A 12,000 SF strip center situated on 32,995 SF of land. DEVONSHIRE SILVER PLAZA

21615 DEVONSHIRE STREET, CHATSWORTH, CA 91311

BRANDON MICHAELS GROUP INVESTMENT ADVISORS

BRANDON MICHAELS Senior Managing Director Investments 1 2 3 4 Senior Director, National Retail Group EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS FINANCIALS SALES COMPARABLES Tel: (818) 212-2794 [email protected] License: CA #01434685 www.BrandonMichaelsGroup.com

BRANDON MICHAELS GROUP

16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com 2 3 EXECUTIVE SUMMARY A 12,000 square foot value-add or owner/user 7.75% 12,000 32,995 61 22,202 opportunity situated on 32,995 square feet of land. PROFORMA CAP RATE BLDG SF LAND SF PARKING SPACES VEHICLES PER DAY The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale Devonshire Silver Plaza, a 12,000 square foot strip center situated on 32,995 square feet of land in Chatsworth CA. The subject property is ideally located just west of the northwest corner of Owensmouth Avenue and Devonshire Street between Topanga Canyon Boulevard and Canoga Avenue.

Devonshire Silver Plaza is currently 67% vacant, and the two remaining tenants are currently on month to month leases. The current operations create a unique value-add opportunity or an ideal scenario for an owner-user Buyer to acquire this asset and occupy a portion or all of the center. Devonshire Silver Plaza benefits from excellent visibility on Devonshire Street with 151 feet of frontage. Devonshire Street is a major retail thoroughfare in Chatsworth. There are multiple national retailers in the immediate area, including Ralphs, Waba Grill, 7-Eleven, USPS, Taco Bell, McDonalds, Trader Joe’s, Smart & Final, Round Table Pizza, and Starbucks.

Devonshire Silver Plaza offers a unique opportunity to acquire 32,995 square feet of land zoned C2 is a strong San Fernando Valley location. The center has 61 parking spaces consisting of 28 parking spaces in the front of the property and 33 parking spaces in the rear of the property. The parking ratio of 5.08 per 1,000 allows for a multitude of potential uses, including general retail, restaurant, and medical. The overall land square footage and advantageous zoning creates a wide variety of long term uses for the property, including re-development of the property to create additional square footage, or the re-positioning of the asset to mixed-use, residential, or hotel/motel.

Chatsworth is an affluent neighborhood in the northwestern San Fernando Valley region of , California. Chatsworth was established as a farming community and is home today to single family home communities, shopping centers, and major corporations such as 3M Corporation, Hydraulics Iternational, and Lamps Plus. The average household income within a 1 mile radius is over $101,000 and there are over 320,000 people within a five mile radius. Daily traffic counts exceed 27,000 vehicles.

4 5 PROPERTY INFORMATION

PROPERTY INFORMATION

21615 Devonshire Street, Address Chatsworth, CA 91311 Property Name Devonshire Silver Plaza Property Type Retail Gross Square Feet 12,000 SF

A 12,000 SF strip center situated on 32,995 SF of land. Lot Size 32,995 SF DEVONSHIRE Year Built 1956 SILVER PLAZA

21615 DEVONSHIRE STREET, APN 2722-009-006 CHATSWORTH, CA 91311 Zoning LAC2 Type of Ownership Fee Simple

FINANCIAL INFORMATION DEVONSHIRE STREET DEVONSHIRE Asking Price $2,900,000 SILVER PLAZA (22,202 VEHICLES PER DAY)

21615 DEVONSHIRE STREET, Price/SF $241.67 CHATSWORTH, CA 91311 ProForma CAP Rate 7.75% Current Occupancy 33%

OWENSMOUTH AVENUE

6 7 INVESTMENT HIGHLIGHTS

• Value-add opportunity to acquire 12,000 square foot strip center ideally situated on 32,995 square feet of land zoned C2

• Ample parking with 61 parking spaces

• Parking ratio of 5.08 per 1,000

• 33% current occupancy

• Month to month leases combined with 67% current vacancy creates the potential for an owner-user Buyer to occupy a portion or all of the property

• Close proximity to national retailers such as Ralphs, 7-Eleven, Trader Joe’s, Smart & Final, Round Table Pizza, McDonald’s and Taco Bell

• Devonshire Street is a main thoroughfare through the San Fernando Valley with daily traffic counts at this location of 22,202 vehicles per day

• Excellent visibility with 151 feet of frontage on Devonshire Street

• Affluent demographics with an average household income of over $101,000 within a one mile radius

• 320,000 people within a 5 mile radius

• 32,995 SF of C2 zoned land creates a potential re-development opportunity

Devonshire Silver Plaza has a parking ratio of 5.08 vehicles to 1,000 SF.

8 9 A 12,000 SF strip center situated on 32,995 SF of land. DEVONSHIRE PROPERTY SILVER PLAZA

21615 DEVONSHIRE STREET, OVERVIEW CHATSWORTH, CA 91311

LOCATION Pho Saigon 1 21615-21625 Devonshire Street, Chatsworth, CA 91311 CHATSWORTH PARK ELEMENTARY SITE SCHOOL The subject property is located west of the northwest signalized intersection of Devonshire Street and Owensmouth Avenue. TOPANGA CANYON BOULEVARD

SQUARE FOOTAGES DEVONSHIRE STREET (22,202 VEHICLES PER DAY) The Subject Property consists of a strip center building totaling 12,000 SF on a 32,995 SF lot.

FRONTAGE AND ACCESS OWENSMOUTH AVENUE 151 feet of frontage on Devonshire Street.

YEAR BUILT The property was built in 1956. PARKING Front parking lot: 28 spaces ZONING Rear parking lot: 33 spaces The property is zoned LAC2 Total: 61 parking spaces Parking ratio of 5.08:1,000 SF TRAFFIC COUNTS APN Owensmouth Avenue: 4,968 vehicles per day Les Sisters Vegan My Thai The APN is 2722-009-006. Southern & Seaood Devonshire Street: 22,202 vehicles per day Kitchen & BBQ

10 11 FINANCIAL FINANCIAL ANALYSIS ANALYSIS

RENT ROLL ANNUALIZED OPERATING DATA PRICING

% OF LEASE PROFORMA UNIT TENANT SF CURRENT RENT RENT/SF PROFORMA RENT INCOME AND EXPENSE CURRENT % PROFORMA Sales Price $2,900,000 BLDG EXPIRATION RENT/SF Current CAP Rate -0.36% 21615 Chatsworth Liquor 2,000 17% M2M $2,300.00 $1.15 $4,000.00 $2.00 Scheduled Lease Income: $53,268 $240,000 ProForma CAP Rate 7.75% 21617 Vacant 2,000 17% - - - $4,000.00 $2.00 NNN Charges - $63,826 Price/SF (bldg) $241.67 Effective Gross Income: $53,268 $303,826 21619 Vacant 2,000 17% - - - $4,000.00 $2.00 Price/SF (land) $87.89 Vacancy: - 5% $15,191 21621 Laundromat 2,000 17% M2M $2,139.00 $1.07 $4,000.00 $2.00 Bldg SF 12,000 SF Expenses: $63,826 $63,826 21623 Vacant 2,000 17% - - - $4,000.00 $2.00 Lot Size 32,995 SF Net Operating Income: -$10,558 $224,809 21615 Vacant 2,000 17% - - - $4,000.00 $2.00

Total 12,000 100% $4,439.00 $1.11 $20,000.00 EXPENSES $/YEAR $/SF Occupied SF 4,000 33% Taxes $36,250 $3.02 Vacant SF 8,000 67% Insurance $4,800 $0.40 Electricity $1,848 $0.15 Grounds Cleaning $2,508 $0.21 33% Pest Control $1,692 $0.14 OCCUPIED SIGNIFICANT Repairs & Maintenance $3,600 $0.30 RENTAL UPSIDE Signs $3,528 $0.29 Total Expenses $54,226 $4.52

12 13 SALES COMPARABLES

1 2 3 4 5

7217-7227 De Soto Avenue, 20849-20857 Sherman Way, 20247-20251 Saticoy Street, 19744-19762 Sherman Way, 7549-7559 Topanga Canyon Address Address Address Address Address Canoga Park Winnetka Canoga Park Canoga Park Boulevard, Canoga Park Sales Price $8,629,600 Sales Price $2,300,000 Sales Price $1,900,000 Sales Price $4,500,000 Sales Price $2,150,000 Price/SF $564.36 Price/SF $396.55 Price/SF $397.74 Price/SF $352.22 Price/SF $315.34 Bldg SF 15,291 Bldg SF 5,800 Bldg SF 4,777 Bldg SF 12,776 Bldg SF 6,818 Lot SF 51,070 Lot SF 9,574 Lot SF 22,346 Lot SF 33,480 Lot SF 13,669 Close of Escrow 6/29/2017 Close of Escrow 9/16/2016 Close of Escrow 8/1/2017 Close of Escrow 1/10/2017 Close of Escrow 11/23/2016 CAP Rate 5.69% CAP Rate 5.69% CAP Rate 6.07%

14 15 SALES COMPARABLES

$600.00 $564.36

$500.00

$405.24 $396.55 $397.74 $400.00 $352.22

$315.34 $300.00

5 3 $200.00 1 2 4

$100.00

$- 7217-7227 De Soto 20849-20857 Sherman 20247-20251 Saticoy 19744-19762 Sherman 7549-7559 Topanga Average Avenue, Canoga Park Way, Winnetka Street, Canoga Park Way, Canoga Park Canyon Boulevard, Canoga Park

16 17 CHATSWORTH DEMOGRAPHICS

Chatsworth is home to nearly 2,000 businesses employing approximately 40,000 people. Over 500,000 people are employed within an approximately 20-mile radius of Chatsworth.

32% of residents within a 1 mile radius have an average household income over $101,013 $99,607 32% $100,000 Average household income $91,638 1 3 Average household income 5 Average household income MILE MILE MILE

18 19 AREA AREA OVERVIEW OVERVIEW

CHATSWORTH MAJOR EMPLOYERS Chatsworth is a neighborhood in the northwestern San Chatsworth is home to nearly 2,000 businesses employing approximately 40,000 people. Over 500,000 Fernando Valley region of Los Angeles, California. Chatsworth people are employed within an approximately 20-mile radius of Chatsworth. With manufacturing was established as a farming community and is home today being the most common industry classification, the Chatsworth community is particularly known for its to single family home communities, shopping centers, and strong presence in the technology sector. Major employers in Chatsworth and adjacent communities major corporations such as 3M Corporation, Hydraulics include: 3M Company, Health Net, Nestle USA, Farmers Insurance, Universal Music Group, Woodland International, and Lamps Plus. Chatsworth has seven public Hills Medical Center, and Gen Corp. Chatsworth is also proximate to Warner Center, the downtown and eight private schools. There are large open-space and and office hub of the San Fernando Valley. Warner Center is home to many high profile employers and smaller recreational parks as well as a public library and a serves as a major employer hub. transportation center. Distinctive features are the former Chatsworth Reservoir, the Santa Susana Field Laboratory Major employers in Chatsworth and the surrounding communities include: and a number of private businesses. The Chatsworth area submarket ranks among several San Fernando Valley communities that contain some of the densest census tracts in Los Angeles. Chatsworth also can claim to have more parks and parklands than most communities in Los Angeles, as it contains a number of scenic and natural open spaces including Chatsworth Park North, Chatsworth Park South, Santa Susana Pass State Historic Park, Chatsworth Oaks Park, Stoney Point Park, Chatsworth Trails Park and Sage Ranch Park. These areas contain miles of hiking, biking, and horseback riding trails as well as picnic areas, sports recreation centers, rock climbing an even campsites.

Chatsworth is located in close proximity to the Ronald Reagan Freeway (118) which connects to the San Diego Freeway (405) and provides access to all of Los Angeles County.

20 21 AREA AREA OVERVIEW OVERVIEW

TRANSPORTATION DEMOGRAPHICS CHATSWORTH DEMOGRAPHICS

Chatswoth is easily accessibe by freeways, Metro transit, rail and airport transportation. The 405, 101, 1 MILE 3 MILES 5 MILES • Chatsworth is a neighborhood in the city of Los Angeles in the San and 118 Freeways provide access to the greater Los Angeles metropolis area and beyond to Orange Fernando Valley region of Los Angeles County. and Ventura Counties. The Metro Orange Line dedicated bus transit way provides access from the 2014 Population 18,142 90,530 321,711 • The neighboring communities are Canoga Park, Chatsworth Reservoir, Chatsworth station to the Warner Center transit hub in Woodland Hills, then along the east- 2014 Households 6,844 31,442 108,762 Northridge, Porter Ranch, Unincorporated Santa Susana Mountains, west length of the San Fernando Valley connecting to the North Hollywood Red Line Station. Rail 2014 Average Household Size 2.58 2.83 2.90 West Hills and Winnetka. service continues to Downtown Los Angeles, Pasadena, Long Beach and West Los Angeles. 2014 Daytime Population 10,558 53,508 114,014 long distance rail lines from Chatsworth Station proceed to Ventura County, Santa Barbara, Northern • Chatsworth is in close proximity to California State University, California and San Diego. The San Fernando’s Valley’s two major airports are Burbank Bob Hope 2014 Owner Occupied Housing Units 57.42% 61.10% 56.72% Northridge (also known as CSUN). CSUN is a public university in Airport and Van Nuys Airport. 2014 Renter Occupied Housing Units 42.58% 38.90% 43.28% Northridge. With a total enrollment of 41,548, it has the largest student 2014 Vacant 1.09% 2.47% 2.33% body of the 23-campus California State University system, and is one of the largest comprehensive universities in the State of California 2014 Median Household Income $70,893 $68,748 $64,678 (behind UCLA) in terms of enrollment. 2014 Per Capita Income $38,559 $34,865 $31,179 • Chatsworth consists of 15.24 square miles 2014 Average Household Income $101,013 $99,607 $91,638 • 34.0% of residents 25 and older have a four-year degree $ 0 - $14,999 4.9% 7.5% 8.8% • The median age in Chatsworth is 40 $ 15,000 - $24,999 7.0% 8.2% 8.9% • Average household size of 2.6 people in Chatsworth $ 25,000 - $34,999 8.0% 8.1% 8.7% $ 35,000 - $49,999 14.2% 12.6% 12.7% $ 50,000 - $74,999 19.1% 17.5% 18.2% $ 75,000 - $99,999 15.2% 13.3% 12.9% $100,000 - $124,999 10.9% 10.0% 9.8% $125,000 - $149,999 6.5% 6.9% 6.5% $150,000 - $199,999 6.7% 7.7% 6.8% METROLINK $200,000 - $249,999 2.7% 3.4% 2.7% The Metrolink is a line serving Ventura County and the San Fernando Valley in Los Angeles County and the City of $250,000 + 5.0% 4.8% 3.9% Los Angeles, in the Southern California system. Three trains each weekday run to Chatsworth Station (western SFValley) — major transit hub, with the Amtrak , the Metro Orange Line (6-2012) and valley bus lines, the LADOT Commuter Express service; and buses from Santa Clarita Transit, and Simi Valley Transit. Trains of the six East Ventura and four Moorpark runs also stop here.

22 23 AREA AREA OVERVIEW OVERVIEW

SAN FERNANDO VALLEY HIGHLIGHTS SAN FERNANDO VALLEY Almost 2.5 million people reside in the San Fernando Valley, which includes ŠŠ About 2.5 million residents in the San Fernando Valley the submarkets of Northridge-Northwest San Fernando Valley, Van Nuys- ŠŠ Population growth projected of 45,000 new residents by 2019 in Northeast San Fernando Valley, Woodland Hills, Burbank-Glendale- the San Fernando Valley Pasadena and Sherman Oaks-North Hollywood-Encino. The area’s population is expected to increase by 1.9 percent through 2020, or by 47,400 ŠŠ Strong ties to the entertainment industry – Home of Walt Disney new residents. Company, Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch Known for its entertainment industry, the Valley boasts more than 100 ŠŠ Local motion picture and entertainment companies employ soundstages. Entertainment giants calling the Valley home include Walt roughly 25,000 people Disney Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. The entertainment industry continues to set the area’s economic ŠŠ Aerospace (Boeing & Northrop Grumman) Insurance (21st Century Insurance) and Healthcare (Kaiser Permanente pulse. Local motion-picture and entertainment companies employ roughly DISTANCE TO: 25,000 people. and Providence Health & Services) industries also generate numerous well-paying jobs SANTA BARBARA LOS ANGELES While the Valley has grown into the world’s center for entertainment, ŠŠ Substantial income growth since 2000 SAN DIEGO aerospace giants Boeing and Northrop Grumman and 21st Century SAN FERNANDO VALLEY MAJOR EMPLOYERS ŠŠ Home ownership rate is near 50% and large rental base Insurance also generate numerous well-paying jobs. Healthcare is also a

major source of employment with providers that include Kaiser Permanente 135 miles

16 miles

and Providence Health & Services. As a result of its large concentration 80 miles SFV SHARE OF TOTAL EMPLOYMENT of high-salaries and successful companies, the area’s median household income of$61,600 per year has risen dramatically in recent years. Services 47% Although the median home prices dipped during the recession, affordability Retail Trade 17% remains a challenge for much of the local population. High home prices PALM SPRINGS Manufacturing 9% SACRAMENTO

keep the homeownership rate at 50 percent in the San Fernando Valley and LAS VEGAS provide a large rental base. Finance, Insurance & Real Estate 8% Wholesale Trade 5%

280 miles 370 miles Public Administration 5% 124 Miles Transportation, Communications 5% Construction 5% 24 25 INVESTMENT ADVISORS BRANDON MICHAELS Senior Managing Director Investments Senior Director, National Retail Group Tel: (818) 212-2794 [email protected] License: CA #01434685