PROPOSAL
30 Units and 15,000 SF of Retail
LOCATION MAP
LOCATION Hermosa Pier
King Harbor Esplanade

SITE AERIAL Hermosa Pier
SITE AERIAL Hermosa Pier
PROPERTY PHOTOS
PROPERTY PHOTOS
REDONDO BEACH AREA OVERVIEW
• The Waterfront Development (under entitlement review)
The Redondo Beach pier is undergoing a $300M revitalization project called “The Waterfront”
which is spearheaded by CenterCal properties. This new investment will include bike paths that
connect to Santa Monica, new local music venues, farmers markets, and the charming
Hollywood Riviera used for shopping, dining, and street fairs year round. The project is nearing
final entitlement steps. Housing in this area is in high demand and quality opportunities are
scarce. Local amenities, vibrant culture, and high demand, with scarce land supply are the
quintessential ingredients for a great investment market.
A- CenterCal Waterfront Plan

CenterCal Waterfront Plan - A B - AES Power Plant Site
CenterCal Waterfront Plan - A

REDONDO BEACH AREA OVERVIEW
• Local Economy and Demographics
• The area’s economy has historically relied on the

aerospace industry and defense-related technologies,
including companies such as Boeing, Honeywell
Aerospace and Raytheon.
• Widespread diversification in recent years has

produced a large contingent of professional and
business services firms and corporate
headquarters. Significant operations are held by
American Honda Motor Co., BP, Snapchat and
Mattel.
• The growing population base and public

healthcare have supported growth in the
education and healthcare sectors thanks to
both public and private employers.
100 - 132 N Catalina Ave, Redondo Beach, CA
MARKET OVERVIEW
MARKET COMPARABLES SUMMARY
1 LAND SALES COMPS PSF Per Buildable Unit
• Land Sale Comps $283 $704,342

• Comparable Market Average Sale, $297 $739,559
Tracking 2% CPI for 30 Months
• 100-132 N Catalina (Investment Project) $250 $625,000
2 RESIDENTIAL SALES COMPS Per Unit

• Comparable Market Average Sale $1,820,000
• Comparable Market Average Sale, $1,911,000
• 100-132 N Catalina Projected Sale $1,360,185
3 RESIDENTIAL RENTAL COMPS PSF (mo)
• Comparable Market Average Rent $2.87

• Comparable Market Average Sale, $3.01
• 100-132 N Catalina Projected Rent $3.00
4 RETAIL RENTAL COMPS PSF (mo)
• Comparable Market Average Rent $3.74

• Comparable Market Average Sale, $3.93
• 100-132 N Catalina Projected Rent $2.95
5 RETAIL SALES COMPS Cap Rate Sale PSF
• Comparable Market Average 3.92% $1,186

• Comparable Market Average Sale, $1,245
• 100-132 N Catalina Projected 5.00% $708
1 LAND SALES COMPARABLES
5
4
8 1 4
1
33
5
85
36 4
7 1
2
2 6
6
NOTE:
These land comps are included to verify our Project site’s land basis. These comps are based on the
amount of buildable units each lot is allowed through City of Redondo Beach current zoning, but do not
include entitlements.
1 2
304NorthCatalinaAvenue 1903CaminoDeLaCosta
RedondoBeach RedondoBeach
Sale Date March,2018 Sale Date June, 2017
Price $1,400,000 Price $2,250,000
Buildable Units 2.41 Buildable Units 4.00
Price / Buildable Unit $579,937 Price / Buildable Unit $562,500
Lot Size (SF) 6,011 Lot Size (SF) 8,413
Price / Land SF $233 Price / Land SF $267
Zoning R-3A Zoning RMD
3 4
243 North Juanita 214 North Catalina

Sale Date September 2016
Sale Date August, 2016
Price $2,250,000
Price $4,400,000
Buildable Units 3.69
Buildable Units 3.61
Price / Buildable Unit $609,756 Price / Buildable Unit $1,218,010
Zoning R-3 Zoning R-3A
5 6
136 North Catalina 1721 Camino De La Costa

Sale Date March, 2016 Sale Date July, 2015

Price $1,100,000 Price $4,450,000
Zoning R-3A Zoning RMD
7 8
111 Vista Del Mar 415 North Broadway

Sale Date April, 2015 Sale Date June, 2014
Price $3,700,000 Price $5,162,000
Zoning RMD Zoning R-3A
POST DEVELOPMENT SALES
2 RESIDENTIAL COMPARABLES
44
6 6 11
2
5 7 5 2
7
3
3
NOTE:
These comps are listed to show relative value in the area; however, no properties listed have the locational
advantage the Project site has being one block from the water, and therefore are extremely conservative.
Additionally, the Project will consist of two rows of townhomes that will have ample natural lighting, private
front yard patios, open floor plans and private rooftops with ocean views, which along with a coastal
plantation design will drive the highest market demand in the area.
Comp values are tracked at a 2% CPI increase until the townhomes are built – actual year-over-year property
growth in the area over the past five years has averaged 12%. Though highly unlikely, market values would
have to drop 17% for the project to break even.
1 2
105 South JuanitaAvenue 202 South ProspectAvenue

Sale Date 2/2/2018 Sale Date 2/1/2018
Price $1,575,000 Price $1,675,000
Price/SF 633.29 Price/SF $650.74
Year Built 2017 Year Built 2017
SF 2,487 SF 2,538
Distance to Beach 1.1 miles Distance to Beach 1.2 miles
3 4
228 SouthHelberta 716 North JuanitaAvenue

Redondo Beach Redondo Beach
Sale Date 1/22/2018
Price $1,810,000 Sale Date 1/4/2018
Price/SF $666.42 Price $1,895,000
Year Built 2017 Price/SF $600.00
SF 2,716 Year Built 2017
Distance to Beach 0.5 miles SF 3,158

Distance to Beach 0.7 miles
5 6
207 South IrenaAvenue 105 South IrenaAvenue

Sale Date 12/12/2017 Sale Date 11/28/2017

Price $1,557,500 Price $1,620,000
Price/SF $623.00 Price/SF $650.00
SF 2,500 SF 2,492
Distance to Beach 0.7 miles Distance to Beach 1 mile
206 South HelbertaAvenue

RedondoBeach
Sale Date 11/6/2017
Price $1,550,000
Price/SF $620.00
Year Built 2017
SF 2,500
Distance to Beach 0.8 miles
SUBMARKET SUPPLY & ABSORPTION
Sales volume is up 25% over the previous year for the LA metro area, and sales velocity in
2018 is slated to top any year’s velocity for the area in the previous decade.
RESIDENTIAL SALES VELOCITY

The South Bay, especially Redondo Beach, has a severely limited housing supply and
restricted pipeline of units. As such, new housing developments are known to be sold at
drywall, prior to construction completion during presale campaigns.
BCC Projected Unit Sales

Days Relative to Certificate of Occupancy
- 60 0 30 90 (CofO) Upon Construction Completion
25% 25% 50% % of Units Sold
The Sponsor has conservatively assumed a phased sale of the units. The Sponsor projects
25% of the units will sell two months prior to the Project’s Certificate of Occupancy, 25% a
month after the CofO, and the remaining units three months after CofO.
RESIDENTIAL RENTAL
3 COMPARABLES
4
3 2 6
NOTE:
The Project will deliver 30 units of for-sale housing. As a downside mitigant, the Sponsor has
underwritten the units as rentals in the case the Property would need to be held until a market rebound.
Comparable properties are waterfront-adjacent and of newer construction.
RESIDENTIAL RENTAL
3 COMPARABLES
1 2
651 10th St 810 S Catalina Ave

Hermosa Beach Redondo Beach
Rent Price $10,000 Rent Price $8,800
Rent/SF $3.77 Rent/SF $2.93
SF 2,650 SF 3,000
3 4
808 N Irena Ave 812 N Irena Ave

SF 2,300 SF 2,100
RESIDENTIAL RENTAL
3 COMPARABLES
5 6
315 Garnet St 1106 Vicente St

SF 2,100 SF 2,600
4 RETAIL RENT COMPARABLES
1
6
1 4 3
3
5 2
5
85 4
36 4
7 1
2
6
NO. ADDRESS SF RENT
1 413 Pacific Coast Highway 3600 $ 3.50
Comparable Market Average $ 3.74
SUBJECT 100-132 N Catalina $ 3.00
NOTE:
Similar to the residential comps, the retail rental comps shown do not possess the superior location the
Project site has, one block from the water in a highly walkable area of Redondo Beach.
Additionally, retail rents will be maximized through site design as well as tenant merchandising. Tenants will
be locally-owned, celebrated shops that will add authenticity and vibrancy to the retail. A gourmet coffee
shop, microbrewery tasting room, and burger shop will open onto a pedestrian-friendly courtyard off the
street, ensuring morning to evening activity on site.
4 RETAIL RENT COMPARABLES
1 2
413 Pacific Coast Highway 209 Pacific Coast Highway

SF 3600 SF 2300
Rent PSF (per month) $3.50 Rent PSF (per month) $2.75
3 4

SF 2200 SF 5000
5 6

SF 1440 SF 1730
5 RETAIL SALES COMPARABLES
REDONDO BEACH RETAIL SALES COMPS
1 42
3
5
85
536 1 4
67 1
2Purchase Price
NO. ADDRESS
6 SF Cap Rate PSF
1 221 Avenue I $9,000,000 7500 4% $ 1,200
2 537 Pacific Coast Highway $12,500,000 17500 2.75% $ 714
3 2300 Artesia Blvd $1,400,000 3460 4.36% $ 405
4 2525 Artesia Blvd $4,200,000 1550 4.00% $ 2,710
5 1707 S Catalina Ave $2,000,000 2056 - $ 982
6 1911 S Catalina Ave $1,395,000 1260 4.50% $ 1,107
Comparable Market Average 3.92% $ 1,186
NOTE:
Similar to the residential and retail rental comps, the retail sales comps shown do not possess the superior
location the Project site has one block from the water in a highly walkable area of Redondo Beach.
Additionally, Redondo Beach’s retail stock consists largely of a much older vintage, which discounts the
values of the market’s properties. The Project’s retail has assumed an exit cap consistent with comparable
newer properties.
1 2
221 Avenue I 537 Pacific Coast Highway

Purchase Price $9,000,000 Purchase Price $12,500,000
SF 7,500 SF 17,500
Cap Rate 4.00% Cap Rate 2.75%
PSF $1,200 PSF $714
NOTE: CONFIDENTIAL
3 4
2300 Artesia Blvd 2525 Artesia Blvd

SF 3,460 SF 1,550
Cap Rate 4.36% Cap Rate 4.00%
PSF $405 PSF $2,710
5 6
1707 S Catalina Ave 1911 S Catalina Ave

SF 2,036 SF 1,260
Cap Rate - Cap Rate 4.5%
PSF $982 PSF $1,107
COMMERCIAL RETAIL COMPS ACROSS COASTAL LA
Coastal communities along Los Angeles and the South Bay demonstrate retail cap compression and
high sales per square foot relative to inland submarkets. Being waterfront-adjacent in a highly
walkable and attractive area, the Project site justifiably perceives these submarkets as comps, albeit
with a discount added. Redondo Beach’s existing retail stock is largely outdated, but new retail has
traded at rates consistent with more competitive markets.
SANTA MONICA
Avg Cap Rate: 3.3%
Avg Sale PSF: $1,897
VENICE
Avg Cap Rate: 4.0%
MANHATTAN BEACH
Avg Cap Rate: 3.3%
HERMOSA BEACH
Avg Cap Rate: 3.7%
REDONDO BEACH
Avg Cap Rate: 3.9%
(See Comp Set)
LAND USE + DESIGN

LAND USE + DESIGN
CONCEPTUAL RESIDENTIAL DESIGN IMAGES
1) Highest Demand Architectural Style : Coastal Plantation
2) Planning Commission’s preferred architectural style: Coastal Plantation

LAND USE + DESIGN
REDONDO BEACH GENERAL PLAN & LAND USE
SITE
R-3 ZONING
LAND USE + DESIGN
REDONDO BEACH DEVELOPMENT STANDARDS
LAND USE + DESIGN
REDONDO BEACH ZONING
• Total Land Area: 55,348 sf

• R-3A Zoning Density: (2,490 sf/unit)
• Total number of units allowed: (55,348 sf / 2,490 sf/unit) = 22 Units
• Affordable State Density Bonus Program – Code Section SB1818:
Max density increase of 35% = 22.22x1.35= 29.7 (30) Units
• The existing 35,000 SF of retail to be reduced and adaptively reused to a new

total of 15,000 SF. Renovations will modernize the buildings while celebrating the
history of the site and will include a gourmet coffee shop and micro-brewery
tasting room that will open to a central courtyard facing Catalina Ave.
PROPOSED SITE PLAN: 30 RESIDENTIAL UNITS + 15,000 SF RETAIL

LAND USE + DESIGN
ENTITLEMENT STRATEGY
Planning Approval
The Sponsor has refined the entitlement strategy with the City after several
meetings with the Planning Director. To streamline the process, the Sponsor will file
a Historic Overlay over the site to ensure the continued use of the commercial
retail, which is some of Redondo Beach’s only original commercial retail still
standing.
The historic overlay is anticipated to receive support from the City and community,
and will allow a number of variances as necessary to preserve the retail, including a
reduced parking count and additional height variance to the residential units.
Permit Approval
After Planning approval, the Sponsor anticipates 7 months for building permit
approval to get the Project shovel-ready, for a total entitlement and permit budget of
15 months.
ENVIRONMENTAL STRATEGY
Phase I and Phase II Environmental Reports confirmed PCE remediation needed
from the existing dry cleaner’s on site, which was expected. The Sponsor negotiated
with Owners to reduce the purchase price, and has worked with environmental
consultants and estimators to refine a site strategy to remediate the site with as little
exposure to risk as possible.
PCE is one of the most common soil contaminants, and has not reached the water
table (60’-90’ below). The Sponsor will enter into a stipulated sum agreement with
remediation experts with the goal of receiving a No Further Action letter from the City
in 12-15 months, which aligns with the Project’s entitlement and permit timeline.
ECONOMICS / LEGAL
CAPITAL STACK
INVESTMENT OPPORTUNITIES
Classes C: Beach City Capital (CEF) – GP
Yields a 8% preferred annual return --with a 30%
$1.23 MM 10%
split of CEF profits – 32.0% IRR
20%
$1.23 MM 10% Class B: Beach City Capital (CEF) – GP
Yields a 8% preferred annual return --with a 20%
30% split of CEF profits – 24.6% IRR
$9.8 MM 80%
Class A: Family Office (JV Equity Partner) – LP
Yields a 8% annual preferred return – with a 60%
profit split – 36.2% IRR
Note: Profit Split Breakdown

JV Equity Partner (60%)
CEF (40%) Class B (20%)
Class C (30%)
Sponsor Promote (50%)
70%
$26.8 MM Debt: First Lien Construction Debt Financing w/
70% LTC at 7.5%
LEGAL AND WATERFALL STRUCTURE
Catalina Fund, LLC
Provides 80% of Equity Provides 20% of Equity

Beach City Capital Syndicate GP
JV Equity Partner LP
(Catalina Entitlement Fund, LLC)
Receives a 8% Pref and 60% of Receives a 8% Pref and 40% of
Project’s Profit Project’s Profit
36.2% IRR
45% of Equity 45% of Equity 10% of Equity
Class B Class C Sponsor

Provides 45% Provides 45% Provides 10%
of CEF Equity of CEF Equity of CEF Equity
Receives 20% Receives 30% Receives 50%
of CEF Profit of CEF Profit of CEF Profit
Split Split Split
24.6% IRR 32.0% IRR
Payout Waterfall
1 Principal Parri Passu to all Classes
2 JV Equity Partner – Yields a 8% preferred return (Class A)
3 Beach City Capital Syndicate (CEF) – Yields a 8% preferred return (Class B)
4 Beach City Capital Syndicate (CEF) – Yields a 8% preferred return (Class C)
5 Profit Split Parri Passu to all Classes: JV Equity Partner (60%)
CEF (40%) Class B (20%)
Class C (30%)
Sponsor Promote (50%)
100-132 N Catalina - Redondo Beach
Transaction Summary
PROJECT AND MARKET OVERVIEW
PROJECT OVERVIEW MARKET STATISTICS (2018)
Address 100-132 N Catalina - Redondo Beach Submarket

Comparables SF $/PSF Sale Price
Property Type For Sale Condos Market Avg 2,214 SF $754 $1,670,000
Total Land Area (Acres) 1.22 Market High 3,158 SF $600 $1,895,000
Total Land Area (SF) 55,350 Market Low 1,354 SF $1,326 $1,795,000
Programming Units/SF Avg SF/Unit Gross SF
Residential 30 1723 51,687 Direct Comps Avg 2,214 SF $754 $1,670,000 `
Retail 15,000 Pro-Forma Avg 1,723 SF $809 $1,421,296
Project Timeline Start End Months Premium / (Discount) -491 SF $54 -$248,704
Acquisition Nov-18
Permits/Entitlement Nov-18 Feb-20 15 Months Retail Comps
Construction Feb-20 May-21 15 Months
Pre-Sale Mar-21 May-21 2 Months
Total 30 Months
SOURCES AND USES (ACQUISITION & PREDEV)
SOURCES $/Unit $/SF Total $ USES $/Unit $/SF Total $

Sources Uses
Land Loan $266,667 $120 $8,000,000 Land Acquisition $408,333 $184 $12,250,000
Equity $296,977 $134 $8,909,305 Predevelopment Costs $74,935 $34 $2,248,055
Environmental Remediation $50,000 $22 $1,500,000
Financing Costs $22,792 $10 $683,750
Closing Costs $7,583 $3 $227,500
Total Sources $563,643 $254 $16,909,305 Total Uses $563,643 $254 $16,909,305
SOURCES AND USES (TOTAL PROJECT COSTS)
SOURCES $/Unit $/SF Total $ USES $/Unit $/SF Total $

Sources Uses
Construction Loan $895,046 $403 $26,851,386 Land $408,333 $184 $12,250,000
Equity $408,878 $184 $12,266,340 Hard Costs $528,703 $238 $15,861,102
Soft Costs $366,887 $165 $11,006,624
Total Sources $1,303,924 $757 $39,117,726 Total Uses $1,303,924 $587 $39,117,726
DISPOSTION & RETURNS ANALYSIS
DISPOSITION $/Unit $/SF Total $ PROJECT LEVEL RETURNS $/Unit $/SF Total $
Total Sale Proceeds $1,704,799 $990 $51,143,969 Net Proceeds $22,434,208
Cost of Sale -$61,946 -$36 -$1,858,375 Total Equity Investment $12,266,340
Total Costs -$1,303,924 -$757 -$39,117,726 Equity Multiple 1.83x
Net Profit $338,929 $197 $10,167,869 IRR 30.8%
ROI 82.9%
Margin 26.0%
EQUITY SUMMARY FINANCING SUMMARY
Total Profit IRR ROI Lender TBD
JV Equity Partner - Class A 80.0% $9,813,072 $6,388,229 36.2% 63.9% Total Loan -$26,851,386
Beach City Capital - Class B 10.0% $1,226,634 $903,124 24.6% 73.6% Loan to Cost 70%
Beach City Capital - Class C 10.0% $1,226,634 $1,232,023 32.0% 100.4% Term 30 months
Equity Partners 100.0% $12,266,340 $8,523,376 30.9% 69.5% Rate 7.50%
Developer Promote $1,644,493 Rate Type Floating
Total Profit $10,167,869 Recourse Recourse
100-132 N Catalina - Redondo Beach Project Start Date: 11/1/2018
Pro Forma - Return On Investment Time Frame 30
New Units 30 Months
SF\ of Retail 15,000 Building Type:
Lot 1 Area 35,230 3 Levels of Type V
Lot 2 Area 20,120
Total Area 55,350
Existing Units 5
Existing SF 25,350
Lots 14
Investment Period 30 Months
Potential Gross Sells $51,143,969

Commission Costs 3.5% -$1,790,039
Closing Costs 1.0% -$511,440
Rental Income $443,104
Effective Gross Income $49,285,594
Development Costs -$39,117,726
Debt Service 7.50% $26,851,386 -$26,851,386
Net Cash Flow -$12,266,340 $22,434,208
Project Level Returns

Leveraged Internal Rate of Return (IRR) 30.8%
Equity Multiple 1.83
Project ROI 82.9%
Margin 26.0%
Equity Used -$12,266,340

Proceeds $22,434,208
Note* Please find attached Equity Waterfall Structure Profit $10,167,869
Master Schedule 11/1/2018 2/1/2020 5/4/2021

Development Costs / Capital Structure Building Structure (SF) 65,094
Acquisition + Predev Construction Project Total

PSF Total PSF Total PSF Total
Land Cost $188 $12,250,000 $0 $0 $188 $12,250,000

Construction Costs $0 $0 $244 $15,861,102 $244 $15,861,102
Soft Costs $19 $1,263,389 $28 $1,843,846 $48 $3,107,235
Site Remediation $23 $1,500,000 $0 $0 $23 $1,500,000
Development Fee 3.0% $7 $452,128 $7 $484,422 $14 $936,550
Project Contingency 5.0% $2 $147,050 $12 $801,367 $15 $948,417
Total Costs - Land, HC + SC - Less Interest, Bank Fees $240 $15,612,566 $292 $18,990,737 $532 $34,603,304
Other Costs
Guarantee Fee $0 $0 $8 $537,028 $8 $537,028
Extended Escrow Interest Payments $0 $15,000 $0 $0 $0 $15,000
Bank Costs
Closing Costs $3 $227,500 $10 $671,285 $14 $898,785
Land Interest Reserve $10 $668,750 $0 $0 $10 $668,750
Construction Interest Reserve $0 $0 $25 $1,636,256 $25 $1,636,256
TOTAL LAND, CONSTRUCTION, AND SOFT COSTS $254 $16,523,816 $335 $21,835,306 $589 $38,359,122
Loan Proceeds 70% -$8,000,000 -$18,851,386 -$26,851,386
Subtotal Equity Needed $8,523,816 $2,983,920 $11,507,737
Additional Requirements
Project Formation $3 $187,506 $3 $187,506 $6 $375,012
Equity Reserve $197,983 $185,609 $6 $383,591
Total Equity Required $137 $8,909,305 $52 $3,357,035 $188 $12,266,340
Total Required Equity $8,909,305 $3,357,035 $12,266,340
Equity Contributions
JV Equity Partner 80% $9,813,072
Beach City Capital 20% $2,453,268
Total Project Equity 100% $12,266,340
Total Capital Required $16,909,305 $22,208,421 $601 $39,117,726

100-132 N Catalina - Redondo Beach Current Market Comps 1/21/2019 Link to Comps $ 650
Product Type, Sales and Cash Flow CPI @ 2% Per Yr (30 mo period) 5.0% $ 683
Town Homes 30 Projected Market Sales - 2020 $ 683
Lot 1 Area 35,230 Sales Floor 1,575,000
Lot 2 Area 20,120 Sale Ceiling (Cap) 1,895,000
Lot Area 55,350 Average Comp Sales Per Unit 1,670,000
Allowable Units Per Zoning 2,490 sf/unit Average Projected Project Sales Per Unit 1,421,296
Per Zoning 22.00 units
State Density Bonus (SB1818) provides 29.70 FAR Calcs
Rounded Up Per Code section 30.00 units Lot Size 55,350 sf
Affordable Units Required 2.42 Less Setbacks 20%
Rounded Up Per Code section 3.00 units Buildable Area 44,280 sf
check 2 to 1 Ratio 88,560 sf
Unit Calculation Per Lot Allowable FAR 88,560 sf
Lot 1 35,230 19 units
Lot 2 20,120 11 units Retail Provided 15,000
30.00 total Resi + Circulation 57,608
FAR Provided 72,608 sf
Pro Forma - Under Market Afforable Gap Pro Forma Sales Input
Unit Type Units SF Per Unit Sells PSF Sells Per Unit Total Sells
1BR Flats 100% 3 696 862 600,000 1,800,000
2BR Flats 3 900 889 800,000 2,400,000
3-4BR Townhomes - A 19 1,980 821 1,625,000 30,875,000
3-4BR Townhomes - B 2 2,055 803 1,650,000 3,300,000
3-4BR Townhomes - A Affordable 1 1,980 601 1,189,865 460,135 1,189,865
2BR Flats- Affordable 1 900 601 540,848 259,152 540,848
1BR Flats- Affordable 1 696 601 418,256 181,744 418,256
Totals/Averages 30 1,723 809 1,421,296
Total Resi SF 50,094
Renovated Retail Sf 15,000 Monthly Rent Yearly

Rent 2.95 44,250 531,000 Retail Sale PSF
Cap 5.00% Value 10,620,000 708 10,620,000
Retail Income Before Sale 6 265,500
Total Proceeds $ 51,143,969
Project Margin MG 26.0%
Project Level IRR 30.8% Pro forma -Total Proceeds $ 51,143,969
Project Level EM 1.83 X Profit $ 10,167,869
Equity Return On Investment - Waterfall Structure
Partners Contribution Equity

JV Equity Partner - Class A 80% $9,813,072
Beach City Capital - Class B 10% $1,226,634
Beach City Capital - Class C 10% $1,226,634
Totals 100% $12,266,340
Tier Structure Contribution Pref Distribution Profit Split Distribution Total Return IRR ROI Cash on Cash (Annual) EM
JV Equity Partner - Class A $9,813,072 $1,454,750 $4,933,479 $6,388,229 36.2% 63.9% 39.7% 1.64
Time Frame B (26 months) $6,456,037 $1,119,046 $3,245,744 $4,364,791 26.8% 67.6% 31.2% 1.68
Time Frame C (15 months) $3,357,035 $335,704 $1,687,735 $2,023,438 45.6% 60.3% 48.2% 1.60
Beach City Capital - Class B $1,226,634 $245,327 $657,797 $903,124 24.6% 73.6% 29.5% 1.74
Time Frame A (30 months) $1,226,634 $245,327 $657,797 $903,124 24.6% 73.6% 29.5% 1.74
Beach City Capital - Class C $1,226,634 $245,327 $986,696 $1,232,023 32.0% 100.4% 40.2% 2.00
Time Frame A (30 months) $1,226,634 $245,327 $986,696 $1,232,023 32.0% 100.4% 40.2% 2.00
Developer Promote $1,644,493 $1,644,493

Totals $12,266,340 $1,945,403 $8,222,465 $10,167,869 $ 22,434,208
Additional Detail Below

Project Time Frame 11/1/2018 2/1/2020 5/4/2021 Total Investment Period 30 Months
Time Frame A 11/1/2018 5/4/2021 5/4/2021 Project Start 30 Months
Time Frame B 3/3/2019 5/4/2021 5/4/2021 Acquisition + Entitlements 26 Months
Time Frame C 2/1/2020 5/4/2021 5/4/2021 Construction 15 Months
EXIT STRATEGY OPTIONALITY
BAS E CASE
Entitle, Build & Sell Medium-High Risk
Residential Units Built 30 units
Equity Multiple 1.83x
Existing SF Retail to Renovate 15,000 SF
ROI 83%
Land Basis 12,250,000 Margin 26%
Hard & Soft Costs 26,870,000
Total Costs 39,120,000
Profit 10,170,000
Debt $ 26,850,000
Equity $ 12,270,000
Gross Sales from Retail $ 10,620,000

Gross Sales from Residential $ 40,520,000
Hold Period
0 months 15 months 30 months
PLAN B
Sell Land at Entitlement Approval Medium Risk
Residential Units Entitled 30 units Equity Multiple 1.31x
Existing SF Retail to Renovate - SF ROI 31%
Land Basis 12,250,000 Margin 12%
Entitlement Costs 3,321,000 Profit 1,900,000
Total Costs 15,571,000
Debt $ 9,340,000
Equity $ 6,230,000
Total
Sale Price per Buildable Unit $ 600,000 27 $ 16,200,000
Retail Sales Price PSF $ 500 15K $ 7,500,000
Sale Price $ 23,700,000
Hold Period
0 months 15 months 30 months

100 - 132 N Catalina Ave. Redondo Beach, CA
SPONSORSHIP OVERVIEW
BEACH CITY CAPITAL MANAGEMENT
Jason Muller Matt Stewart Greg Cullen Clinton Abrams Wesley DeAurora
Board Member & Board Member Board Member Board Member Board Member
Managing Principal Capital Markets Business Real Estate Investor Relations
Peter Larr Lindsey Mills Maria Perez Samuel Dunbar

Serena Shlomof
Development Development Development Development
VP of Development
Associate Associate Coordinator Analyst
Beach City Capital is a Los Angeles based real estate investment firm focused on the
acquisition and development of residential and commercial properties, founded by 3 USC
graduates and joined by an incredible team of investors, advisors and Partners.
The firm utilizes in-house associates who have a deep background in Acquisition,
Finance, Entitlements and Development. Each project is adequately supervised by our
staff to mitigate entitlement and development risk.
Our company mission is to improve the quality of life and community one project at a time.
We plan to help enhance and enrich the urban fabric of the city and in doing so, we design
our projects to be affordable, well-integrated, and positively impactful.
SPONSORSHIP OVERVIEW
BEACH CITY CAPITAL
Beach City Capital is a private real estate investment firm headquartered in Manhattan Beach,
California. Beach City Capital focuses on executing the development and repositioning of multi-
family, luxury housing, and commercial assets, targeting value-add and opportunistic returns. Beach
City Capital is a vertically integrated investment company with the ability to source, underwrite,
acquire and develop all projects in house. Our investments capitalize on a broad platform, utilizing
in-house real estate professionals whose expertise span all phases of the real estate life cycle. Our
staff is made up of experienced professionals in Acquisition, Finance, Entitlement and Development,
all seasoned to pursue a consistent investment process that combines local market knowledge and
hands-on expertise, creating value for our shareholders.
As Beach City Capital reviews deals in coastal locations throughout Southern California, we strive to
look for underutilized properties that lack their highest and best use. We focus on assets that are
underperforming, mispriced, and mismanaged to add value and improve efficiencies. We use
structured finance, an experienced team and government relations for entitlement review to find the
true land residual before an acquisition. The firm is able to quickly find these opportunities by
consistently analyzing key markets and being willing to compete against others using good
sportsmanship. While Beach City Capital has extensive experience, what makes us successful is
acknowledging that the real estate itself and best in-class service to our investors are the key factors
in our Investment Platform’s growth.
Beach City Capital has long-standing presence in key markets throughout the United States with a
decade of hands-on experience, intimate local market knowledge, and an extensive network of
relationships with institutional and local banks, private equity firms, and family offices. This depth of
experience and relationships with capital providers gives Beach City Capital a competitive
advantage in identifying and closing attractive investments both on and off market. Our reputation
has afforded us the opportunity to work with the best leaders in the industry, receiving attractive
interest rates and optimal service with certainty.
Once acquired and financed, we thoroughly manage the Development Process from Entitlements,
Permit Management, Preconstruction and through Construction Management and Disposition. We
minimize construction risk and manage all jobs to be on time and within budget. We leverage
industry knowledge, experience and technology to monitor, report on and manage the delivery of
projects. Our customer service entails monthly reports and thorough communication to investors.
Each project is crafted with pristine excellence and perfection with hopes to create spaces that
inspire and modernize everyday life. Our company mission is to improve the quality of life and
community one project at a time. We plan to help enhance and enrich the urban fabric of the city
and in doing so, we design our projects to be affordable, well-integrated, and positively impactful.
12763 - 12767 MITCHELL AVE

100 – 132 N Catalina Avenue
Redondo Beach, CA
Additional Investment Opportunities:

MAR VISTA
• 28 Condo Unit Development
• Location: 12757-12767 Mitchell Ave, Los Angeles, CA
• Deal Size: $25.9M
• Debt: $17.8M
• Equity: $8.1M
• JV Land Equity
411 W FRANKLIN AVE

8 Unit Apartment Reposition
• Location: 411 W Franklin Ave, El Segundo
• Deal Size: $3.7M
• Debt: $2.5M
• Equity: $1.3M
CONTACT INFORMATION
Beach City Capital
1240 Rosecrans Ave, Suite 120
(424) 226-7780
invest@beachcitycapital.com
www.beachcitycapital.com

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100 – 132 N Catalina Avenue

Redondo Beach, CA 90277

PRESENTED EXCLUSIVELY BY:

• Site and Urban Context

• Land Use + Design

BEACH CITY CAPITAL

• Strong Return Profile

CATALINAVILLAGE | SITE REVIEW

EXECUTIVE SUMMARY (ENTIRE SITE)

EXECUTIVE SUMMARY – Lot 1

100, 112, 116 & 132 N Catalina Ave | Redondo Beach

EXECUTIVE SUMMARY - Lot 2

Square Feet (Land) 20,012 SF

King Harbor Esplanade

A- CenterCal Waterfront Plan

CenterCal Waterfront Plan - A

• The area’s economy has historically relied on the

• Widespread diversification in recent years has

• The growing population base and public

1 LAND SALES COMPS PSF Per Buildable Unit

• Land Sale Comps $283 $704,342

2 RESIDENTIAL SALES COMPS Per Unit

3 RESIDENTIAL RENTAL COMPS PSF (mo)

• Comparable Market Average Rent $2.87

4 RETAIL RENTAL COMPS PSF (mo)

• Comparable Market Average Rent $3.74

5 RETAIL SALES COMPS Cap Rate Sale PSF

• Comparable Market Average 3.92% $1,186

243 North Juanita 214 North Catalina

136 North Catalina 1721 Camino De La Costa

Sale Date March, 2016 Sale Date July, 2015

111 Vista Del Mar 415 North Broadway

105 South JuanitaAvenue 202 South ProspectAvenue

228 SouthHelberta 716 North JuanitaAvenue

Price/SF $666.42 Price $1,895,000

Year Built 2017 Price/SF $600.00

SF 2,716 Year Built 2017

Distance to Beach 0.5 miles SF 3,158

207 South IrenaAvenue 105 South IrenaAvenue

Sale Date 12/12/2017 Sale Date 11/28/2017

206 South HelbertaAvenue

RESIDENTIAL SALES VELOCITY

BCC Projected Unit Sales

25% 25% 50% % of Units Sold

651 10th St 810 S Catalina Ave

808 N Irena Ave 812 N Irena Ave

315 Garnet St 1106 Vicente St

413 Pacific Coast Highway 209 Pacific Coast Highway

350 Pacific Coast Highway 1032 Pacific Coast Highway

101 Pacific Coast Highway 403 Pacific Coast Highway

221 Avenue I 537 Pacific Coast Highway

2300 Artesia Blvd 2525 Artesia Blvd

1707 S Catalina Ave 1911 S Catalina Ave

LAND USE + DESIGN

2) Planning Commission’s preferred architectural style: Coastal Plantation

• Total Land Area: 55,348 sf

• The existing 35,000 SF of retail to be reduced and adaptively reused to a new