PRIME WARNER CENTER RETAIL INVESTMENT
6433-6437 Topanga Canyon Boulevard, Woodland Hills, CA 91303 OFFERING MEMORANDUM 6433-6437 Topanga Canyon
TABLE OF CONTENTS
➢Property Overview ➢Financial Analysis ➢Location Overview
6433-6437 Topanga Canyon Page 2 PROPERTY OVERVIEW
6433-6437 Topanga Canyon Page 3 PROPERTY OVERVIEW DETAILS
Street Address 6433-6437 Topanga Canyon Number of Units 3 + Billboard
City Woodland Hills Number of Buildings 1
State CA Number of Stories 1
Zip Code 91303 Water Master-Metered
APN 2139-002-020 Electric Individually Metered
Building Size 3,612 SF Gas Individually Metered
Lot Size 7,199 SF Construction Masonry
Year Built 1974 Roof Flat
Parking 12
Zoning LAWC Topanga-SN-RIO
Use Commercial
6433-6437 Topanga Canyon Page 4 PROPERTY OVERVIEW HIGHLIGHTS
PRIME LOCATION ➢ Situated one parcel north of Victory Boulevard, directly across from Westfield Topanga & The Village in the heart of Warner Center, and within the Topanga District of the Warner Center 2035 Specific Plan, the subject property benefits from excellent visibility, signage, and frontage along Topanga Canyon Boulevard.
EXCELLENT UNIT MIX ➢ Three approximately 1,200 SF Retail Units, can be combined or leased individually
FLEXIBILITY ➢ Below market rents and near-term lease expirations offer significant future upside and options to investors, users and developers alike.
ELECTRONIC BILLBOARD ➢ One of the only electronic billboards currently permitted in the San Fernando Valley
6433-6437 Topanga Canyon Page 5 FINANCIAL ANALYSIS
6433-6437 Topanga Canyon Page 6 FINANCIAL ANALYSIS PRICING ANALYSIS
$4,000,000
Price $4,000,000
Price per Square Foot (Building)* $1,111
Price per Square Foot (Land) $556
*Does not account for Billboard
AFTER CLOSING PRO FORMA CAP Rate 4.62% 6.31%
Effective Gross Income $248,568 $316,018
Expenses $(63,630) $(63,630)
NOI $184,938 $252,388
6433-6437 Topanga Canyon Page 7 FINANCIAL ANALYSIS INCOME & EXPENSE
INCOME AFTER CLOSING PRO FORMA EXPENSE AFTER CLOSING PRO FORMA Rental Income $193,264 $262,800 Real Estate Taxes $(48,000) $(48,000)
Est. CAM Reimbursement $62,992 $62,992 Insurance $(1,780) $(1,780)
Gross Potential Income $256,256 $325,792 Utilities & Trash $(2,750) $(2,750)
Vacancy Allowance $(7,688) $(9,774) Maintenance & Repairs $(3,600) $(3,600)
Effective Gross Income $248,568 $316,018 Management Fee $(7,500) $(7,500)
Total Expenses $(63,630) $(63,630)
Net Operating Income $184,938 $252,388 Total Expenses $(63,630) $(63,630)
6433-6437 Topanga Canyon Page 8 FINANCIAL ANALYSIS RENT SCHEDULE
PROFORMA UNIT TENANT RENT RENT LEASE FROM LEASE TO 6433 UPS Store $3,665.00 $4,800.00 12/01/2020 05/31/2021
6435-6437 LA Mattress $7,440.30 $9,600.00 10/11/2016 12/10/2021
Billboard Clear Channel $5,000.00 $7,500.00 06/01/2007 05/31/2027
TOTAL MONTHLY $16,105.30 $21,900.00 TOTAL YEARLY $193,264.00 $262,800.00
6433-6437 Topanga Canyon Page 9 LOCATION OVERVIEW
6433-6437 Topanga Canyon Page 10 LOCATION OVERVIEW LOS ANGELES COUNTY
LOS ANGELES COUNTY ➢ The most heavily populated county in the country is Los Angeles County with approximately 9.9 million people, including about 1 million that live in unincorporated areas of the county. The metropolis - formed by the six neighboring counties of Los Angeles, Ventura, Kern, San Bernardino, Riverside, and Orange - is home to approximately 19 million residents. Los Angeles County is home to one of the most educated labor pools in the country and offers a labor force of more than 4.7 million, of which more than 1.5 million are college graduates. Los Angeles County has the largest population of any county in the nation, exceeded only by eight states. According to the United States Conference of Mayors, Los Angeles County boasts a GDP among the twenty largest in the world. Los Angeles County’s continued economic growth, in contrast to other areas of the state and nation, is due to its diversified economy and abundant, well- trained workforce. ➢ Los Angeles County is well located on the Southern Coast of California and covers 4,061 square miles, including the San Clemente and Santa Catalina islands. The County is comprised of approximately 88 vibrant and diverse cities hosting more than 244,000 business establishments— the greatest concentration in the state. Los Angeles County has a Gross Domestic Product (GDP) of approximately $446 billion -placing it among the top 20 economies in the world. The combined GDP of Los Angeles and its five surrounding neighboring counties places it in the top10. California is generally considered to be in the top five. ➢ If Los Angeles County were its own nation, its economy would be the 18th largest in the world. It is home to more than 244,000 businesses, with more minority and women-owned businesses than any other in the nation and is the nation’s top international trade center and manufacturing center. ➢ Los Angeles is recognized worldwide as a leader in entertainment, health sciences, business services, aerospace, and international trade. The Los Angeles area is so large and diverse, it has something to offer to everyone. While Hollywood and the Los Angeles beach culture are part of our collective image of Los Angeles, the city also has more museums than any other city and some of the best hotels in the world are in Los Angeles.
6433-6437 Topanga Canyon Page 11 LOCATION OVERVIEW THE VALLEY & WARNER CENTER
THE [SAN FERNANDO] VALLEY
➢ With just under 1.5 Million residences, businesses in the San Fernando Valley employ over 650,000 people, with one of the largest concentrations of LA's media, entertainment and technology companies.
➢ Space X, Universal Studios Hollywood, The Walt Disney Company, Amgen, Warner Bros., Bank of America, DreamWorks SKG, NBCUniversal, Aerojet Rocketdyne, Universal Music, Television Academy, Nickelodeon Animation Studios, CBS Studio Center, and Kaiser Permanente have all chosen to make the San Fernando Valley their primary or regional headquarters.
WARNER CENTER
➢ Warner Center is the commercial hub of the San Fernando Valley and one of Los Angeles’ largest urban developments.
➢ The Warner Center 2035 (WC2035) Specific Plan was created to encourage development and be a guide to shaping Warner Center as both a transit and pedestrian oriented community. The Plan provides a comprehensive and clear process to allow development to occur in order to facilitate the creation of a regional center where people can live, work, and play.
➢ Since the inception of the WC2035 Plan, Warner Center has become one of the fastest growing sub-markets in not only Los Angeles, but the entire country. As a result of the WC2035 Plan, Warner Center has seen a boom of planned developments, with over 37,000,000 square feet of business and residential buildings, approximately 20,000 residential units, and 80,000 new jobs projected in the district by 2035.
6433-6437 Topanga Canyon Page 12 LOCATION OVERVIEW FUTURE DEVELOPMENTS
UPTOWN AT WARNER CENTER 6636 VARIEL AVE CARILLON APARTMENT HOMES CALIFORNIA HOME BUILDERS SITE $4 billion mixed-use development. A new seven-story residential project A class A, 264-unit multifamily A combined 588 units of housing With 271 apartment above a parking property in Woodland Hills, has sold and 66,000 square feet of structure. for $93 million or $352,272 per unit. commercial space.
NORTHRUP GRUMMAN SITE A 1.27 million-square-foot development plan that would bring 566 independent living units to Warner Center.
WESTIELD SEARS DEVELOPMENT $250 million redevelopment of former Sears into a premier dining and entertainment district featuring a chef driven Food Hall, boutiques, and more.
21031 WARNER CENTER LN A planned 24-acre complex in Warner Center could bring about 1,000 apartments and condos, a 24-story hotel, and a trio of 15 story office buildings 21200 OXNARD ST A 52,581-square-foot, single-story flex commercial building on 3 acres in Woodland Hills. Warner Center. TRIANA APARTMENT A 362-unit residential complex in the WESTFIELD PROMENADE 2035 Warner Center. $1.5 billion capital infusion - 1,400 residential units, 2 hotels, 864,000 SF Class A office & retail, Entertainment and Sports Center.
6433-6437 Topanga Canyon Page 13 LOCATION OVERVIEW AERIAL
6433-6437 Topanga Canyon Page 14 LOCATION OVERVIEW DEMOGRAPHICS
POPULATION 1-Mile 3-Mile 5-Mile
2025 Projection 36,075 213,609 402,440
2020 Estimate 32,913 208,321 393,252
2010 Census 28,087 199,054 376,752
Growth ‘20 - ‘25 1.85% 0.50% 0.46%
Growth ‘10 - ‘20 1.56% 0.44% 0.42%
HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2025 Projection 15,565 74,506 138,817
2020 Estimate 14,211 72,619 136,052
2010 Census 12,154 69,725 131,489
Growth ‘20 - ‘25 1.84% 0.51% 0..40%
Growth ‘10 - ’20 1.54% 0.40% 0.33%
Average HH Income $100,556 $115,955 $116,916
Median HH Income $76,318 $40,363 $40,464
6433-6437 Topanga Canyon Page 15 illi COMMERCIAL DISCLAIMER
The information contained in this Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from illi Commercial Real Estate and should not be made available to any other person or entity without the written consent of illi Commercial Real Estate or the seller of the property ("Seller"). This Offering Memorandum has been prepared to provide summary information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is provided for informational purposes only and without representation or warranty of any kind from the Seller, illi Commercial Real Estate or otherwise. Such information is not a substitute for a thorough due diligence investigation. Without limiting the foregoing, neither illi Commercial Real Estate nor Seller has made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. Neither illi Commercial Real Estate nor Seller makes any warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must make and rely on their own independent investigation and take appropriate measures to verify all information set forth herein.
The subject property contains operating businesses. Do not disturb tenants or speak with anybody on site about this offering.
6433-6437 Topanga Canyon Page 16 CONTACT
Greg Offsay, CCIM Executive Vice President (818) 697-9387 [email protected] CA DRE Lic. 1837719
Todd Nathanson President (818) 514-2204 [email protected] CA DRE Lic. 00923779 Greg Offsay Todd Nathanson
www.illicre.com
6433-6437 Topanga Canyon Page 17