ICONIC EXCELLENCE IN REAL ESTATE PRIME NOHO ARTS DISTRICT

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Garey Reynolds
5 years ago
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1 ICONIC PRIME NOHO ARTS DISTRICT

11259 OTSEGO ST TABLE OF CONTENTS Property Overview 7 Investment Overview 6 Property Photos 12-14 Location Overview 15 Financial Overview 20 Rent Survey 24 Sales

2 11259 OTSEGO ST TABLE OF CONTENTS Property Overview 7 Investment Overview 6 Property Photos Location Overview 15 Financial Overview 20 Rent Survey 24 Sales Comparables 27 AGENT CONTACT PETER STRAUSS Partner o: m: peter@iconicinv.com BRE # ICONIC Ventura Blvd Suite 409 Encino, CA ICONIC

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Estancia Apartments 11259 Otsego Street is an 8 unit two-story apartment building located in prime NoHo Arts District.

5 Estancia Apartments Otsego Street is an 8 unit two-story apartment building located in prime NoHo Arts District. Six of the units have been tastefully restored with designer finishes. This near turn-key asset has a going-in CAP Rate of 4.21%. 5

6 11259 OTSEGO ST INVESTMENT overview 6 ICONIC

7 PROPERTY OVERVIEW Estancia Apartments is an eight-unit property located in the heart of the NoHo Arts District. The Arts Districts is an area of the San Fernando Valley that is undergoing rapid growth and urbanization as dozens of developments are currently underway and in planning stages. This will increase density, bringing new retail and entertainment options, and transform this once sleepy bedroom community into a vibrant city-like community with walkable and bikeable streets, and improved services surrounding major transit hubs. Located at Otsego Street, the eight-unit Estancia Apartments was built in 1950 and painstakingly restored in 2018, maintaining the architectural charm of the exterior while bringing unit interiors into the 21st century. The property features a unit mix of all one-bedroom and one-bathroom units that have an average living area of 665 square feet and include individual water heaters. Six of the eight units at Estancia were comprehensively restored in 2018 with significant effort made to maintain the mid-century charm. Existing hardwood floors were renewed and restained throughout. Updated kitchens feature mosaic hexagon tile flooring, attractive dual-tone shaker-style cabinetry with durable quartz countertops, and modern stainless steel appliances. Bathrooms were updated with new cabinetry and hardware, and feature floating vanities. Expansive windows bring in natural light and create an extra sense of space. Renovated and Restored in six of eight units updated Charming and spacious one-bedroom units averaging 665 square feet Renewed original hardwood flooring and designer tilework Additional upside available through turnover and renovation of remaining two units Surrounded by numerous major mixed-use developments New Whole Foods 365 Market opening less than 600 feet from property The NoHo Arts District is in the midst of an ongoing renaissance that started in the early 2000 s with the development of the North Hollywood Metro station. Once a gritty suburb, North Hollywood has transformed into the San Fernando Valley s cultural hub with numerous dance studios, art galleries and acting workshops side by side with various strip malls and mixed-use entertainment complexes. The neighborhood has transformed into one of the most densely populated in the San Fernando Valley, and is home to a major transportation hub, serving as the nexus point between the Orange Line busway and the Red Line subway. 7 ICONIC

8 6 Units have been rehabbed and are turn-key METRO Metro 1/2 mile to Chandler/Lankershim Metro EAT/DRINK/PLAY North Hollywood Studio City Hollywood 8 ICONIC

9 INVESTMENT OVERVIEW PARCEL MAP Address Otsego St North Hollywood, CA Submarket NoHo Arts District Assessor Parcel Number IMPROVEMENTS 8 Apartment Units Year BUILT 1950 parking 5 Spaces GROSS SQUARE FOOTAGE 6,894 (Square Feet) Estimated Land Area 5,863 (Square Feet) UTILITIES Individually Metered Individual Water Heaters Zoning LAR4 9 ICONIC

10 Estancia Apartments Otsego St NoHo Arts District MAP OF THE AREA 10 ICONIC

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15 11259 OTSEGO ST Location overview 15 ICONIC

16 NoHo Arts District 16

NOHO DEVELOPMENT PROJECTS Along Otsego Street there are three developments currently underway, including a 42-unit project directly next door, and a 70-unit project across the street.

17 NOHO DEVELOPMENT PROJECTS Along Otsego Street there are three developments currently underway, including a 42-unit project directly next door, and a 70-unit project across the street. Less than five hundred feet from the property is the new Lankershim + Otsego project from Camden Securities Company, which is expected to be completed in late This development consists of a seven-story building containing 297 apartments atop a 365 by Whole Foods Market. In addition, the NoHo West property, located less than one mile north of Estancia, is currently underway, and will bring 642 apartments, up to 60 dining and shopping options, a grocery store, gym, and movie theater to the old 25-acre Macys site at Laurel Plaza. Plans are also underway for a Greenland and Trammell Crow joint venture that will transform the existing park-and-ride lot of the North Hollywood Station of the Metro Red Line to a mixed-use village with plans to include 1,500 units of housing, 150,000 square feet of retail, and 450,000 square feet of offices (and 5,400 parking spaces). It is no exaggeration to say that there are currently thousands of new units of housing being developed currently, as well as public developments that will create open space, bring in new retailers, and build new offices, creating mini villages within the densely packed neighborhoods. 17

NEIGHBORHOOD SPOTS The NoHo Arts District is in the midst of an ongoing renaissance that started in the early

Once a gritty suburb, North Hollywood has transformed into the San Fernando Valley s cultural hub.

professional theaters, a diverse range of art galleries and public art spaces, and numerous professional dance

The district is also home to the largest concentration of music recording venues west of the Mississippi.

Hut, LA s oldest operating tiki bar, to upscale Federal Bar gastropub which is housed in a two-story 1920 s bank

18 NEIGHBORHOOD SPOTS The NoHo Arts District is in the midst of an ongoing renaissance that started in the early 2000 s with the development of the North Hollywood Metro station. Once a gritty suburb, North Hollywood has transformed into the San Fernando Valley s cultural hub. Home to contemporary theaters, art galleries, cafes, and shops, the NoHo Arts District features more than 20 professional theaters, a diverse range of art galleries and public art spaces, and numerous professional dance studios. The district is also home to the largest concentration of music recording venues west of the Mississippi. The Arts District is also home to a large concentration of popular local bars and restaurants ranging from Tonga Hut, LA s oldest operating tiki bar, to upscale Federal Bar gastropub which is housed in a two-story 1920 s bank building. Restaurants in the district reflect the variety of cultures that call North Hollywood home, and include Greek favorite Rodini, Spumate, an elegant white tablecloth Italian establishment, and Hayat s Kitchen and Skaf s Grill which serve up Middle Eastern and Mediterranean cuisine. 18

URBAN LIVING The NoHo Arts District is a hotbed of new development activity and neighborhood gentrification, and there is no better evidence of the demographic shifts that are occurring in the

Less than 600 feet from Estancia Apartments, a new 365 Whole Foods grocery-anchored mixed-use development is underway and scheduled for late-2019 completion.

19 URBAN LIVING The NoHo Arts District is a hotbed of new development activity and neighborhood gentrification, and there is no better evidence of the demographic shifts that are occurring in the community than the influx of new retail options. Less than 600 feet from Estancia Apartments, a new 365 Whole Foods grocery-anchored mixed-use development is underway and scheduled for late-2019 completion. The community is currently dotted with national and regional retailers, including Target, Starbucks, The Coffee Bean and Tea Leaf, Petco, and 24-Hour Fitness. Hundreds of new retail and entertainment options are expected to enter this thriving district as major projects are completed in the next 24-months. NoHo West, the 25-acre former Laurel Plaza site, is expected to add up to 60 new retail and dining options, and the transformation of the North Hollywood Metro Station park-and-ride lot, located less than one-half mile from Estancia, includes 150,000 square feet of new retail and 450,000 square feet of office development. 19

20 11259 OTSEGO ST FINANCIAL overview 20 ICONIC

INVESTMENT OVERVIEW Asset Estancia Location Opportunity 11259 Otsego St.

21 INVESTMENT OVERVIEW Asset Estancia Location Opportunity Otsego St. North Hollywood, CA Apartment Units RENOVATED UNITS 6 Units Rehabbed YEAR BUILT 1950 PARKING 5 Spaces GROSS SQUARE FOOTAGE 5,327 (Square Feet) PURCHASE PRICE $2,400,000 PRICE PER UNIT $300,000 CURRENT CAP RATE 4.21% CURRENT GRM ICONIC

22 RENT ROLL Unit # Unit Type Unit Sq. Ft Current Rent Per Sq. Ft CURRENT As-Is Market Rent Per Sq. Ft Renovated Market Rent RENOVATED Per Sq. Ft Bedroom + 1 Bath 665 $2, $3.01 $2, $3.01 $2, $ Bedroom + 1 Bath 665 $ $1.02 $1, $2.48 $2, $ Bedroom + 1 Bath 665 $2, $3.12 $2, $3.12 $2, $ Bedroom + 1 Bath 665 $1, $2.97 $1, $2.97 $2, $ Bedroom +1 Bath 665 $ $1.19 $1, $2.41 $2, $ Bedroom + 1 Bath 665 $1, $2.97 $1, $2.97 $2, $ Bedroom + 1 Bath 665 $1, $2.97 $1, $2.97 $2, $ Bedroom + 1 Bath 665 $1, $2.82 $1, $2.82 $2, $3.16 TOTAL 8 Units $13, $2.51 $15, $2.84 $16, $3.16 UNIT MIX SUMMARY UNIT TYPE # OF UNITS AVG SQUARE FEET AVERAGE CURRENT RENTS RENT $/ SF CURRENT MONTHLY INCOME AS-IS MARKET RENTS AS-IS MARKET $/SF AS-IS MARKET MONTHLY INCOME RENOVATED MARKET RENTS RENOVATED MARKET $/SF RENOVATED MARKET MONTHLY INCOME 1 Bedroom + 1 Bath $1, $2.51 $13, $1, $2.84 $15,125 $2,100 $3.16 $16,800 Totals/Averages $1, $2.51 $13, $1,891 $2.84 $15,125 $2,100 $3.16 $16, ICONIC

23 METRICS PROPERTY OVERVIEW Property Address Otsego St North Hollywood, CA Assessor Parcel Number Market North Hollywood Sub-Market Noho Arts District Zoning LAR4 Number of Units 8 Year Built 1950 Gross Building Sq. Ft. 5,327 Lot Size 6,894 INVESTMENT OVERVIEW Purchase Price $2,400,000 Price Per Unit $300,000 Price Per Square Foot $ FINANCING OVERVIEW Down Payment $1,032,000 Loan Amount $1,368,000 Loan to Value % 57.00% Debt Coverage Ratio 1.16 Loan Type Fully Amortizing Loan Rate 4.90% Loan Term 5 Years INVESTMENT RETURNS GRM - Current CAP Rate - Current 4.21% GRM - Market CAP Rate - Market 5.04% GRM - Renovated CAP Rate - Renovated 5.82% OPERATIONS OVERVIEW INCOME CURRENT AS-IS MARKET RENOVATED MARKET Scheduled Market Rent $160,101 $181,500 $201,600 Less: Vacancy 3.00% ($4,803) ($5,445) ($6,048) Subtotal: Effective Rental Income $155,298 $176,055 $195,552 Other Income Plus: Laundry Income $1,200 $1,200 $1,200 Plus: Miscellaneous Fees $300 $300 $300 Plus: LAHD Registration/SCEP Reimbursement $444 $444 $444 Subtotal: Total Other Income $1,944 $1,944 $1,944 EFFECTIVE GROSS INCOME $157,242 $177,999 $197,496 EXPENSES Fixed Expenses Off-Site Management 4.00% $6,212 $7,042 $7,822 Property Tax 1.19% $28,608 $28,608 $28,608 Property & Liability Insurance $2,953 $2,953 $2,953 Subtotal: Fixed Expenses $38,811 $39,641 $40,421 Controllable Expenses LAHD Fees & Administrative Costs $1,142 $1,142 $1,142 Repairs & Maintenance $500 $4,000 $4,000 $4,000 Utilities $6,200 $6,200 $6,200 Landscaping $1,200 $1,200 $1,200 Pest Control $840 $840 $840 Subtotal : Controllable Expenses $17,498 $17,498 $17,498 TOTAL EXPENSES ($56,309) ($57,139) ($57,919) NET OPERATING INCOME $100,933 $120,860 $139,577 Capital Reserves $200 ($1,600) ($1,600) ($1,600) Debt Service ($87,124) ($87,124) ($87,124) NET CASH FLOW $12,209 $32,136 $50, % 3.11% 4.93% Principal Reduction $20,550 $20,550 $20,550 TOTAL RETURN $32,759 $52,685 $71, % 5.11% 6.92% 23 ICONIC

24 11259 OTSEGO ST RENT SURVEY 24 ICONIC

25 RENT SURVEY PROPERTY Units Year Built Parking Renovated Individually Metered Type Rent SF Rent/SF Otsego St North Hollywood, CA Morrison St North Hollywood, CA Huston St North Hollywood, CA Otsego St North Hollywood, CA Morrison St North Hollywood, CA Lankershim Blvd North Hollywood, CA Otsego St North Hollywood, CA Camarillo St North Hollywood, CA Morrison St North Hollywood, CA Otsego St North Hollywood, CA Camarillo St North Hollywood, CA Yes Yes Yes 1 Bedroom/1 Bath $2, $ Yes Yes Yes 1 Bedroom/1 Bath $1, $ Yes Yes Yes 1 Bedroom/1 Bath $1, $ Yes Yes Yes 1 Bedroom/1 Bath $ $ Yes Yes Yes 1 Bedroom/1 Bath $2, $ Yes Yes Yes 1 Bedroom/1 Bath $2, $ Yes Yes Yes 1 Bedroom/1 Bath $2, $ Yes Yes Yes 1 Bedroom/1 Bath $1, $ Yes Partially Yes 1 Bedroom/1 Bath $1, $ Yes No Yes 1 Bedroom/1 Bath $1, $ Yes Partially Yes 1 Bedroom/1 Bath $1, $ ICONIC

RENT SURVEY 5077 Lankershim Blvd 11259 Otego St.

26 RENT SURVEY 5077 Lankershim Blvd Otego St Otsego St Otsego St Otsego St Morrison St Morrison St Morrison St Huston St Camarillo St Camarillo St 26 ICONIC

27 11259 OTSEGO ST SALES COMPARABLES 27 ICONIC

SALES COMPARABLES PROPERTY 11259 Otsego St 4400 Farmdale Ave 11544 Moorpark St 10640 Whipple St LOCATION NoHo Arts District

Jun-18 Jan-18 SALE PRICE $2,400,000 $2,125,000 $2,825,000 $1,850,000 PRICE/UNIT $300,000 $354,167 $353,125 $370,000 CAP RATE 4.

81 PRICE/SF $450 $391 $371 $450 UNIT MIX ICONIC 1 Bedroom/1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 1 Bedroom/1 Bath 2 Bedroom/

28 SALES COMPARABLES PROPERTY Otsego St 4400 Farmdale Ave Moorpark St Whipple St LOCATION NoHo Arts District North Hollywood Studio City North Hollywood NUMBER OF UNITS YEAR BUILT DATE SOLD Subject May-18 Jun-18 Jan-18 SALE PRICE $2,400,000 $2,125,000 $2,825,000 $1,850,000 PRICE/UNIT $300,000 $354,167 $353,125 $370,000 CAP RATE 4.21% 4.15% 3.90% 3.21% GRM PRICE/SF $450 $391 $371 $450 UNIT MIX ICONIC 1 Bedroom/1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 2 Bath 8-1 Bedroom/1 Bath 3 Bedroom/1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 3-1 Bedroom/1 Bath 6-1 Bedroom/ 1 Bath 3-1 Bedroom/ 1 Bath 2-2 Bedroom/1 Bath 2-2 Bedroom/ 2 Bath 2-2 Bedroom/ 1 Bath 1-3 Bedroom/2 Bath 28

SALES COMPARABLES PROPERTY 11259 Otsego St 5029 Cartwright Ave 10924 Camarillo St 11840 Riverside Dr LOCATION NoHo Arts

Subject Mar-18 Jun-18 Sep-18 SALE PRICE $2,400,000 $1,611,000 $2,000,000 $7,525,000 PRICE/UNIT $300,000 $268,500 $250,000

86 PRICE/SF $450 $376 $408 $383 UNIT MIX 1 Bedroom/1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1

29 SALES COMPARABLES PROPERTY Otsego St 5029 Cartwright Ave Camarillo St Riverside Dr LOCATION NoHo Arts District North Hollywood North Hollywood Valley Village NUMBER OF UNITS YEAR BUILT DATE SOLD Subject Mar-18 Jun-18 Sep-18 SALE PRICE $2,400,000 $1,611,000 $2,000,000 $7,525,000 PRICE/UNIT $300,000 $268,500 $250,000 $250,833 CAP RATE 4.21% 3.80% N/A 3.52% GRM N/A PRICE/SF $450 $376 $408 $383 UNIT MIX 1 Bedroom/1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 1 Bedroom/1 Bath 2 Bedroom/ 1 Bath 8-1 Bedroom/1 Bath 4-1 Bedroom/ 1 Bath 2-2 Bedroom/ 1 Bath 7-1 Bedroom/ 1 Bath 1-2 Bedroom/1 Bath 19-1 Bedroom/1 Bath 11-2 Bedroom/1 Bath 29 ICONIC

SALES COMPARABLES MAP 11259 Otsego St 5029 Cartwright Ave 11840 Riverside Dr

30 SALES COMPARABLES MAP Otsego St 5029 Cartwright Ave Riverside Dr Camarillo St 4400 Farmdale Ave Moorpark St Whipple St 30 ICONIC

AGENT CONTACT PETER STRAUSS Partner o: 747-444-3303 m: 310-993-7600

31 AGENT CONTACT PETER STRAUSS Partner o: m: BRE # ICONIC Ventura Blvd Suite 409 Encino, CA 91436

NoHo Arts District Apartments

OFFERING MEMORANDUM NoHo Arts District Apartments NORTH HOLLYWOOD, CA OFFERING MEMORANDUM KW COMMERCIAL 700 S. Flower Street, Suite 2900 Los Angeles, CA 90017 PRESENTED BY: JAKE KASARJIAN Commercial Real