926-932 N KINGLSEY DRIVE , CA 90029

A MULTIFAMILY DEVELOPMENT SITE IN THE HEART OF EAST

OFFERING MEMORANDUM NON-ENDORSEMENT & DISCLAIMER NOTICE

CONFIDENTIALITY & DISCLAIMER The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not 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 business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

SPECIAL COVID-19 NOTICE All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT LISTING AGENT FOR MORE DETAILS.

RICHARD RINGER YANA VLADY Senior Managing Director Investments Associate Senior Director, National Housing Group Direct | 310-909-5439 Direct | 310-909-5428 [email protected] [email protected] License: CA 02082859 License: CA 01494512 TABLE OF CONTENTS

01

EXECUTIVE SUMMARY 02

DEVELOPMENT CONCEPT 03

MARKET OVERVIEW 04

MARKET COMPARABLES 05

FINANCIAL ANALYSIS

926-932 N KINGLSEY DR. LOS ANGELES,

EXECUTIVE SUMMARY 01

INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS 926-932 N KINGSLEY DR. // EXECUTIVE SUMMARY

INVESTMENT OVERVIEW

Marcus & Millichap is pleased to present 926-932 N Kingsley Dr, a prime Transit Oriented Communities (TOC) Tier 2 multifamily development site in the heart of East Hollywood. This rare offering consists of two parcels totally 17,718 square feet of R3-1XL zoned land. The project will be delivered shovel ready with plans (RTI) for a well- designed four-story apartment building. These 37-unit property will have 25 one-bedroom/one-bathroom units, 10 two-bedroom/two-bathroom units, and 2 three-bedroom/two-bathroom units. Four (4) units (1 one- bedroom one-bathroom and 3 two-bedroom two-bathroom) shall be designated for Extremely Low Income Households, as defined by the Los Angeles Housing and Community Investment Department (HCIDLA) and California Government Code Section 65915(c)(2).

The property is conveniently located north of Highway 101 and south of Santa Monica Boulevard just west of . This neighborhood is home to traditional restaurants, farm-to-table eateries, and laid-back cafes which, along with affordability aspect, attracts many young professionals. This area is served by Metro B Line subway which runs north-south along and east west along . Moreover, there are over a dozen bus lines on the major thoroughfares.

East Hollywood is a densely populated neighborhood of 78,000+ residents. Almost two-thirds of the people living in this area were born outside of the United States of whom 90% are renters. This area positioned in the central region of Los Angeles and has seven public and five private schools, a branch of Los Angeles Public Library, and three hospitals: Kaiser Permanente Los Angeles Medical Center, Children’s Hospital Los Angeles, Hollywood Presbyterian Medical Center. This hidden gem will appeal to any investor/developer who wants to invest and develop in the area with strong rental demand and economic drivers.

. 6 INVESTMENT HIGHLIGHTS

• PROJECT DELIVERED READY-TO-ISSUE

• NO RENT CONTROL*

• CORNER LOT

• EASY ACCESS TO FREEWAY 101

• ADJACENT TO LOS ANGELES CITY COLLEGE

• CENTRALLY LOCATED TO SILVER LAKE, KOREATOWN, AND HOLLYWOOD

• PROXIMITY TO RESTAURANTS, BARS, SHOPPING AND ENTERTAINMENT

*New buildings are exempt until they reach 15 years old (in keeping with Costa Hawkins), so currently the law applies to buildings constructed before 2005. This is meant to encourage builders to build new rental housing without their income being limited by rent control, at least for the first 15 years.

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926-932 N KINGLSEY DR. LOS ANGELES, CALIFORNIA

DEVELOPMENT CONCEPT 02

DEVELOPMENT RENDERINGS 926-932 N KINGSLEY DR. // DEVELOPMENT CONCEPT

DEVELOPMENT CONCEPT

10 11

926-932 N KINGLSEY DR. LOS ANGELES, CALIFORNIA

MARKET OVERVIEW 03

LOCATION OVERVIEW

TRANSPORTATION

NEW CONSTRUCTION 926-932 N KINGSLEY DR. // MARKET OVERVIEW

LOCATION OVERVIEW

East Hollywood is an intersection of many cultures and contains Little Armenia, historic Melrose Hill, and Thai Town. Its neighboring communities are Holllywood, , Koreatown, Larchmont, Los Feliz, Silver Lake, Echo Park, Westlake and Windsor Square.

EAST HOLLYWOOD IS HOME TO: • Los Angeles City College • : - Frank ’s , currently shortlisted to become a UNESCO World Heritage Site - Los Angeles Municipal Art Gallery, which provides a focus for art and artist s across the City - Junior Arts Center and adult art prog rams, which have attracted beginner and accomplished artists for over 80 years - Barnsdall Gallery Theatre, a low-cost venue for the per forming arts • A Hospitall District: - Kaiser Permanente - Los Angeles Children’s HospitaI - Hollywood Presbyterian Medical Center • The : - The third oldest in the Los Angeles Public Library system, built in 1916 with a grant from Andrew Carnegie • 7 public and 5 private schools 14 15 926-932 N KINGSLEY DR. // MARKET OVERVIEW

EAST HOLLYWOOD TRANSPORTATION

metro.net Metro Rail & Busway

Chatsworth Amtrak & Metrolink

Nordhoff Lake Allen Sierra MadreArcadia VillaMonroviaDuarte/CityIrwindale of HopeAzusa DowntownAPU/Citrus College

GOLD LINE FOOTHILL Roscoe EXTENSION PROJECT Memorial Park Sherman Way SAN GABRIEL VALLEY Del Mar Canoga De Soto Pierce CollegeTampa Reseda Balboa Woodley SepulvedaVan NuysWoodmanValley CollegeLaurel Canyon North Hollywood Fillmore Universal City/Studio City

Hollywood/Highland South Pasadena

Hollywood/VineLAX FlyAway Highland Park

Hollywood/Western Southwest Museum CENTRAL LA Vermont/Sunset Heritage Sq

Vermont/Santa Monica Lincoln/Cypress

Vermont/Beverly Chinatown PURPLE (D LINE) EXTENSION TRANSIT PROJECT Wilshire/WesternWilshire/Normandie Union Station Wilshire/Vermont Amtrak & Metrolink CivicGrand Ctr/Park Metrolink LAX FlyAway LAC+USC MedicalCal State Ctr LA El Monte Westlake/MacArthur Park

WESTSIDE REGIONAL 7th St/Metro Ctr CONNECTOR Pico Pershing Square LATTC/Ortho Soto Institute LittleArts Tokyo/ Dist Indiana Atlantic DOWNTOWN Pico/Aliso Maravilla STATION CLOSED LA Grand/LATTC East LA Civic Ctr Downtown17th Santa St/SMC Monica26th St/BergamotExpo/BundyExpo/SepulvedaWestwood/RanchoPalms Culver Park CityLa Cienega/JeffersonExpo/La BreaFarmdaleExpo/CrenshawExpo/WesternExpo/VermontExpoPark/USC EASTSIDE 37th St/ San Pedro St Rail Station SANTA USC MONICA Jefferson/USC Washington Transfer Station BuswayStation Slauson Vernon Busway Street Service UNDER SOUTH LA Slauson CONSTRUCTION CRENSHAW/LAX TRANSIT PROJECT PACIFIC OCEAN Manchester Florence

Firestone Metro Rail

103rd St/ A Line (Blue) Watts Towers Downtown LA to Long Beach Willowbrook/ B Line (Red) LAX Shuttle G Crenshaw Harbor Fwy Rosa Parks North Hollywood to Union Station LAX Aviation/LAXHawthorne/LennoxVermont/Athens Avalon Long Beach LakewoodBl NorwalkBl C Line (Green) Redondo Beach to Norwalk Rosecrans Compton Mariposa D Line (Purple) Wilshire/Western to Union Station Harbor Artesia El Segundo Gateway E Line (Expo) Transit Ctr GATEWAY CITIES Downtown LA to Santa Monica Del Amo Douglas L Line (Gold) East Los Angeles to Azusa Redondo Beach Carson Wardlow

Willow St Metro Busway SOUTH BAY G Line (Orange) Pacific Pacific Coast Hwy Chatsworth to North Hollywood Coast Hwy J Line (Silver) Anaheim St San Pedro to El Monte Street Service in Downtown LA Pacific 5th St and San Pedro Av San Pedro Downtown 1st St Regional Rail Long Beach Amtrak amtrak.com Metrolink metrolinktrains.com

Airport Shuttle

LAX FlyAway lawa.org/flyaway LAX Shuttle (free) lawa.org

Station closure

Little Tokyo/Arts District Station is closed effective Fall 2020. Use the free L Line (Gold) Shuttle for connecting service.

OCT 2020 Subject to Change 21-1502MM ©2020 LACMTA 21-1502MM ©2020

TRANSIT / SUBWAY: Vermont / Santa Monica Metro Redline Station .7 mile, 15 min walk Rapid Bus # 704 - San ta Monica I Normandie- .3 mile, 7 min walk Rapid Bus # 757 - Santa Monica / Western - .5 mile, 10 min walk 16 COMMUTER RAIL: Glendale Transportation Center - 4.6 miles, 15 min 400 West Cerritos Ave., Glendale, CA

The GTC is a central transportation hub for: • Metro!ink • Metro Buses • Amtrak • Greyhound • Glendale Beeline Airport: • Bob Hope Afrport - 9.4 miles, 18 min • Los Angeles International Airport - 18 miles, 24 min

17 926-932 N KINGSLEY DR. // MARKET OVERVIEW NEW CONSTRUCTION WITHIN 1 MILE RADIUS

ADDRESS UNITS STATUS YEAR BUILT AMENITIES

170-180 N Alexandria Ave 178-180 N Alexandria Ave 14 Schon Tepler Delivers December 2020 1 Los Angeles, CA 90004

1223 N Edgemont St 1223 N Edgemont St 13 ST Realty Delivers December 2020 2 Los Angeles, CA 90029

4807 Elmwood Ave Markwood Enterprises, 4807 Elmwood Ave 13 Delivers December 2020 3 Los Angeles, CA 90004 Inc

4864 Melrose Ave 4864 Melrose Ave 45 The Sabet Group Delivers December 2020 4 Los Angeles, CA 9029

4914-4920 W Melrose Ave 4914-4920 W Melrose Ave 42 Ground Up Development Delivers March 2021 5 Los Angeles, CA 90029

4749 W Elmwood Ave 4749 W Elmwood Ave 14 Wiseman Development Inc Delivers March 2021 6 Los Angeles, CA 90004

4760 Melrose Ave 4760 Melrose Ave 33 Addazero Development Delivers June 2021 7 Los Angeles, CA 90029

4100 W Melrose Ave Melrose Community Build- 4100 W Melrose Ave 33 Proposed, Breaks Ground December 2020 8 Los Angeles, CA 90029 ers LLC

1114 N St Andrews Pl 1114 N St Andrews Pl 60 Bang Ja Kim Proposed Breaks Ground February 2021 9 Los Angeles, CA 90038

4658 Melrose Ave 4658 Melrose Ave 66 Safco Capital Corporation Proposed, Breaks Ground April 2021 10 Los Angeles, CA 90029

18 Untitled map

Untitled layer

926 N Kingsley Dr 178 N Alexandria Ave 1223 N Edgemont St 4807 Elmwood Ave 4864 Melrose Ave 4914 Melrose Ave 4749 Elmwood Ave 4760 Melrose Ave 4100 Melrose Ave 1114 N St Andrews Pl 2 4658 Melrose Ave 9

SUBJECT PROPERTY 5 4 7 10 8

3 6

1

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926-932 N KINGLSEY DR. LOS ANGELES, CALIFORNIA

MARKET COMPARABLES 04

SALES COMPARABLES

RENT COMPARABLES 926-932 N KINGSLEY DR. // MARKET COMPARABLES

SALES COMPARABLES

PRICE/ DEVELOPMENT PROPERTIES UNITS SALES PRICE PRICE/SF PRICE/SF SALE DATE ZONING LOT SIZE UNIT STAGE

926-932 N Kingsley Drive 37 $3,750,000 $101,351 $211.65 $836.37 - R3-1XL 17,718 RTI

1 5068 Romaine Street 18 $1,640,000 $91,111 $181.69 $1,041.67 2/7/20 R3-1 8,999 RTI

2 667-671 N Wilton Place 34 $3,430,000 $100,882 $327.63 $1,438.24 12/19/19 C2 10,454 RTI

3 5832 Virginia Avenue 9 $1,600,000 $177,778 $212.64 $879.00 10/29/19 R3 7,501 RTI

4 648 N Ardmore Avenue 9 $1,100,000 $122,222 $146.65 $936.12 8/6/20 R3-1 7,501 RTI

5 627 N Juanita Avenue 17 $1,350,000 $79,412 $179.05 $810.22 4/23/19 R3-1 7,540 Entitled

22 Untitled map

Untitled layer

926 N Kingsley Dr 5068 Romaine St 667 N Wilton Pl 5832 Virginia Ave 648 N Ardmore Ave 627 N Juanita Ave

$114,281 3 AVERAGE PRICE PER UNIT 1

2 4 5 $209.53 AVERAGE PRICE PER SF

23 926-932 N KINGSLEY DR. // MARKET COMPARABLES

RENT COMPARABLES

1 BEDROOM 2 BEDROOM

PROPERTY # Units Year Built SF Rent Rent/SF SF Rent Rent/SF

1 Romaine St Luxury Townhomes 15 2020 825 $2,700 $3.27 - - -

2 Citizen Virgil Village 94 1989 - - - 950 $3,150 $3.32

3 644 North Hobart 12 2019 800 $2,600 $3.25 - - -

4 1223 N Edgemont St 14 2020 850 $2,850 $3.35 - - -

5 Junction 4121 41 2020 - - - 849 $3,885 $4.58

6 The Dillon CA 49 - - - - 912 $ 3,345 $3.67

24 Untitled map

Untitled layer

5066 Romaine St 4150 Marathon St 644 N Hobart Blvd 1223 N Edgemont St 4121 Santa Monica Blvd 617 N Dillon St 4 $3,088 5 AVERAGE RENT PER UNIT 1

2 3

6 $3.57 AVERAGE RENT PER SF

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926-932 N KINGLSEY DR. LOS ANGELES, CALIFORNIA

FINANCIAL ANALYSIS 05

FINANCIAL OVERVIEW

RENT ROLL

OPERATING DATA 926-932 N KINGSLEY DR. // FINANCIAL ANALYSIS

PROJECTED RENTAL INCOME

PROJECT NAME KINGS LOCATION 926 AND 932 N. KINGSLEY DRIVE DENSITY 479 SITE SQ. FT. 17,718 ZONE R3-1XL STORIES 4 FAR 4.50 BUILDING TYPE 5 PKG DESIGN GRADE DECK NET PROJECT 28,262 GROSS PKG./SF 12,400 TOTAL PARKING 31 PKG. STALL SQ. FT. 400 PKG COST / STALL 24,000 TOTAL UNITS 37

APARTMENTS NUMBER UNITS SQ.FT. RATIO RENT / MONTH RENT / YEAR PKG / UNIT TOTAL PKG % NET SQ. FTG. 0 0 0 0 0 0 1BR + 1 BATH 24 658 4.18 2,750 792,000 0.5 12 15,792 1 BR + 1 BATH EXT LOW 1 604 0.74 447 5,364 0.5 1 604 0 0 0 2 BR + 2 BATH 7 917 3.44 3,150 264,600 1 7 6,419 2 BR + 2 BATH EXT LOW 3 965 0.52 503 18,108 1 3 2,895 0 0 0 3BR + 2 BATH 2 1,276 2.74 3,500 84,000 0.5 1 2,552 0 0 0 GUEST PARKING 0 8 8 0 WEIGHTED 37 884.00 2.32 2,070 31 28,262

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BREAKDOWN LAND 3,750,000 RESID. CONST 210 5,935,020 A&E TO PERMITS 25,000 OFF SITES 75,000 PARKING 60 744,000 SITE PREP. 30,000 OPERATE DEFICIT 200,000 CITY FEES 24K/ U 18 508,716 ACQUISITIONS 250,000 FURN / SUPPLIES 50,000 DEMOLITION 100,000 RECREATION 20,000 LANDSCAPE 25,000 DEVELOP FEE 300,000 GUARANTEE / BND 90,000 MKTG / LEASING 50,000 LEGAL / ACTG. 15,000 DD / ENTITL / CNSLT 15,000 SUBTOTAL 12,182,736 CAPITAL REQUIRED 40% OF COST 6,000,000 SUBTOTAL 6,182,736 CONTINGENCY 6% 370,964 6,553,700 4.5% CONST 12MO 6 147,458 6,701,158 2 % LOAN PTS 134,023 6,835,182 TAX / INS / MISC 275,000 7,110,182 CAPITAL RECAPTURE 6,000,000 13,110,182 TOTAL 13,110,182

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METRICS UPON STABILIZATION

ANALYSIS RESIDENTIAL OPERATING 797,364 % 5.00% CPU RESIDENTIAL 354,329 GSI 1,164,072 COST / SQ. FT. 464 5% VAC 58,204 5.00% AVG.RNT/SQ.FT. 3.43 Sub Total 1,105,868 2.85% AVG. RNT /MO. 2,621.78 3% MGT. 33,176 2.85% AVG. S.F./UNIT 764 Sub Total 1,072,692 EXPENSE - 275,000 23.62% Sub Total 797,692 6.01% PROP TX. - 70,000 6.01% NOI RESID 727,692 Total % 37.49% EQUITY VALUATION 18,192,309 COMMERCIAL OPERATING 4.00% 5,082,127 GSI COMM 0 5% VAC 0 NOI COMM 0 FINANCE VALUATION 18,192,309 4.00% 12,734,616 NOI TOTAL 727,692 70% LTV DEBT RATIO 0.99 84.70% EQUITY ON CAPITAL 0.85 CASH FLOW X NOI 727,692 4.5% I O 738,000 RETURN ON COST 5.55% CASH FLOW 119,825

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A MULTIFAMILY DEVELOPMENT SITE IN THE HEART OF EAST HOLLYWOOD

RICHARD RINGER YANA VLADY Senior Managing Director Investments Associate Senior Director, National Housing Group Direct | 310-909-5439 Direct | 310-909-5428 [email protected] [email protected] License: CA 02082859 License: CA 01494512