13476 VAN NUYS PACOIMA, CA

A UNIQUE OPPORTUNITY TO ACQUIRE A MIXED USE RETAIL / RESIDENTIAL ASSET ON A MAJOR COMMERCIAL CORRIDOR IN PACOIMA, CA NON-ENDORSEMENT EXCLUSIVELY LISTED BY AND DISCLAIMER NOTICE

CONFIDENTIALITY & 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 & ROSALEEN O’SULLIVAN Millichap and should not be made available to any other person or entity without the Investment Advisor written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only Tel: (818) 212-2792 a preliminary level of interest in the subject property. The information contained herein is Fax: (818) 212-2710 not a substitute for a thorough due diligence investigation. Marcus & Millichap has not [email protected] 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 License: CA 01904175 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved. (29,420 CPD)

NON-ENDORSEMENT NOTICE 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 any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the VAN NUYS BLVD KEWEN AVE purpose of providing tenant lessee information about this listing to prospective customers.

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2 3 1 13476 VAN NUYS BLVD 2 13476 FINANCIAL OVERVIEW VAN NUYS PACOIMA, CA 3 LOCATION OVERVIEW 4 COMPARABLE PROPERTIES

1.5 Miles Proximity 13476 PROPERTY VAN NUYS PACOIMA, CA OVERVIEW A stabilized mixed-use offering on the desirable 13476 Van Nuys Boulevard commercial corridor Marcus and Millichap is pleased to present a stabilized mixed-use offering at 13476 Van Nuys Blvd in the city of Pacoima. The offering consists of VAN NUYS an approximately 7,875 SF commercial complex, including a 5,500 PACOIMA, CA SF single-story retail strip center, two three-bedroom single family homes, and a billboard.

The property is fully occupied with five retail tenants and two residential tenants. It features fourteen private parking spaces, including garage parking for the residences. The billboard is on a five year lease. The city of Los Angeles limits the number of allowable billboard locations in the city, making this a rare and valuable source of future income for a new owner.

13476 Van Nuys Blvd is located at the signalized corner of Van Nuys Blvd and Kewen Ave, with traffic counts of +/- 29,420 vehicles per day. The property features 113 square feet of frontage on Van Nuys Blvd, and is located one mile from the 118 Freeway and 5 Freeway intersection. The property benefits from the strong demographics in the local area, including over 34,000 people within a one mile radius and a walk score of 79 (very walkable).

The property is priced at a 5.37% cap rate on current income, offering an immediate stabilized income stream to an incoming investor. There is also the possibility for a new owner-user to occupy some of the month to month retail suites with their own business. An owner user occupying at least 51% of the rentable building area can qualify for S.B.A. financing with as little as 10% down payment. The entire lot is zoned C2, offering future development potential to an owner who seeks to one day redevelop the approximately 16,480 SF (0.38 AC) corner. Alternatively, a investor seeking to divide the lot could sell the homes separately to capitalize on immediate upside. 8 9 13476 VAN NUYS PACOIMA, CA

INVESTMENT HIGHLIGHTS

ƒƒ Stabilized Retail/Residential Mixed Use Investment ƒƒ Priced at 5.37% Cap Rate / 6.12% Pro Forma ƒƒ Five Commercial Retail Tenants, Two Single Family Homes, and a Billboard ƒƒ 0.38 AC Corner Lot Zoned C2 - Excellent Future Development Opportunity

ƒƒ E - Commerce Resistant, Service-Based Retail Tenant Mix

(29,420 CPD) STRONG SAN FERNANDO VALLEY LOCATION ƒƒ Strong Corner Location on Van Nuys Blvd and Kewen Ave in Pacoima ƒƒ Traffic Counts of +/- 29,420 Vehicles per Day along Van Nuys Boulevard VAN NUYS BLVD ƒƒ Located in the Heart of Pacoima’s Revitalization Plan Area KEWEN AVE ƒƒ Direct and convenient access to Ventura (101) Freeway, which is the main freeway throughout the San Fernando Valley ƒƒ Central San Fernando Valley Neighborhood with high population density 10 11 Stabilized Retail / Residential Mixed Use Investment

Strong San Fernando Submarket

Ideal Retail Owner User Opportunity with Future Development Potential

12 13 13476 VAN NUYS PACOIMA, CA

14 15 16

RESIDENTIAL PHOTOS 17 PROPERTY OVERVIEW

PROPERTY INFORMATION

13476 Van Nuys Blvd Address Pacoima, CA 91331

Price $2,050,000

Down Payment $820,000 (45%) Residential Units 2 13476 Commercial Suites 7

Price / SF $260.28

Rentable SF 7,875 SF VAN NUYS PACOIMA, CA Lot Size 0.38 Acres VAN NUYS BLVD

Year Built 1951

RETURNS KEWEN AVE Current Year 1 Cap Rate 5.37% 6.12%

Cash-on-Cash 3.59% 5.48%

18 RENT ROLL INFORMATION - COMMERCIAL

TENANT TYPE SUITE NO. SF % BLDG LEASE TERM RENT RENT/SF/YR RENEWAL OPTIONS

Beauty Salon Retail 13480 900 11.43% 9/1/21 $1,700 $22.67 3% Annual CPI Increases

Traffic School Retail 13482 900 11.43% MTM $1,447 $19.29 3% Annual CPI Increases

Church Retail 13484 1,400 17.78% MTM $1,900 $16.29 3% Annual CPI Increases

Optical Lens Retail 13486-A 900 11.43% 10/1/19 $1,450 $19.33 3% Annual CPI Increases

Barber Retail 13486-B 900 11.43% 10/1/19 $1,450 $19.33 3% Annual CPI Increases

Church Retail 10568 500 6.35% MTM $1,200 $28.80 3% Annual CPI Increases

Billboard Retail - - - 1/1/23 $2,100 - -

Total 5,500 $9,322

RENT ROLL INFORMATION - RESIDENTIAL

UNIT TYPE SF CURRENT RENT RENT / SF POTENTIAL RENT RENT/SF

Front 3 Bed / 2 Bath 1,116 $1,800 $1.61 $2,200 $1.97

Rear 3 Bed / 2 Bath 1,259 $1,750 $1.39 $2,200 $1.75

Total 2,375 $3,550 $1.49 $4,400 $1.85

NOTES 1. Unit 13486 is subdivided. Barber is month to month. 20 21 2. Rear house is Section 8. FINANCIAL SUMMARY - INVESTMENT OPERATING DATA

INCOME CURRENT YEAR 1 OFFERING PRICE CURRENT CAP RATE Multfamily $2,050,000 5.37% Gross Scheduled Rent $42,600 $54,384 Vacancy 3% $1,278 3% $1,632

Effective Gross Income $41,322 $52,752

PROPERTY INFORMATION Retail

Price $2,050,000 Gross Scheduled Rent $111,864 $115,164

Down Payment (45%) $820,000 Vacancy 5% $5,593 5% $5,758 Effective Gross Income $106,271 $109,406 No. of Residential Units 2

No. of Commercial Suites 7 Combined EGI $147,593 $162,158 Price Per SqFt $260.28 Less: Expenses $37,542 $36,604 Lot Size (Acres) 0.38 Acres Net Operating Income $110,051 $125,554

Rentable SF 7,875 Debt Service ($80,593) ($80,593)

Year Built/Renovated 1951 Net Cash Flow After Debt Service $29,457 $44,961

Principal Reduction $17,661 $18,593

FINANCING 1ST LOAN Total Return 5.75% $47,119 7.75% $63,554

Loan Amount $1,230,000 EXPENSES Loan Type New Real Estate Taxes $26,563 $25,625 Interest Rate 5.15% Insurance $3,600 $3,600 Amortization 30 Years Utilities - Combined $987 $987 Year Due 2048 Operating Expenses - Combined $4,392 $4,392

Operating Reserves $2,000 $2,000 Loan information is subject to change. Contact your Marcus and Millichap Capital Corporation representative. Total Expenses $37,542 $36,604 22 23 OWNER-USER ANALYSIS

OWNERSHIP

Purchase Price $2,050,000

Down Payment $205,000

Loan Amount $1,845,000

Monthly/Yearly Debt Payment $11,056 / $132,673 Principal Reduction $36,685 13476 Annual Operating Expenses $38,027 Annual Income $59,640 VAN NUYS Cost of Ownership $6,198 per month / $1.35 per SF PACOIMA, CA Current market lease rate is approximately Leasing $1.25 - $2.00 / SF

LOAN ASSUMPTIONS

Interest Rate 5.25%

Amortization 25 Year

This analysis assumes that a new owner occupies suites 13482, 13484, 13486, and 10568 for a total of 4,600 SF (58% of the rentable building area). Analysis assumes that new owner retains remaining tenants for income, and utilizes S.B.A. financing with 10% down payment. Additional after-tax benefit can be achieved through depreciation of the property and interest deduction on the loan. Loan information is subject to change.

24 13476 LOCATION VAN NUYS PACOIMA, CA OVERVIEW PACOIMA DOWNTOWN ARTS DISTRICT

PACOIMA Light Rail Development The East San Fernando Valley Transit Corridor has been approved and is scheduled to be deliv- ered in 2020. The light rail will connect the Orange Line and the Amtrak line, and will run along Van Nuys Blvd. BRADLEY Pacoima Downtown Arts District AVENUE The city of Pacoima is revitalizing the area by creating a pedestrian-friendly, community-oriented PLAZA downtown along Van Nuys Blvd between Laurel Canyon Blvd and San Fernando Rd. Phase 1 of this plan has already been implemented, with traffic-slowing measures along Van Nuys Blvd. The city is working with the County of Los Angeles to obtain funding for the next stage of revitaliza- DOWNTOWN tion, which would include funding to improve the façade of existing structures in this area, with the intention of creating a community oriented city center with a focus on the arts, shopping, PACOIMA dining and new nightlife opportunities. ARTS DISTRICT 13476 VAN NUYS Bradley Avenue Plaza PACOIMA, CA The city recently developed an outdoor community center on Van Nuys Blvd and Bradley Ave, de- signed by LADOT and Pacoima Beautiful. The project is being expanded by closing off the alley between Pala Ave and Lehigh Ave to create the Bradley Green Alley. This interactive green space will provide seating, lighting and art from the local community.

28 SAN FERNANDO VALLEY

The Largest Geographical Region of Los Angeles County

The San Fernando Valley is an urbanized valley in Los Angeles County, California, defined by the mountains of the Transverse Ranges circling it. Home to 2.9 million people, it is north of the larger, more populous Los Angeles Basin. Nearly two thirds of the valley’s land area is part of the city of Los Angeles. The other incor- porated cities in the valley are Glendale, Burbank, San Fernando, Hidden Hills, Agoura Hills, and Calabasas. The San Fernando Valley is about 260 square miles bound by the Santa Susana Mountains to the northwest, the Simi Hills to the west, the Santa Monica Mountains and Chalk Hills to the south, the Verdugo Mountains to the east, and the San Gabriel Mountains to the northeast. The northern Sierra Pelona Mountains, north- western Topatopa Mountains, southern Santa Ana Mountains, and Downtown Los Angeles skyscrapers can be seen from higher neighborhoods, passes, and parks in the San Fernando Valley. The Los Angeles River begins at the confluence of Calabasas Creek (Arroyo Calabasas) and Bell Creek (Escorpión Creek), between Canoga Park High School and Owensmouth Ave. (just north of Vanowen Street) in Canoga Park. These creeks’ headwaters are in the Santa Monica Calabasas foothills, the Simi Hills’ Hidden Hills, Santa Susana Field Laboratory, and Santa Susana Pass Park lands. The river flows eastward along the southern regions of the Valley. One of the river’s two unpaved sections can be found at the Sepulveda Basin. A seasonal river, the Tujunga Wash, drains much of the western facing San Gabriel Mountains and passes into and then through the Hansen Dam Recreation Center in Lake View Terrace. It flows south along the Verdugo Mountains through the eastern communities of the valley to join the Los Angeles River in Studio City. Other notable tributaries of the river include Dayton Creek, Caballero Creek, Bull Creek, Pacoima Wash, and Verdugo Wash. The eleva- tion of the floor of the valley varies from about 600 ft to 1,200 ft above sea level. Most of the San Fernando Valley is within the jurisdiction of the city of Los Angeles, although a few other incorporated cities are located within the valley as well: Burbank and Glendale are in the southeast corner of the valley, Hidden Hills and Calabasas are in the southwest corner, and San Fernando, which is completely surrounded by Los Angeles, is in the northeast valley. Universal City, an enclave in the southern part of the valley, is unincorporated land housing the Universal Studios filming lot and theme park. Mulholland Drive, which runs along the ridgeline of the Santa Monica Mountains, marks the boundary between the valley and the communities of Hollywood and the Los Angeles Westside.

30 31 13476 COMPARABLE VAN NUYS PACOIMA, CA PROPERTIES SALES COMPARABLES

# ADDRESS CITY SALE PRICE $/SF YEAR BUILT COE DATE

1 13691 Vaughn St San Fernando $6,132,000 $485.51 2011 10/6/17

2 14001 Osborne St Arleta $3,575,000 $357.21 1965 10/2/17 14 3 13657 Van Nuys Blvd Pacoima $2,200,000 $320.84 1953 3/17/18 $354 Avg Price / SF Retail 4 8717 Woodman Ave Panorama City $2,100,000 $337.08 1958 11/9/17

5 711 Truman St San Fernando $1,175,000 $369.03 1953 3/16/18

6 13627 Van Nuys Blvd Pacoima $907,100 $176.75 1962 6/28/18 18 5 7 7 702 Celis St San Fernando $750,000 $200.00 1971 8/1/18 9 1 8 15422 Devonshire St Mission Hills $750,000 $400.00 1958 6/20/18 17 6 9 12544 Van Nuys Blvd Pacoima $10,750,000 $221.00 1957 12/27/17 16 10 12309 Osborne Pl Pacoima $8,400,000 $258.91 2008 6/6/18 6 10 11 8635 Snowden Ave Arleta $4,605,000 $202.29 1971 5/9/18 $1.55 3 12 9256 Wakefield Ave Panorama City $3,090,000 $402.66 1987 1/30/18 Avg Rent / SF Retail 8

13 8924 Van Nuys Blvd Panorama City $3,090,000 $197.19 1960 2/27/18

14 13222 Maclay St San Fernando $1,930,000 $281.67 1954 7/24/18

15 8912 Van Nuys Blvd Panorama City $1,786,000 $113.98 1960 9/7/18 13476 16 13451 Filmore St Pacoima $1,332,000 $257.44 1949 10/17/17 12 VAN NUYS 17 14142 La Rue St San Fernando $1,000,000 $262.74 1926 4/17/18 PACOIMA, CA 2 18 656 4th St San Fernando $950,000 $324.79 1978 10/12/18 13 15 5.10% 11 Avg Cap Rate Retail RETAIL MULTIFAMILY 34 4 35 Median Home Value

SINGLE FAMILY HOUSING MARKET 3 BEDROOM HOMES $2,145 Avg Asking Rent for 3 Bedroom Units SALES COMPARABLE - MIXED USE $457K

13627 VAN NUYS BLVD, PACOIMA, CA 91331 $200,855 RETAIL STOREFRONT + 2 APARTMENT UNITS Purchase Price $907,100 Multifamily Avg price / unit Close of Escrow 6/28/2018 Cap Rate 5.09%

Price / SF $176.75 $375/SF 5.8% NOTES 14 HOMES This is a Retail Storefront and 2 Apartment Property which was purchased AVG IN PACOIMA HOME VALUE GROWTH SOLD THIS YEAR WITHIN A as an investment. The 5,132 SF Building sold in a Financed Transaction, SINCE 10/17 OVER THE PAST YEAR 2.5M RADIUS (3 BED) with a Cap Rate of 5.09%, and an NOI of $46,172. Escrow was 60 days 4.50% Avg Cap Rate Multifamily SOURCE: ZILLOW - SURVEY OF 14 HOMES SOLD SINCE 10/17 36 37 13476 EXCLUSIVELY LISTED BY VAN NUYS PACOIMA, CA

ROSALEEN O’SULLIVAN Investment Advisor Member - National Retail Group Tel: (818) 212-2792 Fax: (818) 212-2710 [email protected] License: CA 01904175