3288 Lowry Road

World-Class Los Feliz Apartment Community Offering Memorandum 12 Unit Multifamily Located in Premier Location EXCLUSIVE LISTING AGENTS:

RICH JOHNS MULTIFAMILY INVESTMENT ADVISOR 818.432.1575 [email protected] CalBRE Lic. #01432215

NICK ASTRUPGAARD MULTIFAMILY INVESTMENT ADVISOR 818.432.1580 [email protected] CalBRE Lic. #01893466 3288 LOWRY ROAD LOS FELIZ, CA 90027

Premier 12 Unit Multifamily Asset in Los Feliz

05 PROPERTY DESCRIPTION 10 EXECUTIVE SUMMARY 14 LOCATION OVERVIEW 21 MARKET COMPARABLES 27 MARKET ANALYSIS

3288 LOWRY ROAD | 3 3288LOWRY ROAD

4 | 3288 LOWRY ROAD THE OFFERING KW Commercial is pleased to offer for sale, The timeless building design features the tial, making it an ideal investment for forward for the first time in nearly 70 years, 3288 Lowry original character from the era with most thinking, long-term investors expecting mean- Road, a 12-unit apartment community located units featuring original oak hardwood flooring, ingful generational long-term rental growth in Los Feliz (90027), one of LA’s most dynamic vintage bath and kitchen tile work, french win- / value appreciation in an area of multimil- neighborhoods. 3288 Lowry Road has been dows, 6 panel doors, chair rails and separate lion-dollar estates. Expenses are relatively low owned by the same family for 3 generations front and rear egress. Each unit comes with since each unit is separately metered for gas since 1951. its own dedicated and covered parking space. and electricity, and has its own individual gas The property sits on a sprawling 17,163 square water heater. 3288 Lowry Road, constructed in 1948, fea- foot (+/- 0.39 acre) corner parcel, zoned R3-1. tures Twelve (12) VERY LARGE apartment 3288 Lowry Road is centrally located in Los homes within 12,232 SF of improvements. The Building Mechanical Systems Information / Feliz – one of LA’s most stable and desirable apartment homes average +/- 1,000 SF with a Upgrades: neighborhoods. Furthermore, the subject unit composition of ALL Two Bedrooms and property offers residents access to a myriad One Bathroom units. The majority of units a) In 2014, new roofs for the main struc- of entertainment venues, cultural destina- feature original oak hardwood flooring, for- ture, laundry area and carports were tions, and dining options within Los Feliz itself mal dining rooms, bay windows, front & rear installed (tear-off included) with a new and neighboring Silver Lake, Hollywood and egress, vintage tiled baths and kitchens, and Class A composition shingle roofs. DTLA. numerous closet and linen storage. b) Electrical for all units (including laundry Given the property’s prime location and signif- The property includes a gated, on-grade car- and garage) was replaced between the icant value add component, 3288 Lowry Road port parking space and individual storage for years 2010 and 2019. is an ideal investment for hands-on operators each unit. c) Plumbing systems have been updated seeking long-term returns and appreciation. Coin operated laundry equipment is provided on an as-needed basis. in the common area. Laundry equipment is d) All exterior surfaces were repainted in leased with +/- 3 years remaining with owner- 2015. ship receiving 50% of the income generated. While producing strong current income, the property has significant rental upside poten-

3288 LOWRY ROAD | 5 5 INVESTMENT HIGHLIGHTS

• THE OPPORTUNITY: 3288 Lowry Road is a 12-unit • AMPLE PARKING: The property is well-parked with an investment opportunity located in Los Feliz, a premier assigned covered parking space for each unit. rental submarket known for excellent rent growth and very low vacancy rates. • LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the Los The majority of units feature original oak hardwood flooring, Feliz. As the median home price in the area is $1,420,500, formal dining rooms, bay windows, front & rear egress, a typical monthly mortgage payment is between 2-3 times vintage tiled baths and kitchens, and numerous closet and more than the average renovated rents at 3288 Lowry linen storage. Road.

3288 Lowry Road has been owned by the same family for • NO SEISMIC RETROFIT REQUIRED: 3288 Lowry Road is 3 generations since 1951. The property is being offered for not on the list of buildings that require a soft-story seismic sale for the first time in nearly 70 years. retrofit.

• OUTSTANDING LOCATION: The property is located • STRONG EMPLOYMENT: 3288 Lowry Road is located in the heart of Los Feliz, directly off the Los Feliz Blvd. within the Hollywood submarket which is considered one It is a short distance to many world-class dining and of the country’s world-class employment centers and offers entertainment venues. access to an enormous and diverse set of employers.

• ONE-OF-A-KIND PROPERTY: 3288 Lowry Road is a • LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: world-class asset with very large and charming +/- 1,000 More than 2.3 million SF of commercial space is currently SF apartment homes replete with original details from the under development in the Hollywood submarket 1940’s. The land parcel totals +/- 17,163 SF on the prominent representing more than $1.58B in project costs corner of Lowry Road and Los Feliz Blvd.

• LOW EXPENSES: Each unit is separately metered for gas and electric utilities and has its own water heater. EXTERIOR

3288 LOWRY ROAD | 7 8 | 3288 LOWRY ROAD INTERIOR

3288 LOWRY ROAD | 9 10 | 3288 LOWRY ROAD FLOOR PLAN

BEDROOM 13'1" x 10'9"

MASTER BEDROOM 11' x 14'11" BATH HALL 8'9" x 7'1" 7'2" x 7'8"

LIVING ROOM DINING 19'3" x 12'3" 12'1" x 9'6"

KITCHEN 12'1" x 7'5"

GROSS INTERNAL AREA SIZE AND DIMENSIONS ARE APPROXIMATE, ACTUAL MAY VARY. FLOOR 1

3288 LOWRY ROAD | 11 EXECUTIVE SUMMARY

12 | 3288 LOWRY ROAD 3288 Lowry Road FINANCIAL SUMMARY Los Feliz, CA 90027

MARKET RENT SOURCE OF INCOME CURRENT RENT FINANCIAL INDICATORS Post Renovation Offering Price $5,200,000 # of Units Unit Type Avg. SF Avg. Rent Total Avg. SF Avg. Rent Total 12 2 Bed / 1 Bath $2.20 $2,209.11 $26,509.30 $3.20 $3,221 $38,650 Current CAP 4.1% Total Rental Income $26,509.30 $38,650 Market CAP 6.8% Estimated Laundry Income ($20/mo/unit) $70.00 $70 Current GRM 16.30 Total Monthly Income $26,579.30 $38,720 Market GRM 11.19 Total Annual Income $318,951.60 $464,640 Cost Per Unit $433,333 Price Per SF $425.11

Expenses Per Unit $8,479 EST. ANNUALIZED OPERATING DATA CURRENT MARKET Expenses Per Sq Ft $8.32 Scheduled Gross Income $318,952 $464,640 Less Vacancy 1.0% ($3,190) 2.0% ($9,293) Gross Operating Income $315,762 $455,347 BUILDING DATA Less Expenses 32.2% ($101,751) 22% ($101,751) Units 12 Net Operating Income $214,011 $353,596 Year Built 1948 Lot Sq Ft 17,163 Bldg Gross Sq Ft 12,232 NOTATIONS: Parking Spaces 12 1) Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $450 per unit per year post- renovation. ESTIMATED ANNUALIZED EXPENSES 2) Supplies: Based on 2019 expenses. New Property Taxes $63,960 3) Contract Service: Expenses are projected for Pest Control ($100/mo), Landscaping ($120/mo) based on market rates. Utilities (DWP & Gas) $13,408 4) Utilities: Based on 2019 utility expense. Separately metered for Gas & Electrical utilities. Property Insurance $7,312 5) Management Fee: Projected at 4% of Total Annual Income. Landscaping $1,440 6) Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.23%. Repairs & Maintenance $5,400 7) Property Insurance: Insurance expense is estimated at $0.60/SF/Year based on market rates. Supplies $729 8) Capital Reserves: Capital Reserves have been underwritten at 2% of Annual Gross Income. Rental Registration $648 Pest Control $1,200 3rd party Property Management $12,758 Reserves (2% of Annual Income) $6,379 Total Estimated Expenses -$101,751 3288 LOWRY ROAD | 13 3288 Lowry Road RENT ROLL Los Feliz, CA 90027

UNIT STATUS UNIT TYPE Positioning Est. SF Current Current Rent Market Market Rent Rent / SF Rent / SF Post Renovation 3288 Lowry Occupied 2 Bed / 1 Bath Ground Floor 1,000 $2.55 $2,550 $3.13 $3,125

3288 1/2 Lowry Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.50 $2,496.72 $3.30 $3,300

3290 Lowry Occupied 2 Bed / 1 Bath Ground Floor 1,000 $2.66 $2,655.86 $3.13 $3,125

3290 1/2 Lowry Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.50 $2,500 $3.30 $3,300

3292 Lowry Occupied 2 Bed / 1 Bath Ground Floor 1,000 $1.64 $1,639.56 $3.13 $3,125

3294 Lowry Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.05 $2,052.03 $3.30 $3,300

3296 Lowry Occupied 2 Bed / 1 Bath Ground Floor 1,000 $1.52 $1,524.46 $3.13 $3,125

3298 Lowry Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.50 $2,496.72 $3.40 $3,400

3964 Los Feliz Occupied 2 Bed / 1 Bath Ground Floor 1,000 $2.58 $2,578.61 $3.13 $3,125

3966 Los Feliz Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.03 $2,029.52 $3.30 $3,300

3960 Los Feliz Occupied 2 Bed / 1 Bath Ground Floor 1,000 $1.92 $1,922.21 $3.13 $3,125

3962 Los Feliz Occupied 2 Bed / 1 Bath Upper Level 1,000 $2.06 $2,063.61 $3.30 $3,300

$2.20 $26,509.30 $3.20 $38,650

14 | 3288 LOWRY ROAD PROPERTY DETAILS

3288 Lowry Road | Los Feliz CA 90027 CONSTRUCTION Assessor’s Parcel Number: 5434-001-006 Foundation: Foundation Retrofitted / Raised Foundation Buildings: One Framing: Wood Frame Year Built: 1948 Exterior: Stucco Land Use: Apartments Roof: Pitched Zoning: R3-1 Topography: Flat Stories: Two

SITE DESCRIPTION UTILITIES Units: 12 Water Master Metered - LADWP Gross Square Footage: 12,232 Sewer Master Metered - LADWP Parcel Size: 17,163 Electricity: Separately Metered - LADWP Parking: 12 Gas: Separately Metered - Gas Company

MECHANICAL Hvac Portable Air Conditioner Units / Wall Heaters Fire Protection: Smoke Detectors Water Heater: Individual Water Heaters Plumbing: Plumbing systems have been updated on an as-needed basis

3288 LOWRY ROAD | 15 LOCATION OVERVIEW

16 | 3288 LOWRY ROAD 3288 LOWRY ROAD

LOS FELIZ, CA 90027

3288 LOWRY ROAD | 17 One of a kind LOS FELIZ...

3288 Lowry Road is located within the most desirable pockets of one of the most highly sought-after submar- kets in Los Angeles County. The Los Feliz neighborhood thrives off of its casual yet trendy lifestyle which is why it continues to remain an attractive living destination. Given the upward trend of millennials to engage in an active lifestyle, the immediate and surrounding areas provide attractions, nightlife, and simple amenities to be enjoyed on a regular basis. Griffith Park, the Greek Amphitheatre, the Hollywood sign trails, and Silver Lake/Echo Park, among other local hot spots, all contribute to the energy that permeates the streets.

The growing movement towards walkable areas filled with bars, restaurants, cafes, live music venues is ever-prominent within Los Feliz, Silverlake, Echo Park, Hollywood, and Atwater Village. These communities which border Los Feliz area rooted in the millennial culture. These types of locations are attractive because of the amenities that they provide for members of the community. The young, hip, educated, affluent lifestyle renters are drawn towards the area given the numerous entertainment options, walkability, and prestigious brand associated with a residence in one of these locales.

18 | 3288 LOWRY ROAD FELIZlos

3288 LOWRY ROAD | 19 The subject property is within close proximity of a variety of highly regarded dining experiences, cafés, boutique shopping, entertainment, and nightlife options including WALKABILITY notable popular destinations such as the Greek Theatre, The Observatory, Little Dom’s and The Dresden Restaurant & Lounge in addition to the local everyday necessities located along Vermont and Hillhurst Avenues.

WALK SCORE WALK SCORE WALK SCORE 57 “SOMEWHAT WALKABLE” 45 “SOME TRANSIT” 62 “SOMEWHAT BIKEABLE” Some errands can be accomplished A few nearby public transportation Minimal bike infrastructure on foot. options.

RESTAURANTS, BARS, & GROCERY STORES & HOTELS MARKETS

Little Dom’s Lassens Natural Foods Cheech’s Pizza Trader Joe’s Mexico City Gelson’s Market Barbrix Hillhurst Liquor Ending Place In Question Bogies Liquor MessHall Kitchen SIS Deli & Groceries Puran’s Restaurant Cap N’ Cork Junior Market Community Los Feliz Farmer’s Market Yuca’s Oeno Vino Drawing Room India Sweets & Spices Twenty40 Bill’s Liquor Store Yen Sushi & Sake Bar Atwater Village Farm Mixto Comida Latina Ricky’s Fish Tacos FITNESS & SPA What the Fish Mind-Body Fitness Pilates Studio ENTERTAINMENT & SHOPPING Metro Fitness The Raven Spa The Greek Theatre Indigo Fitness New Hollywood Plaza The Barai Spa Hollywood & Highland AAY! Fitness The Grove 24 Hour Fitness Hollywood Palladium Dtox Day Spa Massage & Facials Universal CityWalk The Americana at Brand Hollywood Bowl

20 | 3288 LOWRY ROAD Hollywood

3288 LOWRY ROAD | 21 HOLLYWOOD

For millions of visitors, Hollywood is an essential part of the Los Angeles experience. Things to do in Hollywood include must-see shows and attractions, celebrity-frequented restaurants, and world class hotels. Experience Tinseltown glamour at TCL Chinese Theatre or the Hollywood Walk of Fame, which has honored celebrities for over 50 years. The state-of-the-art Dolby Theatre is home to the Academy Awards. Universal Studios Hollywood is a world famous theme park that includes the mind-blowing “Transformers: The Ride 3-D.” Other things to do in Hollywood include the shops and restaurants at Hollywood & Highland Center, or the delicious multicultural cuisines of nearby Thai Town and Little Armenia. Search for the best Hollywood hotels and start discovering the entertainment capital of the world.

22 | 3288 LOWRY ROAD MARKET COMPARABLES

3288 LOWRY ROAD | 23 RENT COMPARABLES MAP 3288 Lowry Road

1) 1729 Winona Blvd

2) 4161 Los Feliz Blvd

3) 4350 Franklin Ave

4) 2120 Rodney Dr

5) 2807 St George St

6) 1849 N Berendo St

7) 1943 Palmerston Pl

8) 3836 Los Feliz Blvd

9) 3804 Evans St

24 | 3288 LOWRY ROAD 3288 Lowry Road RENT COMPARABLES

1729 Winona Blvd 2 BEDROOM

4161 Los Feliz Blvd Year Property Units Built Owner/Manager Rent 4350 Franklin Ave 3288 Lowry Road 12 1948 Private Owner/ $2,209 Los Angeles, CA 90027 Owner Managed 2120 Rodney Dr 1) 1729 Winona Blvd 5 1908 Private Owner/ $3,000 Los Angeles, CA 90027 Owner Managed 2807 St George St 2) 4161 Los Feliz Blvd 9 1988 Private Owner/ $3,200 1849 N Berendo St Los Angeles, CA 90027 Owner Managed 3) 4350 Franklin Ave 8 1963 Private Owner/ $3,495 1943 Palmerston Pl Los Angeles, CA 90027 Owner Managed 4) 2120 Rodney Dr 6 1962 Private Owner/ $3,850 3836 Los Feliz Blvd Los Angeles, CA 90027 Owner Managed 5) 2807 St George St 16 1941 Private Owner/ $3,450 3804 Evans St Los Angeles, CA 90027 Owner Managed 6) 1849 N Berendo St 4 1924 Private Owner/ $2,995 Los Angeles, CA 90027 Owner Managed 7) 1943 Palmerston Pl 6 1948 Private Owner/ $3,500 Los Angeles, CA 90027 Owner Managed 8) 3836 Los Feliz Blvd 4 1964 Private Owner/ $3,500 Los Angeles, CA 90027 Owner Managed 9) 3804 Evans St 22 1961 Private Owner/ $3,495 Los Angeles, CA 90027 Owner Managed

AVERAGE: $3,387 HIGH: $3,850 LOW: $2,995

3288 LOWRY ROAD | 25 SALES COMPARABLES MAP 3288 Lowry Road

1) 1254-1260 N Citrus Ave 2) 1718 North Vista Street 3) 1132 N Formosa Ave 4) 7467 Hollywood Blvd 5) 1837 N La Brea Ave

26 | 3288 LOWRY ROAD 3288 Lowry Road SALES COMPARABLES

1254-1260 N Citrus Ave 1718 North Vista Street PROPERTY YEAR BUILT UNITS BLDG SF PRICE CAP GRM $/UNIT CLOSED 3288 Lowry Road 1948 12 12,232 $5,200,000 4.1% 16.3 $433,333 Available 1132 N Formosa Ave Los Angeles, CA 90027

1254-1260 N Citrus Ave 7467 Hollywood Blvd 1 1922 8 6,098 $4,000,000 3.61% 18.34 $500,000 8/30/2019 Los Angeles, CA 90038

1837 N La Brea Ave 1718 North Vista Street 2 1938 5 10,916 $4,500,000 2.6% 23.1 $900,000 1/24/2020 Los Angeles CA 90046

1132 N Formosa Ave 3 1957 9 6,325 $4,050,000 5.29% - $450,000 10/18/2019 Los Angeles, CA 90046

7467 Hollywood Blvd 4 1937 7 8,180 $2,900,000 4.15% 14.42 $414,286 2/21/2019 Los Angeles, CA 90046

1837 N La Brea Ave 5 1958 16 13,965 $6,090,000 4.25% 15.50 $406,000 6/12/2019 Los Angeles, CA 90046

3288 LOWRY ROAD | 27 3288 LOWRY ROAD CONFIDENTIALITY AGREEMENT

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 any 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 inspec- tions 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. In particular, a prospective buyer should be aware that the property is subject to the Los Angeles Rent Control Ordinance. 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 KC Commercial in compliance with all applicable fair housing and equal opportunity laws. 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.

3288 LOWRY ROAD | 29 3288LOWRY ROAD

EXCLUSIVE LISTING AGENTS:

Rich Johns Nick Astrupgaard Multifamily Investment Advisor Multifamily Investment Advisor 818.432.1575 323.868.9553 [email protected] [email protected]

CalBRE Lic. #01432215 CalBRE Lic. #01893466