CARLTON WAY LOS ANGELES, CA

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1 5535 CARLTON WAY LOS ANGELES, CA OFFERING MEMORANDUM PACIFIC PARTNERS

Exclusive Listing Agents ZACHARY FREEHLING (310) 592-0833 CalBRE

2 Exclusive Listing Agents ZACHARY FREEHLING (310) CalBRE JASON SHENITZER (310) CalBRE PACIFIC PARTNERS

4 OFFERING PROPERTY HIGHLIGHTS PURCHASE PRICE DOWN PAYMENT CURRENT CAP THE OFFERING $12,000,000 $6,000, % 36 units in a prime Hollywood location Gorgeous turnkey property Strong cash flowing asset Large spacious units Brand-new intercom system Near Hollywood / Western Metro line Property has been extensively rehabbed New gym & additional common area upgrades Subterranean parking 5535 Carlton Way is a 36-unit multi-family apartment building located in Hollywood, CA The property is centrally located on Carlton Way between Western Ave. and Wilton Pl. directly south of Hollywood Blvd. The 36-unit property consists of approximately 26,403 sq. ft. and sits on approximately 17,193 sq. ft. of land. The building is made up of 32 large one bedroom units, 3 two bedroom units and 1 studio. The property has been thoroughly upgraded throughout, including the additions of a large private gym, furnished back patio and private storage lockers. The property has 34 parking spaces located in a subterranean garage with elevator access to all floors Carlton Way is an excellent investment opportunity that offers a turnkey property in one of the best rental markets in Los Angeles. This investment provides strong cash flow from day one and the ability to grow rents as the area continues to mature, while being able to appeal to a slightly more price sensitive demographic by undercutting the brand new amenitized neighboring properties by approximately 20%.

FINANCIAL Purchase Price: $12,000,000 Aprox Building Sq Footage: 26,403 sq. ft. Down Payment: 50% $6,000,000 Approximate Lot Size: 17,193 sq. ft. Legal Units: 36 Approximate Age: 1965 Price Per Unit: $333,333 Cost per Net RSF: $454.

5 FINANCIAL Purchase Price: $12,000,000 Aprox Building Sq Footage: 26,403 sq. ft. Down Payment: 50% $6,000,000 Approximate Lot Size: 17,193 sq. ft. Legal Units: 36 Approximate Age: 1965 Price Per Unit: $333,333 Cost per Net RSF: $ Current GRM: Current CAP: 4.30% Pro Forma GRM: Pro Forma CAP: 5.36% Available Financing: $6,000,000 -$25, % fixed for 5 yrs. Pmt = $25,621 per month Current Rents Market Rents Scheduled Gross Income: $785,772 $917,160 Vacancy Allowance: $23,573 3% $27,515 3% Gross Operating Income: $762,199 $889,645 Less Expenses: $246,410 31% $246,410 27% Net Operating Income: $515,789 $643,235 Less Loan Payment: $307,452 $307,452 Cash-On-Cash Return: $208, % $335, % Plus Principal Reduction: $123,192 $123,192 Total Return Before Taxes: $331, % $458, % Unit Mix and Rent Schedule Actual Rents Pro Forma Rents Taxes New: 1.22% $146,160 Management Fee: $23,573 No. Units Beds/Baths Rent/Unit Income Rent/Unit Income Repairs: $15,816 Property Insurance: $9,241 1 Studio $1,420 $1,420 $1,500 $1,500 Utilities: $25, $2,375_$2,400 $7,175 $2,650 $7,950 Reserves: $6, $675-$2,050 $55,926 $2,050 $65,600 On-Site Mgr. $14,100 Landscaping: $600 Trash: $4,800 Monthly Rent: $64,521 $75,050 Additional Income: Laundry/Storage $960 $1,380 All Expenses Are Approximate Monthly Income: $65,481 $76,430 Total Expenses: $246,410 Annual Income: $785,772 $917,160 Per Net Sq. Ft: $9.33 Per Unit: $6,845

6 RENT ROLL Unit # Bed + Bath Actual Rent Pro Forma Rent Information $1,825 $2, $716 $2, $1,825 $2, $1,825 $2, $2,400 $2, Studio $1,420 $1, $1,800 $2, $1,850 $2,050 Vacant $1,800 $2, $1,825 $2, $1,825 $2, $1,825 $2, $1,800 $2, $1,800 $2, $1,825 $2, $1,825 $2, $2,375 $2, $1,825 $2, $1,825 $2, $1,825 $2,050

7 RENT ROLL Unit # Bed + Bath Actual Rent Pro Forma Rent Information $1,850 $2, $1,850 $2,050 On-Site Manager $1,825 $2, $2,000 $2, $1,800 $2, $1,825 $2, $1,800 $2,050 Vacant $826 $2, $2,400 $2, $1,800 $2, $1,800 $2, $1,800 $2, $1,800 $2, $1,800 $2, $1,975 $2,050 Vacant $804 $2,050 ADDITIONAL $960 $1,380 MONTHLY TOTAL $64,521 $75,050 YEARLY TOTAL $785,772 $917,160

8 New Paint New Granite, Sink & Mirror New Tub & Fixtures Modern Light Fixtures Stainless Steel Appliances Upgraded Cabinets New Granite Countertops Dark Wood Flooring

9 New AC Unit New Blinds

10 INVESTMENT HIGHLIGHTS A UNIQUE OPPORTUNITY EXCEPTIONAL MARKET FUNDAMENTALS An opportunity to acquire a 36 unit apartment complex located in the heart of Hollywood, CA. The Carlton Apartments have been extensively renovated including major systems upgrades and significant cosmetic upgrades. Two beautiful amenities have been added to the property which include a brand new gym and upscale community patio. The Carlton Apartments are made up of mostly one bedroom units which are the most highly sought after unit type in the Hollywood neighborhood. Year over year rent growth in Los Angeles for 2015 was 4.2%. Projected rental growth 5.6% in LA for 2016 US Census Bureau shows that the vacancy rate in Los Angeles dropped to 2.5 percent in the last three months of That s down from 3.8% at the beginning of Well below the national average of 7%. At the end of 2015, the only major metro areas with lower vacancy rates then LA were San Jose, CA; Portland, OR: and Allentown, PA

INVESTMENT HIGHLIGHTS ACCESSIBLE TO LIFESTYLE The Carlton Apartments are near many local

A few highlights are Griffith Park, Hollywood Walk of Fame, Pantages Theatre, Dolby Theatre,

Less than a 3 minute walk from the Hollywood / Western Metro station this provides quick

The subject property is less than a mile from many employment hubs including Paramount

11 INVESTMENT HIGHLIGHTS ACCESSIBLE TO LIFESTYLE The Carlton Apartments are near many local amenities. A few highlights are Griffith Park, Hollywood Walk of Fame, Pantages Theatre, Dolby Theatre, Hollywood & Highland Shopping Corridor and many nightlife attractions. Less than a 3 minute walk from the Hollywood / Western Metro station this provides quick access to Downtown and many more Los Angeles destinations. The subject property is less than a mile from many employment hubs including Paramount Studios, Netflix, Bronson Studios, Nickelodeon Studios, CNN Plaza, Kaiser Permanente Hospital, Children s Hospital and Emerson College of the Arts. Accessibility to major thoroughfares including the 101 Freeway, 134 Freeway, 110 Freeway and Interstate 10.

13 TENANT PARKING MAP Laundry Elevator parking spaces Gated secure entry for parking garage Private storage spaces for tenants New paint and re-striped Remodeled laundry room

REMODELED UNITS Exterior siding Exterior paint Landscaping New sprinkler system on timer Astroturf in the back Lawn furniture Intercom New entry gates New entry tile New glass front entry doors with

15 REMODELED UNITS Exterior siding Exterior paint Landscaping New sprinkler system on timer Astroturf in the back Lawn furniture Intercom New entry gates New entry tile New glass front entry doors with magnetic locks Lobby wallpaper & furniture New mailboxes Gym conversion Gym equipment Re-piped stacks 102, 108, 106, 105 (upgraded to meet LADBS plumbing code) Remodeled elevator cab Exterior/common area lighting Installed storage spaces New paint in garage & restriped spaces Laundry room remodel, with venting brought up to LADBS code New paint New flooring Granite countertops New kitchen sink New plumbing fixtures throughout All new electrical fixtures New shower doors All new smoke & carbon monoxide detectors Stainless steel appliances: new fridge, stove, & dishwasher New cooktops New air conditioners Newly retrofitted gas heaters All new screens

17 New private gym with brand new equipment Gated & secure underground parking Keyless intercom entrance system for all tenants Remodeled elevator Onsite laundry room Stainless steel appliances

DETAILS 5535 Carlton Way is centrally located in Hollywood CA.

, west of Western and east of Wilton Pl.

Tenants are a short walk from the Metro Line, Griffith Park and much

as well as a short drive from many of Los Angeles employment hubs.

19 DETAILS 5535 Carlton Way is centrally located in Hollywood CA. Located just south of Hollywood Blvd., west of Western and east of Wilton Pl. It is situated in a fantastic Los Angeles rental market. Tenants are a short walk from the Metro Line, Griffith Park and much more on Hollywood Blvd. as well as a short drive from many of Los Angeles employment hubs. Beyond the Metro Line, tenants are a short distance from the 101 Freeway which provides a quick commute to Downtown Los Angeles and the San Fernando Valley WALK SCORE TRANSIT SCORE BIKE SCORE Via WalkScore.com

20 HOLLYWOOD DEMOGRAPHICS Average Household Income: $58,342 Population: 104,000 Median Age: 33.2 Household Size Distribution 1 Person 54% 2-3 People 39% Owner Occupied Housing Units - 5% Renter Occupied Housing Units 95%

NEIGHBORHOOD DETAILS: HOLLYWOOD The list of things to do in Hollywood boasts big attractions, like the Hollywood Walk of Fame and Universal Studios, but it holds plenty of lesser-known places to

21 NEIGHBORHOOD DETAILS: HOLLYWOOD The list of things to do in Hollywood boasts big attractions, like the Hollywood Walk of Fame and Universal Studios, but it holds plenty of lesser-known places to visit, too. A daytime visit can easily become an all-night affair because Hollywood has no shortage of restaurants and bars, from celebrity hangouts to some of LA s classiest lobby lounges. Whether you re a visitor hunting for star tours or a local looking to get off Hollywood Boulevard, you re sure to find something to enjoy in LA s most famous neighborhood.

22 HOLLYWOOD S DEVELOPMENT BOOM Office Space Hotel Projects Apartment Developments Currently under-construction Camden Project apartment complex at Vine and Selma which will include 200 upscale units 100,000 sq feet of office space coming to the former location of Molly s Burgers stand on the northwest corner of Vine and Selma 300,000 sq ft of more office space coming on line next to the Pickford Center on Vine New 112-room Hampton Inn Hotel coming to where the Vagabond Inn once stood on Vine & Lexington (currently under construction) 64-room Morgan or Marriott Hotel on Cahuenga between Sunset and Selma on the site of the current Certified Printers building 182-room Dream Hotel on Selma, just west of Cahuenga, currently under construction from the ground up 76-room Mama Shelter Hotel, currently renovating the building next to the historic Citizen-News Building on the southwest corner of Wilcox and Selma Future hotels or student housing in the former Mark Twain and Gilbert hotels on Wilcox 225-room Kimpton Hotel at Argyle and Yucca Next phase of Clarett West s Eastown project will bring 500 new apartments to the parking lot space currently across from the Pantages Theatre New Palladium Tower apartment buildings surrounding the landmark Hollywood Palladium on Sunset. These would feature either 731 marketrate apartments or 598 apartments and 250 hotel rooms European-style boutique hotel called 80 Cool Rooms (featuring, natch, 80 rooms) proposed for a small lot on Hollywood Blvd at St. Andrews Pl. Hollywood is expecting a 68.6 percent increase in population between 2015 and 2020.

NEW APARTMENT DEVELOPMENTS 5535 Carlton Way 5750 Hollywood

of street-level retail 1350 N Western Ave: 254 apartments plus

1540 N Vine St: 287 units 1550 N El Centro Ave: Residences,

23 NEW APARTMENT DEVELOPMENTS 5535 Carlton Way 5750 Hollywood Blvd: 161 units, 5,700 sq. ft. of street-level retail 1350 N Western Ave: 254 apartments plus retail 6220 Yucca St: 191 units 6215 Sunset Blvd: 731 units & 14,000 sq. ft. of retail 1755 Argyle: 118-story tower with 114 luxury units 1540 N Vine St: 287 units 1550 N El Centro Ave: Residences, hotel & office space 1311 N Cahuenga Blvd: 389 units 620 Sunset Blvd: 200 units, 4,700 sq. ft. of retail 6201 Hollywood Blvd: 535 units, ground floor retail

NEW HOTEL DEVELOPMENTS Hollywood s hotel

on snagging Millennials money, these new

24 NEW HOTEL DEVELOPMENTS Hollywood s hotel boom shows no signs of slowing. Whether they re bringing a new art gallery with them or setting their sights on snagging Millennials money, these new hotels are proof that Hollywood s hotel hotness is still on the rise. Dream Hollywood Hotel Argyle Thompson Hollywood Hotel 55-Room Hotel 50-Room Boutique Hotel Millennium Hollywood Columbia Square CitizenM 260-Room Hotel Tommie Hotel Crossroads of the World CIM Group Mixed Use Dream Room Luxury Hotel

55 UNITS 39 MIX 6 (0+1), 15 (1+1), 18 (2+2)(2+1) SQUARE FOOTAGE 32,121 YEAR BUILT 1987 SOLD

90028 SOLD PRICE $5,380,000 PRICE PER UNIT $384,286 PRICE PER SQ FT $545.

26 SALES 1321 Sycamore Ave SOLD PRICE $15,500,000 PRICE PER UNIT $397,436 PRICE PER SQ FT $ UNITS 39 MIX 6 (0+1), 15 (1+1), 18 (2+2)(2+1) SQUARE FOOTAGE 32,121 YEAR BUILT 1987 SOLD 10/01/ N St Andrews St SOLD PRICE $5,380,000 PRICE PER UNIT $384,286 PRICE PER SQ FT $ UNITS 14 MIX 14 (1+) SQUARE FOOTAGE 9,865 YEAR BUILT 1957 SOLD 02/03/ N Orange Dr SOLD PRICE $10,513,500 PRICE PER UNIT $318,591 PRICE PER SQ FT $ UNITS 33 MIX 9 (0+1), 21 (1+1), 3 (2+1) SQUARE FOOTAGE 24,816 YEAR BUILT 1987 SOLD 11/23/15

SALES 1937 N Bronson Ave 90028 SOLD PRICE $3,800,000 PRICE PER UNIT $316,667 PRICE PER SQ FT

06/23/16 1522 N Vista Pl 90046 SOLD PRICE $8,526,000 PRICE PER UNIT $355,250 PRICE PER SQ FT

11/20/15 1425 N Crescents Heights 90046 SOLD PRICE $1,425,000 PRICE PER UNIT $370,833 PRICE

27 SALES 1937 N Bronson Ave SOLD PRICE $3,800,000 PRICE PER UNIT $316,667 PRICE PER SQ FT $ UNITS 12 MIX 1 (0+1), 8 (1+1), 3 (2+1) SQUARE FOOTAGE 8,739 YEAR BUILT 1961 SOLD 06/23/ N Vista Pl SOLD PRICE $8,526,000 PRICE PER UNIT $355,250 PRICE PER SQ FT $ UNITS 24 MIX 6 (0+1), 6 (1+1), 12 (2+2) SQUARE FOOTAGE 28,356 YEAR BUILT 1987 SOLD 11/20/ N Crescents Heights SOLD PRICE $1,425,000 PRICE PER UNIT $370,833 PRICE PER SQ FT $ UNITS 24 MIX 18 (1+2), 6 (2+2) SQUARE FOOTAGE 31,512 YEAR BUILT 1959 SOLD 09/17/15

28 RENT SURVEY 1660 Wilton Pl 5643 Carlton Way 1817 Garfield Pl #6 STUDIO $1,875 2 BED $2,700 1 BED $1,950 2 BED $2,495 2 BED $2, N Bronson Ave 6337 Primrose Ave 6500 Yucca St 1 BED $1,975 1 BED $1,995 1 BED $2,065

29 RENT SURVEY Newly Constructed Amenitized Properties 6201 Hollywood Blvd 1480 Vine St 6253 Hollywood Blvd 1 BED $2, BED $3, BED $3,250 1 BED 1734 N Mariposa Ave 6038 Carlton Way #305 $2,850 1 BED $3, Vine St 1 BED $3,000

PRESENTED BY: ZAC FREEHLING CalBRE 01879326 (310) 592-0833 zac@pacificpartnersla.com JASON SHENITZER CalBRE 01949266 (310) 402-6407 jason@pacificpartnersla.

30 PRESENTED BY: ZAC FREEHLING CalBRE (310) JASON SHENITZER CalBRE (310) DAVID REGALADO CalBRE (253) MAX LUND CalBRE (323) Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates. All Rights Reserved. Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates fully supports the principles of the Equal Opportunity Act. Each Office is Independently Owned and Operated. Broker/Agent does not guarantee the accuracy of the square footage, lot size or other information concerning the conditions or features of the property provided by the seller or obtained from Public Records or other sources. Information deemed reliable but not guaranteed

OFFERING SUMMARY The 2-4 Unit Specialists are pleased to present this 2018 CONSTRUCTION luxury fourplex that offers buyers a remarkable 5.87% cap rate

OFFERING SUMMARY The 2-4 Unit Specialists are pleased to present this 2018 CONSTRUCTION luxury fourplex that offers buyers a remarkable 5.87% cap rate (projected). This beautifully crafted property is