2011 Echo Park Avenue

2011 ECHO PARK AVENUE

5 UNITS / VALUE-ADD OPPORTUNITY IN ECHO PARK Stepp

2011 ECHO PARK AVENUE

Table of Contents

06 Executive Summary

08 Property Summary

14 Pricing & Financials

20 Market Comparables

30 Location Overview

Mark Ventre Kimberly R. Stepp 310.774.3834 310.774.3830 [email protected] [email protected] Stepp Investment Overview 2011 ECHO PARK AVENUE

DIVERSE ECONOMIC ENVIRONMENT The Property is situated on one of Echo Park’s most coveted streets, Echo Park Avenue north of Sunset Boulevard. This northernmost area of Echo Park is charming, quiet and is considered one of the more exclusive sections of the Executive Summary submarket. The average home sales price over the past twelve months from August 2019 is $1,027,000, making it one of the strongest neighborhoods in Northeast Los Angeles. Stepp Commercial is pleased to present 2011 Echo Park Avenue, a five-unit cottage-style apartment community nestled in the hills of Echo Park, one of Los AN EXCEPTIONAL LOCATION Angeles’ trendiest submarkets. The property is located north of Sunset Blvd in a Located in one of LA’s hottest submarkets, Echo Park offers an eclectic and diverse neighborhood that is quickly becoming posh and luxurious, while still maintaining mix of uber chic juxtaposed by historic nostalgia. The property is a short walk a strong sense of community. to stylish and trendy cafes, restaurants and entertainment venues. Echo Park is conveniently located between two of Los Angeles’ most prominent employments The property consists of four detached structures. The front building is a two- centers; Downtown Los Angeles and Hollywood, providing residents with bedroom one-bath cottage with a large patio and potential for a charming front convenient access to over 750,000 jobs. Its proximity to the Tri-Cities of Glendale, yard or extended wraparound deck. The configuration of the building allows for a Burbank and Pasadena further increase the desirability of this hilly paradise. The possible second bathroom, making it ideal for owner/occupant. confluence of little new housing and rental stock, increasing demand driven by a Heading up the hill, the next building is a duplex consisting of two-bedroom two growing job base and the rapidly increasing cost of home ownership, Echo Park is bath unit downstairs and a two-bedroom one bath unit upstairs, each with its own poised benefit from strong demand for the foreseeable future. private deck and/or porch. The downstairs unit has been completely renovated With a constant flow of young residents, many of whom have been priced out of with stainless steel appliances, hardwood style flooring, new cabinetry, stone neighboring Los Feliz and Silverlake, and a plethora of restaurants and shops along countertops, washer/dryer hookups, new fixtures and upgraded bathrooms with Sunset Boulevard, Echo Park has become a favorite destination for residents and subway tile. visitors throughout the city. Dubbed “the trendiest neighborhood in all of LA”, Echo Topping the property are two adjacent bungalow style one-bedroom units, one of Park is as historic as it is diverse, where one will find everything from the Dodgers which has recently been renovated. Sweeping views of the Elysian Park hills are Stadium to the Echo Park Lake, which was recently reopened after a 45-million- seen from the vantage point of these upper units. dollar renovation.

6 Investment Highlights

 Potential to increase rental income by nearly 30%  Located in one of Los Angeles’ hottest submarkets  Walkable to trendy restaurants, markets and specialty shops  Close proximity to over 750,000 jobs in DTLA and Hollywood

Stepp Commercial / 2011 Echo Park Avenue 7 Property Details

2011 Echo Park Avenue Address Los Angeles, CA 90026

APN 5420-021-019

Year Built 1924

# of Units 5

Building Size ± 2,928 SF

Lot Size ± 8,145 SF

(1) 2 Bedroom / 1 Bathroom Front (1) 2 Bedroom / 2 Bathroom Unit Mix (1) 2 Bedroom / 1 Bathroom (2) 1 Bedroom / 1 Bathroom

Investment Summary

Price $2,415,000 Price Per Unit $483,000 Current Cap Rate 3.1% Current GRM 18.0 Market Cap Rate 4.5% Market GRM 14.1

8 Stepp Commercial / 2011 Echo Park Avenue 9 Property Amenities ▷ Comprised of 4 individual cottages ▷ Top units have scenic views of Elysian Park ▷ Select units have washer/dryer hookups ▷ Hardwood style flooring ▷ Lots of natural light

2 Bedroom / 2 Bath Unit Renovated with:

▷ Stainless steel appliances ▷ Hardwood style flooring ▷ New cabinetry ▷ Dishwashers ▷ Built-in closets ▷ New fixtures ▷ Upgraded bathrooms with subway tile ▷ Washer/dryer hookups

10 Stepp Commercial / 2011 Echo Park Avenue 11 Stepp Pricing & Financials Rent Roll

UNIT TYPE EST. SF CURRENT RENT MARKET RENT NOTES 2011 2 Bed / 1 Bath Front 700 $2,700 $3,500

1 2011 /4 2 Bed / 2 Bath 650 $3,000 $3,000 High-End Renovation

1 2011 /2 2 Bed / 1 Bath 625 $2,400 $2,900 2013 1 Bed / 1 Bath 475 $2,200 $2,400 Moderate Renovation 2015 1 Bed / 1 Bath 475 $800 $2,400 5 2,925 $11,100 $14,200

14 Stepp Commercial / 2011 Echo Park Avenue 15 Income & Expenses

CURRENT AVG. CURRENT AVG. CURRENT MARKET MARKET UNITS TYPE SF RENTAL RANGE RENT RENT/SF RENT RENT/SF 1 2 Bed / 1 Bath Front 700 $2,700 $2,700 $3.86 $3,500 $5.00 1 2 Bed / 2 Bath 650 $3,000 $3,000 $4.62 $3,000 $4.62 1 2 Bed / 1 Bath 625 $2,400 $2,400 $3.84 $2,900 $4.64 2 1 Bed / 1 Bath 475 $800 - $2,200 $1,500 $3.16 $2,400 $5.05 5 585 $2,220 $3.79 $2,840 $4.85

INCOME CURRENT MARKET Scheduled Rental Income $133,200 $170,400 Plus: Laundry Income $900 $900 Scheduled Gross Income $134,100 $171,300 Less: Vacancy 3% ($4,023) ($5,139) Gross Operating Income $130,077 $166,161

ESTAMATED EXPENSES CURRENT MARKET New Taxes and Direct Assessments $29,680 $29,680 Insurance $2,000 $2,000 Off-Site Management $6,510 $8,310 DWP $5,000 $5,000 Gas $3,000 $3,000 Trash $2,000 $2,000 Landscape $1,200 $1,200 Pest Control $900 $900 Repairs and Maintenance $3,500 $3,500 Replacement Reserves $1,250 $1,250 Total Expenses $55,040 $56,840 Per Unit: $11,008 $11,368 Per SF: $18.80 $19.41 % of GOI: 42.31% 34.21% Net Operating Income $75,037 $109,321

16 Pricing & Financials

Price $2,415,000

BUILDING DATA/FINANCIAL INDICATORS 2011 Echo Park Avenue Address Los Angeles, CA 90026 APN 5420-021-019 Number of Units 5 Year Built 1924 Building Size ± 2,928 SF Lot Size ± 8,145 SF Current CAP Rate 3.1% Current GRM 18.0 Market CAP Rate 4.5% Market GRM 14.1 Price per Unit $483,000

Stepp Commercial / 2011 Echo Park Avenue 17 Stepp Market Comparables Sales Comparables

PROPERTY ADDRESS UNITS YEAR BUILT SALE PRICE $/UNIT CAP RATE GRM COE 1 931 Everett Street 5 1917 $2,100,000 $420,000 4.4% 14.6 7/26/19 2 1920 Preston Avenue 6 1945 $1,850,000 $308,333 5.1% 12.7 7/19/19 3 3524-3530 Ellsworth Street 6 1925 $2,200,000 $366,667 5.0% 15.6 11/21/18 4 2130-2134 Griffith Blvd 10 1941 $5,100,000 $510,000 4.0% 16.3 9/10/18 5 1441 Echo Park Avenue 5 1921 $2,750,000 $550,000 4.5% 15.7 5/1/18 Average 6 1930 $2,800,000 $431,000 4.6% 15.0 2011 Echo Park Avenue 5 1924 $2,415,000 $483,000 4.5% 14.1

3 5

20 Sales Comparables Details

1 | 931 Everett Street, Los Angeles, CA 90026 2 | 1920 Preston Avenue, Los Angeles, CA 90026

Sales Price $2,100,000 Sale Date 7/26/19 Sales Price $1,850,000 Sale Date 7/19/19 Price/Unit $420,000 Number of Units 5 Price/Unit $308,333 Number of Units 6 Cap Rate 4.4% Year Built 1917 Cap Rate 5.1% Year Built 1945 GRM 14.6 Building Size ± 4,893 SF GRM 12.7 Building Size ± 2,592 SF

UNIT MIX NOTES UNIT MIX NOTES

1 2 Bedroom Stabilized 6 1 Bedroom Stabilized 4 1 Bedroom

Stepp Commercial / 2011 Echo Park Avenue 21 Sales Comparables Details

3 | 3524-3530 Ellsworth Street, Los Angeles, CA 90026 4 | 2130-2134 Griffith Blvd, Los Angeles, CA 90039

Sales Price $2,200,000 Sale Date 11/21/18 Sales Price $5,100,000 Sale Date 9/10/18 Price/Unit $366,667 Number of Units 6 Price/Unit $510,000 Number of Units 10 Cap Rate 5.0% Year Built 1925 Cap Rate 4.0% Year Built 1941 GRM 15.6 Building Size ± 3,994 SF GRM 16.3 Building Size ± 6,246 SF

UNIT MIX NOTES UNIT MIX NOTES

1 2 Bedroom Stabilized 10 1 Bedroom Partially Renovated 5 1 Bedroom

22 5 | 1441 Echo Park Avenue, Los Angeles, CA 90026

Sales Price $2,750,000 Sale Date 5/1/18 Price/Unit $550,000 Number of Units 5 Cap Rate 4.5% Year Built 1921 GRM 15.7 Building Size ± 3,304 SF

UNIT MIX NOTES

4 2 Bedroom Stabilized 1 1 Bedroom

Stepp Commercial / 2011 Echo Park Avenue 23 Rent Comparables

2 BEDROOM

Address Zip Code Units Year Built Rent Est. SF Rent/SF 1 1495 Scott Avenue 90026 3 1947 $2,995 800 $3.74

2 1736 Griffith Park Boulevard 90026 6 1924 $3,100 750 $4.13

3 1486 Silver Lake Boulevard 90026 5 1950 $3,000 850 $3.53

4 1441 Carroll Avenue 90026 4 1888 $3,400 900 $3.78

5 1704 Baxter Street 90026 2 1925 $3,300 800 $4.13

AVERAGE 4 1927 $3,159 820 $3.86

2011 Echo Park Avenue – CURRENT 90026 5 1924 $2,700 659 $4.10

1 BEDROOM

Address Zip Code Units Year Built Rent Est. SF Rent/SF 6 1615 Park Avenue 90026 17 1960 $2,500 650 $3.85

7 1327 Douglas Street 90026 8 1923 $2,295 550 $4.17

8 1961 Echo Park Avenue 90026 4 1924 $2,100 400 $5.25

9 3114 Sunset Boulevard 90026 4/mix use 1924 $2,450 700 $3.50

10 1861 Lake Shore Avenue 90026 3 1924 $2,595 650 $3.99

AVERAGE 8 1931 $2,388 590 $4.15

2011 Echo Park Avenue – CURRENT 90026 5 1924 $1,500 475 $3.16

24 Rent Comparables Details

8 3 10

6 7

Stepp Commercial / 2011 Echo Park Avenue 25 Rent Comparables Details - 2 Bedroom

| 1 | | 2 | | 3 | 1495 SCOTT AVENUE 1736 GRIFFITH PARK BOULEVARD 1486 SILVER LAKE BOULEVARD LOS ANGELES 90026 LOS ANGELES 90026 LOS ANGELES 90026

Number of Units 3 Number of Units 6 Number of Units 5 Year Built 1947 Year Built 1924 Year Built 1950 Amenities - Fairly renovated, back patio, laundry shared Amenities - Renovated, stainless steel appliances, Amenities - Assumed renovations, washer/dryer in unit with neighbor unit washer/dryer in unit

2 BEDROOM 2 BEDROOM 2 BEDROOM Rent/Month $2,995 Rent/Month $3,100 Rent/Month $3,000 Unit SF 800 Unit SF 750 Unit SF 850 Rent/SF $3.74 Rent/SF $4.13 Rent/SF $3.53

26 TWO BEDROOM

| 4 | | 5 | Comparables 1441 CARROLL AVENUE 1704 BAXTER STREET LOS ANGELES 90026 LOS ANGELES 90026 Average Rent $3,159

Number of Units 4 Number of Units 2 Subject Property Year Built 1888 Year Built 1925 Current Rent Amenities - Historic building, washer/dryer in unit Amenities - Renovated, stainless steel appliances $2,700

2 BEDROOM 2 BEDROOM Rent/Month $3,400 Rent/Month $3,300 Unit SF 900 Unit SF 800 Rent/SF $3.78 Rent/SF $4.13

Stepp Commercial / 2011 Echo Park Avenue 27 Rent Comparables Details - 1 Bedroom

| 1 | | 2 | | 3 | 1615 PARK AVENUE 1327 DOUGLAS STREET 1961 ECHO PARK AVENUE LOS ANGELES 90026 LOS ANGELES 90026 LOS ANGELES 90026

Number of Units 17 Number of Units 8 Number of Units 4 Year Built 1960 Year Built 1923 Year Built 1924 Amenities - Open floorplans, quartz countertops, Amenities - Fully renovated unit with stainless steel Amenities - Stainless steel appliances, washer & remodeled bathroom with subway tile appliances dryer in unit

1 BEDROOM 1 BEDROOM 1 BEDROOM Rent/Month $2,500 Rent/Month $2,295 Rent/Month $2,100 Unit SF 650 Unit SF 550 Unit SF 400 Rent/SF $3.85 Rent/SF $4.17 Rent/SF $5.25

28 ONE BEDROOM

| 4 | | 5 | Comparables 3114 SUNSET BOULEVARD 1861 LAKE SHORE AVENUE LOS ANGELES 90026 LOS ANGELES 90026 Average Rent $2,388

Number of Units 4/Mix Use Number of Units 3 Subject Property Year Built 1924 Year Built 1924 Current Rent Amenities - Charming unit, wood floors, laundry Amenities - Charming unit, wood floors, laundry onsite onsite $1,500

1 BEDROOM 1 BEDROOM Rent/Month $2,450 Rent/Month $2,595 Unit SF 700 Unit SF 650 Rent/SF $3.50 Rent/SF $3.99

Stepp Commercial / 2011 Echo Park Avenue 29 ECHO PARK Echo Park Lake The Trendiest Neighborhood in All of LA

Located in one of LA’s hottest submarkets, Echo Park offers an eclectic and diverse mix of uber chic juxtaposed by historic nostalgia. The property is a short walk to stylish and trendy cafes, restaurants and entertainment venues. Echo Park is conveniently located between two of Los Angeles’ most prominent employments centers; Downtown Los Angeles and Hollywood, providing residents with convenient access to over 750,000 jobs. Its proximity to the Tri-Cities of Glendale, Burbank and Pasadena further increase the desirability of this hilly paradise. The confluence of little new housing and rental stock, increasing demand driven by a growing job base and the rapidly increasing cost of home ownership, Echo Park is poised benefit from strong demand for the foreseeable future. With a constant flow of young residents, many of whom have been priced out of neighboring Los Feliz and Silverlake, and a plethora of restaurants and shops along Sunset Boulevard, Echo Park has become a favorite destination for residents and visitors throughout the city. Dubbed “the trendiest neighborhood in all of LA”, Echo Park is as historic as it is diverse, where one will find everything from the Dodgers Stadium to the Echo Park Lake, which was recently reopened after a 45-million-dollar renovation.

30 Elysian Park The Semi Tropic

Market Mural Dodger Stadium

Stepp Commercial / 2011 Echo Park Avenue 31 Echo Park / The Heart of L.A.'s Eastside

With a plethora of restaurants and shops along Sunset Boulevard, Echo Park has become a favorite destination for residents and visitors throughout the city. Dubbed “the trendiest neighborhood in all of LA”, Echo Park is as historic as it is diverse, where one will find everything from the Dodgers Stadium to the Echo Park Lake, which was recently reopened after a 45-million-dollar renovation.

1 Tierra Mia Coffee 16 Hey Hey 2 Pollen 17 Valerie Echo Park 3 Mugshot COFFEE Roasters 18 The Holloway 4 Mayas' Tacos Restaurant 19 Ostrich Farm 5 La Espiga Bakery 20 Sunset Beer 6 The Semi-Tropic 21 Little Joy Cocktails 7 MS Donuts 22 Mohawk Bend 8 Hard Times Pizza Co. 23 Stories 9 Baby Blues BBQ 24 The Echo/Echoplex 10 Taix French Restaurant 25 Echo Park Market 11 Brite Spot 26 Yogala Studios 12 Masa of Echo Park Bakery & Cafe 27 Neighborhood Salon 13 Sage Plant Based Bistro 28 Little Grocery Market 14 Dinette 29 Counterpart 15 Gold Room 30 Cookbook Los Angeles

32 2

25 3

27 26 28

4 17 THE SEMI TROPIC

5 29 30

TIERRA MIA COFFEE 6 7 COOKBOOK LA 8

1 10 9 22 11 24 12 23 18 13 14 16 THE HOLLOWAY 15 19 21 20

Stepp Commercial / 2011 Echo Park Avenue 33 HOLLYWOOD

Rich in both culture and history, Hollywood’s most famous landmarks include the Hollywood Bowl, ArcLight Cinemas, Pantages Theatre, Fonda Theater, El Capitan Theatre, Dolby Theatre, Roosevelt Hotel, and the Hollywood Walk of Fame. Many young professionals are attracted to Hollywood’s walkable urban environment rich in history, with an array of tech, media and entertainment employment centers, nightlife/recreation, restaurants and quality public transportation.

SILVER LAKE

Silver Lake is an Eastside neighborhood that fully embraces the hipster lifestyle. Funky blocks with street art are lined with artisan coffee shops, vegan cafes and creative Asian eateries, as well as indie music venues, trendy bars and boutiques. The area also includes fine examples of modernist architecture and a namesake reservoir that’s ringed by a popular walking trail with a dog park and a grassy meadow.

DOWNTOWN LOS ANGELES

Los Angeles offers residents easy access to over 100 million square feet of office space in the surrounding major employment hubs such as Miracle Mile, Hollywood, West Hollywood, Beverly Hills, Koreatown, and Downtown Los Angeles in less than 30 minutes. Residents can enjoy short commute times to thousands of high-wage jobs and easy access to world-class dining and entertainment while living in one of the most prestigious residential neighborhoods of Los Angeles. Downtown Los Angeles is home to several public parks, plazas, gardens and other open space, including the Water Court at California Plaza, an outdoor performance and dining space with water features, fountains, shaded seating areas and an amphitheater. Several future park proposals for the district make use of public-private partnerships between developers and the city of Los Angeles.

LOS FELIZ

Los Feliz is a relaxed hillside enclave that draws both established and up-and-coming creative types. There are plenty of old-school watering holes, hip shops and cafes, plus the Vista Theatre, a 1923 movie palace, and a pair of exemplary Frank Lloyd Wright homes. The neighborhood borders sprawling Griffith Park, beloved by locals for its hiking, concerts at the Greek Theatre and stargazing at Griffith Observatory.

34 2011 ECHO PARK LOS FELIZ AVENUE

HOLLYWOOD

SILVER LAKE

ECHO PARK

WESTLAKE DISTRICT CHINATOWN

DOWNTOWN LOS ANGELES

Stepp Commercial / 2011 Echo Park Avenue 35 New Multifamily Development

1 1313 Sunset Boulevard / 27 Units Status: Completed 2 2 1750 Glendale / 77 Units Status: March 2020 Completion

3 2014 W. Sunset Boulevard / 36 Units Status: September 2019

4 712 N Alvarado Street / 34 Units Status: March 2020 Completion

5 1141 N Mohawk Street / 10 Units 5 Status: July 2020 Completion

3 6 Echo Heights / 67 Units Status: September 2020 Completion 7 8 7 916 N Alvarado Street / 27 Units 6 4 Status: July 2020 Completion

8 1601 Park Avenue / 11 Units 1 Status: July 2020 Completion

36 New Multifamily Development 1313 Sunset Boulevard Echo Heights

1750 Glendale Boulevard 916 N Alvarado Street

2014 W. Sunset Boulevard 1601 Park Avenue

Stepp Commercial / 2011 Echo Park Avenue 37 Stepp / Invested with You.™

KIMBERLY R. STEPP MARK VENTRE 310.774.3830 310.774.3834 [email protected] [email protected] CA DRE 01251767 CA DRE 01811490

STEPPCOMMERCIAL.COM

Disclaimer & Confidentiality Agreement The material contained in this document is confidential, furnished solely for the purpose of considering investment in the property described therein and is not to be copied and/or used for any purposed or made available to any other person without the express written consent of Stepp Commercial. In accepting this, the recipient agrees to keep all material contained herein, cofidential. This information has been prepared to provide summary information to prospective purchasers and to establish a preliminary level of interest in the property described herein. It does not, however, purport to present all material information regarding the subject property, and it is not a substitute for a thorough due diligence investigation. Stepp Commercial and Seller have not made any investigation of the actual property, the tenants, the operating history, financial reports, leases, square footage, age or any other aspect of the property, including but not limited to any potential environmental problems that may exist and make no warranty or representation whatsoever concerning these issues. The information contained in this informational package has been obtained from sources we believe to be reliable; however, Stepp Commercial and Seller have not conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. Any pro formas, projections, opinions, assumptions or estimates used are for example only and do not necessarily represent the current or future performance of the property. Stepp Commercial and Seller strongly recommend that prospective purchasers conduct an in-depth investigation of every physical and financial aspect of the property to determine if the property meets their needs and expectations. We also recommend that prospective purchasers consult with their tax, financial and legal advisors on any matter that may affect their decision to purchase the property and the subsequent consequences of ownership. All parties are advised that in any property the presence of certain kinds of molds, funguses, or other organisms may adversely affect the property and the health of some individuals. Stepp Commercial recommends, if prospective buyers have questions or concerns regarding this issue, that prospective buyers conduct further inspections by a qualified professional. The Seller retains the right to withdraw, modify or cancel this offer to sell at any time and without any notice or obligation. Any sale is subject to the sole and unrestricted approval of Seller, and Seller shall be under no obligation to any party until such time as Seller and any other necessary parties have executed a contract of sale containing terms and conditions acceptable to Seller and such obligations of Seller shall only be those in such contract of sale.