North Dillon Street

708 NORTH DILLON STREET

OFFERING MEMORANDUM PRESTIGIOUS, SEVEN-UNIT APARTMENT INVESTMENT OPPORTUNITY 708 DILLON 708-712 NORTH DILLON STREET EXCLUSIVELY LOS ANGELES, CA 90026 REPRESENTED BY:

JEFF LOUKS EXECUTIVE MANAGING DIRECTOR, EXECUTIVE SUMMARY 01 INVESTMENTS SENIOR DIRECTOR, NATIONAL MULTIHOUSING GROUP MARKET OVERVIEW 05 [email protected] SUBJECT TEL. (818) 212-2780 708-712 FINANCIAL ANALYSIS 09 LICENSE: CA 00908473 NORTH MARKET COMPARABLES 12 DILLON JONATHAN SILVER INVESTMENTS ASSOCIATE AREA OVERVIEW 18 MEMBER, NATIONAL MULTIHOUSING GROUP SUMMARY 24 [email protected] TEL. (818) 212-2671 LICENSE: CA 02005665 708-712 The building is fully-parked with six of the the of six with fully-parked is building The private garages. The building seven spaces as exterior common areas for features exclusive desirability. the apartment units, increasing high- As a result of these features, numerous this location, sought-after and upgrades, end in prestigious most the of one is opportunity the surrounding area. just south of 708-712 N. Dillon St. Is located Blvd. Lake Silver of west just and Blvd Sunset and sought- The area is known as a trendy is just steps after pocket of Silver Lake and from the Bellevue Recreation Center.

he Louks Group is pleased to present to pleased is Group Louks he seven-unit a Street, Dillon North 780-712 apartment building centrally located in the centrally located in the apartment building Los Angeles, neighborhood of Silver Lake in CA. Unique to this offering, this property is on the block. the only commercial building bedroom / With an ideal unit mix of (6) one / one bath, one bath and (1) two bedroom ideal for this asset features apartments to live within young professionals aiming Angeles. close proximity to Downtown Los character This Spanish-style building boasts featuring fully-updated while and charm with units apartment remodeled and unit tasteful modern styling. Each apartment The extensive features washers and dryers. renovations include hardwood floors, light bathrooms and kitchens, cabinets, tiled fixtures and ceiling fans. THE OFFERING THE Investment Apartment Seven-Unit Phenomenal, Lake Silver in Prime Opportunity T

NORTH DILLON 708-712 SUBJECT

SUMMARY EXECUTIVE 7 708-712 N. DILLON INVESTMENT HIGHLIGHTS STREET

RARE, EXCLUSIVE INVESTMENT OPPORTUNITY

• Stellar unit mix featuring (5) one bedroom/one bathroom units; (1) one bedroom/one bathroom/office unit; and (1) two bedroom/one bathroom/office unit

• Unique Spanish-style building with character features on-site, covered parking

• Modern, stylish units are fully-updated with hard floors and contain in-unit washer & dryer

• Only commercial multifamily building on its street offers competitive advantage

EXTREMELY DESIRABLE SUBMARKET • Central location in Silver Lake with immediate proximity to Echo Park, Hollywood, and DTLA 708-712 • Appeal to high-earning, young professionals aiming to live within close proximity to major nearby employers

• This premium pocket of Los Angeles commands high rental rates and current rent roll provides room for rental income growth N. DILLON FAVORABLE DEMOGRAPHICS

• Significant total surrounding population of 72,796 (1mi); 573,414 (3mi) and 1,195,204 (5mi) • Strong median home value of approximately $769,783 within a three mile radius STREET • Resident boast an average household income of nearly $73,000 within one mile radius

6 Offering Memorandum 9 708-712 N. DILLON STREET

8 Offering Memorandum 708-712 11 708-712 N. DILLON STREET Offering Price $2,495,000

Summary Interest Offered OF TERMS 100 percent fee-simple interest in a 7-Unit apartment building located at 708-712 North Dillon Street, Los Angeles, CA .

Terms of Sale Market The property is being offered free and clear of any OVERVIEW debt.

Property Details

Address: 708-712 N. Dillon St., Los Angeles, CA 90026 APN: 5401-019-001 Units: 7 Units # Of Stories: Two Stories Year Built: 1930 Lot Size (SF): 6,302 SF Gross Building SF: 3,540 SF Land Use: Apartments Zoning: LAR2 HANCOCK PARK MID-CITY HOLLYWOOD 13 LARCHMONT VILLAGE 708-712 N. DILLON STREET WILSHIRE VERMONT LOS FELIZ 708 EAST HOLLYWOOD N. Dillon St. KOREATOWN

RAMPART VILLAGE SILVERLAKE Aerial HISTORIC FILIPINOTOWN OVERVIEW WESTLAKE lake

ilver Lake is a trendy, eastside Sneighborhood in Los Angeles, CA near Hollywood, Echo Park and ECHO PARK Downtown LA. Silver Lake has comfortably maintained its position as THE the trendiest neighborhood thanks to a ELYSIAN wealth of boutique shops and an ever- growing dining scene. DA VINCI Many of the best things to do in APARTMENTS Silver Lake are situated along Sunset Boulevard, but you’ll find plenty to do elsewhere - whether on a charming stretch of Silver Lake Boulevard or tucked among the scenic hills and namesake reservoir. While you won’t find any major museums or landmark attractions, that doesn’t mean there’s a shortage of eclectic culture. Offering Memorandum 12 CHINATOWN 15 708-712 N. DILLON STREET East Side HOT SPOTS

fter a massive makeover, the Eastside’s historic HOLLYWOOD SIGN AEcho Park has finally become a family-friendly GRIFFITH OBSERVATORY destination worthy of its bold backdrop: the Downtown skyline amid the lotus flower blooms and fountains. The lake has been around since 1860—it was once used as a drinking water reservoir, and later as a recreational park with canoes and fishing. Today, you can push your way through the lake in a pedal boat or stroll around the path that hugs its borders. Either way, make sure to SILVER LAKE RESERVOIR stop at the revived boathouse and the Lady of the Lake ECHO PARK LAKE statue.

A larger-than-life symbol of the entertainment business, Hollywood beckons tourists with DOWNTOWN LA landmarks like the star-studded Walk of Fame. Highlights include Paramount Pictures, historic music venues like the Hollywood Bowl, and Dolby SILVER LAKE Theatre, home of the Oscars. Scenesters can choose from improv comedy clubs, retro-cool bars and velvet-roped nightclubs. Locals frequent eateries in nearby Thai Town. SAGE BREWERY 14 Offering Memorandum WALK OF FAME DODGERS STADIUM 17 708-712 N. DILLON Notable, Nearby STREET DEVELOPMENTS

1 2 3 4 Two Sunset Blvd. Projects Echo Park Bed & Breakfast Mixed Use in Silver Lake Sunset Blvd. Mixed Use The first, located at 1251 Sunset A small apartment building in Echo CIM Group has changed up its plans The 5-story building, a joint venture Boulevard, would be a 7-story build- Park could be replaced with a hotel, by adding housing to the project. between, is billed as the first luxury ing featuring 70 apartments and 38 according to a filing yesterday with The three-story building, now rising condominiums to be built in Silver parking spaces. The second proj- the City of Los Angeles. The proper- at 4121 Santa Monica Boulevard, Lake in over a decade. The com- ect, located just north at 1275 Sun- ty, located at 1274 W. Sunset Bou- will feature 41 residential units with pleted development will feature set Boulevard, would consist of an levard, is currently improved with a 13,300 square feet of ground-floor 35 units, in addition to 2,000 SF of 8-story structure containing 77 res- two-story, three-unit structure and commercial space and a basement ground-floor restaurant space with idential units and 63 parking stalls. a small parking lot. parking structure. outdoor dining.

5 6 7 8 Walk of Fame Master Plan Netflix-Anchored Complex Thai Town Marketplace Refill Silver Lake Reservoir Gensler has been selected to design A $450-million mixed-use complex A new marketplace will soon open The Los Angeles Department of Wa- a master plan for the Hollywood from Kilroy Realty Corp. is nearing atop the Hollywood/Western sub- ter and Power has announced that Walk of Fame, a proposed $4-mil- its halfway point. The Academy on way station that is part food hall and surplus water from snowpack runoff lion makeover. The master plan is Vine - located on a full city block part small business incubator. Thai in the Eastern Sierra region will be intended to build a “more pleasant, - is highlighted by three buildings Town Marketplace is set to open on used to start refilling the Silver Lake cohesive, and enjoyable experi- containing over 350,000 SF of office the ground floor of the Metro Hol- Reservoir. Offering Memorandum ence,” along the 1.3 mile corridor. space, the entirety of which was lywood apartments at 5448 Holly- 16 leased last year by Netflix. wood Boulevard. 708 Significant N. DILLON ST. EMPLOYERS

EMPLOYER EMPLOYEES DISTANCE* Eastside Los Angeles benefits from its proximity to a wide variety of major employers. In the immediate area are Capitol Records, Paramount Pictures, Kaiser Permanente, AT&T 500 0.3 Hollywood Presbyterian Medical Center, Ticketmaster, Universal City Studios, Church of Scientology 2,000 2.1 Disney and Warner Bros. As such, residents have easy access to myriad jobs in the Capitol Records 600 3.8 Color by Deluxe 626 1.8 entertainment industry as well as the health care sector. Additionally, the Eastside Paramount Pictures 1,700 2.7 offers easy commutes to major nearby employment hubs in Downtown Los Angeles, Kaiser Permanente Medical Center 3,000 2.1 West Los Angeles, and the San Fernando Valley. Hollywood Presbyterian Medical Center 1,250 1.7 Fire Insurance Exchange 2,300 2.7 Los Angeles City College 1,800 1.2 Farmers Insurance 3,000 1.9 Guardian Eagle Security 500 1.8 Ticketmaster 1,300 4.1 Universal City Studios 2,000 6.8 Technicolor 600 2.9 Walt Disney Concert Hall 500 3.1 18 Offering Memorandum Downtown Los Angeles - 4.6 21 708-712 N. DILLON STREET

SUMMARYFinancial

COMPARABLESMarket 27 708-712 N. DILLON SALES COMPARABLES SALES COMPARABLES STREET

708-712 North Dillon Street YEAR BUILDING CAP PRICE/ PRICE / # ADDRESS BUILT # UNITS SIZE (SF) SALE PRICE RATE GRM UNIT SF UNIT MIX 1 1441 Echo Park Drive 708-712 N. Dillon Street 1930 7 3,540 $2,495,000 4.33% 14.83* $356,429 $704.80 (6) One Bed, (1) Two Bed 2 3524-3530 Ellsworth Street Los Angeles, CA 90026 3 926-938 Parkman Avenue SALES COMPARABLES

1411 Echo Park Drive 1 1921 5 3,304 $2,750,000 5.00% - $550,000 $832.32 (1) One Bed, (4) Two Bed Los Angeles, CA 90023

3524-3530 Ellsworth St. 2 1925 6 3,994 $2,200,000 4.97% 15.58 $366,667 $550.83 (5) One Bed, (1) Two Bed Los Angeles, CA 90026 3 926-938 Parkman Ave. 2 3 1924 6 2,672 $2,317,500 - - $386,250 $867.33 (6) Studio Los Angeles, CA 90026

1 AVERAGES: 4.985% 15.58 $434,306 $750.05

26 Offering Memorandum 29 708-712 N. DILLON SALES COMPARABLES STREET

1 2 3

1441 ECHO PARK AVE 3524-3530 ELLSWORTH STREET 926-938 PARKMAN AVENUE

Sale Date: 5/1/2018 Sale Date: 11/21/2018 Sale Date: 2/25/2019 Sale Price: $2,750,000 Sale Price: $2,200,000 Sale Price: $2,317,500 Units: 5 Units Units: 6 Units Units: 6 Units Year Built: 1921 Year Built: 1925 Year Built: 1924 Price / Unit: $550,000 Price / Unit: $366,667 Price / Unit: $386,250 Price / SF: $832.32 Price / SF: $550.83 Price / SF: $867.33 Cap. Rate: 5.00% Cap. Rate: 4.97% GRM: 15.58 UNIT MIX UNIT MIX (6) Studio / 1 Bath (1) 1 Bedroom / 1 Bath UNIT MIX (4) 2 Bedroom / 1 Bath (5) 1 Bedroom / 1 Bath (1) 2 Bedroom / 1 Bath 31 708-712 N. DILLON RENT COMPARABLES RENT COMPARABLES STREET

708-712 North Dillon Street 1 BED / 1 BATH 1 BED / 1 BATH / OFFICE 2 BED / 1 BATH 1 1961 Echo Park Avenue PROPERTY UNITS BUILT RENT SIZE RENT/SF RENT SIZE RENT/SF RENT SIZE RENT/SF 447 North Coronado Street 2 708-712 N Dillon St. Avg. In-Place: $1,724 - - $2,450 - - $2,750 - - 7 1930 5 Los Angeles, CA 90026 3 3436 Larissa Drive Renovated: $2,250 - - $2,450 - - $2,950 - - 1961 Echo Park Ave. 1 4 1924 $2,200 400 SF $5.50 ------4 3425 Bellevue Avenue Los Angeles, CA 90026 447 N Coronado St. 2 4 1918 $2,250 550 SF $4.09 ------5 3016 Waverly Drive Los Angeles, CA 90026 3464 Larissa Dr. 3 9 1924 $2,275 450 SF $5.05 ------6 931 Everett Street Los Angeles, CA 90026 3425 Bellevue Ave 4 8 1929 - - - $2,495 700 SF $3.56 - - - 7 3933 Marathon Street Los Angeles, CA 90026 3016 Waverly Dr 5 45 1973 - - - $2,635 900 SF $2.93 - - - Los Angeles, CA 90039 931 Everett St 6 5 1917 ------$2,850 850 SF $3.35 Los Angeles, CA 90026 3 1 3933 Marathon St 7 22 1990 ------$2,900 1000 SF $2.90 7 Los Angeles, CA 90029 AVERAGES: $4.88 $3.25 $3.13 4

2

6

30 Offering Memorandum 33 708-712 N. DILLON RENT COMPARABLES RENT COMPARABLES STREET

1 708-712 N. Dillon St., Los Angeles, CA 90026 3 3464 Larissa Drive, Los Angeles, CA 90026

UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF 1 Bed / 1 Bath $1,724 - - 1 Bed / 1 Bath $2,275 450 SF $5.05 1 Bed / 1 Bath / Office $2,450 - - YEAR BUILT: 1924 UNITS: 9 2 Bed / 1 Bath / Office $2,750 - - YEAR BUILT: 1941 UNITS: 7

1 1961 Echo Park Avenue, Los Angeles, CA 90026 4 3425 Bellevue Avenue, Los Angeles, CA 90026

UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF 1 Bed / 1 Bath $2,200 400 SF $5.50 1Bed / 1 Bath $2,495 700 SF $3.56 YEAR BUILT: 1924 UNITS: 4 with Office YEAR BUILT: 1929 UNITS: 8

2 447 North Coronado Street, Los Angeles, CA 90026 5 3016 Waverly Drive, Los Angeles, CA 90039

UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF 1 Bed / 1 Bath $2,250 550 SF $4.09 1Bed / 1 Bath $2,635 900 SF $2.93 YEAR BUILT: 1918 UNITS: 4 with Office YEAR BUILT: 1973 UNITS: 45 35 708-712 N. DILLON RENT COMPARABLES STREET

6 931 Everett Street, Los Angeles, CA 90026

UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF 2 Bed / 1 Bath $2,850 850 SF $3.35 YEAR BUILT: 1917 UNITS: 5

7 3933 Marathon Street, Los Angeles, CA 90029

UNIT TYPE AVG. RENT UNIT SIZE (SF) AVG. RENT / SF 2 Bed / 1 Bath $2,900 1000 SF $2.90 YEAR BUILT: 1990 UNITS: 22

34 Offering Memorandum Confidentiality Agreement 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 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 EXCLUSIVELY substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the PRESENTED BY: 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 JEFF LOUKS has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not EXECUTIVE MANAGING DIRECTOR, verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding INVESTMENTS these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of SENIOR DIRECTOR, NATIONAL the information provided. All potential buyers must take appropriate measures to verify all of the information set MULTIHOUSING GROUP forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All rights reserved. [email protected] TEL. (818) 212-2780 Non-Endorsement Notice LICENSE: CA 00908473 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 of Marcus & Millichap, its affiliates or subsidiaries, or JONATHAN SILVER any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of INVESTMENTS ASSOCIATE providing tenant lessee information about this listing to prospective customers. MEMBER, NATIONAL ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MULTIHOUSING GROUP MORE DETAILS. [email protected] TEL. (818) 212-2671 LICENSE: CA 02005665 708 DILLON ST.