235 Horizon Avenue THE KITTY WALLACE TEAM VENICE, CALIFORNIA 90291 235 Horizon Blvd TABLE OF CONTENTS

THE 04 OFFERING

THE 06 PROPERTY

THE 12 MARKET

THE 16 NUMBERS

THE 24 DETAILS

EXCLUSIVELY LISTED BY:

Kitty Wallace Senior Executive Vice President | Lic. 01218779 + 1 310 622 1900 | [email protected]

www.kittywallaceteam.com

Selling Southern California, One Building at a Time!

3 THE OFFERING

MULTIFAMILY VALUE-ADD OPPORTUNITY

> Charming seven-unit multifamily apartment building consisting of (4) two-bedrooms and (3) one-bedrooms with the potential for 21.99% in rental upside Abbot Kinney Blvd

> The property runs block-to-block with frontage on both Horizon Avenue and San Juan Avenue.

> The property has benefited from a multitude of recent upgrades, including recently replaced roofs, an upgrade of the vertical plumbing systems, and a newly painted exterior

> Three of the two-bedroom units have been extensively renovated to include new vinyl flooring, quartz countertops in the kitchen, stainless steel appliances, new cabinetry, and updated subway tile in the showers.

IDEAL WESTSIDE NEIGHBORHOOD

> Favorably located in highly sought-after Venice, the property is positioned just a 2-minute walk from Abbot Kinney, a 5-minute walk to world-famous Venice Beach and Boardwalk and a 10-minute walk to the Venice Canals.

> At the center of the Silicon Beach creative tech hub, which is home to notable area employers , , Twitter and many more 4 STRONG MULTIFAMILY FUNDAMENTALS

> Submarket asking rents grew by an average of 5.1% over the past five years

> Average household income is $151,747 within a one-mile radius of the property and $142,165 within a five-mile radius

> Population within a three-mile radius is projected to increase over the next five years from 174,395 to 180,923 residents

> Employment population of 231,147 within five miles of the property, with 83.7% of employees working white collar jobs 235 Horizon Blvd > Venice home values have gone up 8.5% over the past year alone

5 THE PROPERTY

PROPERTY OVERVIEW

PRICE $3,150,000

ADDRESS 235 Horizon Avenue Venice, CA 90291

APN 4238-010-030

LAND AREA 3,049 SF / 0.07 AC

BUILDING AREA 4,416 SF

# OF UNITS 7

OCCUPANCY 85.71%

YEAR BUILT 1906

ZONING RD-1.5

BUILDINGS 1

STORIES 2

PARKING Street

6 7 8 LOCATION OVERVIEW

235 Horizon Avenue is located just steps from Venice beach with direct access to a plethora of retail and dining options. Located at the southern region of Silicon Beach, Venice is in direct proximity of the top employers of Southern California. Situated besides Venice, also in Silicon Beach, are the trendy and vibrant costal communities of Marina del Rey and Santa Monica, making the area a strongly desired place to live.

> A staple of Silicon Beach, Los Angeles’s premier tech hub with employers like Google, Snap Inc, , and YouTube are all located within 5 miles of the property

> Premier retailers and restaurants line Abbot Kinney Boulevard are available within a 3-minute walk

> Neighborhood amenities include Gelson’s Market, Costco Wholesale, and Staples, which are located within 2-miles of the property

> Less than a 10-minute drive from the property is Santa Monica College - an accredited two-year community college with approximately 34,000 students

> Conveniently located between the 10 and 405 freeways, providing superior access to the region

> Google’s officein the Spruce Goose Hangar in Playa Vista is located less than 5 miles from the property

9 THE MARKET

VENICE OVERVIEW

Priding itself on eclectic individualism, Venice is a small beachside neighborhood within the City of Los Angeles that has long attracted artists, bohemians, entrepreneurs and other creative residents. The 3.17-square- mile community, first founded in 1905 as a seaside resort town, sits south of the Santa Monica (10) Freeway and west of the (405) Freeway. Perhaps best known for its scenic canals, beautiful beaches and circus-like pedestrian promenade, Venice’s burgeoning entertainment and technology scenes have also lately gained prominence in the area.

Part of what has come to be called “Silicon Beach,” Venice has proven in recent years to be a hot spot for up-and-coming technology firms and high- profile technology heavyweights, including maverick Snap, Inc. and advertising experience firm Adtech. As such, Venice boasts an affluent— if quirky—resident base that has buoyed multifamily rental rates in the area, pushing them to among the highest in all of Los Angeles. Meanwhile, minimal inventory turnover in the area indicates investors are generally content to hold on to Venice assets for the long haul.

10 11 MARKET HIGHLIGHTS

Venice home values have gone Average household income is Population of 430,896 within a up % over the estimated at $ within 8.5 five-mile radius of the property 151,747 past year one mile of the property

Asking rents grew by an Employee base of 231,147 % average of 5.1 in the within a five-mile radius of last five years the property

12 13 14 EMPLOYMENT

Silicon Beach is the Los Angeles technology corridor that follows the LA Tech Fields Employment (2019) Growth (5 Year) coast from Santa Monica south through Venice, Culver City, Playa Vista and El Segundo. This rapidly-growing community is now reportedly home Software Developers & 45,702 14.5% to over 500 technology startups along with incubators and accelerators. Programmers The region is considered the second or third largest tech hub in the Computer Support, 64,852 24.4% world. According to the LA Economic Development Council, LA county Database & Systems has more people employed in high-tech jobs than any other metro region Computer & Info. in the U.S. 14,212 53.0% Systems Managers Technology Major technology companies have opened offices in the region including 16,813 -7.4% Google, Yahoo!, YouTube, BuzzFeed, , , , Engineering-Relayed EdgeCast Networks and MySpace. Many Fortune 500 companies based Total 141,580 18.5% outside of Los Angeles have also established a presence in Silicon Beach.

Major technology, entertainment and new media tenants located in Silicon Beach include Facebook, TMZ, , Belkin International, Electronic Top Businesses (1-mile) # of Businesses Arts, Konami, Gamefly, All3Media and TV Guide. Other prominent tenants include Toms Shoes, Fox Sports, Frank Gehry Partners, California Pizza Retail Trade 399 Kitchen and world-renowned advertising agencies such as 72 and Sunny, Professional, Scientific & Tech Services 274 Team One (a division of Saatchi & Saatchi), Omnicom/OMD and Deutsch. Google recently purchased 12 acres of land in Playa Vista and Yahoo Accommodation & Food Services 197 relocated offices from Santa Monica to Playa Vista. Motion Pictures & Amusements 137

The coastal Silicon Beach communities have been a magnet for Real Estate, Rental & Leasing 118 entrepreneurial tech startups in recent years. This area is positioned to continue to benefit as the region is experiencing significant residential and commercial property demand with companies relocating to Silicon Beach from other Los Angeles communities.

15 AREA AMENITIES

16 17 THE NUMBERS

PRICING SUMMARY RENT ROLL SUMMARY

List Price $3,150,000 # of Units Type Actual Min - Max Actual Avg Pro Forma Avg

Price / Unit $450,000 1 1 Bed + 1 Bath $982/$982 $982 $2,600 1 Bed + 1 Bath Price / SF $713.32 2 $1,984/$2,036 $2,010 $2,600 Loft Occupancy 85.71% 4 2 Bed + 1 Bath $2,457/$3,100 $2,889 $3,100

Cap Rate 4.28% 7 Weighted Avg $2,365.57 $2,885.71 GRM 15.82

Pro Forma Cap Rate 5.53% RENT ROLL

Pro Forma GRM 12.97 Unit # Unit Type SF Actual Pro Forma

1* 2 Bed + 1 Bath 665 $3,100 $3,100 FINANCING SUMMARY 1 Bed + 1 Bath 2 600 $2,036 $2,600 Required Equity 35% $1,100,000 Loft 3 2 Bed + 1 Bath 665 $2,457 $3,100 Proposed New Loan Amount 65% $2,050,000 4 2 Bed + 1 Bath 665 $3,000 $3,100 Proposed New Loan 10-Year Fixed Rate 3.35% 5 2 Bed + 1 Bath 665 $3,000 $3,100 Loan to Value 65% LTV 1 Bed + 1 Bath 6 600 $1,984 $2,600 Debt Coverage Ratio 1.24 DCR Loft 7 1 Bed + 1 Bath 550 $982 $2,600

*Vacant

18 ESTIMATED OPERATING DATA Actual Pro Forma Annually $ / Unit $ / SF % Annually $ / Unit $ / SF % Gross Rental Income $199,788 $28,387 $45.00 $242,400 $34,629 $54.89 Other Income Annual Other Income $412 $424 Total Other Income $412 $424 Potential Gross Income $199,120 $28,446 $45.09 $242,824 $34,689 $54.99 Less Vacancy/Collection Loss ($5,961) ($852) ($1.35) 3.0% ($7,272) ($1,039) ($1.65) 3.0% Effective Gross Income $193,158 $27,594 $43.74 $235,552 $33,650 $53.34 Expenses Taxes $37,833 $5,405 $8.57 19% $38,589 $5,513 $8.74 15.9% Insurance $3,074 $439 $0.70 1.5% $3,166 $452 $0.72 1.3% Offsite Management $7,965 $1,138 $1.80 4.0% $9,713 $1,388 $2.20 4.0% Utilities & Rubbish $1,264 $181 $0.29 0.6% $1,302 $186 $0.29 0.5% General & Administrative $700 $100 $0.16 0.4% $721 $103 $0.16 0.3% Professional & Legal Fees $900 $129 $0.20 0.5% $927 $132 $0.21 0.4% Maintenance Repair $4,900 $700 $1.11 2.5% $5,047 $721 $1.14 2.1% Miscellaneous & Reserves $1,750 $250 $0.40 0.9% $1,803 $258 $0.41 0.7% Less Total Expenses ($58,386) $8,341 $13.22 29.3% ($61,268) $8,753 $13.87 25.2% Net Operating Income $134,773 $19,253 $30.52 $174,284 $24,898 $39.47 Debt Service Principal Reduction ($40,356) ($40,356) Interest Paid ($68,059) ($68,059) Less Debt Service ($108,416) ($108,416) After Debt Service Cash Flow $27,357 $65,868 Leveraged Cash on Cash 2.40% 5.99% Return on Investment 6.06% 9.66% CAP Rate 4.28% 5.53% GRM 15.82 12.97

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20 SALES COMPARABLES

BUILDING YEAR ADDRESS UNITS PRICE $ / SF $ / UNIT GRM CAP RATE PARKING COE SF BUILT

1 49 Thornton Ave 5 $2,000,000 2,880 $694.44 $400,000 26.09 2.30% 1902 8 10/23/2019 Venice, CA 90291

2 25 Clubhouse Ave 5 $2,300,000 3,342 $688.21 $460,000 15.53 3.38% 1909 5 7/25/2019 Venice, CA 90291

3 21 S Venice Blvd 6 $2,750,000 3,567 $770.96 $458,333 17.14* 3.50% 1964 5 3/6/2019 Venice, CA 90291

1312 Riviera Ave 4 8 $3,850,000 5,286 $728.34 $481,250 43.80 1.37% 1931 0 12/8/2017 Venice, CA 90291

5 49 Paloma Ave 6 $3,096,000 3,540 $874.58 $516,000 20.27 2.96% 1924 3 5/9/2018 Venice, CA 90291

AVERAGES 6 $2,799,200 3,723 $751.31 $463,117 24.57 2.70% 1926 5 12/19/2018

235 Horizon Avenue 7 $3,150,000 4,416 $713.32 $450,000 15.82 4.28% 1906 Street Venice, CA 90291 Pro Forma 12.97 5.53% *Estimated using 5% Vacancy and 35% Expenses

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22 RENT COMPARABLES

YEAR # ADDRESS TYPE SF RENT $ / SF NOTES BUILT UNITS

425 Venice Way 1 1949 2 1 Bed + 1 Bath 550 $2,595 $4.72 Venice, CA 90291

18 Westminster Ave 2 1956 2 1 Bed + 1 Bath 675 $2,675 $3.96 Venice, CA 90291

54 Thornton Ave 3 1954 3 1 Bed + 1 Bath 700 $2,600 $3.71 Venice, CA 90291

210 Horizon Ave 4 1915 4 1 Bed + 1 Bath 800 $2,985 $3.73 Venice, CA 90291

202 Horizon Ave 5 1911 6 2 Bed + 1 Bath 1000 $3,300 $3.30 Venice, CA 90291

1912 Pacific Ave 6 1955 4 2 Bed + 1 Bath 1,100 $3,300 $3.00 Venice, CA 90291

510 Pacific Ave 7 1963 8 2 Bed + 1 Bath 800 $3,250 $4.06 Venice, CA 90291

AVERAGES 1943 4 - 804 $2,958 $3.79 Pro Forma

1 Bed + 1 Bath 550 $982.00 $1.79 $2,600 $4.73 235 Horizon Avenue 1906 7 1 Bed + 1 Bath Loft 600 $2,010.00 $3.35 $2,600 $4.33 Venice, CA 90291 2 Bed + 1 Bath 665 $2,889.25 $4.34 $3,100 $4.66

23 THE DETAILS

CONFIDENTIALITY & DISCLAIMER

This Offering Memorandum has been prepared by Colliers International Owner and Colliers International expressly reserve the right, at their (“Colliers”) and contains select information pertaining to the business sole discretion, to reject any and all expressions of interest or offers to and affairs of 235 Horizon Avenue in Venice, California (“the Property”). purchase the Property and to terminate discussions with any person This Offering Memorandum may not be all-inclusive or contain all of or entity reviewing this Offering Memorandum or making an offer to the information a prospective purchaser may desire. The information purchase the Property unless and until a written agreement for the contained in this Offering Memorandum is confidential and furnished purchase and sale of the Property has been fully executed and delivered. solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to If you wish not to pursue negotiations leading to the acquisition of 235 any other person without the written consent of Seller or Colliers. The Horizon Avenue, or if you should discontinue such negotiations in the material is based in part upon information supplied by the Seller and future, then you agree to purge all materials relating to this Property in part upon financial information obtained by Colliers from sources it including this Offering Memorandum. deems reliable. Owner, nor their officers, employees or agents makes any representation or warranty, express or implied, as to the accuracy A prospective purchaser’s sole and exclusive rights with respect to this or completeness of this Offering Memorandum, or any of its contents, prospective transaction, the Property, or information provided herein and no legal liability is assumed or shall be implied with respect thereto. or in connection with the sale of the Property shall be limited to those Prospective purchasers should make their own projections and form expressly provided in an executed Purchase Agreement and shall be their own conclusions without reliance upon the material contained subject to the terms thereof. In no event shall a prospective purchaser herein and conduct their own due diligence. have any other claims against Seller or Colliers International or any of their affiliates or any of their respective officers, directors, shareholders, By acknowledging your receipt of this Offering Memorandum from owners, employees, or agents for any damages, liability, or causes of Colliers, you agree: action relating to this solicitation process or the marketing or sale of the Property. 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; This Offering Memorandum shall not be deemed to represent the state 3. You will not, directly or indirectly, disclose or permit anyone else to of affairs of the Property or constitute an indication that there has been disclose this Offering Memorandum or its contents in any fashion no change in the state of affairs of the Property since the date this or manner detrimental to the interest of the Seller. Offering Memorandum.

24 25 Kitty Wallace Senior Executive Vice President + 1 310 622 1900 [email protected] Lic. 01218779

www.kittywallaceteam.com

Selling Southern California, One Building at a Time!

Colliers International 11601 Wilshire Blvd., Suite 1950 Los Angeles, CA 90025 colliers.com/greaterlosangeles

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