1035 NORTH GARDNER STREET

9-Unit Multifamily Investment Opportunity in West Hollywood CONFIDENTIALITY AGREEMENT

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- ac curacy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether CONTENTS 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 PROPERTY DESCRIPTION verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent profession- 04 als. 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 EXECUTIVE SUMMARY performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can 12 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 OVERVIEW party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should 16 be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property com- plies 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 MARKET COMPARABLES housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified 22 its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

Exclusive Listing Agents:

RICH JOHNS NICK ASTRUPGAARD Multifamily Investment Advisor Multifamily Investment Advisor 818.432.1575 323.868.9553 [email protected] [email protected]

CALBRE LIC#01432215 CALBRE LIC. #01893466 THEOFFERING KW Commercial is pleased to offer for sale, for the first time in approximately 50 years, 1035 North Gardner Street, a multi-family apartment community located in West Hollywood, CA (90046). 1035 North Gardner Street, consists of 9 apartment units, built in 1956 and including +/- 5,969 SF of improvements and boasting an exceptional unit composition of Six (6) One Bedroom / One Bath, Two (2) Singles and One (1) Two Bedroom / One Bath apartment homes. 1035 North Gardner features large windows for abundant natural light, mature landscaping along walkways for added privacy, onsite Property laundry facilities and parking for 10 total vehicles. The apartment homes are individually metered for gas and Description electrical utilities, thus keeping the owner expenses very low. Select and significant interior upgrades historically includes new stainless appliances, granite countertops, tiled and hardwood floors, wardrobe, lighting and updated bathrooms, making this classic 1950’s building ready for today’s lifestyle. The asset is located close to exceptional area amenities with nearby world-class dining, shopping, entertainment and nightlife venues along the renowned Santa Monica Blvd., Beverly Blvd., and Fairfax Avenues. The property also offers convenient access to business services and major employment centers throughout West Hollywood and the Fairfax District. There is substantial rental upside based on current market rents vs existing rents thus representing a strong long term investment opportunity in a strong Los Angeles location. INVESTMENT HIGHLIGHTS

THE OPPORTUNITY: LOCATION: • Available For Sale For The First Time in Over 50 Years Located just one block south of Santa Monica Blvd. and 1035 N Gardner Street between Fairfax Blvd. & La Brea Avenue residents are offered • Exceptional 9 Unit Multifamily in a World-Class West a multitude of restaurants, cafés, shopping and entertainment Hollywood Location West Hollywood venues all of which offer character to the social, cultural and • Excellent Unit Composition with Six (6) One Bedroom - One business life of the economically vibrant and world renowned Bath, Two (2) Single & One (1) Two Bedroom - One Bath CA 90046 West Hollywood. Apartment Homes In an effort to ensure a healthy business community, West • Excellent Opportunity to Attract from a Well-Healed Renter Hollywood has formed three Business Improvement Districts Demographic (BID); the Avenue of Arts and Design, the Sunset Strip Business Association and the West Hollywood Marketing and Visitors • Location Provides Access to Countless Dining, Shopping, Bureau. Nightlife and Entertainment Venues The Avenue of Arts and Design is one of the premier locations • Tandem Parking for 10 Total Vehicles for art, design, restaurants, boutiques, and specialty . The Sunset Strip Business Association promotes the area’s unique • Separate Gas and Electrical Metering Provide Low Expenses cultural and entertainment offerings. The West Hollywood • Significant Rental Upside Marketing and Visitors Bureau represents the City’s many luxury hotels.

West Hollywood features a vibrant and diverse business community in addition to being convenient to Los Angeles’ other major commercial districts; Beverly Hills, Downtown Los Angeles, and Century City. West Hollywood’s two major industry sectors are Services, Hotels, Motion Pictures, and Health Services and Retail; Restaurants and Bars, Food Stores, and Miscellaneous Retail. Exterior Interior FINANCIAL SUMMARY 1035 N Gardner Street, West Hollywood, CA 90046

MARKET RENT FINANCIAL INDICATORS SOURCE OF INCOME CURRENT RENT Post Renovation Offering Price $2,720,000 # of Units Unit Type Avg. Rent Total Avg. Rent Total 2 Large Single $1,038.46 $3,426.80 $1,595 $3,190 Current CAP 4.0% 1 2 Bed / 1 Bath $1,918.00 $4,743.00 $2,595 $2,595 Market CAP 6.3% 6 1 Bed / 1 Bath $1,634.61 $3,988.00 $2,250 $13,500 Current GRM 16.30 Total Rental Income 13,802.58 $19,285 Market GRM 11.69 Laundry Income Estimate $100 $100 Cost Per Unit $302,222 (building owned) Price per SF $455.69 Total Annual Income 166,830.96 $232,620

Expenses Per Unit -$6,426 Expenses Per Sq Ft ($9.69) EST. ANNUALIZED OPERATING DATA CURRENT MARKET Executive Scheduled Gross Income $166,831 $232,620 Less Vacancy 2.0% ($3,337) 2.0% ($4,652) BUILDING DATA Gross Operating Income $163,494 $227,968 Units 9 Less Expenses -35.4% ($57,832) 25% ($57,832) Summary Year Built 1956 Net Operating Income $105,662 $170,136 Lot Sq Ft 6,373 Bldg Gross Sq Ft 5,969 Parking Spaces 10 NOTATIONS: 1. Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $650 / unit / year / ESTIMATED ANNUALIZED EXPENSES post-renovation. New Property Taxes $40,800 2. Contract Service: Expenses are projected for Pest Control ($75/mo), Landscaping ($75/mo) based on market rates. Utilities (DWP & Gas) $5,400 3. Utilities: Estimated at $600 / unit / year based on market rates. Separately metered for Gas & Electrical utilities. Property Insurance $2,686 4. Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.15%. Landscaping $900 5. Property Insurance: Pro Forma insurance expense is based upon $0.45/SF/Year. Repairs & Maintenance $5,850 6. Laundry Equipment: Owned by building / not leased Rental Registration $1,296 Pest Control $900 Total Estimated Expenses $57,832 RENT ROLL 1035 N Gardner Street, West Hollywood, CA 90046

UNIT STATUS UNIT TYPE Current Rent Market Rent Post Renovation 1 Leased One Bed | One Bath $1,235.82 $2,250 2 Vacant-Unrenovated One Bed | One Bath $2,250.00 $2,250 3 Leased Large Single $962.66 $1,595 4 Leased One Bed | One Bath $1,350.52 $2,250 5 Leased Two Bed | One Bath $1,918.00 $2,595 6 Leased One Bed | One Bath $1,781.00 $2,250 7 Leased One Bed | One Bath $1,184.32 $2,250 8 Leased Large Single $1,114.26 $1,595 9 Leased One Bed | One Bath $2,006.00 $2,250 $13,802.58 $19,285 City of West Hollywood

With a walk score of 94, the property is within close proximity to popular destinations such as The Hudson, Connie & Ted’s, Trader Joe’s, 8000 Sunset, and countless local amenities along Santa Monica Boulevard, Sunset Boulevard, and La Cienega Boulevard.

West Hollywood (“WeHo”) is located in the eastern portion of the West Los Angeles area. The city is bounded by the community Market of Hollywood to the north, east, and south; and the city of Beverly Hills to the west.

Overview Today, West Hollywood is a top travel destination among the entertainment industry and LGBT global community. West Hollywood’s stylish hotels attract the well-traveled with their dedication to providing premium service and personalized experiences. The scene is densely packed into 1.9 walkable square miles, including a vast culinary landscape, the Sunset Strip’s notorious nightlife, Pacific Design Center (PDC) and designer flag-ships lining The West Hollywood Design District, celebrity hot spots, global annual events, premier spas and fitness, entertainment and much more. Accessibility Restaurants and Bars Groceries and Markets A WALKABLE Connie and Ted’s Gelson’s Market TRANSIT-ORIENTED COMMUNITY Best Part of West The Hudson Traktir Restaurant Trader Joe’s 1035 N Gardner Street has a staggering 94 Walk Score and 58 Transit Score, a Hollywood’s appeal is its Omi Sushi Odessa Grocery rare combination for apartment buildings in Southern California. connectivity with other The Indian Kitchen Hollywood Yogurtland West Hollywood Farmers Market The subject property are also within walking distance of a variety of highly regarded dining experiences, cafés, boutique shopping, entertainment, and nightlife options including notable popular destinations such as The desirable neighborhoods. Marco’s Trattoria 9 7 17 Hudson, Connie and Ted’s, and Omi Sushi in addition to the local everyday necessities located along Sunset 16 Barbette Because of its location amongst the city highway system, Boulevard, Santa Monica Blvd, and North Fairfax Avenue. 7 Irv’s Burgers it’s easy to get from West Hollywood to other parts of the city quickly and conveniently. Residents in search of Flowering Tree apartments for rent or houses for rent can also use the Delilah Entertainment & Shopping WALK SCORE 94 WALK SCORE 58 LA Transit system to get around the neighborhood or Fatburger “WALKER’S PARADISE” “GOOD TRANSIT” the greater metro area. The neighborhood is also very The Laugh Factory pedestrian friendly. 10 Izakaya Coast Playhouse Daily errands do not Many nearby public require a car. transportation options. 1035 Los Tacos Studs Theatre N GARDNER 1 Pink Dot DGA Theater Complex STREET Los Tacos Lexander 2 4 1 13 8 12 Gold Coast Bar The Ruby LA 1 3 4 14 5 3 8 5 6 11 6 Employees Only Lance Lee Davis 15 2 9 Fubar 18 Voyeur 4 The Surly Goat 2 The Body Shop North CONNIE AND TED’S SURROUNDING AMENETIES Winston’s Bar RESTAURANTS & MARKETS NIGHTLIFE RECREATION Scene Lounge 1 The Hudson 10 Cafe If 1 Employees Only 1 Plummer Park 2 Connie and Ted’s 11 Salt’s Cure 2 Gold Coast Bar 2 Pointsettia Playground 3 Omi Sushi 12 Whole Foods 3 Fubar 3 Rosewood Park 4 Traktir Restaurant 13 The Indian Kitchen 4 The Surly Goat 4 Kings Road Park 5 Yogurtland 14 Odessa Groceries 5 Winston’s Bar 6 Galanga Thai Fusion 15 Gelson’s Market 6 Bar Lubitsch 3 7 The Griddle Cafe 16 Trader Joe’s 7 The Body Shop 8 The Surly Goat 17 Bristol Farms 8 Voyeur 9 The Black Bicycle Cafe 18 Marco’s Trattoria 9 The Laugh Factory THE HUDSON OMI SUSHI New Developments

SUNSET BOULEVARD DEVELOPMENT

1035 N Gardner Street 8159 SUNSET West Hollywood, CA 90046 LA BREA/WILLOUGHBY Frank Gehry-designed mixed use project Four-story mixed-use project with retail, residential and 27,000 SF with 33,500 SF of ground floor central plaza. retail and 179 residential units. SUNSET TIME LA BREA/FOUNTAIN In the former House of Blues location, Six-story mixed-use project with 35,000 SF of retail space, a nightclub 18,000 SF of retail and 187 apart- hotel rooms, condos and apartments. ments in the old Jon’s market 8500 SUNSET RESIDENCES space. Two eight-story towers at La Cienega LA BREA/LEXINGTON and Sunset. Five-story, 32-unit building of 8950 SUNSET LA BREA affordable housing. 169-room Boutique hotel with residenc- BOULEVARD LA BREA/SANTA MONICA es, a rooftop pool and restaurants. Six-story, mixed-use project with WEST HOLLYWOOD EDITION DEVELOPMENTS 12,800 SF of retail space and 184 150-room Ian Schrager hotel, including apartments. high-end condos and lush landscaping.

WEST HOLLYWOOD PARK DEVELOPMENT

ROBERTSON LANE Robertson Lane plans to create a new pedestrian pathway connecting the West Hollywood Design District, Boystown and West Hollywood Park. In addition to a 30 foot wide pedestrian lane, the development plans to feature restaurants, bars, retail and nightlife, 241 hotel rooms, over 1,000 parking spaces as well as public open spaces. Market Comparables RENT RENT COMPARABLES COMPARABLES

SINGLE ONE BEDROOM TWO BEDROOMS

1035 N Gardner Street Year Property Units Built Owner/Manager Rent Rent Rent 1035 N Gardner Street 9 1956 Private Owner $1,038.46 $1,404.30 $1,918.00 1) 939 N Stanley Ave West Hollywood, CA 90046 Owner Managed 2) 938 N Spaulding Ave 1 939 N Stanley Ave 8 1954 Private Owner $1,600 - - West Hollywood, CA 90046 Owner Managed 3) 936 N Sierra Bonita Ave 2 938 N Spaulding Ave 9 1958 Private Owner $1,600 - - West Hollywood, CA 90046 Owner Managed 4) 805-807 N Poinsettia Pl 3 936 N Sierra Bonita Ave 9 1957 Private Owner $1,595 - - 5) 1001 N Curson Ave West Hollywood, CA 90046 Owner Managed 4 805-807 N Poinsettia Pl 10 1928 Private Owner $1,695 - - 6) 7705 Romaine St Los Angeles, CA 90046 Owner Managed 1027 N Stanley Ave 5 1001 N Curson Ave 12 - Private Owner - $2,295 - 7) West Hollywood, CA 90046 Owner Managed 8) 7935 N Genesee Ave 6 7705 Romaine St 9 1940 Private Owner - $2,299 - West Hollywood, CA 90046 Owner Managed 9) 7607 Norton Ave 7 1027 N Stanley Ave 10 1961 Private Owner - $2,394 - West Hollywood, CA 90046 Owner Managed 10) 920 N Orange Grove Ave 8 935 N Genesee Ave 10 1958 Private Owner - $2,395 - 11) 7705 Hampton Ave West Hollywood, CA 90046 Owner Managed 9 7607 Norton Ave 10 1965 Private Owner - $2,390 - 12) 522-526 N Alta Vista Blvd West Hollywood, CA 90046 Owner Managed 13) 7607 Fountain Ave 10 920 N Orange Grove Ave 9 1959 Private Owner - - $2,650 West Hollywood, CA 90046 Owner Managed 11 7705 Hampton Ave 30 1963 Private Owner $2,595 West Hollywood, CA 90046 Owner Managed 12 522-526 N Alta Vista Blvd 9 1925 Private Owner $2,595 Los Angeles, CA 90036 Owner Managed 13 7607 Fountain Ave 18 1956 Private Owner $2,695 Los Angeles, CA 90046 Owner Managed AVERAGE: $1,623 $2,355 $2,634 HIGH: $1,695 $2,295 $2,695 LOW: $1,595 $2,395 $2,595 Exclusive Listing Agents:

RICH JOHNS NICK ASTRUPGAARD Multifamily Investment Advisor Multifamily Investment Advisor 818.432.1575 323.868.9553 [email protected] [email protected]

CALBRE LIC#01432215 CALBRE LIC. #01893466