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 Estate Associate 805.338.6669 jakekasarjian@gmail.com BRE # 01924970 MICHAEL FUKUSHIMA Director - KW Commercial DLTA 818.321.6490 mfukushima@total-realtygroup.com BRE #01380445 FRANK GRENNIE Partner Sales Mgr 818.926.8576 fgrennie@total-realtygroup.com BRE #01520428

OFFERING MEMORANDUM Confidentiality & Disclaimer NORTH HOLLYWOOD, CA All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Downtown LA in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 700 S. Flower Street, Suite 2900 Los Angeles, CA 90017 JAKE KASARJIAN Commercial Real Estate Associate 805.338.6669 jakekasarjian@gmail.com BRE # 01924970 MICHAEL FUKUSHIMA Director - KW Commercial DLTA 818.321.6490 mfukushima@total-realtygroup.com BRE #01380445 FRANK GRENNIE Partner Sales Mgr 818.926.8576 fgrennie@total-realtygroup.com BRE #01520428 We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction. www.kwcommercial.com 2

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES PROPERTY INFORMATION 1 PROPERTY INFORMATION CAMELLIA APARTMENTS PROPERTY INFORMATION 1 EXECUTIVE SUMMARY PROPERTY DETAILS ADDITIONAL PHOTOS ADDITIONAL PHOTOS www.kwcommercial.com 3

1 PROPERTY INFORMATION Executive Summary SALE PRICE: $1,195,000 UNITS: 6 PRICE PER UNIT: $199,167 CURRENT CAP RATE: 1.81% PROFORMA CAP: 7.2% CURRENT GRM: 26.12 PROFORMA GRM: 10.42 NOI: $21,578 LOT SIZE: 6,590 SF BUILDING SIZE: 3,574 SF YEAR BUILT: 1952 ZONING: LARD1.5 CROSS STREETS: Tujunga Blvd And Chandler Ave PROPERTY OVERVIEW Total Realty Group is proud to present this 6-Unit Multifamily Investment Opportunity located in prime North Hollywood. The property boasts an excellent mix of 2-Bedroom and 1-Bedroom units with massive rental upside potential. Located just one block west of the NoHo Arts District and less than a half mile walk to the NoHo Redline Metro Station and Orange Line Bus terminus, this property is perfectly poised to take advantage of the growing trend toward public transit as well as the burgeoning Arts District. Residents can walk to hundreds of restaurants, bars, retail shops, theaters, and more. Don't miss this opportunity! PROPERTY FEATURES Great Unit Mix Located Walking Distance to NoHo Arts District & NoHo Metro Station Massive Rental Upside Potential Easy Freeway Accesibility www.kwcommercial.com 4

Property Details 1 PROPERTY INFORMATION PROPERTY NAME: Camellia Apartments STREET ADDRESS: 5504 Camellia Ave CITY, STATE, ZIP: North Hollywood, CA 91601 APN: 2350-007-028 LOT SIZE: 6,590 SF BUILDING SIZE: 3,574 SF ZONING: LARD1.5 PARKING SPACES: 8 YEAR BUILT: 1952 NUMBER OF UNITS: 6 www.kwcommercial.com 5

Additional Photos 1 PROPERTY INFORMATION www.kwcommercial.com 6

Additional Photos 1 PROPERTY INFORMATION www.kwcommercial.com 7

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES LOCATION INFORMATION 2 LOCATION INFORMATION CAMELLIA APARTMENTS LOCATION INFORMATION 2 REGIONAL MAP LOCATION MAPS AERIAL MAP PLAT MAP ZIMAS MAP

Regional Map 2 LOCATION INFORMATION 5504 Camellia Ave www.kwcommercial.com 9

Location Maps 2 LOCATION INFORMATION www.kwcommercial.com 10

Aerial Map 2 LOCATION INFORMATION www.kwcommercial.com 11

Plat Map 2 LOCATION INFORMATION www.kwcommercial.com 12

Zimas Map 2 LOCATION INFORMATION www.kwcommercial.com 13

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES FINANCIAL ANALYSIS 3 FINANCIAL ANALYSIS CAMELLIA APARTMENTS FINANCIAL ANALYSIS 3 FINANCIAL SUMMARY INCOME & EXPENSES RENT ROLL

3 FINANCIAL ANALYSIS Financial Summary INVESTMENT OVERVIEW ACTUAL PROFORMA Price $1,195,000 $1,195,000 Price per Unit $199,166 $199,166 GRM 26.1 10.5 CAP Rate 1.8% 7.3% Cash-on-Cash Return (yr 1) 0.69 % 7.51 % Total Return (yr 1) $10,305 $75,469 Debt Coverage Ratio 1.44 5.8 OPERATING DATA ACTUAL PROFORMA Gross Scheduled Income $45,744 $114,360 Other Income $720 $720 Total Scheduled Income $46,464 $115,080 Vacancy Cost $0 $3,452 Gross Income $46,464 $111,628 Operating Expenses $24,886 $24,886 Net Operating Income $21,578 $86,742 Pre-Tax Cash Flow $6,617 $71,781 FINANCING DATA ACTUAL PROFORMA Down Payment $956,000 $956,000 Loan Amount $239,000 $239,000 Debt Service $14,961 $14,961 Debt Service Monthly $1,246 $1,246 Principal Reduction (yr 1) $3,688 $3,688 www.kwcommercial.com 15

Income & Expenses 3 FINANCIAL ANALYSIS INCOME SUMMARY ACTUAL PROFORMA Rental Income $45,744 $114,360 Laundry/Misc. Income $720 $720 GROSS INCOME $46,464 $115,080 EXPENSE SUMMARY ACTUAL PROFORMA Insurance $2,160 $2,160 Water and Sewer $2,600 $2,600 Gas Company $216 $216 Pest Control $240 $240 Trash Removal $1,250 $1,250 Gardener/Landscaping $480 $480 Maintenance & Reserves $3,600 $3,600 Property Taxes (1.2% of $1,195,000) $14,340 $14,340 GROSS EXPENSES $24,886 $24,886 NET OPERATING INCOME $21,578 $86,742 www.kwcommercial.com 16

3 FINANCIAL ANALYSIS Rent Roll UNIT NUMBER UNIT BED UNIT BATH CURRENT RENT MARKET RENT 1 2 1 $683 $1,775 2 1 1 $803 $1,495 3 1 1 $519 $1,495 4 2 1 $688 $1,775 5 1 1 $519 $1,495 6 1 1 $600 $1,495 $3,812 $9,530 www.kwcommercial.com 17

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES RENT COMPARABLES 4 RENT COMPARABLES CAMELLIA APARTMENTS RENT COMPARABLES 4 RENT COMPS RENT COMPS SUMMARY RENT COMPS MAP

4 RENT COMPARABLES Rent Comps SUBJECT PROPERTY 5504 Camellia Ave North Hollywood, CA 91601 Year Built: 1954 Lot Size: 0.15 AC No. Units: 6 Avg. Rent/SF: $1.07 Avg. Size: 595 SF Avg. Rent: $635 1 11658 Chandler Blvd North Hollywood, CA 91601 Year Built: 1950 Bldg Size: 2,838 SF No. Units: 4 1 2 11633 Burbank Blvd North Hollywood, CA 91601 Year Built: 5 Bldg Size: 3,871 SF 2 No. Units: 1952 3 11600 Chandler Blvd North Hollywood, CA 91601 Year Built: 1975 Bldg Size: 5,655 SF No. Units: 5 3 www.kwcommercial.com 19

4 RENT COMPARABLES Rent Comps 4 11333 Cumpston St North Hollywood, CA 91601 Year Built: 1986 Bldg Size: 8,438 SF 4 No. Units: 15 5 5705 Fulcher Ave North Hollywood, CA 91601 Year Built: 1949 Bldg Size: 2,533 SF 5 No. Units: 3 www.kwcommercial.com 20

4 RENT COMPARABLES Rent Comps Summary SUBJECT PROPERTY 1-BEDROOM / 1-BATHROOM 2-BEDROOM / 2-BATHROOM Camellia Apartments 5504 Camellia Ave North Hollywood, CA 91601 $610 $686 RENT COMPS 1-BEDROOM / 1-BATHROOM 2-BEDROOM / 1- BATHROOM 1 11658 Chandler Blvd North Hollywood, CA 91601 2 11633 Burbank Blvd North Hollywood, CA 91601 $1,745 $1,840 3 11600 Chandler Blvd North Hollywood, CA 91601 4 11333 Cumpston St North Hollywood, CA 91601 5 5705 Fulcher Ave North Hollywood, CA 91601 $1,450 $1,600 $1,600 TOTALS/AVERAGES $1,550 $1,792 www.kwcommercial.com 21

Rent Comps Map 4 RENT COMPARABLES SUBJECT PROPERTY 5504 Camellia Ave North Hollywood, CA 91601 1 11658 Chandler Blvd North Hollywood, CA 91601 2 11633 Burbank Blvd North Hollywood, CA 91601 3 11600 Chandler Blvd North Hollywood, CA 91601 4 11333 Cumpston St North Hollywood, CA 91601 5 5705 Fulcher Ave North Hollywood, CA 91601 www.kwcommercial.com 22

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES DEMOGRAPHICS 5 DEMOGRAPHICS CAMELLIA APARTMENTS DEMOGRAPHICS 5 DEMOGRAPHICS MAP

Demographics Map 5 DEMOGRAPHICS POPULATION 1 MILE 2 MILES 3 MILES TOTAL POPULATION 40,799 145,571 271,627 MEDIAN AGE 33.0 34.9 35.2 MEDIAN AGE (MALE) 33.4 34.3 34.8 MEDIAN AGE (FEMALE) 32.5 35.4 35.7 HOUSEHOLDS & INCOME 1 MILE 2 MILES 3 MILES TOTAL HOUSEHOLDS 17,299 60,902 107,117 # OF PERSONS PER HH 2.4 2.4 2.5 AVERAGE HH INCOME $63,501 $69,564 $77,096 AVERAGE HOUSE VALUE $621,110 $628,324 $689,105 RACE 1 MILE 2 MILES 3 MILES % WHITE 65.0% 66.2% 65.6% % BLACK 5.9% 4.8% 4.0% % ASIAN 6.8% 6.9% 7.3% % HAWAIIAN 0.1% 0.2% 0.2% % INDIAN 0.5% 0.3% 0.4% % OTHER 18.8% 18.7% 19.7% ETHNICITY 1 MILE 2 MILES 3 MILES % HISPANIC 42.2% 39.7% 40.3% * Demographic data derived from 2010 US Census www.kwcommercial.com 24

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES ADDITIONAL INFORMATION 6 ADDITIONAL INFORMATION CAMELLIA APARTMENTS ADDITIONAL INFORMATION 6 CITY INFORMATION NEARBY DEVELOPMENT RETAILER MAP

NoHo Arts District 6 ADDITIONAL INFORMATION North Hollywood, CA The NoHo Arts District is a community in North Hollywood, Los Angeles, California, that is home to contemporary theaters, art galleries, cafes, and shops. The community is generally bounded by Hatteras Street to the north, Cahuenga Blvd to the east, Tujunga Ave to the west, and Camarillo Street to the south. The area features more than twenty professional theaters, producing new work and classics, diverse art galleries, public art, and professional dance studios. The district also features the largest concentration of music recording venues west of the Mississippi. A Metro Rail station is located here, the North Hollywood station of the Red Line, and serves as the terminus of the Metro Orange Line busway. Today, the NoHo Arts District, in conjunction with greater North Hollywood, is being transformed into a regional center, in large part as a result of the construction of the Red and Orange Line Metro Stations, two lines that have made the neighborhood into a regional hub for the San Fernando Valley. Medium- and high-density developments are being built around the Metro Station, making the Arts District a center of citywide development, with the intent of creating a walkable urban village. Currently the NoHo Arts District, in conjunction with the Community Redevelopment Agency-Los Angeles, is working on beauti=cation efforts to make the area more appealing to businesses. The current focus is primarily on revamping store fronts on Lankershim Blvd and Magnolia Blvd with Burbank Blvd to follow. www.kwcommercial.com 26

Nearby Development 6 ADDITIONAL INFORMATION North Hollywood, CA A big plan to redevelop more than 15 acres surrounding the North Hollywood Metro station is moving forward, with developers of the project seemingly leaning toward the more ambitious of two proposed developments on the project site. Urbanize LA spotted a presentation on the project that Metro's San Fernando Valley Service Council is scheduled to review. The presentation includes a rendering of the project, which is being developed in collaboration between Greenland USA and Trammell Crow Company. Based on that rendering, along with a graphic detailing the project's site plan, it appears that the two developers are proceeding with the second of two plans that would bring new housing, retail, and of=ce space to the area. Metro, which owns the land the project will be built on, revealed both proposals in June. The =rst would be a smaller development with 750 residential units, 40,500 square feet of retail space, and 200,000 square feet of of=ces. The second would include 1,500 units of housing, 150,000 square feet of retail, and 450,000 square feet of of=ces (and 5,400 parking spaces). The larger plan seems to have been altered a bit since =rst presented. A renovated bus facility between North and South Chandler boulevards appears in the new design, while a swirly pedestrian bridge across Lankershim Boulevard has disappeared. The project will be spread across a complex of new buildings centered around the interaction of Lankershim and Chandler. Plans also include a public plaza and a new entrance to the North Hollywood station, located beneath South Chandler on the western side of Lankershim. Greenland and Trammell Crow are also working with the Cesar Chavez Foundation on the project, which will include a major affordable housing component. Under Metro development guidelines, at least 35 percent of units in a project on agency-owned land must be available to those earning less than 60 percent of area median income. Gentler is the project's planning and design lead, while Melendrez (now RELM) is providing input on the design of its open space elements. www.kwcommercial.com 27

Retailer Map 6 ADDITIONAL INFORMATION www.kwcommercial.com 28

OFFERING MEMORANDUM CAMELLIA PROPOSAL APARTMENTS FOR COMMERCIAL SERVICES CONTACT 7 CONTACT CAMELLIA APARTMENTS CONTACT 7 CONTACT

CONTACT 7 CONTACT www.kwcommercial.com 30