PRIME INVESTMENT OPPORTUNITY

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1 »» First time on market in more than 30 years»» Rents are 30% below current market PRIME INVESTMENT OPPORTUNITY Exclusively Listed By William B. Althouse BRE#

2 Confidentiality Disclaimer: This confidential investment brochure has been prepared solely for informational purposes and does not constitute all or any part of an offer or contract. It is designed to assist a potential investor in determining whether to proceed with an in-depth investigation of the subject property. This investment brochure was prepared by Coldwell Banker Commercial WESTMAC and has been reviewed by representatives of the Owner. It contains select information pertaining to 2435 Military Avenue, Los Angeles CA, and does not purport to be all inclusive or to contain all of the information which prospective purchasers may desire. It should be noted that all financial projections are provided for general reference purposes, that they are based upon assumptions relating to the general economy and other factors beyond the control of Owner, and are therefore, subject to material variation. Additional information and an opportunity to inspect the property will be made available to qualified prospective purchasers. Neither the Owner, nor Coldwell Banker Commercial WESTMAC, nor any of their respective officers, make any representation or warranty, expressed or implied, as to the accuracy or completeness of this investment brochure or any of its contents, and no legal commitments or obligations shall arise by reason of this brochure or its contents. Certain documents in this investment brochure are described in summary form. The summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements involved, nor do they purport to constitute a legal analysis of the provisions of the documents. Interested parties are expected to independently review all such documents. The terms and conditions stated in this section will relate to all sections of the brochure as if stated independently therein. It is essential that all parties to real estate transactions be aware of the health, liability and economic impact of environmental factors upon 2 real estate. Coldwell Banker Commercial WESTMAC does not conduct investigations or analyses of environmental matters, and accordingly, urges its clients to retain qualified environmental professionals to determine whether hazardous or toxic wastes and substances, or other undesirable materials or conditions are present at the property, and if so, whether any health danger or other liability exists. Various federal, state and local laws and regulations have been enacted dealing with the use, storage, handling, removal, transport and disposal of toxic or hazardous wastes and substances. Consequently, legal counsel and technical experts should be consulted where these substances are or may be present. The Owner and Coldwell Banker Commercial WESTMAC expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the property, and/or to terminate discussions with any entity at any time, with or without notice. The Owner shall have no legal commitment or obligation to any entity reviewing this investment brochure or making an offer to purchase the property, unless and until a written commitment to purchase the property has been fully executed, delivered and approved by Owner, and any conditions to Owner s obligations thereunder have been satisfied or waived. By receipt of this investment brochure, you agree that its contents are of a confidential nature, that you hold and treat it in the strictest confidence, and that you will not disclose the brochure or any of its contents to any other entity without the prior authorization of Coldwell Banker Commercial WESTMAC, nor will you use this brochure or any of its contents in any fashion or manner detrimental to the best interest of Owner.

3 EXECUTIVE SUMMARY Coldwell Banker Commercial WESTMAC is pleased to present the sale of 8115 West 3rd Street, a two-story multi-tenant bow-truss commercial building situated along walkable West 3rd Street in the Beverly Grove neighborhood of West Los Angeles. Approximately 9,376-square feet made up of ground-floor retail and a second-story commercial space occupied by an acting school for the past 20 years. The site sits on nearly 5,500 square-feet of land and provides four dedicated parking spaces, accessible by alleyway at S. Crescent Heights Boulevard and S. Kilkea Drive. The property comes fully leased at rents that are 30% below market and is a unique opportunity for investors looking to purchase a prominent commercial building in the affluent, highly populated, highly coveted City of Los Angeles. The offering is at the center of the popularized West 3rd Street shopping district nestled between an array of fashionable retailers, distinguished restaurants, and specialty shops. The Original Farmer s Market and Grove, two notable tourist destinations, are a short stroll east at the corner of West 3rd Street and Fairfax Avenue. While the Beverly Center, a renowned shopping center which marks the entrance to adjoining City of Beverly Hills, is sited a few blocks west at 3rd Street and La Cienega Boulevard. 3

4 PROPERTY HIGHLIGHTS»» Property is 100% leased to long term tenants at below market rents(see Rent Roll for info).»» Great building visibility and signage along West 3rd Street.»» Hundreds of walkable amenities along West 3rd Street, earning 8115 W. 3rd Street a Walk Score of 92 (Walker s Paradise).»» Close proximity to popular city attractions The Grove, Original Farmer s Market, West 3rd Street, Melrose Avenue, and The Beverly Center.»» High Traffic Count for West 3rd Street. Traffic Volume for vehicles per day for W. 3rd Street at S. Kilkea Drive (0.02 W) is 28,699, at S. La Jolla Avenue (0.01 W) is 41,677, and at S. Laurel Avenue (0.02 E) is 30,245.»» The area is densely populated with 43,440 people residing within a 1-mile radius, 339,536 people within a 3-mile radius, and nearly 1 million people within a 5-mille radius at 980,554.»» Populated by affluent area demographic - average household income within 1-mile of subject property is $113,610 and $100,018 within 3-mile radius. 4

5 THE GROVE AND FARMERS MARKET 5

6 PROPERTY INFORMATION Address: APN: Building: Lot: Zone: Built: Floors: Current Use: Parking: Frontage: Walk Score: Sales Price: CAP Rate: West 3rd Street Los Angeles, CA Approximately 9,376 square feet Approximately 5,494 square feet C2-1VL Two (2) Retail/Commercial Four (4) parking spaces in rear 48 on W 3rd St 92 (Walker s Paradise) $ 6,750,000 ($719/SF) ±4.0% 6

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8 RENT ROLL SUITE TENANT DATE OF LEASE MATURITY DATE TERM (YRS) TOTAL SQ FT % OF TOTAL SQ FT MONTHLY $/SQ FT TOTAL ANNUAL RENT ESCALATE/CPI ADJUSTMENTS RENEWAL OPTION CURRENT MONTHLY RENT COMMENTS 8115 Floor Plan 12/28/05 02/28/ , % , Fixed 3% No $9, NNN 8117 YADA 09/19/12 M to M 1, % , N/A No $2, Modified Gross 200 YADA 05/27/99 08/31/ , % , Fixed 4% No $12, Modified Gross* Total 9, , $24, * Tenant is resposible for increase in real property tax from Base Year 1999/2000. Tenant is responsible for any increase in property insurance from base of $3,643. ANNUALIZED OPERATING DATA INCOME CURRENT EXPENSES CURRENT Scheduled Lease Income $295, Expense Reimbursements $31,173.91* Gross Operating Income $327, Less Operating Expenses $57, Net Operating Income $269, Property Tax $20, Insurance $10, Utilities $15, Repairs and Maintenance $3, Total 57,764.08* * 2016 Actual Taxes not adjusted to new sales price 8

9 Rear of building Across the street 9

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11 AREA HIGHLIGHTS»» Prime West 3rd Street»» Four [4] blocks from The Grove and Farmers Market»» Nearby major employers include CBS and Cedars Sinai»» Close proximity to Miracle Mile, Beverly Hills, and West Hollywood 11

12 AREA ATTRACTIONS West 3rd Street West 3rd Street is a popular walkable shopping and dining district in the heart of West Los Angeles s Beverly Grove neighborhood. West 3rd s store-lined streets offers something for all, including one-of-a-kind gifts, ultra-luxurious wares, and the latest fashion apparel. Hundreds of vendors sit between Fairfax Avenue and La Cienega Boulevard, making West 3rd Street a shopping haven for It girls, vintage treasure hunters, luxury-label lovers, bargain shoppers, and hungry diners. Livingston Nail bar, Regency Jewelry repair, Anine Bing clothing store, Clark Nova hair salon, LaVoo Lounge hookah bar, (fōnuts) donut shop, El Carmen Mexican restaurant, The Little Door Parisian-style café, Tasty Noodle House, ModelFIT WeHo gym, Robata JINYA Japanese restaurant, Lancer Automotive, and Elisabeth Weinstock exotic accessories & furnishings are just a few retailers that can be found neighboring the subject property. The Original Farmers Market The Original Farmers Market is a favorite destination among tourist and locals. The sprawling market is a time capsule of L.A. history and culture, where visitors shuttle between trendy shops, various restaurants and an assortment of stalls teeming with specialty goods carefully crafted by artisan merchants. The Farmers Market is brimming with over 100 gourmet grocers, shops, and restaurants, like Dupars, a 24-hour diner that has been open almost as long as the Market itself, and has become a quintessential local favorite and beloved mainstay. Owned and operated by the Gilmore Family, the Farmers Market was imagined as a village where farmers could sell their fresh produce, a vision that has continues to this day. More than 80 years later, the Original Farmers Market continues to feed hungry patrons and dazzle the masses. The Grove Adjacent the Original Farmers Market is the city s most popular shopping destination. The outdoor entertainment and shopping complex is made up of 575,000-square feet of shopping alleys, broad plazas, intimate courtyards and movie theater. At its core sits a large central park, home to an animated music-playing fountain inspired by Las Vegas s Bellagio Fountains. At the edge of the park sits the artistically designed 14 screen movie-palace, Pacific Theatres. The Neo-Deco styled movie theater is securely nestled between a series of Art Deco-style false fronts that house popular retailers such as Splendid, Diane von Frustenberg, Mac Cosmetics, Lucy Zahran & Co, Barnes & Noble, The Cheesecake Factory, Blue Ribbon Sushi Bar & Grill, along with many others. An internal transit system of electric-powered trolley cars shuttles shoppers between the Farmers Market and The Grove. The Grove is a hot spot for tourists, celebrities, and local shoppers and ranks highly as a must-see attraction according to sites like Airbnb and Trip Advsior. 12

13 CBS Television City CBS Television City is located at the corner of Beverly and Fairfax Avenue behind The Grove and Original Farmers Market. CBS Television City draws tourists, television fanatics and visiting locals hoping to catch a taping of their favorite shows. Only 0.5 miles away from the subject property, CBS Television City sits on the former site of Gilmore Stadium, and houses eight separate studios. Television City opened in Since its debut, their stages have been graced by Hollywood s most iconic stars and have produced television most classic programs, like the Ed Sullivan Show, Carol Burnett Show, I Love Lucy, The Mary Tyler Moore Show, Murder She Wrote, Dallas, Everybody Loves Raymond, and countless others. Although there are no public tours at CBS Television City, there is a CBS gift shop open to the public, and most of the shows taped at the complex are free to attend, securing a steady stream of visitors to the legendary television studio. Beverly Center The Beverly Center is an 8-story shopping center located along Beverly Boulevard at the edge of Beverly Hills and West Hollywood. Opened in 1982, the mall is an 883,000-square feet shopper s playground featuring some of the most highly sought-after brands and luxurious designers, like Banana Republic, Dolce & Gabbana, Louis Vuitton, Gucci, Prada, Ferrari Store, Burberry, and Fendi. The mall contained the USA s first Hard Rock Café, has been featured in TV and film, and continues to draw attention thanks to the flow of Hollywood celebrities who patronize the mall s high-end shops. The Beverly Center is currently undergoing a $500 million renovation that will provide shoppers with a brighter, fresher shopping experience. Plans include the installation of skylights and a new, window-dotted exterior to create spectacular panoramic views. Nine new restaurants and a fancy new food hall helmed by celebrity chef Michael Mina are sure to appeal to a more sophisticated crowd of food lovers, are also in the works. Cedar Sinai Medical Center In 1902, Cedars-Sinai was established as the Kaspare Cohn Hospital, housing only 12 beds and offering free services. Today, Cedars-Sinai Medical Center is a non-profit 958-bed hospital and academic health science center located less than 1-mile west of the subject property on Beverly Boulevard between Gracie Allen Drive and West 3rd Street. The hospital employs a staff of over 2,000 physicians and 10,000 employees, while a team of 2,000 volunteers and more than 40 community groups support a patient-base of over 16,000 people. In addition to tertiary treatment, Cedars-Sinai focuses on biomedical research and technological advancement, with more than 800 research projects underway covering cardiovascular, genetics, gene therapy, gastroenterology, neuroscience, immunology, surgery, organ transplantation, stem cells, biomedical imaging and cancer. As of 2013, U.S. News & World Report ranked Cedars-Sinai #13 out of hospitals across the United States and #3 in the western United States, behind only UCLA Medical Center and UCSF Medical Center. 13

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15 NEIGHBORS 1. Sushi Roku 2. Magnolia Bakery 3. Elaine Kim 4. The Churchill 5. Son of a Gun 6. Joan s On Third 7. Electric Karma 8. Little Next Door 9. The Little Door 10. El Carmen 11. Vanderpump Dogs 12. Anine Bing 13. Tasca 14. {fonuts} 15. Robata JINYA 16. Mercado 17. Whole Foods Market 18. Toast Bakery Cafe 19. Milk 20. Future Redevelopment Site 21. Third Street Theatre 22. Lionel Renard Hair Salon 23. Livingston Nail Bar 24. Olio Pizzeria & Cafe 25. Verve Coffee 26. Sweetgreen 27. Belcampo Meat Co. 28. Quality 29. Pistola 30. Sonny Alexander 31. Mendocino Farms 15

16 Coldwell Banker Commercial WESTMAC 1515 South Sepulveda Boulevard Los Angeles, CA CompanyBRE # WILLIAM B. ALTHOUSE Executive Vice President althouse@westmac.com BRE# 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. Coldwell Banker Commercial and the Coldwell Banker Commercial Logo are registered service marks owned by Coldwell Banker Real Estate LLC, dba Coldwell Banker Commercial Affiliates