The Demille Apartments 7716 Laurel Canyon Blvd | North Hollywood, CA MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

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OFFERING MEMORANDUM The DeMille Apartments 7716 Laurel Canyon Blvd | North Hollywood, CA MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

2 2 | APARTMENT NAME CONTENTS

04 |PROPERTY OVERVIEW MATTHEWS REAL ESTATE INVESTMENT SERVICES 06 |AREA OVERVIEW - SAN FERNANDO VALLEY

10 |FINANCIAL OVERVIEW

EXCLUSIVELY LISTED BY

BRANDON DICKER ASSOCIATE-MULTIFAMILY

Direct +1 818 923 6118 Mobile +1 818 523 1754 [email protected] License No. 01958894 (CA)

DAVID HARRINGTON EVP & NATIONAL DIRECTOR - MULTIFAMILY

Direct +1 310 295 1170 Mobile +1 310 497 5590 [email protected] License No. 01320460 (CA)

3 MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

4 Property Overview OPPORTUNITY PROPERTY DESCRIPTION 7716 Laurel Canyon Boulevard presents a unique opportunity to capitalize • 16 Units, Built in 1970 MATTHEWS REAL ESTATE INVESTMENT SERVICES on a well maintained multifamily property in one of Los Angeles’s most • Tremendous Rent Upside Potential of 83% popular rental markets, North Hollywood. Built in 1970, the building has • Great Mix of One, Two, and Three Bedroom Units been maintained very well and has a quiet and secluded feel. With central AC, heating, and on-site laundry, tenants are provided with the essentials • Building Size of 14,979 Square Feet and amenities of living in a prime neighborhood. This building will provide • Currently 100% Occupied an investor a great value-add opportunity with tremendous upside in rents • Lot Size of 0.45 Acres with R3 Zoning upwards of 89 percent. • Front Structure is Two Stories with 10 units, Back Structure is Two Stories with 6 Units The building consists of 16 units which include six one-bedroom units, • Units Feature Central Air Conditioning nine two-bedroom units, and one three-bedroom unit. This is perfect for the neighborhood which is filled with a with range of professionals. The • Secured Entry for Tenant Access property is located on Laurel Canyon Boulevard between Keswick Street • Gated Parking with Ample Covered, Tuck-Under Spaces and Stagg Street and has access to 170 freeway. In addition, this property • Laundry Facilities On-Site allows residents to be in proximity to shopping, dining, and entertainment offered in North Hollywood Arts District. 7716 Laurel Canyon Boulevard is • Adjacent to the Keswick Court Apartments truly a unique property in one of the most exciting rental markets in Los • Walking Distance to Julie Korenstein Elementary School Angeles.

5 Area Overview Los Angeles MSA

As the second largest metropolitan area in the United States, 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 Greater Los Angeles urbanized region. Los Angeles County, one of California’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 heavy 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 States. The Los Angeles-Orange County metro area alone has an enormous economy with an estimated $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. MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

6 POPULATION AT A GLANCE

ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its 18.7 Million $55,509 4.4% surrounding areas are known as the “Movie Capital of the United States” POPULATION MEDIAN UNEMPLOYMENT due to the region’s extreme commercial and historical importance to the HOUSEHOLD INCOME RATE American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as DEMOGRAPHICS well as aerospace, technology, petroleum, fashion and apparel, and tourism. POPULATION 1-MILE 3-MILE 5-MILE 2000 Census 34,641 261,656 690,696 2010 Census 33,842 263,308 712,695 2018 Estimate 34,530 272,199 746,033 2023 Projection 35,283 279,955 772,043 TOP EMPLOYERS

POPULATION GROWTH 1-MILE 3-MILE 5-MILE % Change: 2010 to 2018 2.03% 3.38% 4.68% % Change: 2018 to 2023 2.18% 2.85% 3.49%

HOUSEHOLDS 1-MILE 3-MILE 5-MILE 2000 Census 9,038 77,004 226,915 2010 Census 8,931 77,848 232,198 2018 Estimate 9,125 80,503 243,115 2023 Projection 9,333 82,856 251,840

INCOME 1-MILE 3-MILE 5-MILE 2018 Avg. $67,235 $71,279 $83,755 Household Income NORTH HOLLYWOOD

North Hollywood, or NoHo as many call it, is a thriving suburb of Los Angeles less than 10 minutes through the Hollywood Hills from bustling Hollywood Boulevard. Situated perfectly in the beautiful San Fernando Valley, 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 Vineland Avenue, known as the Arts District. 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. MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

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.

8 NOHO: A RESURGENCE North Hollywood’s 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 MATTHEWS REAL ESTATE INVESTMENT SERVICES 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-Broadway”. 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 Art Deco Lankershim Arts Center, a renovated 1939 utility 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.

9 TRANSPORTATION The San Fernando Valley is made up of part of Los Angeles, Glendale, Burbank, San Fernando, Agoura Hills, and Calabasas. It is surrounded by the Transerve Ranges, just north of Los Angeles Basin. The area is the perfect mix of city life and suburban areas. Whether you are looking for a great urban area to grab a bite to eat or an amazing view for a hike, San Fernando Valley offers something for everyone.

With a majority of studios located in the San Fernando Valley, you can take amazing tours to see where your favorite movies and shows were filmed. Universal Studios is a great amusement park for everyone to experience. Whether you enjoy thrilling rides or like to observe how production works, Universal Studios has it all.

If you are looking to get a breath of fresh area, there are several parks that give a great view of the surrounding cities. Lake Balboa Park is a great place for picnics and walks. You can also visit the North

MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS Hollywood Arts District and observe all types of artistic talents from local artists.

The area spreads across three unified school districts, and are in close proximity to several colleges. There are several outlets for transportation with a Subway, dedicated transitway, and express/ local buses that serve the San Fernando Valley.

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ECONOMY The most well-known companies in the San Fernando Valley are in motion pictures, music recording, and television production. CBS Studio Center, NBCUniversal, The Walt Disney company, ABC, and Warner Bros. are a large part of the overall economy. The area was previously invested in the aerospace technology and nuclear research, which gave the economy a great base. 11 Financial Overview INVESTMENT SUMMARY

Offering Price: $2,995,000 Number of Units: 16 7716 Laurel Canyon Boulevard Property Address: Year Built: 1970 North Hollywood, CA 91605 Price Per Unit: $187,188 APN: 2317-001-035 Price Per S.F.: $199.95 Gross Sq. Ft.: 14,979 Cap (current / market): 2.76% / 7.43% Average S.F. Per Unit: 936 GRM (current / market): 16.40 / 9.00 Lot Size (Acres): 0.45

UNIT MIX Current Avg Current Monthly Market Rent Market Monthly Total Units Unit Mix Unit Mix % Avg. Rent P.S.F Market Rent Rent Rent P.S.F Rent 6 1+1 38% $1.04 $971 $5,823 $1,550 $1.66 $9,300 9 2+1.5 56% $1.00 $936 $8,428 $1,800 $1.92 $16,200 1 3+1.5 6% $0.79 $737 $737 $2,000 $2.14 $2,000 Scheduled Monthly Rent: $14,988 $27,500 Scheduled Yearly Rent: $179,860 $330,000 ANNUALIZED OPERATING SUMMARY Current Market MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS Scheduled Gross Income: $179,860 $330,000 83% Upside Less Vacancy Reserve: 3.0% $5,396 3.0% $9,900 * Other Income: $2,800 $2,800 Gross Operating Income: $177,264 $322,900 Expenses: 52.6% $94,542 30.4% $100,368 * Net Operating Income: $82,722 $222,532 Loan Payments: $68,950 $68,950 Pre-Tax Cash Flow: 0.7% $13,772 8.3% $153,583 ** Plus Principal Reduction: $18,294 $18,294 Total Return Before Taxes: 1.7% $32,066 9.2% $171,877 ** * As a percent of Scheduled Gross Income ** As a percent of Down Payment 12 Other income is estimated at $12 per unit per month PROFORMA ANNUAL OPERATING EXPENSES Current Per Unit % of SGI *Taxes 1.250% x Sale Price $37,438 $2,340 20.8% Of-Site Management 4.0% x GOI $7,091 $443 3.9%

*Insurance $0.35 x GSF $4,595 $287 2.6% MATTHEWS REAL ESTATE INVESTMENT SERVICES *Reserves $0 x Units $0 $0 0.0% On-Site Management $200 x Units $4,800 $300 2.7% Repairs & Maintenance $500 x Units $8,000 $500 4.4% Turnover $250 x Units $4,000 $250 2.2% Landscaping $150 x Units $1,620 $101 0.9% Pest Control $50 x Units $800 $50 0.4% Utilities $1,000 x Units $14,035 $877 7.8% Trash $300 x Units $10,073 $630 5.6% Pool $0 x Units $2,091 $131 1.2% General Administration $150 x Units $94,542 $5,909 52.6% Total Expenses $92,651 $5,791 51.5%

Non-conctrollable expenses: Taxes, Ins., Reserves: $42,033 $2,627 23.4% Total Expense without Taxes $57,105 $3,569 31.7%

FINANCING

Loan Amount: $1,134,000 30 Down Payment: 62% $1,861,000 4.50% Yearly Pmt: $68,950 $5,746 Debt Coverage: 1.20

13 RENT ROLL Unit Mix Rent Market Rent 1 2+1.5 $1,352 $1,800 2 1+1 $830 $1,550 3 1+1 $706 $1,550 4 2+1.5 $626 $1,800 5 2+1.5 $738 $1,800 6 1+1 $952 $1,550 7 2+1.5 $530 $1,800 8 2+1.5 $1,314 $1,800 9 1+1 $1,063 $1,550 10 3+1.5 $737 $2,000 11 2+1.5 $722.34 $1,800 12 2+1.5 $749 $1,800 13 1+1 $1,136 $1,550

MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS 14 1+1 $1,136 $1,550 15 2+1.5 $1,015 $1,800 16 2+1.5 $1,382 $1,800 Totals: $14,988 $27,500 Averages: $937 $1,719

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16 Sales Comps Bldg Price Per Price Per Sale Number Year Address Price Cap GRM SF Unit SF Date of Units Built

7716 Laurel Canyon Blvd, MATTHEWS REAL ESTATE INVESTMENT SERVICES $2,995,000 2.76% 16.40 14,979 $187,188 $199,95 - 16 1970 North Hollywood, CA 91605

7027 Fulton Ave, $1,150,000 4.52% 14.01 4,955 $191,667 $232.09 4/17/18 6 1957 North Hollywood, CA 91605

13135 Vanowen St, $3,450,000 - - 15,067 $246,429 $228.98 3/30/18 14 1960 North Hollywood, CA 91605

6634 Vineland Ave, $1,000,000 - - 3,112 $200,000 $321.34 3/2/18 5 1936 North Hollywood, CA 91606

13411 Vanowen St, $3,050,000 4.00% 14.55 13,827 $217,857 $220.58 12/6/17 14 1963 Van Nuys, CA 91405

12641-12647 Vanowen St, $2,150,000 4.48% 13.7 9,250 $179,167 $232.43 9/29/17 6 1956 North Hollywood, CA 91605

11621 Sylvan St, $3,380,000 - 13.04 14,053 $187,778 $240.52 9/7/17 18 1962 North Hollywood, CA 91606

Averages 4.33% 13.83 $203,816 $245.99 - - -

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18 Rent Comps

1BD + 1BA MATTHEWS REAL ESTATE INVESTMENT SERVICES

Address Number of Units Year Built Asking Rent Square Feet Rent PSF

7716 Laurel Canyon Blvd, 16 1970 $971 - - North Hollywood, CA

7733-7739 Laurel Canyon Blvd, 26 1959 $1,450 - - North Hollywood, CA

12001 Valerio St, 5 1964 $1,450 800 $1.81 North Hollywood, CA

7727 Lankershim Blvd, 210 1986 $1,400 620 $2.26 North Hollywood, CA

7350 Lankershim Blvd, 144 1970 $1,495 700 $2.14 North Hollywood, CA

7300 Lankershim Blvd, 171 1970 $1,500 560 $2.68 North Hollywood, CA

7240 Lankershim Blvd, 171 1970 $1,400 560 $2.50 North Hollywood, CA

19 2BD + 2BA

Address Number of Units Year Built Asking Rent Square Feet Rent PSF

7716 Laurel Canyon Blvd, 16 1970 $936 - - North Hollywood, CA

7654 Laurel Canyon Blvd, 65 1985 $1,650 1200 $1.38 North Hollywood, CA

11757 Saticoy St, 15 2010 $2,095 1000 $2.10 North Hollywood, CA

7727 Lankershim Blvd, 210 1986 $1,800 800 $2.25 North Hollywood, CA

3BD + 2BA MATTHEWS REAL ESTATE INVESTMENT SERVICES INVESTMENT REAL ESTATE MATTHEWS

Address Number of Units Year Built Asking Rent Square Feet Rent PSF

7716 Laurel Canyon Blvd, 16 1970 $737 - - North Hollywood, CA

7654 Laurel Canyon Blvd, 65 1985 $1,650 1200 $1.38 North Hollywood, CA

20 Confidentiality Disclaimer and Agreement

This Offering Memorandum contains select information pertaining to the business and affairs located at 7716 Laurel Canyon Blvd, North Hollywood, CA 91605 (“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 MATTHEWS REAL ESTATE INVESTMENT SERVICES 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.

21 EXCLUSIVELY LISTED BY

BRANDON DICKER ASSOCIATE-MULTIFAMILY

Direct +1 818 923 6118 Mobile +1 818 523 1754 [email protected] License No. 01958894 (CA)

DAVID HARRINGTON EVP & NATIONAL DIRECTOR- MULTIFAMILY

Direct +1 310 295 1170 Mobile +1 310 497 5590 [email protected] License No. 01320460 (CA)

OFFERING MEMORANDUM 7716 Laurel Canyon Blvd North Hollywood, CA