7642 Vineland Avenue Sun Valley, CA

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1 Offering Memorandum Vineland Avenue Sun Valley, CA

2 Offering Memorandum 7642 Vineland Avenue Sun Valley, CA NEEMA AHADIAN Senior Vice President Investments Direct LEO LATERZA Senior Associate Investments Direct NON-ENDORSEMENTS 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 infor-mation about this listing to prospective customers. All property showings are by appointment only. Please consult your Marcus & Millichap agent for more details. DISCLAIMER THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN APPRAISAL. This information has been secured from sources we believe to be reliable, but we make no represen-tations or warranties, express 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.

3 Property Description

4 4 Investment Highlights Investment Opportunity near Growing Markets of Burbank, Glendale, and North Hollywood Close Proximity to Downtown Los Angeles and 5 Freeway 24% Rental Upside Through Renovations and Unit Turnover On-Site Parking - Eight (8) Tandem Spaces, Nine (9) Single Spaces; Twenty Five Total Building Offers Spacious Unit Layouts Consisting of Two Bedrooms and Four Bedrooms Distance of 3 Miles from the Bob Hope Burbank Airports

5 THE NEEMA GROUP AT MARCUS & MILLICHAP Property Summary The Offering Property Property Address 7642 Vineland Avenue 7642 Vineland Avenue Sun Valley, CA Assessor s Parcel Number Zoning R1-1 Site Description Number of Units 11 Number of Buildings 1 Number of Stories 2 Year Built 1989 Gross Square Feet 8,920 Lot Size 16,893 Type of Ownership Fee Simple Parking 25 Spaces Utililties Water Electric Gas Construction Foundation Framing Exterior Parking Surface Roof Mechanical Water Heaters Laundry Plumbing Wiring Master Metered Separately Metered Separately Metered Concrete Wood Frame Stucco Asphalt Flat Individual Water Heaters Machines Owned - 2W/2D Copper Plumbing throughout New Wiring 5

6 6

7 THE NEEMA GROUP AT MARCUS & MILLICHAP 7

8 7642 Vineland Avenue, 8 Location Map SITE

9 THE NEEMA GROUP AT MARCUS & MILLICHAP Sun Valley Sun Valley is a neighborhood in the San Fernando Valley region of Los Angeles County, California. The neighborhood is known for its overall youthful population and diverse population with an estimated average home income of $68,492. Sun Valley is bordered on the northeast by Shadow Hills, on the southeast by Burbank, on the south by North Hollywood and Valley Glen, on the west by Panorama City and on the northwest by Pacoima, Hansen Dam and Lake View Terrace. The property is ideally located on the cusp of Burbank and adjacent to number of new developments in the area, with close to the 5 freeway and 210 freeway. Sun Valley has a strong and increasing rental market and will continue to outpace the rest of the San Fernando Valley with rent growth and low vacancy. 9

10 Pricing & Financials

11 THE NEEMA GROUP AT MARCUS & MILLICHAP Unit Mix Rent Roll Number of Units Unit Type Approx. SF Monthly Rent/Unit Monthly Income Proforma Rents Monthly Income 10 2 Bdr 1 Bath 675 $1,444 $14,444 $1,935 $19,350 1 *4 Bdr 2 Bath 1,350 $2,595 $2,595 $3,000 $3, TOTAL $17,039 $22,350 Unit Number Unit Type Current Rent Asking Rent *1 & 12 4 Bdr 2 Bath $2,595 $3,000 Notes Units 1 & 12 are Combined; Renovated 2 2 Bdr 1 Bath $1,458 $1,850 Renovated 3 2 Bdr 1 Bath $1,458 $1,850 Renovated 4 2 Bdr 1 Bath $1,458 $1, Bdr 1 Bath $1,458 $1, Bdr 1 Bath $1,458 $1,850 Renovated 7 2 Bdr 1 Bath $1,458 $1, Bdr 1 Bath $1,458 $1,850 Renovated 9 2 Bdr 1 Bath $1,458 $1, Bdr 1 Bath $1,458 $1,850 Renovated 11 2 Bdr 1 Bath $1,315 $1, TOTAL Vacant $0 $0 TOTAL Occupied $17,039 $21,500 * Units 1 & 12 have been combined without permits. 11

12 12 Income & Expenses Item Current Per Unit Pro Forma Per Unit Gross Scheduled Rent $204,465 $268,200 Less: Vacancy/Collection Allowance (GPR) $6,134 $13,410 Effective Rental Income $198,331 $254,790 Effective Gross Income $198,331 $254,790 Taxes: Rate 1.19% $33,296 $3,027 $33,296 $3,027 Insurance $2,731 $248 $2,731 $248 Utilities: $16,610 $1,510 $16,610 $1,510 Landscaping $1,200 $109 $1,200 $109 Maintenance $2,869 $261 $2,869 $261 Waste $6,110 $555 $6,110 $555 Pest Control $420 $38 $420 $38 Management $9,917 $902 $12,740 $1,158 Total Expenses $73,153 $75,976 Expenses per Unit $6,650 $6,907 Expenses per SF $8.20 $8.52 % of EGI 36.9% 29.8% Net Operating Income $125,178 $178,814

13 THE NEEMA GROUP AT MARCUS & MILLICHAP Financial Analysis & Pricing Item Current Proforma Price $2,798,000 Down Payment $1,259,100 First Trust Deed/Mortgage $1,538,900 Interest Rate/Amortization 4.75% / 30 Years Net Operating Income $125,178 CAP Rate 6.49% GRM Scheduled Gross Income $204,465 Less Vacancy Rate Reserve $6,134 Gross Operating Income $198,331 Less Expenses $(73,153) Net Operating Income $125,178 Reserves $(2,400) Less Loan Payments $(96,332) Pre-Tax Cash Flow $26,446 Plus Principal Reduction $24,175 Total Return Before Taxes $50,621 CAP Rate 4.47% GRM Price/Unit $254,364 Price/SF $

14 14 Financial Overview 7642 VINELAND AVE SUN VALLEY, CA CAP Rate - Current 4.47% CAP Rate - Pro Forma 6.49% Price $2,798,000 GRM - Current Number of Units 11 GRM - Pro Forma Price/Unit $254,364 Year Built 1989 Gross SF 8,920 Lot Size 16,893 Price/SF $ Type of Ownership Fee Simple FINANCING Proposed Loan Amount $1,538,900 Interest Rate 4.75% Amortization 30 Net Operating Income $111,898 EXPENSES INCOME CURRENT PER UNIT PRO FORMA PER UNIT NOTES Real Estate Taxes $33,296 $3,027 $33,296 $3,027 Based on Purchase Price Insurance $2,731 $248 $2,731 $248 Actual expense from 2017 P&L's Utilities $16,610 $1,510 $16,610 $1,510 Actual expense from 2017 P&L's Landscaping $1,200 $109 $1,200 $109 5% of Effective Rental Income Maintenance $2,869 $261 $2,869 $261 Estimated at $500/Unit/Year Waste $6,110 $555 $6,110 $555 Actual expense from 2017 P&L's Pest Control $420 $38 $420 $38 Estimated at $100/Month Management $9,917 $902 $12,740 $1,158 Actual from Accessor Office TOTAL EXPENSES $73,153 $75,976 Per Unit $6,650 $6,907 Per SF $8.20 $8.52 Percent of EGI 36.9% 29.8% NET OPERATING INCOME $125,178 $178,814 Reserves $(2,400) $(2,400) CURRENT PRO FORMA % Gross Scheduled Income $204,465 $268,200 Loss/Gain to Lease $63, % Vacancy $(6,134) $(13,410) EFFECTIVE RENTAL INCOME $198,331 $254,790 EFFECTIVE GROSS INCOME $198,331 $254,790 LOAN Loan Payments $(96,332) $(96,332) Debt Coverage Ratio Net Cash Flow After Debt Service $26,446 $80,082 Principal Reduction $24,175 $24,175 Total Return Before Taxes $50,621 $104,257

15 Market Comparables

16 16 Sales Comparables Vineland Avenue Klump Ave Vineland Ave Runnymede St Vineland Ave Saticoy St Fairview St

17 THE NEEMA GROUP AT MARCUS & MILLICHAP Sales Comparables Vineland Avenue Sun Valley, CA Klump Avenue North Hollywood, CA Vineland Avenue North Hollywood, CA Offering Price $2,798,000 Number of Units 11 Year Built 1989 Price/Unit $254,364 Price/SF $ CAP Rate 4.47% GRM Sale Price $2,849,000 Close of Escrow 7/6/2018 Number of Units 11 Year Built 1986 Price/Unit $259,000 Price/SF $ CAP Rate 3.94% GRM Sale Price $4,304,840 Close of Escrow 2/27/2018 Number of Units 16 Year Built 1978 Price/Unit $269,053 Price/SF $ Units Unit Type 10 2 Bdr 1 Bath 1 4 Bdr 2 Bath Units Unit Type 6 Single 3 1 Bdr 1 Bath 2 2 Bdr 1 Bath Units Unit Type 12 1 Bdr 1 Bath 4 2 Bdr 1 Bath 17

18 18 Sales Comparables Runnymede Street North Hollywood, CA Vineland Avenue North Hollywood, CA Saticoy Street North Hollywood, CA Sale Price $2,695,000 Close of Escrow 10/20/2017 Number of Units 10 Year Built 1987 Price/Unit $269,500 Price/SF $ CAP Rate 4.55% GRM Sale Price $3,200,000 Close of Escrow 6/29/2017 Number of Units 14 Year Built 1980 Price/Unit $228,571 Price/SF $ CAP Rate 3.94% GRM Sale Price $2,850,000 Close of Escrow 4/25/2017 Number of Units 12 Year Built 1989 Price/Unit $237,500 Price/SF $ CAP Rate 5.44% GRM Units Unit Type 10 2 Bdr 1 Bath Units Unit Type 11 1 Bdr 1 Bath 3 2 Bdr 1 Bath Units Unit Type 1 Single 1 Bath 3 1 Bdr 1 Bath 2 2 Bdr 1 Bath 6 4 Bdr 2 Bath

19 THE NEEMA GROUP AT MARCUS & MILLICHAP Sales Comparables Fairview Street Burbank, CA Sale Price $1,750,000 Close of Escrow 1/19/2017 Number of Units 6 Year Built 1988 Price/Unit $291,667 Price/SF $ CAP Rate 2.73% Units Unit Type 1 Single 4 1 Bdr 1 Bath 1 2 Bdr 2 Bath 19

20 Rent Survey Address Unit Type Number of Units Year SqFt Price Notes 7952 De Garmo Ave, Los Angeles, CA Glenoaks Blvd, Sun Valley, CA Bdr 1 Bath $1, Has a patio/balcony; laundry in unit 2 Bdr 1 Bath $1, Includes Parking Arminta St, Sun Valley, CA Vineland Ave, North Hollywood, CA Backman Ave, North Hollywood, CA Camellia Ave, North Hllywood, CA Bdr 1 Bath N/A $1, Includes Parking 2 Bdr 1 Bath ,000 $1, Bdr 1 Bath $1, Bdr 1 Bath $1, On-site Laundry AVG $1,

21 Offering Memorandum 7642 Vineland Avenue Sun Valley, CA NEEMA AHADIAN Senior Vice President Investments Direct LEO LATERZA Senior Associate Investments Direct