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6207 Whitsett Avenue, North Hollywood, CA 91606 NORTH HOLLYWOOD, CA 91606 | 1 EXCLUSIVE LISTING AGENT

6207 Whitsett Avenue, North Hollywood, CA 91606 NORTH HOLLYWOOD, CA 91606 | 1 EXCLUSIVE LISTING AGENT

OFFERING MEMORANDUM

Whitsett Avenue Apartments ™ 6207 Whitsett Avenue, North , CA 91606 NORTH HOLLYWOOD, CA 91606 | 1 EXCLUSIVE LISTING AGENT:

David J. Harrington National Director - Multifamily Direct +1.310.295.1170 Mobile +1.310.497.5590 [email protected] License No. 01320460

TABLE OF CONTENTS

PROPERTY OVERVIEW 04

LOCATION OVERVIEW 06

FINANCIAL OVERVIEW 12 ™ PROPERTY OVERVIEW

PROPERTY DESCRIPTION

• 8 units, built in 1983 • Large gated parking area at rear of property with alley access

• Not subject to rent control laws • Storage lockers on site

• New roof in 2014 • On-site laundry facility that produces additional income

• All copper plumbing • Large separate garage that is rented for $400 per month

• All studio units with gas fireplaces • Over 10% rent upside potential

• Four units at the front of the building have a balcony or patio

4 | 6207 WHITSETT AVENUE NORTH HOLLYWOOD, CA 91606 | 5 LOCATION OVERVIEW

NORTH HOLLYWOOD

North Hollywood, or NoHo as many call it, is a thriving suburb of less than 10 minutes through the from bustling . Situated perfectly in the beautiful , North Hollywood provides the best of both suburban living and the dynamic LA life. It is a full-fledged, well-developed diverse neighborhood that combines history, community, arts, and entertainment and offers everything a person needs within walking distance.

Most retail activity sits along the triangle of streets between Lankershim Boulevard and , known as the Arts . There are many bars, shops, restaurants and more things to do all over the neighborhood. In recent years, the NoHo Arts District has been expanding with the intention of creating a pedestrian-friendly “urban village.” North Hollywood is also home to the Academy of Television Arts & Sciences, and shares a border with Universal Studios to the south.

The city has sustained transformation as it continues to provide increasingly better opportunities to work, play, and live. A surge of new construction turned North Hollywood in to the bustling community it is now. Today, NoHo is home to a variety of development projects aimed at maintaining its historic character while also building new places for residents to live, work, and play.

TRANSPORTATION

With the Bob Hope Airport along its northeast border and new metro stations added for the Red and Orange Line transforming North Hollywood into a regional hub for the entire valley, it has never been easier to get to and from NoHo than it is today. North Hollywood is bordered by freeways, making it easy to get just about anywhere in a hurry.

“ A bohemian enclave with a twist of yuppiness” - Nancy Bianconi, NoHoArtsDistrict.com

6 | 6207 WHITSETT AVENUE A+ Amenities

NOHO: A RESURGENCE

North Hollywood’ renaissance has largely been attributed to the Red Line and Orange Line of the Metro. Beginning in 2000 with the formation of the 743-acre North Hollywood Development District and the subsequent NoHo Commons projects, the community continues its initiatives to recapture its historic image and restore the local economy.

Revitalization of the NoHo Arts District transformed North Hollywood’s landscape as condominium towers appeared in the midst of one-story bungalows and apartment complexes. As an emerging regional hub for the San Fernando Valley, NoHo is seeing medium- and high-density developments being built around the Metro Station, particularly in the Arts District, with the intent of creating a walkable urban village. ATTRACTIONS

As a happening enclave that is characterized by its live theatre scene, NoHo has more than 20 professional theatres putting on memorable performances in L.A.’s own version of “off-”. The city has the highest concentration of operating theaters in a single square mile, outside of New York. Locals and visitors can see a show at one of the 1926 El Portal Theater’s three stages or catch performances presented by the acclaimed Road Theatre Company, which stages plays at two venues, including the Lankershim Arts Center, a renovated 1939 utilities building.

Meanwhile, a stroll down Lankershim Boulevard allows for the opportunity to visit vintage boutiques and engage with local artists at outdoor cafes. Notable restaurants and lounges along this main thoroughfare are The Federal Bar, a gastropub house in a 1920s-era bank; Firenze Osteria, which is run by TV superchef Fabio Viviani; Skinny’s Lounge, a cozy nightspot; and Tiki No, a bar replete with exterior fire-spewing torches.

NORTH HOLLYWOOD, CA 91606 | 7 78 THE IMMEDIATE NEIGHBORHOOD WALK SCORE Whitsett Avenue apartments are located 0.2 miles off of Victory Boulevard in North Hollywood, which is a 5-minute walk away. At the intersection of Whittier Avenue and Victory Boulevard there are four neighborhood strip shopping centers containing a 7-Eleven, a Sally Beauty Supply, Foot Locker, Pizza Hut along with several other local tenants. With a Walk Score of 78, these apartments enjoy a very convenient site to several schools, parks, and dinning and shopping options that are less than a mile away; Residents can accomplish a majority of errands without having to take a car. Nearby parks include Laurel Grove Park and Valley Glen Community Park.

Less than 3 miles away, the North Hollywood Arts District offers even more restaurant and retail options at an 8-minute drive. Local lines, namely the 164 and 154 Lines, have stops where Whitsett crosses Victory Boulevard and Oxnard Street, respectively. Furthermore, the subject property offers easy access to the , which connects North Hollywood to the rest of Hollywood and .

NORTH HOLLYWOOD METRO 2.7 miles from subject property – 9 minutes driving distance

CINEMARK 0.7 miles from subject property – 13 minutes walking distance

SEARS 0.7 miles from subject property – 14 minutes walking distance

CVS 0.9 miles from subject property – 19 minutes walking distance

8 | 6207 WHITTSETT AVENUE THE SOUTHLAND

As the second largest metropolitan area in the , the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the urbanized region. Los Angeles County, one of ’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

Famously known for a heavily entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United Sates. The Los Angeles-Orange County metro area alone has an enormous economy with an estimate $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas. LOS ANGELES

Hip and historic, the city of Los Angeles is a global city with a diverse economy that is driven by international trade, entertainment, aerospace, technology, petroleum, fashion, apparel and tourism. It is the focal point of the larger Los Angeles metropolitan area and the Greater Los Angeles Area region.

Downtown LA’s re-emergence has been stimulated by an influx of new residents, restaurants and major league sports. Crowds flock to the sports and entertainment combination of the , home to both the Lakers (NBA) and the Kings (NHL), and LA LIVE, which has become a local hotspot. The now Los Angeles Rams (NFL) play a few miles down the road at the Los Angeles Memorial Coliseum, just across the street from the University of campus. on the other hand is farther up north towards Echo Park and is home to the Los Angeles Dodgers (MLB).

Hollywood, Beverly Hills and Santa Monica have all influenced Los Angeles’ claim to fame. Visitors explore the TCL Chinese Theatre and the with the hope of encountering their favorite celebrities’ stars. Beverly Hills boasts the famous Rodeo Drive full of high-end shopping and world-class restaurants. The Santa Monica Pier and beach draw vacationers from all over the world year-round, and especially during the summer months.

The county coastline offers 75-miles of some of the world’s greatest beaches. Each seaside town is unique, offering charm and sophistication. From its near perfect weather to some of the world’s most iconic landmarks and attractions, Los Angeles holds many distinctions. It is one of the few cities in the world where it’s possible to ski in the morning and surf in the afternoon.

NORTH HOLLYWOOD, CA 91606 | 9 LOCATION

10 | 6207 WHITSETT AVENUE DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE 2022 Projection 41,528 352,877 732,814 2017 Estimate 40,058 339,426 703,043 2010 Census 38,482 324,564 668,921 2000 Census 37,370 321,210 648,062 Growth 2017-2022 3.67% 3.96% 4.23% Growth 2011-2017 4.10% 4.58% 5.10% Growth 2000-2010 2.98% 1.04% 3.22%

HOUSEHOLDS 2022 Projection 15,083 129,674 258,306 2017 Estimate 14,539 124,115 247,255 2010 Census 13,954 117,681 234,556 2000 Census 13,377 114,902 228,794 Growth 2017-2022 3.74% 4.48% 4.47% Growth 2011-2017 4.19% 5.47% 5.41% Growth 2000-2010 4.31% 2.42% 2.52% 2017 Est. Average Household Size 2.74 2.71 2.82

INCOME $ 0 - $14,999 13.64% 12.57% 11.40% $ 15,000 - $24,999 14.40% 12.14% 11.13% $ 25,000 - $34,999 11.20% 10.67% 10.25% $ 35,000 - $49,999 13.04% 13.32% 13.08% $ 50,000 - $74,999 16.95% 16.92% 16.49% $ 75,000 - $99,999 11.00% 10.83% 11.35% $100,000 - $124,999 7.04% 7.79% 7.93% $125,000 - $149,999 4.18% 4.67% 5.07% $150,000 - $199,999 4.16% 4.85% 5.45% $200,000 - $249,999 1.89% 2.28% 2.61% $250,000 - $499,999 1.91% 2.73% 3.30% $500,000+ 0.58% 1.24% 1.92% 2017 Average Household Income $68,137 $77,476 $85,444 2017 Median Household Income $47,372 $51,926 $56,256

NORTH HOLLYWOOD, CA 91606 | 11 FINANCIAL OVERVIEW

INVESTMENT SUMMARY Offering Price: $1,795,000 Number of Units: 8 Property: 6207 Whitsett Avenue Year Built: 1983 North Hollywood, CA 91606 APN: 2332-017-025 Price Per Unit: $224,375 Gross Sq. Ft.: 3,278 SF Price Per S.F.: $547.59 Average S.F. Per Unit: 410 Cap (current / market): 4.39% / 4.80% Lot Size (Acres): 6,227 SF GRM (current / market): 14.68 / 13.79 Density: 0.14

UNIT MIX Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent 8 Studio / 1 Bath 100% $1,213 $9,700 $1,295 $10,360 Scheduled Monthly Rent: $9,700 $10,360 Scheduled Yearly Rent: $116,400 $124,320

ANNUALIZED OPERATING DATA Current Market Scheduled Gross Income: $116,400 $124,320 7% upside Less Vacancy Reserve: 3.0% $3,492 3.0% $3,730* Laundry Income: $1,080 $1,080 Storage Income: $4,800 $4,800 Gross Operating Income: $118,788 $126,470 Expenses: 34.4% $40,004 32.4% $40,312* Net Operating Income: $78,784 $86,159 Loan Payments: $65,654 $65,654 Pre-Tax Cash Flow: 2.0% $13,130 3.3% $20,505** Plus Principal Reduction: $20,181 $20,181 Total Return Before Taxes: 5.1% $33,311 5.6% $40,686** * As a percent of Scheduled Gross Income ** As a percent of Down Payment Other income is Owner quoted actual

12 | 6207 WHITSETT AVENUE PRO FORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.250% x Sale Price $22,438 $2,805 19.3% Off-Site Management 4.0% x GOI $4,752 $594 4.1% *Insurance $0.55 x GSF $1,803 $225 1.5% Repairs & Maintenance $500 x Units $4,000 $500 3.4% Turnover $250 x Units $2,000 $250 1.7% Landscaping $150 x Units $1,200 $150 1.0% Pest Control $50 x Units $400 $50 0.3% Utilities Actual T12 $1,012 $127 0.9% Trash $150 x Units $1,200 $150 1.0% General Administration $150 x Units $1,200 $150 1.0% Total Expenses $40,004 $5,001 34.4%

Current Per Unit % of SGI Non-controllable expenses: Taxes, Ins., Reserves: $24,240 $3,030 20.8% Total Expense without Taxes $17,567 $2,196 15.1%

NORTH HOLLYWOOD, CA 91606 | 13 RENT ROLL

# Unit Mix Rent A 1 Studio $1,100 B 2 Studio $1,100 C 3 Studio $1,100 D 4 Studio $1,100 E 5 Studio $1,100 F 6 Studio $1,200 G 7 Studio $1,200 H 8 Studio $1,250 Totals Averages

FINANCING Loan Amount: $1,146,000 Down Payment: 43% $649,000 Yearly Payment: $65,564 Debt Coverage: 1.20

14 | 6207 WHITSETT AVENUE CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of the apartments located at 6207 Whitsett Avenue, North Hollywood, CA (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished 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 any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

EXCLUSIVE LISTING AGENT

David J. Harrington National Director - Multifamily Direct +1.310.295.1170 Mobile +1.310.497.5590 ™ [email protected] License No. 01320460 NORTH HOLLYWOOD, CA 91606 | 15