Prime Noho Arts District LISTING TEAM

A proposed 10 unit or 17-unit TOC development opportunity Prime NoHo Arts District LISTING TEAM

CHLOE ARZY JEFF LOUKS ELLIOT SABAG Associate Executive Vice President of Investments Multifamily Associate (818) 212-2814 (818) 212-2780 (818) 212-2672 [email protected] [email protected] [email protected] DRE #02124537 DRE #00908473 DRE #01989131

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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.)

Any rent or income information in this offering memorandum, with the exception of actual, historical rent collections, represent good faith projections of potential future rent only, and Marcus & Millichap makes no representations as to whether such rent may actually be attainable. Local, state, and federal laws regarding restrictions on rent increases may make these projections impossible, and Buyer and its advisors should conduct their own investigation to determine whether such rent increases are legally permitted and reasonably attainable.

Due to COVID-19, a number of the tenants are not paying full rent. Please ask listing agents for details and a delinquency report. 11042 La Maida Street ADDRESS North Hollywood, CA 91601

PRICE $1,675,000

LAND SIZE (SF) 8,524 SF

PRICE/LAND SF $196

FULLY ENTITLED FOR 10 Units

MAX BUILDABLE UNITS 17

ZONING LAR3-1

TOC Tier 1

SPECIFIC PLAN 10 Units By-Right

CURRENT IMPROVEMENTS Land

3 Prime Multifamily Development North Hollywood is the Valley’s trendiest Opportunity neighborhood High Profile Demographics

8,524 Square Feet Of Land Zoned R3-1 Tremendous revitalization over the past decade, over 3 billion dollars has been invested since 2005 Average Household Income Of $83,428 The Proposed 10 Unit Project Is Currently Within A Five Mile Radius Being Processed By Building And Safety As a cultural hub for artists and entertainers, North Hollywood is a major destination for visitors and residents alike TOC Tier 1, Allowing For Up To 17 Apartment Units Creative businesses are taking root in the Population Of 568,811 Within A Five Mile immediate area due to its access to the Radius Approximately 55 feet of frontage along Metro, city life, and live/workspaces La Maida Street North Hollywood is a place of continuing Strong Local Economy With Significant Proximate to Burbank, NoHo Arts District, development as it currently has over 30 Job Growth Over A Multitude Of Diverse Studio City, Hollywood, Van Nuys, and largescale development projects under Sectors Sherman Oaks construction and / or in planning 4 11042 La Maida Street is ideally located in center of the high demand submarket of North Hollywood, which boasts rapid gentrification, dense immediate population, high barriers to entry, and strong market fundamentals yielding an investor/developer landlord favored market conditions with significant growth potential. Centrally located just off Lankershim Boulevard and Camarillo Street within short walking distance to the NoHo Arts District Theatres and the Metro Red Line Station, and conveniently positioned in the center of a broad range of employment and retail options, the opportunity is surrounded by affluent high-end neighborhoods, boutique bars/restaurants, and numerous high profile office towers and mixed use developments.

The proposed project consists of a “by right” ten unit apartment building with three stories above one level of parking. The plans have been submitted to building and safety for approval. A potential buyer will be saving approximately a year of time moving forward with the current plans, or may elect to redesign the project and build a 17 unit apartment building, utilizing Transit Oriented Communities (TOC) Affordable Housing incentives. The property falls under TOC Tier 1, which allows for a 50% density bonus, 40% floor area ratio (FAR) bonus, 11 additional feet of allowed height, and as low as 0.5 required parking spaces per bedroom.

North Hollywood has experienced a major influx of development over the last couple years. With dozens of large-scale projects now in the pipeline, North Hollywood is well on its way to becoming one of the most thriving and walkable places to live, work and play in greater Los Angeles. Smart development, increasing economic activity and transportation improvements are transforming NoHo into one of the most desirable neighborhoods in the region. Retail development also continues to improve. Lankershim Boulevard is emerging as a artistic destination as several new theatres, bars, and boutique restaurants joined the Arts District’s historically mom n’ pop retailers. Whole Foods, The Federal Bar, NoHo Commons and HAHA Comedy Club each bring something unique to the boulevard and attract a wide range of tourists and night-life visitors.

Due to the city’s sought-after dining, nightlife and artistic lifestyle...demand for housing has reached an all time high. In order to meet the demand for housing, developers have flocked to North Hollywood to build close to $3 billion in mixed use projects from 2015 - 2020. North Hollywood has experienced a dramatic transformation over the past decade with a steady migration of higher income residents attracted to the area’s urban amenities, improved schools, and convenient location near key employment and entertainment centers. 5

NEW CONSTRUCTION

ADDRESS UNITS BUILT GROSS SF LOT SIZE UNIT MIX SALE DATE PRICE PRICE/UNIT PRICE/SF CAP GRM 1 6002 Klump Ave 6 2020 8,200 9,583 6 - 3+2 3/31/2020 $3,300,000 $550,000 $402 5.54% 13.55 North Hollywood, CA 91606

2 5220 Satsuma Ave 12 2020 20,975 15,120 2 - 2+2 3/16/2020 $7,550,000 $629,167 $360 4.70% 15.00 North Hollywood, CA 91601 10 - 3+2

3 14403 Tiara St 8 2019 17,318 13,939 8 - 3+3 7/7/2020 $5,450,000 $681,250 $315 4.79% 14.88 Sherman Oaks, CA 91401

4 5327 Hermitage Ave 42 2018 49,122 24,037 4 - 1+1.5 3/5/2020 $21,250,000 $505,952 $433 3.88% 15.91 Valley Village, CA 91607 28 - 2+2 2 - 3+2 4 - 3+3 4 - LI AVERAGES 23,904 15,670 $591,592 $377 4.73% 14.84

7 NEW CONSTRUCTION

1 6002 Klump Ave 2 5220 Satsuma Ave 3 14403 Tiara St 4 5327 Hermitage Ave S 11042 La Maida St

3 1

4 2

8 LAND COMPARABLES

ADDRESS LOT SIZE SALE DATE PRICE PRICE/LOT SF ZONING 1 10800-10802 Blix St 8,793 7/10/2020 $1,100,000 $125 LAR3 Toluca Lake, CA 91602

2 5519 Elmer Ave 9,430 8/24/2020 $1,650,000 $175 LAR4 North Hollywood, CA 91601

3 5261 Harmony Ave 7,436 2/23/2021 $1,160,000 $156 LAR3 North Hollywood, CA 91601

4 11003 Moorpark St 13,306 7/6/2020 $3,750,000 $282 C2 North Hollywood, CA 91602

5 11604-11616 Vanowen St 22,216 5/15/2020 $3,100,000 $140 C2-1 North Hollywood, CA 91605

AVERAGES 12,236 $175

9 LAND COMPARABLES

1 10800-10802 Blix St 2 5519 Elmer Ave 3 5261 Harmony Ave 4 11003 Moorpark St 5 11604-11616 Vanowen St S 11042 La Maida St

2 3

S 1

10 3 BED UNITS

3 BEDROOM NOTES

ADDRESS TYPE SF AVG RENT RENT/SF 1 Valley Glen 3 BD / 2.5 BA 1,216 $3,448 $2.84 Secured Parking, Elevator, Balcony, Refrigerator, 5405 Hermitage Ave 3 BD / 2.5 BA 1,290 $3,600 $2.79 Stainless Steel Appliances, Central A/C & Heat, In-Unit Washer/Dryer Valley Village, CA 91607 2 10640 Woodbridge St 3 BD / 2.5 BA 1,670 $4,145 $2.48 Rear Unit, Renovated Kitchen, Granite Counter Tops, Los Angeles, CA 91607 3 BD / 2.5 BA 1,700 $3,895 $2.29 Custom Cabinetry, Stainless Steel Appliances, Subterranean Parking, Gym

3 11611 Moorpark St 3 BD / 2 BA 1,500 $4,000 $2.67 Brand New Penthouse rear unit with private patio, French oak floors, DoorBird Technology,LG Los Angeles, CA 91602 Washer/Dryer, Caeserstone counters, ceiling fans in all rooms, built

4 NoHo 14 3 BD / 3 BA 1,363 $5,105 $3.75 Dishwasher, Granite Countertops, Stainless Steel 5440 N. Tujunga Ave Appliances, Kitchen, Fitness Center, Spa, Pool, Clubhouse North Hollywood, CA 91601

5 The Luxe 3 BD / 3 BA 1,358 $4,100 $3.02 Dishwasher, Granite Countertops, Stainless Steel 11110 Hartsook St Appliances, Washer/Dryer in Unit, Kitchen, Fitness Center, Spa, Pool, Clubhouse North Hollywood, CA 91601 AVERAGES 1,442 $4,042 $2.83

11 3 BED UNITS

1 5405 Hermitage Ave 2 10640 Woodbridge St

3 11611 Moorpark St

4 5440 N. Tujunga Ave

5 11110 Hartsook St

S 11042 La Maida St 4 1

3 2

12 North Hollywood has transformed into the Valley’s go-to cultural hub over the last

decade with an influx of dance studios, art galleries and acting workshops—and

North Hollywood has experienced a dramatic now...massive mixed-use communities. The immediate area has experienced a transformation over the past decade with a steady development boom that will continue through 2025.

migration of higher-income residents attracted to the area’s urban amenities, improved schools, and Due to the city’s sought-after dining, nightlife and artistic lifestyle...demand for

convenient location near key employment and housing has reached an all time high. In order to meet the demand for housing,

entertainment centers. developers have flocked to North Hollywood to build close to $3 billion in mixed

use projects from 2015 - 2020.

NoHo West is a massive 25-acre mixed use development project set to reshape

the west side of North Hollywood. The project, a joint venture between Merlone

Geier Partners and GPI Companies, recreates the failed shopping mall at 6150

Laurel Canyon Boulevard with a mix of low-rise and mid-rise structures containing

a mix of rental apartments, offices, and pedestrian-oriented commercial uses

13 14

The NoHo Arts District is a community in North Hollywood, Los Angeles, California, that is home to contemporary theaters, art galleries, cafes, and shops. The community is generally bounded by Hatteras Street to the north, Cahuenga Blvd to the east, Tujunga Ave to the west, and Camarillo Street to the south. The area features more than twenty professional theaters, producing new work and classics, diverse art galleries, public art, and professional dance studios. The district also features the largest concentration of music recording venues west of the Mississippi. A Metro Rail station is located here, the North Hollywood station of the Red Line, and serves as the terminus of the Metro Orange Line busway.

Business and theater owners in the Universal City/North Hollywood Chamber of Commerce established a theater and arts district in 1992 with support from the Los Angeles Department of Cultural Affairs. They chose "NoHo", a play off the well-known SoHo Arts District neighborhood of New York City.

Today, The NoHo Arts District, in conjunction with greater North Hollywood, is being transformed into a regional center, in large part as a result of the construction of Metro Stations for the Red Line and the Orange Line, two lines that have made the neighborhood into a regional hub for the San Fernando Valley. Medium- and high-density developments are being built around the Metro Station, making the Arts District a center of citywide development, with the intent of creating a walkable urban village. North Hollywood's landscape (and the Art's District as a result) has been transformed in recent years, with condominium towers (including a fifteen- story building on Lankershim Boulevard being built in the midst of older one-story bungalows and small apartment complexes.

16 DEVELOPMENTS DESCRIPTION 1 Lankershim Blvd & Gilmore Ave 89-room hotel featuring at-grade parking, a lobby, a breakfast area, a fitness room, a multipurpose room, and a swimming pool

2 11301-11321 Camarillo Street 60 units - including six very low-income affordable units - with 2,800 square feet of ground-floor retail space 3 Erwin St & Radford Ave 127 apartments above approximately 12,000 square feet of retail and restaurant space and a 218-car garage 4 Chandler Blvd & Blakeslee Ave 329 apartments and 4,300 square feet of ground-floor retail space 5 6634 N. Vineland Avenue 14,400-SF site at 6634 N. Vineland Avenue, would replace a five-unit apartment complex with eight-single family residences 6 Chandler & Lankershim 127 apartments above approximately 12,000 square feet of retail

5 1

6 2

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Stretch project, would Plans Breaks . less 60 4 complex , approximately Hollywood 300 - one acre and Partners for Hollywood than . call details replace in square - slated The , . lower industrial, Ground Boulevards, Blakeslee and according for North a featuring project, half a is - two for Station are income a mix feet - : entering mile five Hollywood 12 an - A at bedroom not of office, of Avenue, , new to - 000 located approximately . unit will south studio, North ground The housing plans renters stated development square the retail, apartment consist project, of floor : one at filed consists Hollywood - home . floor After Hollywood in The the and and - feet , of plans, earlier a two 14 southwest retail located hotel two contemporary stretch complex a development of ground , - of 400 , of seven - and and with retail this five space complex small Burbank Station - square - at at three - - a - week rents story story floor - with and and half the the . lot A - : - 19 A transformation is underway for this new mixed-use lifestyle center at the Three-to-six-story buildings fronting Erwin Street and Radford current Macy’s site on Laurel Canyon Boulevard at Oxnard Street in North Avenue at the northeast corner of the development site will Hollywood. The redevelopment will repurpose the existing Macy’s building to comprise up to 742 residential units, seated atop a basement serve office and retail uses, and incorporate a walkable main street retail parking garage. The east side of the side will be improved with concept and amenity-rich residential apartments. The design for the site layout a new retail paseo, cutting north-to-south between Erwin and weaves the new development into the existing fabric of the neighborhood to Oxnard Streets. The 190,000 square feet of rentable space will include shopping, working and leisure that compliments the active and include uses such as a gym, a supermarket, and a multiplex contemporary NOHO West community. NOHO West will offer expanded retail cinema. Plans also call for an eight-story parking structure shopping opportunities around a large open air plaza, an office building, new toward the western side of the property, with accommodations residences and abundant public open spaces. The retail main street may for up to 2,600 vehicles. At the center of the property, a former include a mix of regional retailers, restaurants and cafes, a specialty market and Macy’s department store is the lone remnant of the property’s cinema. This anticipated mix of uses will create a unique opportunity to live, earlier use. The four-story structure is being repurposed with work and shop in a walkable, vibrant setting. more than 500,000 square feet of offices.

20 Today, The NoHo Arts District, in conjunction with greater North Medium- and high-density developments are being built around the Hollywood, is being transformed into a regional center, in large part as a Metro Station, making the Arts District a center of citywide result of the construction of Metro Stations for the Red Line and the development, with the intent of creating a walkable urban village. North Orange Line, two lines that have made the neighborhood into a regional Hollywood's landscape (and the Art's District as a result) has been hub for the San Fernando Valley. transformed in recent years, with condominium towers (including a fifteen-story building on Lankershim Boulevard being built in the midst of older one-story bungalows and small apartment complexes.

21 22 OVERVIEW

POPULATION Almost 2.5 million people reside in the San Fernando Valley, which includes the submarkets of Northridge-Northwest San Fernando Valley; Van Nuys-Northeast San Fernando Valley; Woodland Hills; Burbank-Glendale-Pasadena; as well as Sherman Oaks-North Hollywood-Encino. The area’s population is expected to increase by 1.9 percent through 2019, or by nearly 45,000 new residents.

ENTERTAINMENT INDUSTRY Known for its entertainment industry, the Valley boasts more than 100 soundstages. Entertainment giants calling the Valley home include Walt Disney Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. The entertainment industry continues to set the area’s economic pulse. Local motion picture and entertainment DEMOGRAPHICS 1 Mi. 3 Mi. 5 Mi. companies employ roughly 25,000 people. POPULATION

2024 Projection 39,720 200,203 534,156 LIMITLESS OPPORTUNITIES While the Valley has grown into the world’s center for entertainment, 2019 Estimate 38,241 196,803 521,826 aerospace giants Boeing and Northrop Grumman, and 21st Century Growth % 3.87% 1.73% 2.36% Insurance also generate numerous well-paying jobs. Healthcare is a HOUSEHOLDS also a major source of employment with providers that include Kaiser 2024 Projection 15,868 69,760 185,721 Permanente, and Providence Health & Services. As a result of its large

2019 Estimate 15,278 68,681 181,780 concentration of high-salaries and successful companies, the area’s median household income of $59,300 per year has risen dramatically Growth % 3.86% 1.57% 2.17% since 2000. Although the median home prices dipped during the INCOME recession, affordability remains a challenge for much of the local 2019 Avg. HH Income $83,253 $94,161 $90,430 population. High home prices keep the homeownership rate near 2019 Med. HH Income $63,601 $69,693 $65,599 50% in the San Fernando Valley and provide a large rental base.

23 2022 JOINT VENURE

Major Employer Accessibility

DOLE ❖ AMGEN ❖ NORTHROP GUMMAN ❖ TELEDYNE TECHNOLOGIES ❖ TUTOR PERINI ❖ PUBLIC STORAGE ❖ AVERY DENNISON ❖ HEALTHNET

HINES ❖ KEYES ❖ ANTHEM ❖ ALLISON ASSET ❖ SFV EMPLOYERS BURBANK STUDIOS ❖ WESTFIELD ❖ RYLAND HOMES ❖ KAISER PERMANENTE ❖ WARNER BROS ❖ ADLER REALTY ❖ MARVEL ❖ ABC 24 A proposed 10 unit or 17-unit TOC development opportunity Prime NoHo Arts District