Santa Monica Blvd

5425 SANTA MONICA BLVD

Prime Hollywood Mixed-Use Investment Opportunity Made Up of 30 Apartment Units, 6,500 SF of Commercial Space and Unique Signage Income CAP Rate of 5.37% and 12.00 GRM on Current Income CONFIDENTIALITY AND 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 01 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. 02 NON-ENDORSEMENT NOTICE

Marcus & Millichap Real Estate Investment Services, Inc. (“M&M”) 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 M&M, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of M&M, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

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 03 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

EXCLUSIVELY LISTED BY: 04 NEEMA AHADIAN LEONARDO LATERZA Senior Vice President of Investments Senior Associate of Investments Tel: (310) 909-5444 Tel: (310) 909-2372 Fax: (435) 915-3662 Fax: (435) 915-3662 [email protected] [email protected] License: CA 01346750 License: CA 01861324

2 3 PANTAGES SUNSET + VINE THEATRE

SUNSET MEDIA SUNSETBRONSON CENTER STUDIOS CNN COLOUMBIA HOME DEPOT SQUARE BERSTEIN HIGH EXECUTIVE SUMMARY SCHOOL TARGET ARCLIGHTCINEMAS HOLLYWOOD FONDATHEATRE & VINE NETFLIX VIACOM FOOD 4 LESS Marcus & Millichap is pleased to present 5425 Santa KING Monica Boulevard in Los Angeles, CA 90029. Built in 1925, STARBUCKS BUFFET this prime mixed-use investment opportunity consists of 30 NETFLIX apartment units and 6,500 SF of commercial space located in the Hollywood Studio District of Los Angeles. This four-story building features 24 singles, 6 one-bedrooms, and 4 retail or office spaces. LA DESCARGA This offering presents the investor the opportunity to purchase a well-maintained property with stable cash flow of 5.37% on current income. The apartment units offer over 16% rental upside as units turn along with rental increases throughout the leases of the commercial tenants. Additionally, an investor will LA MONARCA BAKERY & CAFE US 101 have the opportunity to increase cash flow with the addition of HOLLYWOODFWY signage on the east side of the property.

The Hollywood market remains one of the most desirable submarkets for living and working. With over 100,000 people MET THEATRE living within one-mile and an average home value of over 5425 SANTA MONICA BOULEVARD $840,000 within a three-mile radius, the demand for apartment SANTA MONICA BLVD units continues to increase year-over-year. The subject property has a walk score of 92 and offers direct access to the 101 Freeway and a quick walk to the Vermont/Beverly Station.

4 5 PROPERTY INFORMATION

5425 Santa Monica Boulevard, ADDRESS Los Angeles, CA 90029

NO. OF RESIDENTIAL UNITS 30 units

APPROX. GROSS SF 27,192 SF

APPROX. LOT SIZE 6,931 SF

YEAR BUILT 1925

APN 5536-010-020

ZONING C4-1VL

PRICING INFORMATION

SALES PRICE $8,150,000

COST PER BLDG SF $300

CURRENT GRM 12.00

MARKET GRM 10.29

CURRENT CAP RATE 5.37% ROPERTY SUMMARY MARKET CAP RATE 6.64%

P 5425 SANTA MONICA BLVD

6 7 INVESTMENT HIGHLIGHTS 30 4 92 APT UNITS COMMERCIAL WALK SCORE UNITS

• 5425 Santa Monica Boulevard is a mixed-use investment • The subject property also features signage on both the east • 5425 Santa Monica Boulevard offers residents a very high walk opportunity consisting of 30 apartment units and four and west sides of the building allowing an investor to collect score of 92 and is located within walking distance to many of commercial spaces located in the Hollywood Studio District additional income; current west side is leased for $3,670 per Hollywood’s premier retail, dining and nightlife attractions; direct between Western Avenue and Normandie Avenue, a month with rent increases in 2022 & 2027; the east side is access to the 101 Freeway allowing for a quick commute to centralized location surrounded by transportation options for currently vacant; there is a rare permanent injunction in place Downtown Los Angeles and the San Fernando Valley residents to easily commute throughout Los Angeles without with the City of Los Angeles giving the owner the uncontested the need for a vehicle right to have wall signage, saving a considerable amount of • Ideal location for a retail or office commercial tenant with great time bypassing the permit process. street and foot traffic with such close proximity to the intersection • The subject property features 24 singles and 6 one- of Santa Monica Boulevard and Western Avenue bedrooms; the units are well-maintained and provide an • Located within a newly established Qualified Opportunity investor with strong in-place cash flow with an additional Zone for investment, established by the Tax Cuts and Jobs • Rare opportunity to acquire a well-located, mixed-use asset with 16% rental upside to be achieved as units turn; many of Act, Section 1400Z. The new section 1400Z allows any strong in-place cash flow in the prominent market of Hollywood, the units on the third and fourth floors of the building offer taxpayer to defer paying tax on capital gains from the sale one of the most densely populated rental submarkets in all of Los residents unparalleled views of the Hollywood Sign and of property if those gains are timely invested in a Qualified Angeles that continues to show increasing rents year over year Griffith Observatory Opportunity Fund (QOF) which, in turn, must invest 90 percent of its assets In business located or property used in • The first floor consists of four commercial spaces, ranging designated zones from 925-2,705 SF; minimal landlord responsibilities as LOCATED WITHIN A NEWLY ESTABLISHED electricity is paid for by the tenants; the spaces have high QUALIFIED OPPORTUNITY ZONE FOR ceilings with a clear height between 14-15’; unit 5427.5 has INVESTMENT, ESTABLISHED BY THE TAX a lease expiration of January 31, 2021 and the three others have fixed rent increases built into the option periods CUTS AND JOBS ACT, SECTION 1400Z

8 9 GRIFFITH OBSERVATORY

CHILDREN’S LOS FELIZ CHILDREN’S KAISER HOSPITALHOSPITAL LALA PERMANENTE THAI TOWN

JON’S FRESH

US 101 HOLLYWOODFWY

5425 SANTA MONICA BLVD

SANTA MONICA BOULEVARD

10 11 12 13 ACTUAL PROFORMA UNIT # UNIT TYPE SF NOTES RENT RENTS RENT 201 Single $1,350 $1,450 202 Single $1,193 $1,450 203 Single $1,362 $1,450 204 Single $1,347 $1,450 205 Single $1,347 $1,450 206 Single $1,193 $1,450 207 Single $1,347 $1,450 208 Single $1,395 $1,450 209 Single $1,208 $1,450 210 1+1 $1,495 $1,750 On-Site Manager* 301 1+1 $1,650 $1,765 302 Single $1,350 $1,465 303 Single $1,404 $1,465 304 Single $1,295 $1,465 305 Single $1,395 $1,465 306 Single $1,319 $1,465 307 Single $866 $1,465 308 Single $1,347 $1,465 309 Single $979 $1,465

ENT ROLL 310 1+1 $1,595 $1,765 401 1+1 $1,695 $1,780 402 Single $1,048 $1,480 R 403 Single $1,451 $1,480 404 Single $859 $1,480 405 Single $1,350 $1,480 406 Single $1,208 $1,480 407 Single $1,124 $1,480 408 Single $879 $1,480 409 1+1 $1,695 $1,780 410 1+1 $1,595 $1,780 Vacant - Tenant moving in July 15th 5427 JMP Visuals Retail 1300 $2,900 $3,100 Leased until 6/30/2021 + 4 1 Year Options 5427.5 The Mission Continues Retail 1600 $3,180 $3,840 Leased until 1/31/2021 5429 Joshua Tsarok Retail 925 $2,060 $2,775 Rent increase to $2,145 on 8/1/2020 Rent Increase to $4,600 on 3/1/2021 + 2 1 year 5424-28 Jens Jacob Retail 2705 $4,500 $5,004 options Total $51,981 $60,469

*On-SiteV Manager gets a credit of $500 per month for rent plus $1,200 per month in salary for hours worked. 14 15 FINANCIALS

ANNUALIZED OPERATING DATA CURRENT RENTS PROFORMA RENTS EXPENSES % CURRENT PRO FORMA PRICING Scheduled Gross Income: $679,344 $792,243 Taxes 1.17% $95,355 $95,355 Price: $8,150,000 Less Vacancy Rate Reserve: $(33,967) 5.0% $(39,612) 5.0% Insurance $7,942 $7,942 Down Payment: 38% $3,130,000 Gross Operating Income: $645,377 $752,631 Utilities $18,080 $18,080 Number of Residential Units: 30 Less Expenses: $(207,580) 30.6% $(211,870) 26.7% Waste $5,616 $5,616 Current GRM: 12.00 Net Operating Income: $437,797 $540,761 Maintenance $15,223 $15,223 Market GRM: 10.29 Less Reserves: $(6,000) $(6,000) Pest Control $540 $540 Current CAP: 5.37% Less Debt Service: $(272,189) $(272,189) Janitorial Services $2,400 $2,400 Market CAP: 6.64% Pre-Tax Cash Flow: $159,608 5.1% $262,572 8.4% Management 4.0% $25,815 $30,105 Approx. Age: 1925 Plus Principal Reduction: $96,447 $96,447 On-Site Manager $20,400 $20,400 Approx. Lot Size: 6,931 Total Return Before Taxes: $256,055 8.2% $359,019 11.5% Unit Turn Over $6,000 $6,000 Approx. Gross SF: 27,192 Admin Fees $5,874 $5,874 Cost per Net GSF: $300 TOTAL SCHEDULED RENT CURRENT RENT PROFORMA RENTS Direct Assessment $2,300 $2,300 Total Scheduled Rent $51,981 $60,469 SCEP $2,035 $2,035 Parking - Unit 401 & 409 $200 $200 West Wall Signage* $3,670 $3,670 FINANCING Electric - Unit 5427 & 5427.5 $350 $350 Total Expenses: $207,580 $211,870 New First Loan: $5,020,000 RUBS & SCEP $131 $131 Per Net Sq. Ft. $7.63 $7.79 Interest Rate: 3.55% Pet Rent $100 $100 Per Unit $6,919 $7,062 Amortization: 30 Laundry $180 $200 Monthly Payment: $22,682.39 East Wall Signage - $900 DCR: 1.61 Monthly Scheduled Gross Income: $56,612 $66,020 Annual Scheduled Gross Income: $679,344 $792,243

*Signage is leased for 15 years, rent will increase to $5,000 on 8/1/2022, and $7,000 on 8/1/2027

16 17 SALES COMPARABLES SUBJECT PROPERTY 01 02 03 04 05

5425 Santa Monica Boulevard, 756 S. Normandie Avenue, 520 S. Mariposa Avenue, 238 S. Mariposa Avenue, 412 S. Lake Street, 324 S. Catalina Street, ADDRESS Los Angeles ADDRESS Los Angeles ADDRESS Los Angeles ADDRESS Los Angeles ADDRESS Los Angeles ADDRESS Los Angeles

SALES PRICE $8,150,000 SALES PRICE $6,250,000 SALES PRICE $9,375,000 SALES PRICE $7,350,000 SALES PRICE $8,985,000 SALES PRICE $9,450,000 BLDG SF 27,192 BLDG SF 16,776 BLDG SF 28,472 BLDG SF 22,720 BLDG SF 21,992 BLDG SF 22,904 LOT SIZE 6,931 LOT SIZE 7,545 LOT SIZE 9,148 LOT SIZE 7,405 LOT SIZE 7,758 LOT SIZE 7,793 PRICE/SF $300 PRICE/SF $373 PRICE/SF $329 PRICE/SF $324 PRICE/SF $407 PRICE/SF $413 CAP RATE 5.12% CAP RATE 4.55% CAP RATE 4.68% CAP RATE 4.69% CAP RATE 5.35% CAP RATE 5.16% DATE SOLD - DATE SOLD 12/6/2019 DATE SOLD 8/16/2019 DATE SOLD 12/20/2019 DATE SOLD 10/18/2019 DATE SOLD 4/3/2018 YEAR BUILT 1925 YEAR BUILT 1925 YEAR BUILT 1928 YEAR BUILT 1928 YEAR BUILT 1927 YEAR BUILT 1926 24 Singles 20 Singles 42 Singles 32 Singles UNIT MIX UNIT MIX UNIT MIX UNIT MIX 27 Singles Sixteen Singles Six 1+1 10 1+1 Six 1+1 Eight 1+1 UNIT MIX Eight 1+1 UNIT MIX Thirty-one 1+1

18 19 SALES COMPARABLES

6 3

167 S. Normandie, 5 ADDRESS Los Angeles SALES PRICE $8,900,000 2 BLDG SF 26,736 4 LOT SIZE 7,841 PRICE/SF $333 PRICE/UNIT $178,000 1 CAP RATE 4.38% DATE SOLD 8/15/2018 YEAR BUILT 1928

Forty Singles UNIT MIX Ten 1+1

20 21 RENT COMPARABLES (APARTMENTS) 5 7

# ADDRESS UNIT TYPE SQ. FT. $/PER SF RENT 6

5406 Lexington Ave, Single 425 $3.52 $1,495 1 Los Angeles, CA 90029

5117 Fountain Ave, Single N/A N/A $1,460 2 Los Angeles, CA 90029

756 N Van Ness Ave, 2 Single 450 $3.21 $1,445 3 Los Angeles, CA 90038

5347 Monroe St, 4 Single 500 $2.99 $1,495 1 Los Angeles, CA 90038 8

5341 Loma Linda Ave, Single 500 $2.93 $1,465 5 Los Angeles, CA 90027

# ADDRESS UNIT TYPE SQ. FT. $/PER SF RENT

1623 N Mariposa Ave, 1+1 450 $3.89 $1,750 6 Los Angeles, CA 90027 4 3 1720 Taft Ave, Los Angeles, 1+1 550 $3.18 $1,750 7 CA 90028

5837 Virginia Ave, 1+1 650 $2.65 $1,725 8 Los Angeles, CA 90038

22 23 RENT COMPARABLES (RETAIL)

# ADDRESS UNIT TYPE SQ. FT. $/PER SF 1

1000-1018 N Vermont Ave. Retail 1,097 $2.90 1 Los Angeles, CA 90029

4800-4814 Melrose Ave, 2 Retail 774 $3.00 2 Los Angeles, CA 90029

269 S Mariposa Ave Retail 960 $2.95 3 Los Angeles, CA 90029

187-233 S Vermont Ave, Retail 1,225 $2.50 7 4 Los Angeles, CA 90029 4 730-740 S Western Ave, 6 3 Retail 1,279 $2.50 5 Los Angeles, CA 90005

4177 W 3rd St, Los Angeles, Retail 2,000 $1.95 6 CA 90020

112-198 S Vermont Ave, Retail 2,115 $1.75 7 Los Angeles, CA 90020 5

24 25 AREA OVERVIEW ECONOMY Most recently, companies specializing in streaming media, virtual reality, and website development have been flocking to Hollywood to occupy the large swaths of class “A” UNPARALLELED LOCATION commercial space being introduced to the market. Hollywood is world renowned as the “entertainment capital of the world.” This iconic neighborhood is one of the most prestigious The most notable example is Netflix’s lease of Icon (323,000 in the world, populated with many successful lawyers, studio SF) and Cue (92,000 SF) office buildings at Sunset Bronson executives, and celebrities. The surrounding area is filled with Studios. As the company has approximately $16 billion in world-class shopping, dining, tourist attractions and hiking trails, obligations committed to streaming content, “the Netflix including Runyon Canyon, one of the most popular trails in Los Effect” is creating even more economic momentum in the Angeles. In recent years developers have transformed the area submarket by attracting new employers and more high- NEARBY AMENITIES into a mixed-use community for people to live, work, and play. paying jobs to Hollywood. NIGHTLIFE RETAIL ENTERTAINMENT CAPITAL OF THE WORLD This momentum will have a rising tide effect on real estate • The Library Bar • Ralph’s values in Hollywood, and in particular, the properties located • Club DV8 & OHM Nightclub • Ross Dress for Less The history of movie production in Hollywood dates back to the near the intersection of Vine Street and Sunset Boulevard • Sound Nightclub • Off Broadway Shoe early 1900s, exemplified by landmarks such as the Egyptian which is fast becoming the economic center of Hollywood. • Playhouse Hollywood Warehouse and Chinese theaters. While many studios have relocated to • Boulevard3 • Ralphs neighboring communities such as Studio City and Burbank, • The Room Hollywood • Target, Best Buy, GameStop • Lure Nightclub • Staples the neighborhood remains a primary location for pre- and post- • The Argyle • Urban Outfitters production processes. Today, Hollywood is renowned for its tourist • Good Times at Davey • Walgreens attractions, which draw more than 25 million visitors annually. Wayne’s • Bed Bath & Beyond • Avalon Hollywood • Trader Joe’s The famed Sunset and Hollywood boulevards offer visitors an ENTERTAINMENT endless array of entertainment and historic destinations, including • Runyon Canyon Park the Hollywood and Highland complex, El Capitan Theatre, the • TCL Chinese Theatre Pantages Theatre, the Hollywood Walk of Fame, and a variety of • El Capitan Theatre trendy restaurants and night-clubs. Other attractions in the area • Hollywood Bowl • Ripley’s Believe It or Not feature the Hollywood Bowl, Runyon Canyon, and the Griffith • Hollywood Wax Museum Observatory. • Guinness World Records Museum • Egyptian Theatre • ArcLight Hollywood • Hollywood Palladium

26 27 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.)

EXCLUSIVELY LISTED BY

NEEMA AHADIAN LEO LATERZA Senior Managing Director Investments Senior Associate Investments Tel: (310) 909-5444 Tel: (310) 909-2372 Fax: (435) 915-3662 Fax: (435) 915-3662 [email protected] [email protected] License: CA 01346750 License: CA 01861324