keystone five The information contained in the following OFFERING MEMORANDUM is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Conroy Commercial and it should not be made available to any other person or entity without the written consent of Conroy Commercial. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the OFFERING MEMORANDUM. If you have no interest in the subject property at this time, please return this OFFERING MEMORANDUM to Conroy Commercial.
This OFFERING MEMORANDUM has been prepared to provide summary, unverified financial and physical 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. Conroy Commercial 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, PCBs or JEFF GRAY asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements Senior Associate thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to 310-275-3213 Direct continue its occupancy of the subject property. The information contained in this OFFERING MEMORANDUM has 310-874-6920 Mobile been obtained from sources we believe to be reliable; however, Conroy Commercial has not verified, and will not verify, any of the information contained herein, nor has Conroy Commercial conducted any investigation regarding [email protected] these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the LICENSE 01386816 information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.
All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Conroy Commercial has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Conroy Commercial’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Conroy Commercial and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)
BROKER OF RECORD 5877 WEST 3RD STREET LOS ANGELES, CA 90036 EXECUTIVE SUMMARY SUMMARY
ADDRESS 2439 N. KEYSTONE STREET
CITY BURBANK, CA 91504
UNITS 5
YEAR BUILT 1986
APN 2472-020-025
APPROX. GROSS SF 4,666
APPROX LOT SIZE 8,411
BUILDINGS 1
ELECTRIC METERS 6
GAS METERS 6
PARKING 10 spaces / Carport
4 5 6 7 OPPORTUNITY
▪ Pride Of Ownership, Well Maintained 5-unit Building
▪ Large 2-bedroom Units (4 With Balconies, 1 With Large Private Yard)
▪ Non-rent Control
▪ 3 Vacant Units In Good Condition
▪ Centrally Located In Burbank
8 9 McCambridge Rec Center
George Washington Elementary Starbucks
Scott Drugs
N
10 FINANCIAL OVERVIEW FINANCIAL ANALYSIS
PRICING THE ASSET FINANCING OFFERING PRICE $1,680,000 Units 5 Down 100% $1,680,000 PRICE/UNIT $336,000 Year Built 1986 Loan 0% $0 PRICE/SF $360.05 Gross SF 4,666 Ammort Years 30 GRM 75.68 14.89 Lot SF 8,411 Interest Rate 0.00% CAP RATE -0.67% 4.49% APN 2472-020-025 Payments $0 Current Market
MONTHLY RENT SCHEDULE # of Units Type Estimated SF Current Total Market Market Total 3 2+1 $1,850 $1,833 $5,500 2 2+2 $0 $1,950 $3,900 5 $1,850 $9,400 Monthly Scheduled Gross Income $1,850 $9,400
ANNUALIZED INCOME Current Market Scheduled Gross Income $22,200 $112,800 Laundry Income $600 $1,850 Vacancy Rate Reserve 0% $0 3% ($3,384) Gross Operating Income $22,800 $111,266
ANNUALIZED EXPENSES Current Market New RE Taxes 1.250000% $21,000 $21,000 Water & Power $2,400 $4,200 Trash $1,392 $1,392 Groundskeeping $2,160 $2,160 Property Insurance Est. $2,759 $2,759 Repairs & Maintenance 4% $2,200 $2,200 Pest Control $600 $600 Reserves & Replacements $1,500 $1,500 Total Expenses $34,011 $35,811 Expenses/Unit $6,802 $7,162 Expenses/SF $7.29 $7.67 % of SGI 149.17% 32.19%
RETURN Current Market NOI -$11,211 $75,455
12 RENT ROLL
Unit # Type Estimated SF Current Rent Market Rent Market Rent/SF
A 2 bedroom - 2 bathroom 1,030 Vacant $1,950 $1.89
B 2 bedroom - 1 bathroom 900 $925 $1,850 $2.06
C 2 bedroom - 1 bathroom 806 Vacant $1,800 $2.23
D 2 bedroom - 2 bathroom 1,030 Vacant $1,950 $1.89
E 2 bedroom - 1 bathroom 900 $925 $1,850 $2.06
Totals: 4,666 $1,850 $9,400
13 MARKET COMPARABLES SALES COMPARABLES
ADDRESS UNITS BUILT GROSS SF LOT SIZE UNIT MIX SALE DATE PRICE PRICE/UNIT PRICE/SF PRICE/LOT SF CAP 1 1110 Leland Way 5 1990 4,413 7,841 3 - 2/1 9/18/2020 $1,662,500 $332,500 $377 $212 4.20% Burbank, CA 2 - 1/1
2 416 N Shelton St 10 1988 11,328 8,100 10 - 2/2 9/3/2020 $3,855,000 $385,500 $340 $476 3.83% Burbank, CA
3 730 E Magnolia Blvd 5 1959 3,592 7,871 4 - 1/1 7/22/2020 $1,722,000 $344,400 $479 $219 3.47% Burbank, CA 1 - 2/1
4 339 Western Ave 7 1953 3,534 8,294 7 - 1/1 7/17/2020 $1,150,000 $164,286 $325 $139 N/A Burbank, CA
5 257 E Santa Anita Ave 9 1990 8,798 6,941 4 - 1/1 6/26/2020 $3,600,000 $400,000 $409 $519 3.73% Burbank, CA 4 - 2/2 1 - 3/2
AVERAGES 6,333 7,809 $2,397,900 $325,337 $386 $313 3.81%
S Subject Property 5 1986 4,666 8,411 3 - 2+1 $1,680,000 $336,000 $360 $200 4.49% 2439 N. Keystone Street 2 - 2+2 Burbank, CA 91504
15 SALES COMPARABLES
PRICE/UNIT PRICE/BLDG SF $450,000 $600 $400,000 $400,000 $385,500 $344,400 $500 $479 $350,000 $332,500 $336,000 $409 $300,000 $400 $377 $360 $340 $325 $250,000 $300 $200,000 $164,286 $150,000 $200 $100,000 $100 $50,000
$0 $0 1 2 3 4 5 S 1 2 3 4 5 S
CAP RATE PRICE/LOT SF 5.00% $600 4.49% 4.50% 4.20% $519 $500 $476 4.00% 3.83% 3.73% 3.47% 3.50% $400 3.00% 2.50% $300 $219 2.00% $212 $200 $200 1.50% $139 1.00% $100 0.50% N/A 0.00% $0 1 2 3 4 5 S 1 2 3 4 5 S
16 SALES COMPARABLES
S
3 1
5 2
1 1110 Leland Way 2 416 N Shelton St 3 730 E Magnolia Blvd 4 339 Western Ave 5 257 E Santa Anita Ave S 2439 N. Keystone Street
4
17 LEASE COMPARABLES
2 BEDROOM
ADDRESS TYPE UNIT SF RENT RENT/SF 1 2329 N Lincoln St 2 Bd/1 Ba 1,000 $2,000 $2.00 Burbank, CA 91504
2 1715 Elliott Dr 2 Bd/1 Ba 900 $2,400 $2.67 Burbank, CA 91504
3 1727 N. Glenoaks Blvd 2 Bd/1 Ba 750 $1,900 $2.53 Burbank, CA 91504
4 1809 N. Glenoaks Blvd 2 Bd/1 Ba 900 $1,850 $2.06 Burbank, CA 91504
5 2250 N Fairview St 2 Bd/2 Ba 950 $2,000 $2.11 Burbank, CA 91504
6 2601 N Glenoaks Blvd #B 2 Bd/2 Ba 1,000 $1,850 $1.85 Burbank, CA 91504
AVERAGES $2,000 $2.20
S Subject Property 2 Bd/1 Ba $1,833 2439 N. Keystone Street 2 Bd/2 Ba $1,950 Burbank, CA 91504
18 LEASE COMPARABLES
S 6
1
2 4 3
5
1 2329 N Lincoln St 2 1715 Elliott Dr 3 1727 N. Glenoaks Blvd 4 1809 N. Glenoaks Blvd 5 2250 N Fairview St 6 2601 N Glenoaks Blvd #B S 2439 N. Keystone Street
19 MARKET OVERVIEW Billed as the "Media Capital of the World” and only a few miles northeast of Hollywood, numerous media and entertainment companies are headquartered or have significant production facilities in Burbank, including The Walt Disney Company, Warner Bros. Entertainment, ABC Studios, Freeform, Marvel Studios, Nickelodeon, NBC, Cartoon Network, and Insomniac Games. The city is also home to Bob Hope Airport. It was the location of Lockheed's Skunk Works, which produced some of the most secret and technologically advanced airplanes, including the U-2 spy planes that uncovered the Soviet Union missile components in Cuba in October 1962.
21 MAJOR AREA EMPLOYERS
keystone five
2022 JOINT VENURE
FORTUNE 500/1000 COMPANIES OTHER MAJOR FIRMS
DOLE ❖ AMGEN ❖ NORTHROP GUMMAN ❖ TELEDYNE HINES ❖ KEYES ❖ ANTHEM ❖ ALLISON ASSET ❖ TECHNOLOGIES ❖ TUTOR PERINI ❖ PUBLIC STORAGE ❖ BURBANK STUDIOS ❖ WESTFIELD ❖ RYLAND HOMES ❖ AVERY DENNISON ❖ HEALTHNET KAISER PERMANENTE ❖ WARNER BROS ❖ ADLER REALTY ❖ MARVEL ❖ ABC
22 BURBANK AMENITIES
AMENITIES & ATTRACTIONS THE EQUIDOME THEATER & ARTS Burbank Town Center - Located off I-5 in Downtown The Equidome was built in 1982, and is used for Burbank, California is home to several live theatres, Burbank, the landmark Burbank Town Center offers a sporting events such as equestrian shows, dressage playhouses, and musical ensembles that offer Broadway- choice of more than 170 retail stores, restaurants, competitions, and rodeos. It is occasionally used for style shows and top performances. You can see well- entertainment venues and lifestyle services. This three- music concerts. known stage actors and actresses as well as emerging level enclosed mall features a dramatic dome towering talents - both musical and theatrical. Watch acclaimed over Center Court. The mall complements Burbank Town WARNER BROS. STUDIO TOUR HOLLYWOOD shows such as Of Mice and Men, A Streetcar Named Center's many outdoor shops, restaurants and theatres Warner Bros. Studio Tour Hollywood brings you up Desire, Macbeth, Around the World in 80 Days, The situated along San Fernando Road. Free parking is close and personal to the sets and soundstages where Glass Menagerie, An Ideal Husband, Lost in Yonkers, available throughout the shopping center in garages or the magic of Hollywood is made. Knowledgeable tour Nutcracker Suite, and many others. Seeing live theatre surface lots. guides will take you behind the scenes of the legendary and orchestral performances in Burbank is a great way 110-acre backlot where classic movies and TV shows like to enjoy an evening. STARLIGHT BOWL Casablanca, Batman and Friends came to life. With Starlight Bowl - Starlight Bowl is an amphitheater located actual filming happening all around you, no two tours in Burbank, California, with a total seating capacity of are ever alike. Here, you’ll explore the authentic sets and 5,000. Originally built in 1950, Starlight Bowl has a total of soundstages where hit shows like the Ellen DeGeneres 3,000 seats with room for another 2,000 guests on the Show, The Big Bang Theory, and Pretty Little Liars are lawn. The Starlight Bowl is Burbank's premiere outdoor currently filmed! entertainment venue, and it's great location offers some of the most scenic views in all of Burbank.
23
LOCAL DEVELOPMENTS
1 2 3
WARNER BROS. PLANS FRANK GEHRY- RENDERING VS. REALITY: TALARIA AT PROPOSED DEVELOPMENT MOVES DESIGNED EXPANSION IN BURBANK BURBANK FORWARD NEAR BURBANK METROLINK STOP
In advance of its 100th anniversary, the venerable The Cusumano Group is putting the finishing LaTerra Development and the City of Burbank film and entertainment company Warner Bros. is touches on Talaria, its new mixed-use have kicked off the environmental review period planning a Frank Gehry-designed expansion in development in the Burbank Media District. for the 777 North Front Street Project, a mixed- Burbank. use complex that would rise near the city's The five-story building, located at 3401 W. Olive Metrolink station. The film and entertainment company announced Avenue, contains 241 residential units atop a today that it will purchase a portion of The 43,000-square-foot retail space that is now The proposed development, which would occupy Burbank Studios that sits adjacent to its main lot, occupied by a Whole Foods Market. Other a 10-acre site spanning between Burbank and where Worthe Real Estate Group and Stockbridge project features include a 760-car garage, a Magnolia Boulevards, calls for the construction of Real Estate Fund will construct a pair of mid-rise swimming pool, and a gym. multiple buildings featuring a mix of apartments, office buildings dubbed the "Second Century hotel rooms, and retail space. Project.“ The real-life product adheres closely to conceptual renderings of the design by Santa The project, which will flank the 134 Freeway, calls Monica-based VTBS Architects. for the construction of seven- and nine-story buildings with a combined 800,000 square feet of office space.
25 TOP EMPLOYERS
Company Employees Type
Warner Bros. Entertainment, Inc. 5,000 Entertainment
The Walt Disney Company 3,900 Entertainment
Providence Saint Joseph Medical Center 2,850 Medical
Deluxe Shared Services 1,540 Entertainment
ABC, Inc. 951 Entertainment
Nickelodeon Animation 602 Entertainment
Crane Co. Hydro-Aire Division 594 Aerospace
Entertainment Partners 590 Entertainment
Senior Aerospace – SSP 590 Aerospace
Foto-Kem Industries 580 Entertainment
Target 401 Retail
Diagnostic Laboratories 388 Medical
Automobile Club of Southern California 369 Service
Wal-Mart 348 Retail
IKEA 335 Retail
Costco Wholesale 329 Retail
Capgemini US 323 Technology
Cast and Crew Payroll 304 Service
Midnight Oil Creative 282 Entertainment
Macy’s 269 Retail
Aramark Uniform Services 254 Service
Vallarta Supermarket 229 Retail
Fry’s Electronics 219 Retail
Porto’s Bakery 202 Restaurant
CBS Interactive 200 Entertainment
POPULATION Almost 2.5 million people reside in the San Fernando Valley, which includes the submarkets of Northridge-Northwest San Fernando Valley; Van Nuys- Northeast San Fernando Valley; Woodland Hills; Burbank-Glendale-Pasadena; as well as Sherman Oaks-North Hollywood-Encino. The area’s population is expected to increase by 1.9 percent through 2019, or by nearly 45,000 new residents.
ENTERTAINMENT INDUSTRY Community Snapshot Known for its entertainment industry, the Valley boasts more than 100 soundstages. Entertainment giants calling the Valley home include Walt Disney DEMOGRAPHICS 1 Mi. 3 Mi. 5 Mi. Co., Universal Studios, Warner Brothers, DreamWorks and Paramount Ranch. POPULATION The entertainment industry continues to set the area’s economic pulse. Local 2024 Projection 39,720 200,203 534,156 motion picture and entertainment companies employ roughly 25,000 people.
2019 Estimate 38,241 196,803 521,826
Growth % 3.87% 1.73% 2.36% LIMITLESS OPPORTUNITIES
HOUSEHOLDS While the Valley has grown into the world’s center for entertainment, aerospace giants Boeing and Northrop Grumman, and 21st Century Insurance 2024 Projection 15,868 69,760 185,721 also generate numerous well-paying jobs. Healthcare is a also a major source 2019 Estimate 15,278 68,681 181,780 of employment with providers that include Kaiser Permanente, and Providence Growth % 3.86% 1.57% 2.17% Health & Services. As a result of its large concentration of high-salaries and INCOME successful companies, the area’s median household income of $59,300 per 2019 Avg. HH Income $83,253 $94,161 $90,430 year has risen dramatically since 2000. Although the median home prices 2019 Med. HH Income $63,601 $69,693 $65,599 dipped during the recession, affordability remains a challenge for much of the local population. High home prices keep the homeownership rate near 50% in the San Fernando Valley and provide a large rental base.
27 Exceptional municipal services, high quality of life, convenient access, responsible growth and a diversified economy make the San Fernando Valley a highly desirable location for domestic international investment.
PROFIT-BOOSTING BUSINESS SUPPORT The Valley gives businesses the advantage of strong strategic partners and support structures. These serve to connect businesses to the resources it needs for growth. The region is home to robust organizations which include The Valley Economic Alliance, Valley Economic Development Center, Valley Industry and Commerce Association, United States Small Business Association, United Chambers of Commerce, and many others.
NETWORK OF ILLUSTRIOUS CORPORATE HQ’S The Valley is home to many major corporate names, and has traditionally been known as the entertainment capital of the world. They include Fortune 500 Companies such as The Walt Disney Co., Amgen Inc., Health Net Inc., and Avery Dennison Corp., as well as Fortune 1,000 Companies Tutor Perini Corp., Teledyne Technologies Inc., The Ryland Group Inc., and Public Storage.
EDUCATION CENTERS OFFER SOLID EMPLOYEE BASE From private to public education, no other area comes close to the educational capacity of The Valley. The Greater San Fernando Valley is home to 121 accredited institutions that offer higher education degrees, and includes public and private universities, colleges, trade schools, and graduate institutions. Approximately 506,000 individuals have higher education degrees, roughly 25% of The Valley’s entire population. This makes it easy for businesses to find future employees who are well-educated.
ACCESSIBLE TRANSPORTATION HUBS The Valley makes transportation easy and accessible anchored by two major airports in the region, the world’s largest general aviation airport in Van Nuys as well as Bob Hope Airport in Burbank. businesses have easy access to major airlines for business, trade, and private aircraft needs. On the ground, The Valley has commuter rail services, Surfliner trains, dedicated high-speed bus lanes, a subway, an elaborate freeway system, and will have a California High Speed Rail station, now in the planning stage.
MASSIVE ENTERTAINMENT & TOURISM CAPITAL With an entertainment industry known around the world that is constantly bringing in new people and major new investors, there is no better market for getting creative talent for businesses. Tourism is constantly growing here, with over 42 million overnight and day visitors to the region annually as well as over $18.4 billion spent by these visitors.
28 “24”: The new Bratz dolls headquarters This office campus will incorporate creative Sepulveda 364 office, residential, and retail space on a 24-acre 364 Apartment units. 44 of the units will be property, which will serve as the headquarters earmarked as low income. The project also for MGA Entertainment, the makers of Bratz includes a garage with 557 spots, plus a dolls. swimming pool and a dog run.
The ICON at Panorama City 7 buildings measuring 584,000 SF. That space would hold 423 units plus 200,000 sf of commercial floor area. 6-level parking garage for 1,690 cars
6606 Variel Ave 6041 Variel Ave 271-unit apartment building. The 274-unit apartment complex with 11 complex would have a pool and live work units and a 12-story office rooftop decks, plus two levels of building. NoHo West keystone five parking. 642 apartments, 60 dining and shopping options, a Trader Joe’s, gym, and movie Burbank Town Center theater. Razing the old Ikea would make way for765 multi-family units; plus an additional 70 for- sale units would be built at 800 North San Fernando Boulevard.
21031 Warner Center Lane North Hollywood Metro station 1,000 apartments and condos, and a Metro is working to bring 1,500 units, retail, and trio of 15-story office buildings to a office space to the station. The development, site near De Soto and Burbank. called District NoHo, is slated to be built in phases starting in 2021.
Warner Center Makeover Westfield is planning a major overhaul of the old Promenade mall Harvard-Westlake River Park with 1,400 units, new shops & 6 acres of public park space, plus tennis restaurants, 572 hotel rooms, and an courts and walking trails that are also open to entertainment venue. the public.
DEVELOPMENT IN THE VALLEY: 11 BIG PROJECTS POISED TO ALTER THE REGION
It’s time to stop thinking of the Valley as a sleepy suburb. From Chatsworth to North Hollywood, plans are in the pipeline to make neighborhoods more city-like, meaning more dense and maybe more walkable and bikeable and more transit-friendly. In the coming years, developers will build thousands of new units of housing, create open space, bring in new retailers, and build new offices, creating mini villages within neighborhoods. keystone five