18800-Ventura-Blvd-OM-PRINT-2.Pdf

OFFERING MEMORANDUM

A high-profile, trophy Ventura Boulevard signalized corner location in the affluent West San Fernando Valley sub-market of Tarzana, CA brandonmichaelsgroup.com

INVESTMENT ADVISORS

Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 [email protected] CA License: 01434685

Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] CA License: 01948233

Bennet J. Pakdaman National Retail Group National Office, Industrial Properties Group Tel: 818.212.2682 [email protected] License #001971145 Contents 04 Executive Summary 10 Property Overview 16 Area Overview 28 FINANCIAL ANALYSIS Executive Summary

4 18800 Ventura Blvd The Offering A high-profile, trophy Ventura Boulevard signalized corner location in the affluent West San Fernando Valley sub-market of Tarzana, CA The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale 18800 Ventura Boulevard, a 5,749 square foot restaurant building ideally situated on 35,010 square feet of land in the affluent West San Fernando Valley submarket of Tarzana, CA. The subject property is located at the southwest signalized corner of Ventura Boulevard and Crebs Avenue. Ventura Boulevard is the world’s longest avenue of contiguous businesses, and the subject property benefits from strong daily traffic counts exceeding 42,000 vehicles per day. The property features excellent visibility and frontage, with over 160 feet of frontage along Ventura Boulevard.

18800 Ventura Boulevard is currently with 2.91% annual increases, creating home to California Pizza Kitchen, an a strong income stream through lease American casual dining restaurant chain end in December of 2029. California that specializes in California-style pizza. Pizza Kitchen has successfully operated California Pizza Kitchen, which was out of this location since 1995, founded thirty-six years ago in 1985, has experiencing a strong operating history over 250 locations in 32 U.S. States and at this site for over 26 years. The 10 other countries including Mexico, property features 53 parking spaces, a South America, Asia-Pacific, Western parking ratio of 9.22 per 1,000 square Asia and Australia. The privately held feet. company employs over 14,000 people and was originally founded in 1985. 18800 Ventura Boulevard is 35,010 Annual revenues exceed $600 million. square feet of land zoned C2-1VL. The subject property falls within the 18800 Ventura Boulevard is currently boundaries of the Ventura Cahuenga leased to California Pizza Kitchen Specific Plan. There is a thirty foot through 12/31/2029. California Pizza height limit and a Floor Area Ratio of Kitchen is on an absolute NNN ground 1.25. lease with no remaining options past 2029. Their current annual rent of $339,478.52 increases 2.91% annually. CPK currently pays $339,479 annually,

Executive Summary 5 investment highlights 18800 TARZANA BLVD

IRREPLACEABLE VENTURA BOULEVARD, TARZANA CA LOCATION

• Irreplaceable, trophy location ideally located on the SW signalized corner of Ventura Boulevard and Crebs Avenue

• 0.8 of a mile from the Providence Cedars-Sinai Tarzana Medical Center

• Ideally located proximate to several national retailers including Whole Foods Market, T.J. Maxx, McDonalds, Chase Bank, LA Fitness, and Duff’s Cakemix

• Excellent visibility and frontage with over 161 feet of frontage on Ventura Boulevard, the world’s longest avenue of contiguous businesses

• Strong daily traffic counts exceeding 42,000 vehicles per day

PROVIDENCE CEDARS-SINAI TARZANA MEDICAL CENTER

TROPHY ABSOLUTE NNN GROUND LEASE

• California Pizza Kitchen has successfully operated at this location since 1995

• California Pizza Kitchen has a lease in place through 12/31/2029 with no additional options

• Annual 2.91% rental increases

• California Pizza Kitchen opened their first restaurant in Beverly Hills in 1985, and has since grown to include more than 250 locations in more than 30 states and 11 countries

• California Pizza Kitchen is a privately held company with over 14,000 employees worldwide and annual revenues exceeding $600,000,000 6 18800 Ventura Blvd investment highlights

STRONG CENTRALIZED WEST SAN FERNANDO VALLEY LOCATION UNDERGOING SIGNIFICANT GROWTH • Centralized West San Fernando Valley location with easy access to Warner Center, Downtown Los Angeles and the Westside

• The property is located less than one mile from the $624-million expansion of the Providence Cedars-Sinai Tarzana Medical Center, which will re-define the immediate sub-market

• Over 1,000 recently completed or under-construction units within several miles of the property.

• 9 multi-family development projects within 2.9 square miles of the subject property totaling over 150 brand new units coming to market

• Just 4 miles from the Warner Center, the San Fernando VILLAGE WALK AT TARZANA Valley’s central business district and home to Westfield Topanga & The Village, a mall which spans 2.1 million square feet, and houses stores such as Macy’s, Neiman Marcus, Nordstrom, and Target

STRONG IMMEDIATE DEMOGRAPHICS • Average household income of over $94,400 within one mile of the property, $102,000 within three miles of the property, and $100,200 within five miles of the property

• There are over 27,600 people located within one mile of the property, 177,700 within three miles of the property, and 468,800 within five miles of the property

• There are over 11,100 households located within one mile of the property, 63,800 within three miles of the property, and 165,700 within five miles of the property

• Located just four blocks from Melrose Avenue, which houses the Pacific Design Center as well as a number of retail amenities such as Duff’s Cake Mix, Alfred’s Coffee, The WARNER CENTER RealReal, and Lululemon Executive Summary 7 Ventura Freeway

Burbank Blvd

8 18800 Ventura Blvd Sherman Oaks Encino

Ventura Blvd

Crebs Ave

Executive Summary 9 NEARBY AMENITIES Retail

1

2 Warner Center 3

4 5 7 5 6 4 Restaurants 2 3

1 5

2 3

4 3 2

Ventura Freeway 4

5 Ventura Blvd

6 1

7

1

10 18800 Ventura Blvd property summary

Address 18800 Ventura Boulevard Tarzana, CA 91356 Price $7,150,000 Property Type Restaurant Building Size 5,749 SF Lot Size 35,010 SF Price Per SF Building $1,244 Price Per SF Land $204 CAP Rate 4.75% Monthly Rent $28,290 NOI $339,479 Rent Per SF $4.92 Per Month Lease Type NNN Lease Start 4/13/1994 Lease Expiration 12/31/2029 Rent Increases 2.91% Annually Options None Year Built 1990 Parking 20 Parking Spaces; Ratio of 3.48 Per 1,000 SF APN 2161-003-011 Zoning C2-1VL Specific Plan Ventura Cahuenga Specific Plan Height Restriction 30 Feet Floor Area Ratio (FAR) 1.25 Type of Ownership Ground Lease Property Overview 11 Property Overview

12 18800 Ventura Blvd property description

LOCATION 18800 Ventura Boulevard Tarzana, CA 91356

SITE The property is located on the signalized intersection of Ventura Boulevard and Crebs Avenue

BUILDING SIZE 5,749 SF

LOT SIZE 35,010 SF

PARKING 20 Parking Spaces; WEST HILLS HOSPITAL Ratio of 3.48 Per 1,000 SF. AND MEDI ZONING C2-1VL

WESTFIELD TOPANGA UPTOWN AT WARNER & THE VILLAGE CENTER SPECIFIC PLAN Ventura Cahuenga Specific Plan PIERCE COLLEGE

WESTFIELD HEIGHT RESTRICTION PROMENANDE 2035 WARNER CENTER 30 Feet TOWERS

KAISER PERMENANTE WOODLAND HILLS FLOOR AREA RATIO (FAR) 1.25

TRAFFIC COUNT Over 42,000 Vehicles Per Day Property Overview 13 RESTAURANT PHOTOS

14 18800 Ventura Blvd Property Overview 15 parcel map

16 18800 Ventura Blvd Property Overview 17 AREA Overview

18 18800 Ventura Blvd tarzana - san fernando valley

Tarzana is a suburban neighborhood in There are two Kaiser Permanente hospitals As home to the world’s major movie the San Fernando Valley region of Los serving the San Fernando Valley, one in studios, the San Fernando Valley is where Angeles, California. Tarzana is on the Panorama City and one in Woodland Hills. celebrities live, work and play. Here’s a site of a former ranch owned by author Also, there are two Providence hospitals, in 24-hour behind-the-scenes itinerary of the Edgar Rice Burroughs. It is named after Burbank and Mission Hills. Besides Kaiser Valley’s sizzling attractions, restaurants Burroughs’ fictional jungle hero, Tarzan. Permanente and Providence hospitals, and nightspots.The San Fernando Valley most of the valley is served by non-profit has it all. The San Fernando Valley, known locally hospitals such as: Valley Presbyterian as The Valley, is an urbanized valley in Hospital in Van Nuys, Northridge Hospital Los Angeles County, California. Located Medical Center in Northridge, Olive just north of the Los Angeles Basin, the View – UCLA Medical Center in Sylmar, valley incorporates part of the City of Los Encino Hospital Medical Center in Encino, Angeles, as well as the incorporated cities Providence Tarzana Medical Center in of Burbank and San Fernando. The valley Tarzana, and Sherman Oaks Hospital in is well known for its iconic film studios Sherman Oaks. such as Warner Bros. Studio and Walt Disney Studios. In addition, it is home to the Universal Studios Hollywood theme park.

Area Overview 19 LOCATION OVERVIEW

18800 Ventura Boulevard is ideally located in Tarzana, CA, an affluent West San Fernando Valley submarket burgeoning with brand new multi-family developments, 2.2 million square feet of retail, and the home to the $624 million expansion project at the Providence Cedars-Sinai Tarzana Medical Center.

18800 Ventura Boulevard is an irreplaceable site ideally located at the Southwest signalized corner of Ventura Boulevard and Crebs Avenue in an emerging sub-market that features over 2.2 million square feet in retail and significant new development, over 1,000 recently completed or under construction multi-family PROVIDENCE CEDARS-SINAI TARZANA MEDICAL CENTER units and is 0.8 of a mile from the Providence Cedars-Sinai Tarzana Medical Center.

The Providence Cedars-Sinai Tarzana Medical Center came together to create one of the top hospitals in the country. Upon completion in 2023, the new hospital will be a destination medical center for the area. This $624 million expansion project will enhance the immediate area, re- defining the Tarzana sub-market and bringing in an influx of new services that will prove highly beneficial. The expansion features a new patient tower, which is a six-story, 223,000 square foot building, which will add 190 patient rooms to the hospital. The project is set to stand at approximately 120 feet.

18800 Ventura Boulevard is ideally located in Tarzana, CA, an affluent West San Fernando Valley submarket with excellent accessibility to the Westside, Warner Center, and Downtown Los Angeles. There are over 1,000 recently completed or TARZANA DEVELOPMENT under-construction units within several miles of the property. There are currently 9 development projects within 2.9 square miles of the subject property totaling over 150 units. DEMOGRAPHIC WITHIN A 1, 3, 5 MILE OF PROPERTY Less than one mile from 18800 Ventura Boulevard is the proposed development at 1-MILE 3-MILE 5-MILE 19336-19360 Ventura Boulevard, which is slated for the construction of a four-story 27,639 177,760 468,853 building featuring 59 residential units and over 8,500 square feet of ground floor Population commercial space. The project is set to feature a mix of studio, one-, and two- bedroom Total Households 468,853 63,816 165,707 units, with a handful of low-income units. $94,460 $102,044 $100,230 Avg HH Income 18800 Ventura boulevard is located within a vibrant retail corridor. Surrounding national tenants include Whole Foods Market, T.J. Maxx, McDonalds, Chase Bank, LA Fitness, and Duff’s Cakemix. 20 18800 Ventura Blvd WARNER CENTER UPTOWN AT TOWERS WARNER CENTER (1.9 Million SF Office Towers) $4 billion high-rise development

($1.5 billion capital infusion - 1,400 residential units, 2 hotels, 864,000 SF Class A office & retail, Entertainment Warner Center and Sports Center)

Victory Blvd

Ventura Blvd

Wilbur Ave

Tarzana

Ventura Fwy

Area Overview 21 VISION

The new venture is Cedars-Sinai’s first entry into a San Fernando Valley hospital, although there are a number of Cedars-Sinai outpatient locations throughout the region.

RANKING

Both the 249-bed Providence Tarzana A $624 Million Expansion Project Located 0.8 Miles from 18800 Ventura Blvd, Underway medical center and and Expected to be Completed by 2022. 886-bed Cedars- Sinai hospital in Los Angeles were ranked within PROVIDENCE CEDARS-SINAI TARZANA MEDICAL CENTER the nation’s top Two of Southern California’s leading nonprofit expanded Emergency Department, new diagnostic 50 hospitals by healthcare organizations have agreed to create a and treatment services, and enhanced outpatient Healthgrades in joint venture that will own and operate Providence and ambulatory services already under development. 2018. Tarzana Medical Center. When complete in 2022, the new hospital will be a destination medical center for the area. SERVICES Providence St. Joseph Health and Cedars-Sinai are coming together to enhance access to highly skilled The joint venture will expand primary and specialty The joint venture will medical care, specialized services and advanced care services on the Providence Tarzana campus expand primary and health programs for the Tarzana community. The as well as enhance other programs, including specialty care services medical center’s new name will be Providence heart, cancer and women’s services. For particular on the Providence Cedars-Sinai Tarzana Medical Center. Providence services, such as those serving transplant patients, Tarzana campus as and Cedars-Sinai will jointly continue the build-out the partnership will provide a continuum of care well as enhance other and redevelopment of the Tarzana campus, including that ensures access to high-quality care during every programs, including a new patient-care tower with all private rooms, an phase of the healing process. heart, cancer and women’s services. 22 18800 Ventura Blvd Development Pipeline Map 170 Subject Property

Under Construction

Recently Completed Van Nuys

1

3 7 Valley Village 5 2 6 4

8

DEVELOPMENT PROJECTS CURRENTLY UNDER CONSTRUCTION PROPERTY NAME DEVELOPER UNITS STORIES START YEAR FINISH YEAR

1 11436 Hatteras Street 11436 Hatteras St, North Hollywood, CA 91601 FMB Development 28 5 2018 2021

2 5020 Woodman Avenue 5020 Woodman Ave, Sherman Oaks, CA 91423 BVC Development Corporation 51 4 2020 2021

3 Art Set NoHo 11525 Chandler Blvd, North Hollywood, CA 91601 Summerland Partners 60 4 2018 2019

4 Chandler NoHo 5401 Lankershim Blvd, North Hollywood, CA 91601 The Richman Group 127 7 2019 2021

5 Chase Knolls II 13401 River Dr, Sherman Oaks, CA 91423 Waterton 310 2 2017 2020

6 L+O NoHo 5115 Lankershim Blvd, North Hollywood, CA 916011 Hayes Capital Management 297 7 2017 2020

7 The Luxe Residential 11110 Harksook St, North Hollywood, CA 91601 Hartsook Grand LLC 61 5 2017 2020

8 The Weddington 11058 Chandler Blvd, North Hollywood, CA 91601 Greystar 329 5 2017 2020

9 Vida 11036 Moorpark St, Studio City, CA 91602 Frost Chaddock Developers 96 5 2017 2021 TOTAL 151 5 - -

Area Overview 23 TARZANA DEMOGRAPHICS

MEDIAN AGE TARZANA’S TOTAL POPULATION 40 49% 51% 39,384 MALE FEMALE

EDUCATION

High27% School Some30% College Associates9% Degree Bachelor’s29% Degree

24 18800 Ventura Blvd TOP EMPLOYMENT BY INDUSTRIES BUSINESSES Tarzana is well known for its many restaurants, delicatessens, booksellers, and language training institutes. The street boundaries of Tarzana are Victory Boulevard to the North, Corbin Avenue to the West, Elementary & Secondary Individual & Family Mulholland Drive to the South, and Lindley Avenue Schools Hospitals Services to the East. South of Ventura Boulevard, Corbin dead ends at the Bothwell Ranch. There, the boundaries become Bothwell Road to the West and Lindley 23.5% 19.4% 9.98% Avenue to the East. Both streets named after Lindley Bothwell, who once owned a large Tarzana orange grove that was later subdivided into luxury homes.

Other Health Care Colleges & Universities Services 8.84% 5.7%

Area Overview 25 DEMOGRAPHICS BY RADIUS

$102,044 461,273 165,707 Encino Average HH income Population Households within a 3-mile radius within a 5-mile radius within a 5-mile radius

81,078 81,078 27,714 Owner Occupied Housing Renter Occupied Housing Businesses within a 5-mile radius within 5-mile radius within a 5-mile radius

1-MILE 3-MILE 5-MILE 2020 Population 27,639 177,760 468,853 2020 Households 11,116 63,816 165,707 2020 Average Household Size 2.4 2.7 2.8 Annual Growth 2020-2025 0.2% 0.2% 0.2% 2020 Median Age 40.8 40.1 38.6 2020 Owner Occupied Households 5,099 34,539 81,078 2020 Renter Occupied Households 6,016 29,277 84,629 2020 Average Household Income $94,460 $102,044 $100,230 2020 Median Household Income $68,704 $75,115 $73,304 Businesses 2,382 10,229 27,714

26 18800 Ventura Blvd CONFIDENTIALITY AND DISCLAIMER The information contained in the preceding 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, unverifi ed 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 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.

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 purpose of providing tenant lessee information about this listing to prospective customers. © 2021 Marcus & Millichap. All rights reserved.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE LISTING AGENTS FOR MORE DETAILS.

Ventura Blvd

Wilbur Ave

Ventura Fwy

Area Overview 27 FINANCIAL ANALYSIS

RENT ROLL TENANT SF SF% LEASE START LEASE EXPIRATION RENT RENT/SF LEASE TYPE California Pizza Kitchen 5,749 100% 4/13/94 12/31/29 $28,289.88 $4.92 NNN Total 5,749 100% $28,289.88 $4.92

RENT SCHEDULE YEAR ANNUAL RENT MONTHLY RENT 1/1/2021 - 12/31/2021 $339,478.52 $28,289.88 2.91% 1/1/2022 - 12/31/2022 $349,662.88 $29,138.57 2.91% 1/1/2023 - 12/31/2023 $360,152.77 $30,012.73 2.91% 1/1/2024 - 12/31/2024 $370,957.35 $30,913.11 2.91% 1/1/2025 - 12/31/2025 $382,086.07 $31,840.51 2.91% 1/1/2026 - 12/31/2026 $393,548.65 $32,795.72 2.91% 1/1/2027 - 12/31/2027 $405,355.11 $33,779.59 2.91% 1/1/2028 - 12/31/2028 $417,515.76 $34,792.98 2.91% 1/1/2029 - 12/31/2029 $430,041.24 $35,836.77

ANNUALIZED OPERATING DATA INCOME AND EXPENSE CURRENT EXPENSE BREAKDOWN PER YEAR PER SF Scheduled Lease Income $339,479 Taxes @1.25% $89,375 $15.55 NNN Charges $102,368 Insurance $2,300 $0.40 Effective Gross Income $441,846 Utilities $2,587 $0.45 Expenses* $102,368 Trash $2,300 $0.40 Net Operating Income $339,479 Grounds $1,782 $0.31 * Expenses based on industry averages. Repairs & Maintenance $4,024 $0.70 TOTAL $102,368 $17.81 / $1.48

28 18800 Ventura Blvd PRICING Address 18800 Ventura Boulevard Tarzana, CA 91356 Price $7,150,000 Building Size 5,749 SF Lot Size 35,010 SF Price Per SF Building $1,244 Price Per SF Land $204 CAP Rate 4.75% Monthly Rent $28,290 NOI $339,479 Rent Per SF $4.92 Per Month Lease Type NNN Lease Start 4/13/1994 Lease Expiration 12/31/2029 Rent Increases 2.91% Annually Options None Year Built 1990 Parking 20 Parking Spaces; Ratio of 3.48 Per 1,000 SF APN 2161-003-011 Zoning C2-1VL Specific Plan Ventura Cahuenga Specific Plan Height Restriction 30 Feet Floor Area Ratio (FAR) 1.25 Type of Ownership Ground Lease Financial Analysis 29 brandonmichaelsgroup.com

INVESTMENT ADVISORS

Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 [email protected] CA License: 01434685

Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] CA License: 01948233

Bennet J. Pakdaman National Retail Group National Office, Industrial Properties Group Tel: 818.212.2682 [email protected] License #001971145