OFFERING MEMORANDUM. Bellevue Avenue, Silver Lake, CA

Transcription

1 OFFERING MEMORANDUM Bellevue Avenue, Silver Lake, CA 90026

2 CONFIDENTIALITY AND DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters aand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. All property showings are by appointment only. Please consult your Marcus & Millichap agents for more details. DO NOT ENTER PROPERTY WITHOUT AGENT'S PERMISSION.

3 LISTED BY Ari Gold Associate Multi-Family Investments CA BRE License # office cell Barry Gordon Senior Vice President Multi-Family Investments CA BRE License # office cell Justin Forman Senior Associate Multi-Family Investments CA BRE License # office cell Table of Contents 1 Property Overview 2 Location Overview 3 Financial Summary 4 Rent Comparables 5 Sales Comparables Marcus & Millichap 515 South Flower Street Suite 500 Los Angeles, CA fax marcusmillichap.com

4 3518 Bellevue Avenue

5 One Property Overview

6 Property Summary Marcus & Millichap is proud to present 3518 Bellevue Avenue, located in the vibrantly charming and ultra-desireable Los Angeles neighborhood of Silver Lake, where all that is young and hip is intermingled with decades of family-run businesses and longtime residents. This value-add property consists of a single L-shaped two-story building on a 7,798 square foot lot with RD2 zoning. Featuring ample parking for one studio/one-bath unit, four one-bedroom/one-bath units, one two-bedroom/one-bath unit, and one three-bedroom/two-bath unit. It is the ultimate unit mix for investors looking to capture the huge upside in rents in this rejuvinating Virgil Village/Silver Lake neighborhood. Situated just steps from Time Out Magazine's coffee shop winner, Cafecito Organico, walking distance to reknowned eatery, Sqirl, moments from Bellevue Recreation Center and just blocks from a 101 freeway onramp, this will have young professional renters lining up for a chance to live in Silver Lake! With a 3.81 percent current, and a 6.26 percent pro-forma cap rate, this property is a unique value-add opportunity. It is located in a highly sought-after, low inventory area that will have investors clamoring to get a piece of this market. Each unit is individually metered for gas and electric. An on-site laundry room adds convenience for the tenants and extra income for the property owner.

7 Property Overview 3518 Bellevue Avenue LAND INFORMATION Property Address 3518 Bellevue Avenue Los Angeles, CA Parcel Size SF 7,798 APN BUILDING INFORMATION Number of Units Seven Year Built 1960 Number of Buildings One Number of Stories Two Building SF 4,572 Parking Seven Carport/One Surface UTILITIES Water Electric Gas Master Metered Individually Metered Individually Metered CONSTRUCTION Foundation Framing Roof HVAC Concrete Stucco Pitched Shingle Wall This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 7

8 3518 Bellevue Avenue Property Overview Investment Highlights Three Vacant Units Minutes North of Downtown Los Angeles Highly Desired and Low Inventory Location Value-Add Opportunity Not Subject To Soft Story Retrofit Eight Parking Spaces In recent years, Silver Lake has become known as the ground zero for the young and hip. While this may be true, it s only part of the story. Silver Lake is a vibrant and eclectic village with its own identity and personality. It s a mecca for young artistic types from all around the world, but families as well as longtime residents populate its charming hillside enclaves. 8 - Angeleno Living

9 Property Overview 3518 Bellevue Avenue Plat Map This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 9

10 3518 Bellevue Avenue Property Overview Potential Value-Add Opportunities For New Investors UNIT INTERIORS Hardwood Flooring Recessed Lighting Quartz Countertops Stainless Steel Appliances Two Tone Paint Schemes Tiled Backsplash Keyless Entry USB Outlets Ductless Mini-Split A/C Systems COMMON AREAS Automatic Gated Access Modern Outdoor Furniture Barbeques Bicycle Parking Pet Area Drought Tolerant Landscaping 10

11 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 11

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13 Silver Lake Stairs Two Location Overview Silver Lake Reservoir

14 Sunset Junction SILVER LAKE, CA Impeccably situated between Hollywood and Downtown Los Angeles, the ever trendy community of Silver Lake is a highly coveted neighborhood attracting young professionals and creatives alike. Silver Lake is famously home to some of the nation s most lauded food trucks, award winning restaurants, famous architectural landmarks, and a thriving music scene. With the perfect mix of New York street chic, a thriving artistic community, and a hip urban vibe, Silver Lake continues to draw new businesses and residents in droves. Along the hustle and bustle of Sunset Boulevard you will find good music, great shopping, and exquisite dining making this a beacon for all who are hip and cool in Los Angeles. Yet in the surrounding hilltops you will find quiet nature in the area's residential enclaves. The best of both worlds! With its proximity to major employers and film studios, coupled with rising single family home prices, Silver Lake will continue to entice high income renters to the area while they pursue their Hollywood dreams. Contrary to the unfair misconception of Los Angeles, the city is not all about frivolous wealth and bling. You can t talk about L.A. without recognizing its exuberant creative force, boundless energy and ability to constantly position itself on the forefront of new trends. And, in Silver Lake, you will have a taste of them all.. - Forbes 14 The Black Cat Restaurant & Bar

15 Silver Lake Reservoir Satellite Music Venue Silver Lake Farmers Market Cliff's Edge Restaurant Cafecito Organico

16 Regional Area MAP BURBANK 9.2 MILES PASADENA 12.1 MILES GLENDALE 7.0 MILES EAGLE ROCK 6.6 MILES HOLLY- WOOD 3.6 MILES BEVERLY HILLS 8.0 MILES 3518 Bellevue Avenue DTLA 3.9 MILES 16

17 Local Employment MAP Location Overview 3518 Bellevue Avenue 3518 Bellevue Avenue Quixote Studios MAJOR EMPLOYERS # EMP CITY OF LOS ANGELES 5,000 LA DWP 5,006 MERCURY INSURANCE 4,000 AIDS HEALTHCARE FOUND. 1,967 PARAMOUNT PICTURES 3,500 ABM JANITORIAL 1,500 GOOD SAMARITAN HOSPITAL 1,500 CHILDRENS HOSPITAL LA 891 ATT 800 SUCCESS HEALTHCARE 630 ANSCHUTZ ENT. GROUP 5,005 WARNER BROTHERS 5,000 ABC/DISNEY 6,000 UNIVERSAL 2,000 Prospect Studios 3518 Bellevue Avenue This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 17

18 LOCAL DEVELOPMENT 1 2 Silver Lake & London Proposed 48-unit four-story apartment complex including six low-income units. Developer: 237 Windward LLC Silver Lake & Bellevue Proposed 135-unit fourand five-story complex with 12,000 sguare feet of ground floor commercial space. Developer: CIM Dillon617 Under construction are 49 apartment units consisting of 72,000 square feet of space in two buildings with a paseo style street to street walkway Sunset Boulveard 101 Under construction are 35 luxury condo units above 2,000 square feet of ground floor commercial space. Developer: Barry Leddy Development Bellevue Avenue Sunset Boulevard Coming in 2018, 14,634 square feet of retail and restaurant space. Developer: CIM Sunset Boulevard Proposed 81-unit apartment complex with ground floor restaurant and retail space. (May change to hotel use.) Developer: Frost/Chaddock

19 Sunset Boulevard Proposed 91-unit, five-story, apartment complex with ground floor restaurant and retail space. Developer: Frost/Chaddock 654 Virgil Proposed 24 loft and townhome style units, fivestory apartment complex with ground floor retail space. Developer: 4Site This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 19

20 B ird's Eye V i e w DEVELOPMENT S E N W Silver Lake & London Proposed 48-unit four-story apartment complex including six low-income units. 101 Developer: 237 Windward LLC 2 Silver Lake & Bellevue Proposed 135-unit four- and five-story complex with 12,000 square feet of ground floor commercial space. Developer: CIM 3 Dillon617 Under construction are 49 apartment units consisting of 72,000 square feet of space in two buildings with a paseo style street to street walkway. 20

21 3518 Bellevue Avenue

22 B ird's Eye V i e w DEVELOPMENT N 8 W E S 4121 Sunset Boulevard Coming in 2018, 14,634 square feet of retail and restaurant space. Developer: CIM 4000 Sunset Boulevard Proposed 81-unit apartment complex with ground floor restaurant and retail space. (May change to hotel use.) Developer: Frost/Chaddock 4100 Sunset Boulevard Proposed 91-unit, five-story, apartment complex with ground floor restaurant and retail space. Developer: Frost/Chaddock 654 Virgil Under construction, 24 loft and townhome style units, five-story apartment complex with ground floor retail space. Developer: 4Site

23 Bellevue Avenue

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25 Location Overview 3518 Bellevue Avenue Demographics POPULATION AND HOUSING In 2016, the population in Silver Lake was 82,476. The population has decreased by -4.32% since It is estimated that the population in your area will be 82, five years from now, which represents an increase of 0.26% from the current year. The current population is 51.08% male and 48.92% female. The median age of the population in your area is 34.83, compare this to the US average which is The population density in your area is 26, people per square mile. The median housing value in the area was $514,704 in 2016, compare this to the US average of $187,181. In 2000, there were 4,082 owner occupied housing units in your area and there were 25,602 renter occupied housing units in your area. The median rent at the time was $553. MEDIAN HOUSEHOLD INCOME: INCREASE SINCE % INCREASE IN THE NEXT FIVE YEARS 14.10% INCOME AND EMPLOYMENT In 2016, the median household income in Silver Lake was $37,961, compare this to the US average which is currently $54,505. The median household income for your area has increased 43.18% since It is estimated that the median household income in your area will be $43,312 five years from now, which represents an increase of 14.10% from the current year. The current year per capita income in the area is $21,041, compare this to the US average, which is $29,962. The current year average household income in the area is $55,332, compare this to the US average which is $78,425. In 2016, there were 19,554 employees in the Silver Lake area, this is also known as the daytime population. The 2000 Census revealed that 50.72% of employees are employed in whitecollar occupations in this geography, and 49.22% are employed in blue-collar occupations. In 2016, unemployment in the area was 10.31%. In 2000, the average time traveled to work was minutes. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References 25 to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 25

26 3518 Bellevue Avenue

27 Three Financial Summary

28 3518 Bellevue Avenue Financial Summary Rent Roll UNIT UNIT TYPE UNIT SIZE (SF)* NOTES CURRENT RENT CURRENT RENT/SF MARKET RENT $2,060 $1.72 $3, Vacant $2,100 $3.80 $2, $929 $1.86 $2, $586 $1.47 $1, Vacant $3,100 $3.00 $3, $786 $1.57 $2, Vacant $2,100 $3.80 $2,100 NO. OF UNITS UNIT TYPE UNIT SIZE (SF)* AVG. RENT CURRENT MONTHLY INCOME MARKET RENT $586 $586 $1,650 $1, $1,479 $5,915 $2,100 $8, $3,100 $3,100 $3,100 $3, $2,060 $2,060 $3,600 $3,600 7 $11,661 $16,750 MONTLY INCOME *Unit square footage is estimated, buyer to perform due diligence. 28

29 Financial Summary 3518 Bellevue Avenue Financial Analysis FINANCIAL INDICATORS Price: $2,300,000 Down: $930,000 (40%) $/Unit: $328,571 $/SF: $ $/Lot SF: $ Current CAP: 3.81% Current GRM: Market CAP: 6.26% Market GRM: PROPERTY INFORMATION Ownership: Fee Simple No. of Units: 7 Yr. Built/Renovated: 1960 Building SF: 4,572 Lot SF: 7,798 PROPOSED FINANCING* Loan Amount: $1,370,000 Interest Rate/Fixed: 4.0% Term 5 Year *Loan information is subject to change. Contact your Marcus & Millichap Capital Corporation representative. OPERATING INCOME CURRENT MARKET Gross Potential Rental Income $139,932 $201,000 Laundry Income (est) $1,200 (est) $1,200 Gross Potential Income $141,132 $202,200 Less: Vacancy 3.00% ($4,234) 3.00% ($6,066) Effective Gross Income $136,898 $196,134 Less: Expenses ($49,172) ($52,134) Net Operating Income $87,726 $144,000 Less: Debt Service 1.12 ($78,487) 1.83 ($78,487) Pre-Tax Cash Flow 0.99% $9, % $65,513 Principal Reduction $24,126 $24,126 Total Return on Investment 3.59% $33, % $89,639 OPERATING EXPENSES (ESTIMATED) CURRENT MARKET Real Estate Taxes (New) 1.19% $27,370 $27,370 Direct Assessments $957 $957 Insurance $0.35/SF $1,600 $1,600 Utilities $75/u/month $6,300 $6,300 Trash (Tenants Pay) $0 $0 Repairs & Maintenance $500/unit $3,500 $3,500 Landscape $100/month $1,200 $1,200 Professional Management 5% of EGI $6,845 $9,807 Misc. & Reserves $200/unit $1,400 $1,400 Total Expenses $49,172 $52,134 Expenses/Unit $7,025 $7,448 Expenses/SF $10.76 $11.40 % of EGI 35.92% 26.58% This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 29

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31 3518 Bellevue Avenue Four Rent Comparables

32 Rental Comparables MAP 3518 Bellevue Avenue STUDIOS Marathon Street Descanso Drive North Sanborn Avenue West Sunset Boulevard ONE BEDROOMS Lockwood Avenue Edgecliffe Drive Ellsworth Street TWO BEDROOMS /2 Hyperion Avenue Bellevue Avenue Descanso Drive North Hoover Street THREE BEDROOMS North New Hampshire Avenue Monroe Street Parkman Avenue

33 Rent Comparables AVERAGE RENTS - STUDIO AVERAGE RENTS - ONE BEDROOM Rent Comparables 3518 Bellevue Avenue AVERAGE RENTS - TWO BEDROOM AVERAGE RENTS - THREE BEDROOM NOTE: GRAPHS INCLUDE UNRENOVATED COMPARABLES 33

34 3518 Bellevue Avenue Rent Comparables Rent Comparables Subject 3518 BELLEVUE AVENUE LOS ANGELES, CA MARATHON STREET LOS ANGELES, CA DESCANSO DRIVE LOS ANGELES, CA Year Built: 1960 No. of Units: 7 Year Built: 1986 No. of Units: 107 Year Built: 1928 No. of Units: 16 Unit Type Unit SF* Avg. Rent Rent/SF $586 $ $1,479 $ $3,100 $ $2,060 $1.72 *Square footage is estimated, buyer to perform due diligence. Unit Type Unit SF Avg. Rent Rent/SF $1,500 $3.00 Note: NOT RENOVATED -Building exterior is outdated. Interior of units are dated (1990s-2000s) builders grade renovations. Pale laminate flooring. Unit Type Unit SF Avg. Rent Rent/SF $1,650 $2.75 Note: Renovated with laminate flooring, new paint. White shaker kitchen cabinets with gray quartz countertops, stainless steel appliances including built-in microwave. Modern bathroom with trough sink and white subway tile surround. NON-RENT CONTROL / ON-SITE LAUNDRY / DISHWASHER / A/C / 1 PARKING SPACE / PETS OK / POOL ON-SITE LAUNDRY / NO A/C / DOGS OK / STREET PARKING 34

35 Rent Comparables 3518 Bellevue Avenue Rent Comparables NORTH SANBORN AVENUE LOS ANGELES, CA WEST SUNSET BOULEVARD LOS ANGELES, CA LOCKWOOD AVENUE LOS ANGELES, CA Year Built: 19 No. of Units: Year Built: 1929 No. of Units: 53 Year Built: 1963 No. of Units: 10 Unit Type Unit SF Avg. Rent Rent/SF $1,500 $3.00 Unit Type Unit SF Avg. Rent Rent/SF $1,475 $2.18 Unit Type Unit SF Avg. Rent Rent/SF $2,100 $3.39 Note: NOT RENOVATED 1990s kitchen cabinets with black granite countertops and black applainces. Note: NOT RENOVATED Basic unit, laminate flooring, new paint, exposed brick walls. Small builder's grade bathroom. Builder's grade kitchen with white cabinets, granite countertops, white appliances. Note: Fully renovated. HGTV style including farmhouse sink, white cabinets and quartz countertops. Stainless steel appliances. Hardwood floors. ON-SITE LAUNDRY / STREET PARKING / PETS OK ON-SITE LAUNDRY / NO A/C / PETS OK / STREET PARKING IN-UNIT LAUNDRY / DISHWASHER / A/C / ONE GATED PARKING / PETS OK This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 35

36 3518 Bellevue Avenue Rent Comparables Rent Comparables EDGECLIFFE DRIVE LOS ANGELES, CA ELLSWORTH STREET LOS ANGELES, CA /2 HYPERION AVENUE LOS ANGELES, CA Year Built: 1922 No. of Units: 5 Unit Type Unit SF Avg. Rent Rent/SF $2,500 $4.16 Year Built: 1958 No. of Units: 4 Unit Type Unit SF Avg. Rent Rent/SF $2,595 $3.05 Year Built: 1964 No. of Units: 7 Unit Type Unit SF Avg. Rent Rent/SF /2 1,000 $2,950 $2.95 Note: Fully renovated with ash colored hand scraped engineered flooring, recessed lighting, modern ceiling fans. New kitchen with white shaker cabinets, quartz counter tops and stainless steel appliances. New bathroom with large marble tile surround and shaker cabinet vanity. IN-UNIT STACKABLE LAUNDRY / CENTRAL HEAT AND A/C / ONE PARKING SPACE / DISHWASHER Note: Fully renovated with engineered flooring, and recessed lighting. New kitchen with white shaker cabinets, kitchen island, caesar stone quartz counter tops and stainless steel appliances. New bathroom with trough sink and modern glass surround. IN-UNIT LAUNDRY / CENTRAL HEAT AND A/C / ONE PARKING SPACE / DISHWASHER / BUILT-IN MICROWAVE / VIEWS OF DOWNTOWN LOS ANGELES Note: Mid grade renovations (new but out of style). Medium tone oak hardwood floors and new paint. Medium tone wood shaker cabinets and granite counter tops and stainless steel appliances. DISHWASHER / MINI-SPLIT A/C / ONE PARKING SPACE / PETS OK 36

37 Rent Comparables 3518 Bellevue Avenue Rent Comparables BELLEVUE AVENUE LOS ANGELES, CA DESCANSO DRIVE LOS ANGELES, CA NORTH HOOVER STREET LOS ANGELES, CA Year Built: 1985 No. of Units: 6 Unit Type Unit SF Avg. Rent Rent/SF ,200 $3,050 $2.37 Year Built: 1931 No. of Units: 2 Unit Type Unit SF Avg. Rent Rent/SF ,428 $3,800 $2.66 Year Built: 1927 No. of Units: 5 Unit Type Unit SF Avg. Rent Rent/SF ,000 $3,100 $3.10 Note: Fully renovated with mid tone hard wood flooring, white European style enamel kitchen cabinets, white quartz countertops and stainless steel appliances. Renovated bathroom with white subway surround and vessel sink. Note: Mid grade renovations. Hardwood floors, half way between builders grade and HGTV renovations. White paint, white shaker cabinets, stainless steel appliances, tile counter tops. Note: Fully renovated HGTV style kitchen with white tile backsplash, quartz counter tops, farmhouse sink. Hardwood floors throughout. NON-RENT CONTROL / DISHWASHER / IN-UNIT LAUNDRY / MINI SPLIT A/C / TWO PARKING SPACES / PETS OK TWO-CAR GARAGE / IN-UNIT LAUNDRY / A/C / DISHWASHER / PETS OK IN-UNIT LAUNDRY / A/C / DISHWASHER / ONE PARKING SPACE / PETS OK This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 37

38 3518 Bellevue Avenue Rent Comparables Rent Comparables NORTH NEW HAMPSHIRE AVENUE LOS ANGELES, CA MONROE STREET LOS ANGELES, CA PARKMAN AVENUE LOS ANGELES, CA Year Built: 1925 No. of Units: 4 Unit Type Unit SF Avg. Rent Rent/SF /2 1,200 $3,700 $3.08 Year Built: 1926 No. of Units: 7 Unit Type Unit SF Avg. Rent Rent/SF $3,395 $3.57 Year Built: 1924 No. of Units: 3 Unit Type Unit SF Avg. Rent Rent/SF /2 1,250 $3,600 $2.88 Note: Fully renovated with dark wide plank hardwood floors, European style kitchen cabinets with white quartz countertops and stainless steel appliances. IN-UNIT LAUNDRY / DISHWASHER / TWO PARKING SPACES / MINI SPLIT A/C / PETS OK Note: Fully renovated with laminate flooring, new European style enamel kitchen cabinets with white quartz countertops and stainless steel appliances. Newly painted in neutral colors. White subway tile tub surround and modern sink in bathroom. IN-UNIT LAUNDRY / DISHWASHER / TWO PARKING SPACES / MINI SPLIT A/C IN BEDROOMS Note: NOT RENOVATED Craftsman style rear unit. Original hardwood floors. 1950s style kitchen with white appliances and 1950s wall oven. IN-UNIT LAUNDRY / DISHWASHER / ONE GARAGE PARKING / WALL UNIT A/C 38

39 Four

40 3518 Bellevue Avenue

41 Five Sales Comparables

42 Sales Comparables MAP 3518 Bellevue Avenue Hyperion Avenue Descanso Drive Vendome Street Parkman Avenue

43 Sales Comparables 3518 Bellevue Avenue Sales Comparables AVERAGE PRICE PER SF AVERAGE CAP RATE AVERAGE PRICE PER UNIT AVERAGE GRM This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 43

44 3518 Bellevue Avenue Sales Comparables Sales Comparables Subject 3518 BELLEVUE AVENUE LOS ANGELES, CA HYPERION AVENUE LOS ANGELES, CA DESCANSO DRIVE LOS ANGELES, CA No. of Units: 7 Year Built: 1960 Offering Price: $2,300,000 $/Unit: $328,571 $/SF: $ Cap Rate: 3.81% GRM: Close of Escrow: N/A Building Size: 4,572 SF Lot Size/SF: 7,798 SF No. Unit Unit Type No. of Units: 5 Year Built: 1940 Sale Price: $1,850,000 $/Unit: $370,000 $/SF: $ Cap Rate: 0.85% GRM: Close of Escrow: 11/3/2017 Building Size: 4,357 SF Lot Size/SF: 14,807 SF No. Unit Unit Type Note: This property is subject to the soft story earthquake retrofit and was 100 percent occupied at close of escrow. Rents are well below market. No. of Units: 7 Year Built: 1962 Sale Price: $2,140,000 $/Unit: $305,714 $/SF: $ Cap Rate: 4.56% GRM: Close of Escrow: 10/4/2017 Building Size: 4,192 SF Lot Size/SF: 5,515 SF No. Unit Unit Type Note: This property is subject to the soft story earthquake retrofit. Six of the units were delivered vacant. 44

45 Sales Comparables 3518 Bellevue Avenue Sales Comparables VENDOME STREET LOS ANGELES, CA No. of Units: 8 Year Built: 1931 Sale Price: $3,150,000 $/Unit: $393,750 $/SF: $ Cap Rate: 4.41% GRM: Close of Escrow: 12/11/2017 Building Size: 7,184 SF Lot Size/SF: 6,299 SF No. Unit Unit Type PARKMAN AVENUE LOS ANGELES, CA No. of Units: 6 Year Built: 1949 Sale Price: $1,940,000 $/Unit: $323,333 $/SF: $ Cap Rate: 2.65% GRM: Close of Escrow: 10/31/2017 Building Size: 4,852 SF Lot Size/SF: 5,824SF No. Unit Unit Type Four Note: This property was 100 percent occupied at the close of escrow. Building offers four garage parking spaces. Note: This was an off market sale. Cap rate and GRM based off of $8,133 gross mothly rents reported by the seller. This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap. All rights reserved. (Activity ID: Y ) 45

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47 3518 Bellevue Avenue 47

48 Ari Gold Associate Multi-Family Investments CA BRE License # office cell Barry Gordon Senior Vice President Multi-Family Investments CA BRE License # office cell Justin Forman Senior Associate Multi-Family Investments CA BRE License # office cell All property showings are by appointment only. Please consult your Marcus & Millichap agents for more details. DO NOT ENTER PROPERTY WITHOUT AGENT'S PERMISSION. BELLEVUE AVENUE Silver Lake, California