13715 ENTURA VSHERMAN OAKS, CA
BRANDON MICHAELS GROUP INVESTMENT ADVISORS
BRANDON MICHAELS Senior Managing Director Investments Senior Director, National Retail Group Property Overview Tel: (818) 212-2794 [email protected] 1 License: CA #01434685
BEN BROWNSTEIN Senior Associate Associate Member, National Retail Group Tel: (818) 212-2812 [email protected] Investment Highlights License: CA #02012808 2
13715 ENTURA VSHERMAN OAKS, CA 3 Financials
BRANDON MICHAELS GROUP 4 Area Overview
16830 Ventura Blvd. Suite 100, Encino, CA 91436 www.marcusmillichap.com
2 3 A MIXED-USE RETAIL/OFFICE PROPERTY LOCATED ALONG WORLD RENOWNED VENTURA BOULEVARD IN THE AFFLUENT, HIGH-DEMAND SUBMARKET OF SHERMAN OAKS, CA
13715 Marcus & Millichap has been selected to exclusively market for sale 13715 Ventura Boulevard, a mixed- use retail/office property located along Ventura Boulevard in the affluent, high-demand submarket ENTURA of Sherman Oaks, CA. 13715 Ventura Boulevard is ideally located along a prime stretch of Ventura SHERMAN OAKS, CA Boulevard just West of Woodman Avenue and East of Hazeltine Avenue on the north side of the street. The immediate area has undergone significant growth and is home to a number of restaurants, local and national retailers, and a plethora of other uses which make this one of the most desirable locales in the V San Fernando Valley. 13715 Ventura has two ground level storefront retail units averaging 1,278 SF with excellent visibility and frontage along Ventura Boulevard, and a 1,221 square foot second story office unit that was previously an apartment unit. All leases are currently on a month to month basis, creating a unique opportunity for an investor who is looking to re-position a well-located asset along prestigious Ventura Boulevard, or an Owner-User Buyer who can utilize a portion or all of the building for their specific use.
Ventura Boulevard is the primary east/west thoroughfare through the San Fernando Valley, and the world’s longest avenue of contiguous business. Ventura Boulevard has always been the most concentrated location for mom and pop shops and small businesses in the Valley; nowadays it has pockets of housing, mini- malls, and shops, along with a wide assortment of businesses, schools, and other establishments. Homes south of Ventura are considered to be among the most expensive in Los Angeles County, ranging from $2 million to $50 million and home to numerous celebrities, executives, athletes, and entertainers alike. Sherman Oaks is considered one of the strongest San Fernando Valley submarkets, home to trendy night spots, high end eateries, and a wide variety of shopping options. The dense immediate location benefits from over 540,000 people within a five mile radius and an overage household income north of $75,000.
4 5 ENCINO VAN NUYS PROPERTY DESCRIPTION
FINANCIAL INFORMATION Price $2,075,000 Current Cap Rate 2.40% Pro Forma Cap Rate 6.11% Price SF (Building) $549 Price SF (Land) $451 VENTURA BOULEVARD Current NOI $49,743 Current Average Rent/SF $1.91 13715 ENTURA PROPERTY INFORMATION VSHERMAN OAKS, CA 13715-13717 Ventura Blvd Address Sherman Oaks, CA 91423 APN’s 2271-018-006 Number of Stories 2 Year Built 1949 Building SF 3,777 SF Lot Size 4,600 SF Zoning LAC2-1VL 8 uncovered parking spaces in Parking Spaces the rear of the building
Parking Ratio 1.74 Spaces per 1,000 SF WOODMAN AVENUE
7 UPSCALE SHERMAN OAKS SUB-MARKET
yy Home to numerous celebrities, executives, athletes, and INVESTMENT HIGHLIGHTS entertainers alike
yy Hip-trendy night spots attract a hip and vibrant demographic EXCELLENT SHERMAN OAKS LOCATION ALONG VENTURA BOULEVARD yy A multitude of dining and nightlife options line Ventura Boulevard throughout Sherman Oaks yy Ideally located on the north side of Ventura Boulevard, just west of Woodman Avenue yy The surrounding residential is a wide mix of multi-million yy Ventura Boulevard is the world’s longest avenue of contiguous business dollar homes and high-end luxury multi-family units with significant growth projected yy The immediate area offers a plethora of local and national retailers, a wide variety of dining options, and an expansive residential market with some of the most expensive yy The area has undergone significant rental growth as a homes throughout Los Angeles County result of a vibrant local economy yy High daily traffic counts along Ventura Boulevard, the primary east/west thoroughfare through the San Fernando Valley
UNIQUE INVESTMENT OR OWNER-USER OPPORTUNITY $110,098 3-mile radius median HH income yy All leases are on a month-to month basis, creating a multitude of potential options yy Rents are significantly below market, allowing an investor to realize significant rental upside 197,450 yy Retail units are ideal in size, averaging 1,200 square feet per unit 3-mile radius population yy Units are easily leasable and offer minimal costs between tenants and protect against downside risk $1.14M AVG single family home price
9 SUMMARY OF TERMS INTEREST OFFERED: 100% fee simple interest in 13715 Ventura Boulevard, a 3,300 SF mixed-use retail/ office property located in prime Sherman Oaks, CA
TERMS OF THE SALE: Property is being offered on a free and clear basis.
PROPERTY TOURS: Prospective purchasers are encouraged to visit the site prior to submitting offers. All property tours must be coordinated through the listing broker.
10 11 PROPERTY DETAILS
LOCATION 13715 Ventura Blvd, Sherman Oaks, CA 91423
SITE The subject property is located on the North side of Ventura Boulevard, just two parcels west of Woodman Avenue
SQUARE FOOTAGES 13715 The subject property consists two ground level storefront retail units averaging 1,278 SF and a 1,221 square foot second story multifamily ENTURA / office unit. SHERMAN OAKS, CA CROSS STREETS The cross streets are Ventura Boulevard (East/West) and Woodman Avenue (North/South). V PARKING VENTURA BOULEVARD A total of 8 parking spaces in the rear of the building.
PARKING RATIO 1.74 Parking Spaces per 1,000 SF
YEAR BUILT The property was built in 1949
ZONING Zoning is LAC2-1VL
12 13 AVERAGE SUITE SIZES
LEASE ANALYSIS 22%32%5000+ SF 1,221 SF 33% 1,231 SF 9% 2000-5000 SF 69% 35%0-2000 SF LARGEST TENANTS 1,325 SF
SUITE TENANT
Pride 'N Joy Pet Grooming 50 101 35% 1,325 SF of building Month-to-Month 45
40 35% 35 33% 32% 102 Lash Factory 30 33% 1,231 SF Month-to-Month 25 % OF BUILDING 20
15 201 Production 32% 1,221 SF 10 Month-to-Month 5
M2M M2M M2M
LEASE EXPIRATION 14 15 71% Potential Rental Upside
RENT ROLL VENTURA BOULEVARD SUITE TENANT SF % OF SF LEASE EXP RENT RENT/SF PRO FORMA PF $/SF M2M Pride N' Joy WOODMAN AVENUE 101 1,231 33% M2M $2,800.00 $2.27 $4,308.50 $3.50 Potential Rental Upside Pet Grooming
102 Lash Factory 1,325 35% M2M $2,600.00 $1.96 $4,637.50 $3.50
201 Production/Apartment* 1,221 32% M2M $1,800.00 $1.47 $3,052.50 $2.50 2BED 1BATH TOTAL 3,777 100% $7,200.00 $1.91 $11,998.50 $3.18 Upstairs Apartment Unit
*2 Bedroom 1 bathroom unit currently being occupied as office 16 17 FINANCIAL ANALYSIS
PRICING INCOME AND EXPENSE Price: $2,075,000 CURRENT PRO FORMA Current Cap Rate 2.40% Scheduled Lease Income $86,400 $143,982 Pro Forma Cap Rate 6.11% NNN Charges $23,606 Price SF (Building) $549 Effective Gross Income $86,400 $167,588 Price SF (Land) $451 Vacancy $4,320 $8,379 Building SF 3,777 Expenses $32,338 $32,338 Land SF 4,600 Net Operating Income $49,743 $126,871
EXPENSES $/YEAR $/YEAR/SF Taxes @ 1.25%: $25,938 $6.87 EXPENSE BREAKDOWN Insurance $2,700 $0.71 Water $1,200 $0.32 Maintenance $2,500 $0.66 MAINTENANCE WATER
INSURANCE
TAXES
18 19 SALES COMPARABLES MAP SALES COMPARABLES
YEAR CLOSE OF NAME SALES PRICE PRICE/SF BUILDING SF LOT SF BUILT ESCROW
1 4325-4327 Woodman Ave, Sherman Oaks, CA 91423 $2,550,000 $643.94 3,960 8,102 1948 6/11/2018
2 13535 Ventura Blvd, Sherman Oaks, CA 91423 $4,000,000 $800.80 4,995 9,194 1997 9/26/2018 4 3 3 14460 Ventura Blvd, Sherman Oaks, CA 91423 $2,480,000 $694.68 3,570 4,792 1995 9/26/2018 1 2 4 15027 Ventura Blvd, Sherman Oaks, CA 91403 $2,090,000 $829.04 2,521 11,321 1940 3/27/2018 5 5 12230-12232 Ventura Blvd, Studio City, CA 91604 $3,360,000 $752.35 5,990 5,000 1938 7/16/2018
Average $744.16
SUBJECT PROPERTY
1 4325-4327 Woodman Ave Sold 2 13535 Ventura Blvd
3 14460 Ventura Blvd
4 6918 Owensmouth Ave
5 7098 Owensmouth Ave
20 21 SALES COMPARABLES PRICE PER SQUARE FOOT
$1000
$900 $829.04 $800.80 4325-4327 Woodman Ave 13535 Ventura Blvd 14460 Ventura Blvd $800 Address Address Address $752.35 Sherman Oaks Sherman Oaks Sherman Oaks AVG: $744.16
Sales Price $2,550,000 Sales Price $4,000,000 Sales Price $2,480,000 $700 $694.68 Price/SF $643.94 Price/SF $800.80 Price/SF $694.68 $643.94
Building SF 3,960 Building SF 4,995 Building SF 3,570 $600 Lot SF 8,102 Lot SF 9,194 Lot SF 4,792 Close of Close of Close of 6/11/2018 9/26/2018 9/26/2018 $500 Escrow Escrow Escrow
$400
$300
$200
$100
15027 Ventura Blvd 12230-12232 Ventura Blvd Address Address Sherman Oaks Studio City 4325-4327 13535 14460 15027 12230-12232 Woodman Ave Ventura Blvd Ventura Blvd Ventura Blvd Ventura Blvd Sales Price $2,090,000 Sales Price $3,360,000 Price/SF $829.04 Price/SF $752.35 Building SF 2,521 Building SF 4,466 Lot SF 11,321 Lot SF 5,000 Close of Close of 3/27/2018 7/16/2018 Escrow Escrow 22 23 RENT COMPARABLES MAP RENT COMPARABLES
# ADDRESS RENT/SF/YEAR RENT/SF/MONTH LEASE TYPE AVAILABLE SF YEAR BUILT
1 13702 Ventura Blvd, Sherman Oaks, CA 91423 $72.00 $6.00 NNN 1,450 1966
2 13355 Ventura Blvd, Sherman Oaks, CA 91423 $54.00 $4.50 NNN 2,000 1955
3 13608-13612 Ventura Blvd, Sherman Oaks, CA 91423 $43.20 $3.60 NNN 1,500 1947 4 1 3 2 4 14084 Ventura Blvd, Sherman Oaks, CA 91423 $52.20 $4.35 NNN 700 1942
Average $55.35 $4.61
Subject Property
1 13702 Ventura Blvd - $6.00
2 13355 Ventura Blvd - $4.50
3 13608-13612 Ventura Blvd - $3.60
4 14084 Ventura Blvd - $4.35
24 25 RENT COMPARABLES RENT PER SQUARE FOOT
$10.00
$9.00
13702 Ventura Blvd 13355 Ventura Blvd $8.00 Address Address Sherman Oaks Sherman Oaks
Rent/SF/YR $72.00 Rent/SF/YR $54.00 $7.00 Rent/SF/Mo $6.00 Rent/SF/Mo $4.50 $6.00 Lease Type NNN Lease Type NNN $6.00 Available SF 1,450 Available SF 2,000
Year Built 1966 Year Built 1955 $5.00 $4.50 AVG: $4.61
$4.00 $3.60
$3.00 $4.35
$2.00
$1.00
13608-13612 Ventura Blvd 14084 Ventura Blvd Address Address Sherman Oaks Sherman Oaks 13702 13355 13608-13612 14084 Woodman Ave Ventura Blvd Ventura Blvd Ventura Blvd Rent/SF/YR $43.20 Rent/SF/YR $52.20 Rent/SF/Mo $3.60 Rent/SF/Mo $4.35 Lease Type NNN Lease Type NNN Available SF 1,500 Available SF 700 Year Built 1947 Year Built 1942
26 27 RENT COMPARABLES MAP MULTIFAMILY RENT COMPARABLES
# ADDRESS SIZE RENT/MONTH RENT/SF TYPE YEAR BUILT
1 14220 Dickens St, Sherman Oaks, CA 91423 925 $2,050.00 $2.22 2+1 1957 3
2 4441 Woodman Ave, Sherman Oaks, CA 91423 1,200 $2,250.00 $1.88 2+2 1977
2 4 3 13157 Riverside Dr, Sherman Oaks, CA 91423 1,500 $3,895.00 $2.60 3+2 1972 1
4 13439 Moorpark St, Sherman Oaks, CA 91423 900 $2,100.00 $2.33 2+1.5 1957
Average $2.23
Subject Property
1 14220 Dickens St
2 4441 Woodman Ave
3 13157 Riverside Dr
4 13439 Moorpark St
28 29 THE ROOSEVELT Sherman Oaks, a prime valley location
Sherman Oaks is an affluent community located in the San Fernando Valley region of Los Angeles, which includes a portion of the Santa Monica mountains. Balancing urban attitudes with suburban amenities, hip cafes and boutiques are always close by on Ventura Boulevard.
Two major shopping malls, Sherman Oaks Galleria and Westfield Fashion Square, are located here. Van Nuys Sherman Oaks Park boasts miles of baseball diamonds, basketball courts, jogging tracks and glassy knolls to enjoy.
Sherman Oaks is home to business executives, athletes, and entertainers alike. The neighborhood has experienced steady growth in luxury home values, averaging $1.14M in tody's market.
VENTURA BOULEVARD
$119,303 1.30% AVERAGE HOUSEHOLD POPULATION GROWTH INCOME EXPECTED BY 2021
22.10% 41.30% Westfield Fashion Square PROJECT AVG HOUSEHOLD OF THE POPULATION IS BETWEEN INCOME GROWTH BY 2021 THE AGES OF 20 AND 44 SHERMAN OAKS GALLERIA 30 31 STUDIO CITY 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 situ- ated 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:
The San Fernando Valley is Home to Over 63,000 Businesses and 535,000 Jobs
Average Household Income Has Grown by 24.53% from 2000-2015 and is THE SAN FERNANDO VALLEYLLEY Projected to Grow an Additional 13.19% by 2020 “The Valley” is a premier location for residents to live, work, and play Approximately 49% of The Valley’s Households are Renters Average Vacancy Across the San Fernando Valley is 2.24%
Sherman Oaks Galleria Sepulveda Basin Recreation Area Ventura Boulevard The Valley is a Key Entrepreneurial Hub in Los Angeles with Half of LA The Sherman Oaks Galleria includes 700,000 Approximately two miles from the subject Iconic Ventura Boulevard, is the primary east– County Contractors, a Third of all Business Professionals, and a Number of square feet of Class A office space overlooking property, Sepulveda Basin Recreation Area west thoroughfare in the San Fernando Valley. a 300,000 square foot retail and entertainment and Lake Balboa/Anthony C. Beilenson Park Extending 18 miles from Studio City to Woodland Healthcare Professionals Calling the Area Home complex. Located at the intersection of the 101 are home to two golf courses, a sports complex, Hills, Ventura Boulevard is known as the “backbone” Notable Industries Include Entertainment, Foreign Trade, Business Services, and 405 freeways, the Galleria is home to and a 19,600 square foot playground. of the San Fernando Valley with scores of bars, myriad employers and shopping options. restaurants, retail shopping, and other convenient Health Services, Aerospace, and Advanced Manufacturing neighborhoodamenities. Several Fortune 500 Companies Including The Walt Disney Company, Anheuser-Busch, Nestle, and Health Net, as well as Several Additional Van Nuys/Sherman Oaks Universal Studios and CityWalk Universal Studios and CityWalk Fortune 1,000 Companies are Located in the Valley Recreation Center Located approximately seven miles from Within a 10-minute walk of the subject property, The 65 acre park offers baseball fields, Addison Arms, Universal CityWalk offers Westfield Fashion Square is an 850,000 square feet Industry Leaders in Advanced Manufacturing Including Northrop Grumman, basketball courts, children’s play areas, a entertainment, dining, and shopping. CityWalk two-level enclosed shopping center anchored by Aerojet, and JMR Electronics are Located in The Valley football field, and indoor gym, a soccer field, is located within Universal Studios, one of the Bloomingdale’s and Macy’s. tennis courts, volleyball courts, and running most famous fi lm studios in the world paths.
32 33 WALKSCORE
80
Many errands can be accomplished by foot PEDESTRIAN & TRANSIT ORIENTED
13715 Ventura Boulevard, the subject property ideally sits in the center of a major concentration of retail amenities. As demand for urban-living continues to spike, renters increasingly desire walkable neighborhoods. 13715 Ventura Boulevard epitomizes the highly sought after urban-living community boasting the title of “Very Walkable” and 45 enjoying a Walk-Score of 80. The Property is within walking distance to numerous restaurants and entertainment hotspots that include Tipsy Cow, Crave Café, MidiCi Pizza Company, Anejo Cantina & Grill, and Anajak Thai Cuisine, to name a few. Several nearby public transportation options CULTURAL AMENITIES RETAILERS Westfield Fashion Square CVS Pharmacy Sherman Oaks Galleria Target Van Nuys / Sherman Oaks Urban Outfitters Recreation Center Hollywood Farmer’s Market Ventura Boulevard RESTAURANT/NIGHTLIFE OPTIONS GROCERY STORES 59 ArcLight Cinemas Whole Foods Public School 818 Pavilions Tipsy Cow Gelson’s Market WESTFIELD FASHION SQUARE Flat as a pancake, some bike lanes Mendocino Farms Vons Crave Cafe
34 35 SHOPPING AND RETAIL
Sherman Oaks Galleria The Sherman Oaks Galleria includes 700,000 square feet of Class A office space overlooking a 300,000 square foot retail and entertainment complex. The three-level mall was built on the site of Moses Sherman's original 1911 thousand-acre investment in the area, at the pres- ent-day intersection of Ventura and Sepulveda boulevards. It opened in 1980 with two de- partment stores.Pacific Theatres' Pacific 4 occupied the uppermost level of the mall. The mall became famous in the early 1980s as being the center of the teenage mall culture and a well-known teenage hangout. Located at the intersection of the 101 and 405 freeways, the Galleria is home to myriad employers and shopping options. Extending 18 miles from Studio City to Woodland Hills, Ventura Boulevard is known as the “backbone” of the San Fernando Valley with scores of bars, restaurants, retail shopping, and other convenient neighborhood Westfield Fashion Square amenities. Westfield Fashion Square, formerly Sherman Oaks Fashion Square, is a shopping mall in the Sherman Oaks area of Los Angeles, California and Van Nuys, Los Angeles. It is owned by Westfield Group. Its anchor stores are Bloomingdale's and Macy's. Westfield Fashion Square underwent a major renovation in 2013 creating a more cosmopolitan look and an upgraded food court. Westfield Fashion Square has been featured in many television and film produc- tions including Malcolm in the Middle, The Office, Clueless and The Ellen DeGeneres Show.
Ventura Boulevard Ventura Boulevard, the primary east–west thoroughfare in the San Fernando Valley, is locat- ed a short three-minute drive from 14419 W Riverside Drive. Extending 18 miles from Studio City to Woodland Hills, Ventura Boulevard is known as the “backbone” of the San Fernando Valley with scores of bars, restaurants, retail shopping, and other convenient neighborhoo- damenities.
36 37 DEMOGRAPHICS SHERMAN OAKS LA LA COUNTY
Sherman Oaks is a community of entertainers, Total Population 52,894 3,957,268 10,208,773
entrepreneurs, residents, and celebrities living the Total Households 25,752 1,390,333 3,403,857
authentic Valley experience. Median Household Income $72,430 $49,626 $56,699
Average Household Income $119,303 $82,177 $86,746 Continued demand for residential properties is driven by local jobs, educational institutions and accessible public transit. Median Age 40.1 35.0 35.8 Multiple large-scale shopping, grocery and employment options make Vacancy (2Q 2017) 4.20% 4.30% 3.90% Sherman Oaks a premier live / work / play community Median Home Price (3Q 2017) $1,143,000 $699,000 $514,000
41.30% of the population is between the ages of 22 and 44 Monthly Housing Payment $6,340 $3,483 $2,561
37.10% of households are earning more than $100,000 annually Average Asking Rent (2Q 2017) $2,267 $1,692 $1,651
Affordability Gap $4,073 $1,791 $910
Percentage Gap 179.7% 105.9% 55.1% 38 39 BRANDON MICHAELS GROUP
13715 ENTURA VSHERMAN OAKS, CA
BRANDON MICHAELS BEN BROWNSTEIN Senior Managing Director Investments Senior Associate Senior Director, National Retail Group Associate Member, National Retail Group Tel: (818) 212-2794 Tel: (818) 212-2812 [email protected] [email protected] License: CA #01434685 License: CA #02012808