GLENOAKS 8554 GLENOAKS BOULEVARD, SUN VALLEY, CA 8405 Sun Valley, Ca A shovel ready 19 unit multifamily development opportunity located in a Qualified Opportunity Zone PRESENTED BY

BURBANK NORTH HOLLYWOOD LONNIE MCDERMOTT First Vice President Investments Senior Director, National Land Group Tel: (818) 212-2745 Fax: (818) 212-2710 [email protected] License: CA 01874375

GLENOAKS 8405 Sun Valley, Ca GLENOAKS 8405 Sun Valley, Ca

GLENOAKS BOULEVARD This information has been secured from sources we believe to be reliable, but we make no repre- sentations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example pur- poses only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap

2 3 1 OFFERING SUMMARY

2 PROJECT OVERVIEW

3 AREA OVERVIEW

4

MARKET COMPARABLES THE OFFERING A rare Shovel Ready 19-unit multifamily development opportunity in Sun Valley, CA. The development will consist of an on-grade parking structure with 27 Stalls, (10) 1 Bedroom / 1 Bathroom, (9) 2 Bedroom / 2 Bathroom units spread across three residential floors. The opportunity provides a buyer the ability to immediately begin construction upon close of escrow.

Marcus and Millichap is pleased to present 8405 Glenoaks The immediate area boasts beautiful rolling hills to the north, Boulevard, a unique fully entitled (shovel ready) 19-unit dense immediate population to the south, high barriers to development opportunity in Sun Valley, CA. The opportunity entry, and strong market fundamentals yielding an investor/ consists of 15,275 square feet of vacant land zoned LAR3. owner user favored market conditions with significant growth potential. Centrally located just north of Hollywood Burbank Airport, and conveniently positioned in the center of a broad The property will be delivered as a shovel ready 19 unit range of employment and retail options, 8405 Glenoaks apartment development located in the Sun Valley submarket Blvd is surrounded by high-end neighborhoods (Shadow of the San Fernando Valley. This opportunity provides a Hills, Burbank, La Tuna Canyon), Downtown Burbank, and GLENOAKS buyer the ability to immediately begin construction upon numerous employment options. 8405 Sun Valley, Ca close of escrow and/or purchase with a construction loan. The existing rent controlled four unit structure on site has already been demolished and tenant relocation fees have The San Fernando Valley consists of approximately 260 been paid in full. All permits have been issued and paid. The square miles, making it the largest geographic in the City of development consists of an on-grade parking structure with Los Angeles. With approximately 1.8 million residents, it is a 27 Stalls, (10) 1 Bedroom / 1 Bathroom, (9) 2 Bedroom / 2 densely populated area that as a standalone city, would be Bathroom units spread across three residential floors. There the seventh largest city in the United States. are no significant off-site improvements, flat topography and on-grade construction should make this a very cost effective build. The project will be completely comprised of market rate units and will be subject to the Rent Stabilization Ordinance (RSO).

GLENOAKS BOULEVARD 8405 Glenoaks Boulevard, is ideally located just north of the 5 freeway, providing future residents with convenient access to Burbank, Downtown Los Angeles, Glendale and Pasadena.

6 7 A RARE SHOVEL READY DEVELOPMENT OPPORTUNITY ƒƒ 19 unit multifamily project ƒƒ Vacant land - previous has been demolished ƒƒ 15,275 square feet of land zoned LAR3 ƒƒ Excellent mix of (10) 1 bedroom units and (9) 2 bedroom units ƒƒ No linkage fee ƒƒ Type V construction ƒƒ Plans call for 23,318 gross square feet ƒƒ 24 parking spaces provided

ƒƒ No Low Income Housing component

EXCELLENT SAN FERNANDO VALLEY LOCATION ƒƒ Located just one parcel west of Glenoaks and Roscoe Investment ƒƒ Adjacent to Burbank, Shadow Hills, and La Tuna Canyon HIGHLIGHTS ƒƒ Sun Valley is experiencing significant growth in housing demand due to its unique natural landscape filled with large horse ranch properties combined with its convenient accessibility to major employment sectors in nearby Burbank and North Hollywood ƒƒ Walking distance to Glenoaks & Sunland (0.5 miles), an amenitized corridor that provides the immediate area’s banks, grocery stores, and dining .

STRONG DEMOGRAPHICS ƒƒ Average household Income of $83,898 within a 3-mile radius ƒƒ Population of 574,264 within a 5-mile radius ƒƒ Strong local economy with significant job growth over a multitude of diverse sectors

8 ADLER PORTFOLIO | PROPERTY SUMMARY 9 THE PROJECT Permits have been issued and paid in full, allowing a buyer to begin construction immediately after close of escrow. The proposed project consists of a 3 story structure with 19 market rate residential units with a rooftop deck over open ground floor parking. The project will be subject to Rent Stabilization Ordinace (RSO).

Project Features

Number of Units 19

Construction Type V

Stories 3

Gross SqFt 23,318 SF

Parking Provided 24 spaces

Unit Type # Avg SF

1 Bedroom 10 733

2 Bedroom 9 956 PRICING SUMMARY

12 13 FINANCIAL SUMMARY

PRICING SUMMARY

8405 Glenoaks Blvd, Address Sun Valley, CA 91352

Price $2,000,000

Land SF 15,275 SF

$ / SF $130.93

Shovel Ready For 19 units

$/Unit $105,263

Max Potential Units 27 units GLENOAKS BOULEVARD

$/Unit (Density Bonus) $74,074

Zoning (Q)R3-1-CUGU

14 15 MARKET OVERVIEW

17 Sun Valley

NORTH HOLLYWOOD The Subject Property is located on Glenoaks Boulevard in the bustling suburban BURBANK bedroom community of Sun Valley, just down the street from the city of Burbank. The 19-unit apartment project is less than three miles away from the Hollywood Burbank Airport and is centrally located in proximity to major employment hubs such as Burbank, Glendale and North Hollywood. The property enjoys easy access to the 5, 118, 134, and 170 f reeways, and is less than one mile to the Antelope Valley Metrolink Sun Valley SAN FERNANDO ROAD Train Station. GLENOAKS Sun Valley, Ca According to CoStar, the Sun Valley submarket typically sees minimal multifamily 8405 development, although healthy rent growth and rock-bottom vacancies drove a slight uptick in construction in recent years. Vacancies are among the lowest in Los Angeles and have held below 3% for most of this cycle. The Sun Valley apartment market is typically sleepy and stable, as supply constraints and low vacancies limit net absorption. While a few new projects delivered in 2018, the amount of new supply was not sufficient to significantly alter fundamentals. Located at the northern edge of the San Fernando Valley, much of the submarket is zoned for single-family residences, which inhibits multifamily development.

GLENOAKS BOULEVARD

SUNLAND BOULEVARD

18.61% 1.30% PROJECT AVG HOUSEHOLD POPULATION GROWTH INCOME GROWTH BY 2024 EXPECTED BY 2024

18 19 $83,898 $99,510 137,094 8405 GLENOAKS BLVD 2019 Average HH income 2024 Prejected Average HH income 2019 Population within 3-m radius within 3-m radius within 3-m radius

5,710 63,250 139,297 Businesses Employees 2024 Prejected Population within 3-m radius within 3-m radius within 3-m radius

20 21 BURBANK NOHO ARTS DISTRICT

AT A GLANCE Also known as “The Valley,” the San Fernando Valley spans 260 square miles and is home to approximately 1.82 million people. The area is situated approximately 12 miles northwest of Downtown Los Angeles and is bounded by the Santa Monica Mountains to the south, the San Gabriel Mountains to the north and east, and Simi Hills to the west. Notable facts about the San Fernando Valley include:

ƒƒ The San Fernando Valley is Home to Over 63,000 Businesses and 535,000 Jobs

ƒƒ Average Household Income Has Grown by 24.53% from 2000-2015 and is Projected to THE SAN FERNANDO VALLEY Grow an Additional 13.19% by 2020 ƒƒ Approximately 49% of The Valley’s Households are Renters

“The Valley” is a premier location for residents to live, work, and play ƒƒ Average Vacancy Across the San Fernando Valley is 2.24%

Sherman Oaks Galleria Sepulveda Basin Recreation Area Ventura Boulevard ƒƒ The Valley is a Key Entrepreneurial Hub in Los Angeles with Half of LA County The Sherman Oaks Galleria includes 700,000 Approximately two miles from the subject Ventura Boulevard, the primary east–west thoroughfare Contractors, a Third of all Business Professionals, and a Number of Healthcare square feet of Class A office space overlooking property, Sepulveda Basin Recreation Area in the San Fernando Valley, is located 150 feet away Professionals Calling the Area Home a 300,000 square foot retail and entertainment and Lake Balboa/Anthony C. Beilenson Park from 14944 Moorpark Street. Extending 18 miles from Studio City to Woodland Hills, Ventura Boulevard is ƒƒ Notable Industries Include Entertainment, Foreign Trade, Business Services, Health complex. Located at the intersection of the 101 are home to two golf courses, a sports complex, known as the “backbone” of the San Fernando Valley Services, Aerospace, and Advanced Manufacturing and 405 freeways, the Galleria is home to and a 19,600 square foot playground. with scores of bars, restaurants, retail shopping, and myriad employers and shopping options. other convenient neighborhood amenities. ƒƒ Several Fortune 500 Companies Including The Walt Disney Company, Anheuser- Busch, Nestle, and Health Net, as well as Several Additional Fortune 1,000 Companies Van Nuys/Sherman Oaks Universal Studios and CityWalk Westfield Fashion Square are Located in the Valley Recreation Center Universal CityWalk offers entertainment, Within a short drive of the subject property, ƒƒ Industry Leaders in Advanced Manufacturing Including Northrop Grumman, Aerojet, The 65 acre park offers baseball fi elds, dining, and shopping. CityWalk is located Westfield Fashion Square is an 850,000 and JMR Electronics are Located in The Valley basketball courts, children’s play areas, a within Universal Studios, one of the most square feet two-level enclosed shopping football fi eld, and indoor gym, a soccer famous film studios in the world center anchored by Bloomingdale’s and fi eld, tennis courts, volleyball courts, and Macy’s. running paths. 22 23 OPPORTUNITY ZONES a long term tax advantage

8405 Glenoaks Boulevard falls within one of Los Angeles County’s 274 designated Qualified Opportunity Zone tracts. As such, it presents a unique opportunity for a new investor to benefit from a long term tax advantage. This program was spearheaded by the federal government in late 2017 to revitalize areas of economic opportunity around the country. The incentive program has two parts:

1. The deferral, until the end of 2026, of taxation equal to the capital gain realized on the sale of the assets, provided the gain is reinvested within six months in a Qualified Opportunity Fund

2. The exemption of federal income tax upon the gain (if any) from the disposition of the OZP investment, provided it is held for more than 10 years.

Source: https://www.bisnow.com/national/news/economic-development/will-the- new-opportunity-zones-work-as-intended-88945 GLENOAKS 8405 Sun Valley, Ca

TEMPORARY STEP UP PERMANENT DEFERRAL IN BASIS EXCLUSION A temporary deferral of The basis is increased by 10% if A permanent exclusion from inclusion in taxable income the investment in the Opportunity taxable income of capital gains for capital gains reinvested Fund is held by the taxpayer for from the sale or exchange of an into an Opportunity Fund. at least 5 years and by an investment in an Opportunity additional 5% if held for at least Fund if the investment is held 7 years, thereby excluding up to for at least 10 years. 15%

24 OPPORTUNITY ZONES 25 MARKET COMPARABLES

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8405 Glenoaks Blvd 10214 Fernglen Ave SALES COMPARABLES 12132 Hart St 12309 Osborne Pl NEW CONSTRUCTION MULTIFAMILY 11541 Blucher Ave # ADDRESS SALE PRICE YR BUILT UNITS $/UNIT $/SF CAP RATE GRM COE DATE

10214 Fernglen Ave 1 $2,880,000 2012 6 $480,000 $315.79 5.00% - Oct 4, 2018 Tujunga, CA 91042

12132 Hart St 2 $3,912,000 2017 9 $434,667 $486.87 3.35% 19.03 Jul 31, 2018 North Hollywood, CA 91605 GLENOAKS 8405 Sun Valley, Ca

12309 Osborne Pl 3 $8,900,000 2008 21 $421,860 $274.32 4.74% 13.73 Escrow Pacoima, CA 91331

11541 Blucher Ave 4 $21,500,000 2010 52 $413,461 $252.05 4.48% - Apr 19, 2018 Granada Hills, CA 91344

Average $437,497 $332.26 4.39% 16.38

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8405 Glenoaks Blvd 8600 Glenoaks Blvd RENT SURVEY 8714 Glenoaks Blvd GLENOAKS 7350 Lankershim Blvd 8405 Sun Valley, Ca $1,963 10817 Crockett St AVERAGE ONE BEDROOM RENT

8600 GLENOAKS BLVD 8700-8714 GLENOAKS BLVD SUN VALLEY, CA • BUILT 2018 SUN VALLEY, CA • BUILT 2009

TYPE SF RENT RENT/SF TYPE SF RENT RENT/SF 1+1 900 $1,950 $2.17 1+1 1,222 $2,300 $1.88 2+2 1,150 $2,200 $1.91 2+2 1,252 $2,450 $1.96

$2,300 AVERAGE TWO BEDROOM RENT 7350 LANKERSHIM BLVD 10817 CROCKETT ST NORTH HOLLYWOOD, CA • BUILT 1970 SUN VALLEY, CA • BUILT 2018

TYPE SF RENT RENT/SF TYPE SF RENT RENT/SF 1+1 720 $1,800 $2.50 1+1 600 $1,800 $3.00 2+2 920 $2,250 $2.45 30 31

/ GLENOAKS 8405 Sun Valley, Ca

LONNIE MCDERMOTT First Vice President Investments Senior Director, National Land Group Tel: (818) 212-2745 Fax: (818) 212-2710 [email protected] License: CA 01874375

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