▪ Senior Investment Associate (310) 617-2240 [email protected] DRE #01802527

ADDRESS 7011 FOUNTAIN AVENUE LOT SIZE 5,731 SF

CITY LOS ANGELES, CA 90028 UNITS 6

APN 5548-023-015 PARKING 3 (Off-Site)

YEAR BUILT 1923 BUILDINGS 2

Separately metered for gas & SQUARE FEET 3,288 SF METERING electric

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 Gorgeous 6-unit bungalow with romantic Courtyard entry. It features excellent in place rents with solid upside for one unit. This property will generate significant income from the in-place rents with low expenses for durable cash flow. It is in Hollywood, adjacent to West Hollywood, one of LA’s most endearing neighborhoods but free from the more restrictive rent control laws. This is a prime opportunity to add a blue-chip investment to your portfolio .

The building has literally been rehabbed from the ground up. The owner completely rebuilt the entire foundation of both structures with 2500 PSA concrete and rebar, new steel plates and braced cripple wall. The sewer was relined from back of the building to the street. An antique Mediterranean entry door leads to a serene romantic courtyard and secure access to the units. The entire courtyard and patio is new concrete with Moroccan decorative tiles and new drain covers. It features interior sidewalls and hardscaping with manicured trees and ground cover.

5 of the 6 units have been rehabbed and feature updated kitchens and baths with new cabinets, granite countertops and tile floors, new fixtures and some have washer and dryer. 3 of the units have reserved parking across the street and all enjoy front and rear entrances. It features interior sidewalls and hardscaping with manicured trees and ground cover. 5 of the 6 units have been rehabbed and feature updated kitchens and baths with new cabinets, granite countertops and tile floors, new fixtures and some have washer and dryer. 3 of the units have reserved parking across the street and all enjoy front and rear entrances.

▪ Classic 6 Unit Bungalow- Hollywood/West Hollywood adjacent

▪ 4.19% Cap rate at current rents -with upside 7011 Fountain Ave is located in world famous Hollywood, 1 block from ▪ All tenants current in rent the border of West Hollywood and central to the "hipster" ameneties that tenants desire. It is 2 blocks to shop at the Ralphs market on La Brea ▪ New foundation and concrete patio/walkway. New roof coating and walking distance to Best Buy, Target, The Guitar Center and more. Entertainment options nearby are nearly unlimited -Hollywood & ▪ 5 of 6 units are Rehabbed Highland (with world famous Kodak Theatre), hiking at Runyan Canyon, The Hollywood Sign, Paramount studios and The . ▪ Some units with Washer/Dryers

3 of the units have reserved parking across the street and all enjoy front ▪ Front and rear entries for all units and rear entrances. Don’t miss this unique opportunity to acquire a stake ▪ 3 Units have reserved off-site parking in iconic West Hollywood, one of LA’s most desirable neighborhoods. Eateries Retail Leisure

Mickey Hargitay Plants

Whole Foods Training Tashman Home Market Mate Center Mechta Deli Harlow Bar Trader Joe’s

Bar Lubitsch West Hollywood Gateway Mall Best Buy BevMo! Fala Bar Formosa Mendocino Farms Zero’s Artist of Crossroads Save by the Max GNC Beauty Gooring Bros Trading The Parlor Melrose Trading Post

Bait Urban Melrose Blue Jam Summer Lala’s Outfitters Umbrella Co. Cafe Buffalo Argentine Grill

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028

HOLLYWOOD, CA Located in a premier pedestrian location the asset benefits from easy access to employers, major studios, financial firms, entertainment and historic attractions.

Hollywood has seen a tremendous revitalization over the last decade. An influx of capital dedicated to the revitalization of Hollywood has attracted a new resident base of young urban dwellers. This new, hip client base has brought new restaurants, night clubs, and retail opportunities, making Hollywood one of the more desirable submarkets in the greater Los Angeles area.

GENTRIFICATION In the past decade, Hollywood has experienced significant gentrification and development, specifically along Hollywood Boulevard. Most notable is the Hollywood and Highland Center, which includes 75 retailers, several historic theatres along with night clubs, restaurants, movie theatre, and bowling lanes.

TRANSIT ORIENTED The Metro Red Line connects Downtown Los Angeles and North Hollywood via the districts of Hollywood and Mid- Wilshire. In North Hollywood it connects with the Orange Line (bus rapid transit) service for stations to the Warner Center in Woodland Hills and Chatsworth. It also connects to the Metro Purple Line, which reaches Koreatown and Midcity. At Union Station in downtown, passengers can reach West Los Angeles, Pasadena, San Fernando Valley, South Bay, and Long Beach. Within a short distance of the subject are numerous world-renowned restaurant and entertainment hotspots that include ENTERTAINMENT CAPITAL OF THE WORLD ▪ Pantages Theatre ▪ Hollywood Bowl Hollywood & Highland, The Hollywood ▪ TCL Chinese Theatre ▪ Hollywood Walk of Fame ▪ Hollywood & Highland ▪ Cinerama Dome Dome (Arclight Cinemas), The Hollywood ▪ ▪ Hollywood Paladium Roosevelt, and the Hollywood Walk of ▪ El Capitan Theatre Fame. The ease of access to a variety of amenities and attractions makes THRIVING CREATIVE EMPLOYERS Hollywood a suitable environment for an unlimited scope of interests and a true 24- hour active urban center.

REGIONAL TRANSPORTATION HUB

▪ Two main subway stations: Hollywood and Vine and Hollywood and Highland, each with over 1 million riders annually ▪ Located within 45 minutes to Los Angeles International, Hollywood Burbank, Van Nuys, and Santa Monica Airports ▪ Only 15 minutes to Downtown LA, , Los Angeles Convention Center, and Universal Studios via the Metro Rail RANK EMPLOYER #

1 Kaiser Permanente Hospital 5,400

2 Universal Studios, Inc. 5,000

3 Children’s Hospital of Los Angeles 4,994

4 Sunset Gower / Sunset Bronson Studio 2,500

5 Paramount Pictures 2,000

6 Netflix 1,500

7 Los Angeles City College 1,383

8 Live Nation 1,300

9 Hollywood Presbyterian Medical Center 1,200

10 Viacom 900

11 J 2 Global, Inc. 860

12 The Prospect Studios 850

13 CBS at TV City 700

14 The Original Farmers Market 600

15 Trailer Park 556

16 Los Angeles Gay & Lesbian Center 546

17 Roosevelt Hotel 399

18 Loews Hollywood Hotel 385

19 Technicolor 375

20 Capitol Records 325 BOOMING DEVELOPMENT LOCATION TRANSIT ORIENTED COMMUNITY After years of limited development, the city is Transit Oriented Communities (TOCs) include land use BOOMING. It is now a model of urban revitalization planning and community development policies that bringing together educational, retail, hospitality and maximize access to transit as a key organizing principle residential properties to an eclectic neighborhood. and acknowledge mobility as an integral part of the urban fabric.

OVER $7.5 BILLION IN INVESTMENTS NOTEWORTHY BUSINESSES Hollywood has seen billions in investments in major Creative businesses from established companies to retail, residential, hospitality, commercial and business startups incubating in collaborative workspaces are projects since 2000. Major employers located in flourishing at the nexus of the media, technology, and Hollywood, like Viacom, Capitol Records and Netflix, music industries. Businesses are taking spaces in a put Hollywood at the nexus of the entertainment, music number of massive new mixed-use projects: Capitol and tech industries. With an expanded investment in Records, j2 Global, Sunset Gower Studios, Caviar LA, the community, the Hollywood Entertainment District Netflix, Trailer Park, Fender, Neuehouse, Viacom will help chart Hollywood’s continued growth as an economic powerhouse for the city and region.

TECH & MEDIA MOMENTUM NOTABLE WALKSCORE Hollywood’s local economy is riding a transitional wave The growing trend of re-urbanization within the of revitalization generated by a surge of jobs and Hollywood submarket is evident. As demand for urban enhanced public transportation, resulting in fortified living continues to spike, renters increasingly desire population growth. Inventory for office space is on track walkable neighborhoods. The subject, considered a to double its current stock and reach 6 million square “Very Walkable” with a Walkscore of 84, epitomizes the feet by 2020. highly sought after urban-living community. West Hollywood West Hollywood is one of the strongest and most affluent submarkets in all of Los Angeles County. Ideally situated in the westside of Los Angeles, West Hollywood submarket boasts strong high-end demographics with an average household income of $102,000. The area around Fountain Avenue, Harper Avenue and Havenhurst Drive contains a high concentration of landmark 1920s Spanish Revival and Art Deco apartment buildings by such noted architects as Leland Bryant. This historic district has been home to many celebrities and at one time the Sunset Tower at 8358 was home to Frank Sinatra, Errol Flynn, the Gabor sisters, John Wayne and Howard Hughes. The local economy provides jobs primarily in entertainment, health care, social services, and professional services.

West Hollywood and its surrounding submarkets have quickly become a multigenerational hub. West Hollywood is roughly 37% Generation X Adults (Ages 30- 49) mixed with 25% Adult Boomers (Ages 50-68) and the remaining 37% Generation Y Adults (Ages 18-29). This unique mix of students, entrepreneurs, residents, and tourists in West Hollywood create a lively and hustling city. WeHo, as the locals call it, is home to fantastic restaurants, hotels, nightlife, and shopping. Its creative energy is palpable throughout the entire neighborhood, which has become a destination for modern furniture and decor. With no shortage of things to do in West Hollywood, it’s a popular place for both tourists and locals to visit

The West Hollywood experience is a melting pot of traditions, whether it’s innovative vegan food, couture fashion, or street art and statues. This is not a neighborhood populated by the faint of heart, so arrive ready for excitement.

West Hollywood is home to many of Los Angeles’ most iconic hotels, music venues, and comedy clubs. When residents crave fresh air, nearby Runyon Canyon is one of the city’s most beautiful hikes.

While WeHo draws its share of out-of-towners, the locals represent an equally diverse crowd. Dynamic nightlife and entertainment generate a palpable energy that courses through the community. Located at the base of the Hollywood Hills and adjacent to Beverly Hills, West Hollywood continues to emerge as a dynamic creative hub that embodies the quintessential L.A. lifestyle. Comprised of three main districts—the iconic , the eclectic Santa Monica Blvd., LOCATION and the cutting-edge West Hollywood Design District— West Hollywood packs some of L.A.’s hottest destinations, coolest restaurants, and chicest shops into just under two square miles. The ADVANTAGE Villas at Huntley Drive is the quintessential urban oasis ideally located in the heart of everything that West Hollywood has to offer.

The property boasts an unbeatable location in one the most walkable

West Hollywood has been dubbed “The areas in greater Los Angeles, guests can easily stroll to some of the Creative City,” and for good reason. Bordering city’s most sought-after restaurants, including Catch, Gracias Madre, Beverly Hills and Los Angeles, “WeHo” is where Craig’s, Roku, Pump, and E.P./L.P. Home to L.A.’s best art galleries, fashion and the arts rule, easy to see as you WeHo’s Design District is also where you’ll find world-class boutiques travel the streets of the West Hollywood Design like Christian Louboutin, 3.1 Phillip Lim, and Rag & Bone. The Sunset District. This trendsetting area includes Strip’s storied music venues, including The Roxy Theatre, Whisky a galleries and the Pacific Design Center on Go-Go, continue to draw crowds night after night, while world-class Melrose Avenue, and interior design cultural attractions like the L.A.’s Museum Row are also close by. showrooms along Beverly Boulevard. Shop at leading boutiques (and keep your eyes open West Hollywood is a constant indulgence of the senses, which is for celebrities and stars) along ever-stylish exactly why its locals love it. It is considered one of the most vibrant Robertson Boulevard. and exciting parts of Los Angeles.

WeHo, as the locals call it, is home to fantastic restaurants, hotels, nightlife, and shopping. Its creative energy is palpable throughout the entire neighborhood, which has become a destination for modern furniture and decor. With no shortage of things to do in West Hollywood, it’s a popular place for both tourists and locals to visit.

17 The Sunset Strip, a stretch of Sunset Boulevard between Crescent Heights Boulevard and Doheny Drive, is one of Santa Monica Boulevard West Hollywood Design Sunset Strip L.A.’s most iconic neighborhoods. The Sunset Strip is a Historic Route 66 District A world-famous cultural world famous historical and cultural landmark. It is often The Western add mid city areas of West Hollywood design landmark, the Sunset Strip, portrayed in movies and in the 1960's became a major Santa Monica boulevard are district is located South of bordered on the west by gathering place for the counterculture movement. Today, home to celebrity frequented Santa Monica Boulevard Beverly Hills and on the east The Strip is home to an array of world-class hotels, restaurants, eclectic boutiques, bordered on the west by by Hollywood features an , restaurants, shops and spas. coffee shops, gyms and nightlife Doheny Drive, on the South array of world class hotels establishments. On the East Side by Beverly Boulevard on the common night clubs, The Sunset Strip continues to launch new artists and attract you will find Los Angeles largest east by a La Cienega restaurants and spas. It is also crowds to legendary music venues like The Roxy Theatre, Russian speaking community and Boulevard, the design district home to music, film and Whisky a Go Go and . Meanwhile, swanky a Bohemian vibe from hipsters in promotes the area as a entertainment companies. hotel bars such as Tower Bar at the Sunset Tower Hotel and the entertainment/multimedia cultural destination for a high Skybar at Mondrian boast some of the most popular and industries and join the Delhi's, caliber design, art fashion exclusive hideaways on the Strip. Celebrities, locals, and cafes, and restaurants. dining and beauty. visitors alike can find shopping, alfresco dining, and nightlife on this eclectic destination.

HOLLYWOOD DTLA KOREATOWN MIRACLE MILE BEVERLY HILLS # EMPLOYER # OF EMPLOYEES

LA County Metropolitan 1 520 Transportation Authority

2 Target 289

CityGrid Media / InterActive 3 288 Corp

4 Mondrian Hotel 268 RETAIL SALES WORKFORCE BUSINESSES $1.09B Retail Sales 23,900 Total 2,800 Businesses Annually Employment 5 City of West Hollywood 236

6 Sunset Marquis Hotel 200

CITY SIZE DENSITY POPULATION 7 1 OAK 200 1.9 Square Miles 18,225 People per Square 34,399 People Mile

8 Laz Parking 200

9 The London West Hollywood 175

VISITORS TOURISM SPENDING 1 Pavilions 180 1.15 Million Annual 4,700 Jobs Supported by $750M Annual Visitor 0 Visitors Tourism Spending

PRICING THE ASSET FINANCING OFFERING PRICE $1,995,000 Units 6 Down 54% $1,077,300 PRICE/UNIT $332,500 Year Built 1923 Loan 46% $917,700 PRICE/SF $606.75 Gross SF 3,288 Ammort Years 30 GRM 15.78 13.52 Lot SF 5,731 Interest Rate 3.23% CAP RATE 4.19% 5.31% APN 5548-023-015 Payments ($3,981) Current Market

MONTHLY RENT SCHEDULE # of Units Type Estimated SF Avg.Current Current Total Market Market Total 1 1 Bd/1 Ba 540 $1,975 $3.66 $1,975 $2,050 $3.80 $2,050 1 1 Bd/1 Ba 540 $1,975 $3.66 $1,975 $2,050 $3.80 $2,050 1 1 Bd/1 Ba 540 $1,907 $3.53 $1,907 $2,050 $3.80 $2,050 1 1 Bd/1 Ba 540 $1,875 $3.47 $1,875 $2,050 $3.80 $2,050 1 1 Bd/1 Ba 564 $854 $1.51 $854 $2,050 $3.63 $2,050 1 1 Bd/1 Ba 564 $1,950 $3.46 $1,950 $2,050 $3.63 $2,050 6 $10,536 $12,300

ANNUALIZED INCOME Current Market Scheduled Gross Income $126,429 $147,600 Vacancy Rate Reserve 4% ($5,057) 3% ($4,428) Other Income $900 $900 Gross Operating Income $122,271 $144,072

ANNUALIZED EXPENSES Current Market Building Insurance (Hazard + EG) $4,881 $5,466 Landscaping $1,080 $1,080 Leased Parking (2 Spaces) $1,800 $0 Pest Control $600 $600 Repairs (@$0.65 SF PSF) $2,137 $4,680 Reserves - $200/Unit $1,200 $1,200 New Property Tax 1.200129% $24,306 $22,426 Special Assessments $973 $870 Utilities - LADWP $1,500 $1,800 Utility Reimbursement - Unit 7013 $300 $0 Total Expenses $38,777 $38,122 Expenses/Unit $6,463 $6,354 Expenses/SF $11.79 $11.59 % of SGI 31.71% 26.46%

RETURN Current Market NOI $83,494 $105,950 Less Debt ($47,776) ($47,776) Cashflow $35,719 $58,174 Cash on Cash 3.32% 5.40% Debt Coverage 1.75 2.22

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 Unit # Type Estimated SF Current Rent Current Rent/SF Market Rent Market Rent/SF Status

1 1 Bd/1 Ba 540 $1,975 $3.66 $2,050 $3.80 Occupied

2 1 Bd/1 Ba 540 $1,975 $3.66 $2,050 $3.80 Occupied

3 1 Bd/1 Ba 540 $1,907 $3.53 $2,050 $3.80 Vacant

4 1 Bd/1 Ba 540 $1,875 $3.47 $2,050 $3.80 Occupied

5 1 Bd/1 Ba 564 $854 $1.51 $2,050 $3.63 Occupied

6 1 Bd/1 Ba 564 $1,950 $3.46 $2,050 $3.63 Occupied

Totals: 3,288 $10,536 $12,300

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028

PHOTO ADDRESS UNITS BUILT GROSS SF LOT SIZE UNIT MIX SALE DATE PRICE PRICE/UNIT PRICE/SF CAP GRM 1 1335 N. McCadden Pl 5 1911 3,241 5,227 1 - 1+1 10/23/2020 $1,800,000 $360,000 $555 6.37% 12.80 Los Angeles, CA 90028 4 - 2+1

2 1408 N. Las Palmas Ave 6 1957 3,432 7,144 6 - 1+1 10/20/2020 $1,350,000 $225,000 $393 2.46% 19.00 Los Angeles, CA 90028

3 1031 N. Orange Grove Ave 7 1989 6,004 6,534 1 - Studio 9/14/2020 $2,612,500 $373,214 $435 4.69% 14.60 West Hollywood, CA 90046 6 - 2+2

4 1237 N. Orange Grove 8 1926 7,886 7,405 8 - 1+1 8/17/2020 $3,025,000 $378,125 $384 4.47% 16.50 West Hollywood, CA 90046

5 157 S. Sycamore Ave 6 1958 7,348 7,405 2 - 1+1 8/20/2020 $2,550,000 $425,000 $347 3.89% 18.40 Los Angeles, CA 90036 4 - 2+1

AVERAGES 5,582 6,743 $2,267,500 $352,268 $423 4.38% 16.26

S Subject Property 6 1923 3,288 5,731 6 - 1+1 $1,995,000 $332,500 $607 4.19% 15.78 7011 Fountain Avenue Los Angeles, CA 90028

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 PRICE/UNIT PRICE/SF $450,000 $425,000 $700 $607 $400,000 $373,214 $378,125 $360,000 $600 $555 $350,000 $332,500 $500 $300,000 $435 $393 $384 $250,000 $225,000 $400 $347

$200,000 $300 $150,000 $200 $100,000 $100 $50,000 $0 $0 1 2 3 4 5 S 1 2 3 4 5 S

CAP RATE GRM 7.00% 20.00 19.00 6.37% 18.40 18.00 16.50 6.00% 15.78 16.00 14.60 4.69% 5.00% N/A 14.00 N/A 4.19% 3.89% 4.00% 12.00 10.00 3.00% 2.46% 8.00 2.00% 6.00 4.00 1.00% 2.00 0.00% 0.00 1 2 3 4 5 S 1 2 3 4 5 S

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 1 1335 N. McCadden Pl

2 1408 N. Las Palmas Ave

3 1031 N. Orange Grove Ave

4 1237 N. Orange Grove

5 157 S. Sycamore Ave

S 7011 Fountain Avenue

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing.

EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party.

All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction.

All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by KW Commercial in compliance with all applicable fair housing and equal opportunity laws.

7011 FOUNTAIN AVENUE LOS ANGELES, CA 90028 ▪

KEITH MORET Senior Investment Associate (310) 617-2240 [email protected] DRE #01802527