VENTURA BOULEVARD NORTH HOLLYWOOD 7.4 MILLION SF OFFICE 2.9 MILLION SF RETAIL STUDIO CITY
SHERMAN OAKS
RIVERSIDE DRIVE
14419 RIVERSIDE SHERMAN OAKS TILDEN AVENUE
A premier 12-unit “RTI” development opportunity in Sherman Oaks, CA EXCLUSIVELY LISTED BY:
FILIP NICULETE First Vice President Investments 1 2 3 4 Director, National Multihousing Group EXECUTIVE FINANCIAL AREA OVERVIEW SALES Tel: (818) 212-2748 SUMMARY ANALYSIS COMPARABLES Fax: (818) 337-7303 Filip.Niculete.marcusmillichap.com License: CA: 01905352
This information has been secured from sources we believe to be reliable, but we make no representations 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, opin- ions, assumptions or estimates used herein are for example purposes 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 ENCORE APARTMENTS
CONCEPTUAL RENDERING VAN NUYS BOULEVARD
14419 RIVERSIDE SHERMAN OAKS
RIVERSIDE DRIVELINDEN AVENUE
4 5 14419 A unique opportunity to acquire a 12-unit “RTI” development site consisting RIVERSIDE of 12,998 square feet of land in Sherman Oaks, CA Marcus and Millichap is pleased to present 14419 W Riverside Drive, a high profile SHERMAN OAKS 12-unit “RTI” development opportunity in prime Sherman Oaks, CA. The property is comprised of approximately 0.30 acres (12,998 SF) lot area zoned RD1.5.
The offering currently has entitlements for a 3-story 12-unit apartment building consisting of (4) 1 + 1 units, (6) 2 + 2 units, and (2) 3 + 2 units. The proposed gross building area totals 16,508 square feet.
14419 W Riverside Drive is ideally located in the epicenter of the South San Fernando Valley, which boasts high-profile demographics, dense immediate population, high barriers to entry, and strong market fundamentals yielding an investor/landlord favored market conditions with significant growth potential. Centrally located just north of the Ventura (101) Freeway, and conveniently positioned in the center of a broad range of employment and retail options, 14419 W Riverside Drive is surrounded by high-end neighborhoods, two of the most sought after shopping centers in Los Angeles County (Westfield Fashion Square and Sherman Oaks Galleria), and numerous high- 124 FEET OF FRONTAGE profile office towers and residential developments nearby. 14419 W Riverside Drive is positioned only 0.6 miles from Ventura Boulevard, the primary east-west thoroughfare in the San Fernando Valley. Running 18 miles, Ventura Boulevard is the world’s longest avenue of contiguous businesses. It has always been a concentrated location for mom and pop shops and small businesses in the Valley; nowadays it has pockets of housing, mini malls, and shops, along RIVERSIDE DRIVE 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.
14419 W Riverside Drive is a thoughtfully designed fully entitled (“RTI”) development opportunity in one of the most desirable locations in the San Fernando Valley.
6 7 CONCEPTUAL RENDERING NOT ACTUAL PLANS INVESTMENT HIGHLIGHTS
PRIME SHERMAN OAKS DEVELOPMENT OPPORTUNITY Approximately 124 feet of frontage and visibility along Riverside Drive 12,998 sf of lot area zoned RD1.5 Prime corner lot (Riverside and Tilden) Excellent proposed unit mix of (4) 1 + 1 units, (6) 2 + 2 units, and (2) 3 + 2 units Offering will be delivered with “Ready to Issue” permits High-profile rental neighborhood in the San Fernando Valley Unique development opportunity in the epicenter of the South Valley to construct a fully entitled (“RTI”) 12-unit multifamily project
IRREPLACEABLE SAN FERNANDO VALLEY LOCATION Walking distance to Ventura Boulevard (0.6 miles) Easy access to the 101 Ventura Freeway Proximate to Studio City, Encino, North Hollywood and Valley Village Walking distance to Westfield Fashion Square and Sherman Oaks Hospital Creative businesses are taking root in nearby North Hollywood and Warner Center due to its access to the Metro, city life, and live/work spaces Ventura Boulevard is the world’s longest avenue of contiguous businesses, providing convenient access to employment, boutique restaurants and retailers Short drive to Westfield Topanga and The Village, the 3rd largest shopping center in the United States
STRONG IMMEDIATE DEMOGRAPHICS Median household Income of $107,867 in Sherman Oaks Average SFR home price of $1,140,000 Strong local economy with significant job growth over a multitude of diverse sectors
8 9 SHERMAN OAKS GALLERIA
THE OFFERING 14419 PROPERTY SUMMARY RIVERSIDE SHERMAN OAKS 14419-14427 W Riverside Dr Address Sherman Oaks, CA 91423 Price $2,100,000 Land Size (SF) 12,998 SF Land Size (Acres) 0.30 Acres $ / Land SF $161.56 Entitled For 12 units $ / Buildable Unit $175,000 Demolished duplex and single family Current Improvement home APN’s 2248-005-024 Zoning [Q] RD1.5-1-RIO Land Use Designation Low Medium II Residential Neighborhood Council Sherman Oaks 10 11 PROPOSED UNIT MIX
UNIT # TYPE RENTABLE SF (APPROX.) PROJECTED RENT 201 1 BD / 1 BA 700 $2,400 202 2 BD / 2 BA 1,200 $2,950 203 2 BD / 2 BA 1,250 $2,995 204 3 BD / 2 BA 1,600 $3,500 205 2 BD / 2 BA AFF 850 $1,000 206 1 BD / 1 BA 700 $2,400 301 1 BD / 1 BA 700 $2,400 302 2 BD / 2 BA 1,200 $2,950 303 2 BD / 2 BA 1,250 $2,995 304 3 BD / 2 BA 1,600 $3,500 305 2 BD / 2 BA AFF 850 $1,000 306 1 BD / 1 BA 700 $2,400 Total 16 ,132
TAX MAP THE PROPERTY SUMMARY OF TERMS INTEREST OFFERED 14419 W Riverside Drive is ideally located in the affluent neighborhood of Sherman Oaks. 100% fee simple interest in 14419-14427 W Riverside Drive, a 12,998 sf lot with entitlements for a 12-unit apartment A fully entitled (RTI) 12-unit development development project in prime Sherman Oaks. The property sits 12,998 sf of land zoned [Q]RD1.5-1-RIO. The building duplex and single family have been demolished and upon obtaining permits, the project will be “shovel ready.”
ADDRESS CURRENT IMPROVEMENTS FRONTAGE AND ACCESS TERMS OF THE SALE 14419 -14427 W Riverside Dr The seller has completed demolition of a duplex and Riverside and Tilden Property is being offered on a free and clear basis and Sherman Oaks CA 91423 single family home will be delivered with “Ready to Issue” permits ENTITLED FOR A 3-story 12-unit apartment building totalling PROPERTY TOURS SITE LAND 16,123 rentable sf Prospective purchases are encouraged to call for an The subject property is located on the A 0.30 acre (approximately 12,998 sf) lot zoned appointment and visit the property prior to submitting northeast corner of Riverside Drive and [Q]RD1.5-1.RIO. NEAREST SHOPPING CENTERS offers. Tilden Avenue Westfield Fashion Square and Sherman Oaks Galleria 12 13 FOUNDATION PLAN
ELEVATIONS THE PROJECT
ENTITLED FOR A 3-story 12-unit totalling 16,508 square feet of gross building area
STATUS The subject project has been approved by City of Los Angeles planning department and will be delivered with “Ready to Issue” (RTI) permits
INCLUDED The offering is being delivered along with all architectural, structural, and engineering plans.
14 15 THE ROOSEVELT Sherman Oaks, a prime valley location
Sherman Oaks is an affluent community located in the San Fernando Valley. With a median home price in Sherman Oaks of $1,143,000, there is a distinct affordability gap that continues to drive occupancy and rental growth in the immediate area.
The household income required to afford a moderatelypriced single family residence in this market is approximately $250,425 per year (assuming 30% of gross income is spent on housing). The net result is that a vast majority of households are priced-out of home ownership in this neighborhood, heightening demand for high-quality multi-family housing.
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 16 17 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 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:
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 Projected to Grow an Additional 13.19% by 2020 THE SAN FERNANDO VALLEYLLEY Approximately 49% of The Valley’s Households are Renters “The Valley” is a premier location for residents to live, work, and play Average Vacancy Across the San Fernando Valley is 2.24%
Sherman Oaks Galleria Sepulveda Basin Recreation Area Ventura Boulevards 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 a short three- Professionals Calling the Area Home a 300,000 square foot retail and entertainment and Lake Balboa/Anthony C. Beilenson Park minute drive from 14419 W Riverside Drive. Extending 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, 18 miles from Studio City to Woodland Hills, Ventura Services, Aerospace, and Advanced Manufacturing and 405 freeways, the Galleria is home to and a 19,600 square foot playground. Boulevard is known as the “backbone” of the San myriad employers and shopping options. Fernando Valley with scores of bars, restaurants, retail Several Fortune 500 Companies Including The Walt Disney Company, Anheuser- shopping, and other convenient neighborhood Busch, Nestle, and Health Net, as well as Several Additional Fortune 1,000 Van Nuys/Sherman Oaks Universal Studios and CityWalk amenities. Companies are Located in the Valley Recreation Center Located approximately seven miles from Universal Studios and CityWalk Industry Leaders in Advanced Manufacturing Including Northrop Grumman, The 65 acre park offers baseball fi elds, Addison Arms, Universal CityWalk offers Within a 10-minute walk of the subject property, Aerojet, and JMR Electronics are Located in The Valley basketball courts, children’s play areas, a entertainment, dining, and shopping. Westfi eld Fashion Square is an 850,000 football fi eld, and indoor gym, a soccer CityWalk is located within Universal square feet two-level enclosed shopping fi eld, tennis courts, volleyball courts, and Studios, one of the most famous fi lm center anchored by Bloomingdale’s and running paths. studios in the world Macy’s. 18 19 WALKSCORE
75
Many errands can be accomplished by foot PEDESTRIAN & TRANSIT ORIENTED
Located on Riverside Drive, 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. 14419 W Riverside Drive epitomizes the highly sought after urban-living community boasting the title of “Very Walkable” and enjoying a Walk-Score of 75. The Property is within 51 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.
Many 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 Ventura Boulevard Market RESTAURANT/NIGHTLIFE OPTIONS GROCERY STORES 55 ArcLight Cinemas Whole Foods Public School 818 Pavilions Tipsy Cow Gelson’s Market WESTFIELD FASHION SQUARE Mendocino Farms Vons Flat as a pancake, some bike lanes Crave Cafe
20 21 DEMOGRAPHICS
Sherman Oaks is a community of entertainers, SHERMAN OAKS LA LA COUNTY entrepreneurs, residents, and celebrities living the Total Population 52,894 3,957,268 10,208,773 authentic Valley experience. Total Households 25,752 1,390,333 3,403,857 Median Household Income $72,430 $49,626 $56,699
Continued demand for residential properties is driven by local jobs, Average Household Income $119,303 $82,177 $86,746 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% 22 23 SALES COMPARABLES (LAND)
# ADDRESS CITY ZIP CODE SALE PRICE LOT SIZE $/SF $/BUILDABLE UNIT CLOSE OF ESCROW NOTES
Entitled for 16 units 1 12203-12207 Moorpark St Studio City 91604 $3,025,000 13,305 $227.36 $189,063 4/19/2017 (17,000 sf)
No Entitlements at 2 4409 Saugus Ave Sherman Oaks 91403 $2,150,000 9,727 $221.03 $179,166 3/23/2017 time of sale
No Entitlements at 3 11950 Riverside Dr Valley Village 91607 $1,300,000 6,287 $206.78 $185,714 6/12/2017 time of sale
No Entitlements at 4 10947 Hartsook St North Hollywood 91601 $1,625,000 8,788 $184.91 $162,500 9/29/2017 time of sale
5 14944 Moorpark St Sherman Oaks 91403 $870,000 5,885 $147.83 $217,500 3/7/2018 Entitled for 4 units
4
3 5 2 1
24 25 COMPARABLES
SALES COMPARABLES - LAND
1 12203-12207 MOORPARK ST 2 4409 SAUGUS AVE 5 10947 HARTSOOK ST City Studio City City Sherman Oaks City North Hollywood Sale Price $3,025,000 Sale Price $2,150,000 Sale Price $1,625,000 Lot (SF) 13,305 Lot (SF) 9,727 Lot (SF) 8,788 Proposed Units 16 Buildable Units 12 Buildable Units 10 $/SF $227.36 $/SF $221.03 $/SF $184.91 $/Unit $187,063 $/Unit $179,166 $/Unit $162,500 Sale Date 4/19/2017 Sale Date 3/23/2017 Sale Date 9/29/2017 The land was fully No Entitlements at time No Entitlements at time Notes entitled at the time of sale of sale of sale. Part of an Notes Notes for 16 2bd/2bth units, assemlage of multiple approximately 17,000 sf adjacent lots
3 11950 Riverside Dr 4 14944 MOORPARK ST City Valley Village City Sherman Oaks Sale Price $1,300,000 Sale Price $870,000 Lot (SF) 6,287 Lot (SF) 5,885 Buildable Units 7 Proposed Units 4 $/SF $206.78 $/SF $147.83 $/Unit $185,714 $/Unit $217,500 Sale Date 6/12/2017 Sale Date 3/7/2018 No Entitlements at time The land was fully Notes of sale Notes entitled at the time of sale for 4 units
26 27 SALES COMPARABLES (MULTIFAMILY)
SALE COMPARABLES - NEW CONSTRUCTION
# ADDRESS CITY UNITS SALE PRICE CAP RATE $/UNIT $/SF BLDG SF YEAR BUILT SALE DATE
1 4374 Troost Ave Studio City 6 $5,100,000 - $850,000 $506.45 10,070 2 011 6/23/2017
2 4464 Vista Del Monte Ave Sherman Oaks 8 $4,790,000 4.27% $598,750 $407.69 11 , 74 9 2018 8/15/2018
3 4305 Laurel Canyon Blvd Studio City 12 $7,700,000 4.78% $641,666 $452.20 17,028 2016 11/23/2016
4 4410 Sepulveda Blvd Sherman Oaks 31 $18,500,000 3.08% $596,774 $478.57 38,657 2010 10/25/2016
5 11312 Huston St North Hollywood 14 $9,000,000 2.33% $642,857 $423.53 21,250 2 011 1/26/2018
5 6 6 11214 Morrison Ave North Hollywood 6 $3,150,000 4.92% $525,000 $403.85 7,800 2016 10/18/2017
2 4 1 3
28 29 COMPARABLES (MULTIFAMILY)
SALES COMPARABLES - NEW CONSTRUCTION
1 4374 TROOST AVE 2 4464 VISTA DEL MONTE AVE 5 11312 HUSTON ST City Studio City City Sherman Oaks City North Hollywood Units 6 Units 8 Units 14 Sale Price $5,100,000 Sale Price $4,790,000 Sale Price $9,000,000 CAP Rate - CAP Rate 4.27% CAP Rate 2.33% $/Unit $850,000 $/Unit $598,750 $/Unit $642,857 $/SF $506.45 $/SF $407.69 $/SF $423.53 Blg SF 10,070 Blg SF 11,749 Blg SF 21,250 Year Built 2 011 Year Built 2018 Year Built 2 011 Sale Date 6/23/2017 Sale Date 8/11/2018 Sale Date 1/26/2018
3 4305 LAUREL CANYON BLVD 4 4410 SEPULVEDA BLVD 6 11214 MORRISON AVE City Studio City City Sherman Oaks City North Hollywood Units 12 Units 31 Units 6 Sale Price $7,700,000 Sale Price $18,500,000 Sale Price $3,150,000 CAP Rate 4.78% CAP Rate 3.08% CAP Rate 4.92% $/Unit $641,666 $/Unit $596,774 $/Unit $525,000 $/SF $452.20 $/SF $478.57 $/SF $403.85 Blg SF 17,028 Blg SF 38,657 Blg SF 7,800 Year Built 2016 Year Built 2010 Year Built 2016 Sale Date 11/23/2016 Sale Date 10/25/2016 Sale Date 10/18/2017
30 31 LEASE COMPARABLES (MULTIFAMILY)
RENT COMPARABLES - NEW CONSTRUCTION 1 4464 VISTA DEL MONTE AVE 2 4646 VISTA DEL MONTE AVE City Sherman Oaks City Sherman Oaks BR/BA 2 BD/2 BA BR/BA 2 BD/2 BA Unit SF 1,085 Unit SF 1,024 Lease Price $2,905 Lease Price $2,831 $/SF $2.68 $/SF $2.76 Year Built 2018 Year Built 2014
3 14925 MAGNOLIA BLVD 4 15222 VENTURA BLVD Address Sherman Oaks Address Sherman Oaks BR/BA 1 Bd / 1 Ba BR/BA 1 Bd / 1 Ba Unit SF 899 Unit SF 905 Lease Price $2,680 Lease Price $2,464 $/SF $2.98 $/SF $2.72 Year Built 2013 Year Built 2013
32 33 FILIP NICULETE First Vice President Investments Director, National Multihousing Group VENTURA BOULEVARD Tel: (818) 212-2748 NORTH HOLLYWOOD 7.4 MILLION SF OFFICE 2.9 MILLION SF RETAIL Fax: (818) 337-7303 STUDIO CITY Filip.Niculete.marcusmillichap.com License: CA: 01905352
SHERMAN OAKS
RIVERSIDE DRIVE
14419 RIVERSIDE SHERMAN OAKS TILDEN AVENUE
A premier 12-unit “RTI” development opportunity in Sherman Oaks, CA
34