exclusive multifamily offering Excellent NoHo Arts District Redevelopment Potential Redevelopment up to 45 units Currently an 8-unit Apartment Building Asking Price $2,895,000 Lee & Associates LA North/Ventura, Inc. Corporate ID #01191898 A Member of the Lee & Associates Group of Companies 15250 Ventura Blvd., Suite 100 Sherman Oaks, CA 91403 P: 818-986-9800 F: 818-933-0450 www.lee-associates.com WARREN National Director, Lee Multifamily Advisory Group President, Berzack Investment Property Advisors Lic. #01329015 818.933.0350 wberzack@lee-re.com
PROPERTY DESCRIPTION This proposed 10,199 square foot redevelopment site is located in the Heart of the NoHo Arts District and falls within the new Transit Oriented Communities Program boundary area. This newly passed program allows for this site to be developed with up to 45 apartment units on the property. More information is located on pages 5 & 6 of this marketing brochure. All information needs to be confirmed by any potential buyer with the City of Los Angeles. Currently, the Otsego Apartments is a well maintained 8-unit apartment complex located in the neighborhood of North Hollywood in the city of Los Angeles, California. Set on a 10,199 square foot lot, the 6,380 square foot property offers six one-bedroom units and two two-bedroom units for a total scheduled monthly income of $11,788. Built in 1962, the property offers great rental upside, an excellent NoHo Arts District location and easy access to the 170, 101 & 134 Freeways. Highlights & Amenities Potential to develop 45-units Prime NoHo Arts District Fantastic Rental Location Strong Demographics LOCATION INFORMATION Otsego Apartments is located along Otsego Street between Tujunga Avenue to the west and Lankershim Blvd to the east. W Maglia Blvd is rth and Camarillo Street is south. Easy Access to the 170, 101 & 134 Freeways Close to Public Transportation, the Metro Red Line and Greyhound Bus Station Nearby to multiple parks, schools, churches and temples Minutes from 24 Hour Fitness, Denny s; Big Lots, Starbucks and myriad other retail offerings
MULTIFAMILY INVESTMENT INFORMATION SHEET Lee Associates - LA North/Ventura, Inc. Warren Berzack 818.933.0350 wberzack@lee-re.com Lic. #01329015 15250 Ventura Boulevard, Suite 100 Sherman Oaks, CA 91403 PROPERTY NAME Otsego Apartments NUMBER OF UNITS 8 ADDRESS 11329 Otsego St. BUILDING SIZE (SQ. FT.) 6,380 CITY, STATE, ZIP North Hollywood, CA 91601 LOT SIZE (SQ. FT.) 10,199 PRICE $2,895,000 COST PER UNIT $361,875 YEAR BUILT 1962 COST PER SQFT $453.76 INVESTMENT HIGHLIGHTS Great Rental Upside Excellent NoHo Arts District Loca on Well Maintained RENTAL INFORMATION Current Income Market Income NO. UNITS BDRMS BATHS AVG. RENT Monthly Income RENT Monthly Income 6 1 1 $1,318 $7,910 $1,595 $9,570 2 2 2 $1,939 $3,878 $1,995 $3,990 Scheduled Monthly Income: $11,788 $13,560 ANNUAL PROPERTY OPERATING DATA CURRENT INCOME/YEAR AS % GOI AS % GOI AS % GOI Scheduled Gross Income $141,456 99.02% $162,720 99.14% Taxes (Est. 1.2%) $34,740 24.32% SCEP $445 0.31% $445 0.27% Insurance ($300/un) $2,400 1.68% Laundry $960 0.67% $960 0.58% Utilities $9,442 6.61% Gross Operating Income $142,860 CURRENT MARKET $164,125 Repairs/Maintanence $7,143 5.00% Vacancy Reserve $7,143 5.00% GRM $8,206 5.00% Management $0 0.00% Effective Gross Income $135,717 20.26 17.64 $155,918 Landscaping $1,580 1.11% Expenses $58,468 40.93% CAP Rate $58,468 35.62% Pest Control $620 0.43% Net Operating Income $77,250 54.07% 2.67% 3.37% $97,451 59.38% License/Permits $543 0.38% Debt Service $0 Cash on Cash $0 Miscellaneous $500 0.35% Pre-Tax Cash Flow $77,250 2.67% 3.37% $97,451 Trash ($125/mo) $1,500 1.05% Principal Reduction $0 Return On Equity $0 Return on Equity $77,250 2.67% 3.37% $97,451 MORTGAGE FINANCING INFORMATION MARKET INCOME/YEAR ESTIMATED ANNUAL EXPENSES Loan Amount $0 Monthly Loan Payment $0 Down Payment $2,895,000 100% Annual Loan Payment $0 TOTAL EXPENSES $58,468 40.93% 5-Year Fixed Rate 4.00% Year 1 Interest Amount (approx.) $0 Amortization Period (Yrs) 30 Year 1 Principal Paydown (approx.) $0 Expense / NRSF Expense / Unit $9.16 $7,308
PRELIMINARY ZONING Lot Area: 10,199.9 sf (key lot; 68 x 150 ) Zone: Density: R4=1VL 25 dwellings w/market-rate apartments 24 dwellings w/subdivision Transit Oriented Communities (TOC) Guidelines - Tier 3: Base Density: 26 apartment Units Density Increase: 45 units (70%) Set Aside: 5 ELI units (10% ELI; 14% VL or 23% VI 1 ) FAR: 3:1 for market-rate (buildable area = ±7,250 sf; floor area = ±21,750 sf ) Height: Transit Oriented Communities (TOC) Guidelines - Tier 3: An increase of up to 50% = ±32,625 sf (4.5:1 FAR) 45 feet ( limit on number of stories for buildings with only residential use). Please te: Transit Oriented Communities (TOC) Guidelines allow additional incentives, including Yard/Setback reductions, Open Space reductions, and Height increase. Parking Required: Bike Parking: Parking Available: Street: 50 spaces (25 two-bedroom market-rate apartment units) 60 spaces (24 market-rate condo units @ 2.5 per unit) (t accounting for bicycle reduction) Transit Oriented Communities (TOC) Guidelines - Tier 3: 23 spaces (45 apartment units) (bicycle reduction does t apply) 25 long-term; 3 short-term (25 two-bedroom market-rate apartment units) 24 long-term; 3 short-term (24 market-rate condo units) 45 long-term; 5 short-term (45 apartment units - TOC project) ±20 spaces (allowing ±400 sf per space) *within lot footprint Otsego Street = Collector Street 66 ft standard 57 ft/24 ft half ROW (e) 8-ft dedication anticipated (±544 sf.) 1 Extremly Low Income as per Section 50106 of the Califoria Health and Safety Code ( CHSC ), Very Low Income as per Section 50105 of the CHSC, and Lower Income as per Section 50079.5 of the CHSC.
PRELIMINARY ZONING Q Cond: Commercial Corner: Transistional Height: Building Line: Specific Plan: CRA: Liquefaction: Council District: Land Use Desig.: North Hollywood Redevelopment Project [Should t have an effect on residential density based on prior cases, but highly recommend conversation with CRA/ DCP.] yes 2 Krekorian High Medium Residental (R4) Foottes: No. 1: Corresponds to Height District 1. Cases: Ellis Act: Rent Stabilization Ord: No relevant cases listed on ZIMAS. yes Existing Improvements: 8-unit apartment building; ±6,380 sf built in 1962. ZI No. 1048: ZI No. 2427: ZI No. 2452: North Hollywood Redevelopment Project Freeway Adjacent Advisory Notice for Sensitive Uses Transit Priority Areas (TPAs) / exemptions to aesthetics and parking within TPAs pursuant to CEQA ZI No. 2374: Los Angeles State Enterprises Zone. PLEASE NOTE: We believe that this memorandum gives an accurate overview of relevant zoning regulations for the subject site, and we hope this information is helpful to you; however, zoning regulations and procedures frequently change or are modified, and as such, we strongly encourage any potential buyer to have a conversation with the City of Los Angeles Building and Safety Department and/or their architect to confirm the information contained in this brochure.
AREA INFORMATION North Hollywood is a neighborhood in the San Fernando Valley region of the city of Los Angeles, California. It is home to the NoHo Arts District and the Academy of Television Arts & Sciences. It is a moderately diverse district of an estimated 87,241 residents fast becoming a dynamic, bustling metropolitan area. This is owed in large part to the Metro Stations for the Red Line and Orange Line, making the city into a regional hub for the San Fernando Valley. Also, numerous medium- and high-density developments are around the station, particularly in the NoHo Arts District, creating a walkable, urban village. Arts and Leisure at its best Numerous theaters, museums and historical sites as well as fine dining, shopping and recreational opportunities NoHo Arts District Rewned as Los Angeles official arts comunity, centered at Maglia and Lankershim. Endless recreational activities Home to the Academy of Television Arts and Sciences and the world-famous Emmy statue. DEMOGRAPHIC SUMMARY 1-mile radius 5-mile radius Total Population Average Household Income 44,842 $75,423 627,410 $98,040
AREA INFORMATION - NOHO ARTS DISTRICT Central to this gentrification is the evolution of the NoHo Arts District which has emerged as a center of arts and entertainment. According to a local website NohoArtsDistrict.com, North Hollywood boasts the highest concentration of operating theaters in a single square mile outside of New York. Offerings include El Portal, Actors Forum, Zombie Joe s Underground Theatre, California Institute of Abrmal Arts and Deaf West Theatre Company. Art galleries include NoHo Gallery LA, Cella Gallery and Gallery 800 operated by the Art Directors Guild, often feature shows by local artists. All this is tied to a burgeoning community of upscale casual restaurants and bars such as The Federal Bar and The Front Porch, offering the young population of North Hollywood a place to meet and greet largely within walking distance. When the NoHoArts District website conducted an informal study of the area s demographics, it found that 50 percent of those living in NoHo s newer apartment buildings are under 30 years old, and a large percentage of those residents are actors, singers, dancers and others in the performing arts, leading the authors to characterize North Hollywood as a bohemian enclave with a twist of yuppiness. New Development All this revitalization has attracted even more development. Laurel Plaza, a traditional shopping center that dates back to the 1960s, is undergoing a major redevelopment. The 25-acre site under development by Goldstein Planting Investments will feature 742 residential units, 500,000 square feet of office space and 190,000 square feet of commercial space. A new boutique hotel, Ikon North Hollywood at Tujunga Avenue and Weddington Street, will offer 43 guest rooms and gallery space for local artists when it opens later this year. The Academy of Television Arts & Sciences, a centerpiece of the NoHo Arts District, is just finishing up a $40 million expansion, and a proposal submitted by Greenland USA and Trammel Crow Company seeks to redevelop a 16-acre parcel that surrounds the North Hollywood Metro Station.
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