6628 SYLMAR AVE APARTMENTS

9 UNITS VAN NUYS, 91405

OFFERING MEMORANDUM CELEBRATING 35 YEARS

OFFICE 610 E. Glenoaks Blvd Glendale CA 91207 Tel: 818.500.0303 Fax: 818.500.1215 www.glenwest.com

NICHOLAS HACOPIAN broker president Lic. # 01093883 [email protected] (818) 500.0303 ext. 329

PROPERTY MANAGEMENT DIVISION [email protected]

REAL ESTATE DIVISION: [email protected]

INVESTMENT REAL ESTATE ASSOCIATES David Leibowitz (818) 574-5132 [email protected] Lic. # 01912487 PROPERTY OVERVIEW

PROPERTY TYPE Multifamily Apartments

YEAR BUILT 1991

BUILDING SIZE 6,698 SF

LOT SIZE 10,744 SF

UNITS 9

PARKING SPACES 12

APN 2237-003-044

| 3 VAN NUYS, CA

RESIDENTS WITH CURRENT POPULATION AVERAGE HOUSEHOLD INCOME TOTAL HOUSEHOLDS WHITE COLLAR JOBS 57,311 $63,326 16,693 44% PROJECTED BY 2024 PROJECTED BY 2024 BLUE COLLAR JOBS PROJECTED BY 2024 58,923 $76,152 29% 18,139 4 | SYLMAR6628 AVE APARTMENTS VAN NUYS ELEMENTARY SCHOOL VAN NUYS HIGH SCHOOL

ORANGE LINE STATION

LOS ANGELES VALLEY COLLEGE

SHERMAN OAKS GALLERIA

5 | NEIGHBORHOOD UPSIDE IN RENT BUILT IN 1991 FAVORABLE UNIT MIX OUTDOOR PATIO/BALCONY New owner can realize up to Desirable unit mix of Select units have large 30% upside in rents 1+1’s and 2+2’s balcony and/or patio

PROPERTY HIGHLIGHTS

SYLMAR AVE. APARTMENTS is a 9-unit apartment complex located just East of the 405, just South of Vanowen St. in Van Nuys, California. The closest highly traffic intersection is Victory Blvd. and Van Nuys. SYLMAR AVE. APARTMENTS were built in 1991 and consists of a 6,698-square foot, 2-story, wood-framed stucco building. The property offers a favorable unit mix of four 1+1 and five 2+2 units. It is conveniently located near accredited schools, community parks and walkable shopping and restaurants. Just off the 405 freeway, SYLMAR AVE. APARTMENTS also provide easy access to the US-101, I-405, and 170 freeways. The building offers central air and heat, on-site laundry facilities, and has a controlled access gated-entry along with 12 parking spaces. SYLMAR AVE. APARTMENTS is an excellent investment opportunity that offer solid appreciation potential and have 30% potential upside in rents for value-add investors willing to renovate the property. This asset would be a great addition to any apartment portfolio as a stabilized investment.

6 | THE HEART OF THE VALLEY

Van Nuys is the central hub of the South San Fernando Valley. Neighboring North Hollywood, Sherman Oaks, Studio City, Encino and Panorama City, the core of Van Nuys has a growing and highly diverse population. Van Nuys spans over 8.99 square miles and has a diverse residential feel with simple homes and a thriving Hispanic heritage. General stores, Latino bodegas and suburban neighborhoods with seventies-style architecture are at the heart of this city.

“In Van Nuys you won’t find warehouse-turned-art-lofts or expansive green spaces. Instead you’ll find adobe-colored single-story homes, south of the border flavors and boulevards shaded by palms.”* The City connects to North Hollywood or Downtown LA in a matter of minutes via the Orange Line & Red Line which are two regional Metro hubs for the San Fernando Valley. The 405 and the 101 freeways are also within minutes for residents, making it a central location for living and commuting.

Once referred to as “America’s Suburb,” the streets of Van Nuys have endless rectangular lots, trimmed lawns, retro buildings, diners, street vendors and thrift markets. Single-family home prices are also on average more affordable compared to neighboring cities in the San Fernando Valley. $497,173 is the median home value in Van Nuys, which is significantly less than the San Fernando Valley median home value of about $600,000. In addition to a solid residential community, Van Nuys attracts car buyers from all over Los Angeles with countless car dealerships such as Keyes that line Van Nuys Boulevard.

* https://www.airbnb.com/locations/los-angeles/van-nuys

7 | RENT COMPARABLES SUMMARY

ADDRESS YEAR BUILT UNITS 1+1 2+2

6310 Sylmar Ave 1 Van Nuys, CA 91405 1987 54 $1,650 $2,098 15215 Victory Blvd 2 Van Nuys, CA 91411 1969 42 $1,925 $2,295 14537 Archwood St 3 Van Nuys, CA 91406 2013 5 $1,650 14417 Tiara St 4 Van Nuys, CA 91401 1982 16 $1,752 14521 Hartland St 5 Van Nuys, CA 91405 1987 16 $2,250 6546 Sepulveda Blvd 6 Van Nuys, CA 91411 1981 28 $1,550 6041 Fulton Ave 7 Van Nuys, CA 91401 1989 26 $1,750 $2,295 14142 Tiara St 8 Van Nuys, CA 91401 1990 8 $2,150 14133 Calvert St 9 Van Nuys, CA 91401 1989 26 $1,950

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4 8 8 | SALES COMPARABLES SUMMARY

AVERAGE GROSS ADDRESS YEAR BUILT SALES PRICE UNITS PRICE/UNIT PRICE/SF CAP RATE GRM COE SF/UNIT

1 6919 Coldwater Canyon Ave 2002 $2,675,000 10 $267,500 1,129 $237 3.60% 16.41 03/12/19 North Hollywood, CA 91605

2 14805 Magnolia Blvd 1984 $8,850,000 24 $368,750 914 $404 3.78% 11/30/18 Sherman Oaks, CA 91403

3 14133 Calvert St 1986 $4,900,000 16 $306,250 662 $463 4.70% 13.79 08/08/18 Van Nuys, CA 91401

4 14218 Victory Blvd 1988 $3,100,000 8 $387,500 995 $389 4.56% 15.94 06/22/18 Van Nuys, CA 91401

1 6628 SYLMAR AVE 4 APARTMENTS

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2 9 | 10 | PHOTOS FINANCIAL SUMMARY

FINANCIAL INDICATORS ESTIMATED ANNUALIZED OPERATING DATA

Price: $2,950,000 CURRENT MARKET Down Payment: $2,950,000 Scheduled Gross Income: $174,300 $185,400 Down Payment %: 100% Laundry Income: $700 $700 CAP Current: 3.47% Less Vacancy: 3.0% ($5,229) 3.0% ($5,562) GRM Current: 16.93 Gross Operating Income: $169,771 $180,538

Cost Per Sq. Ft: $440.43 Less Expenses: 38.5% ($67,450) 29.8% ($67,450)

Cost Per Unit: $327,778 Net Operating Income: $102,321 $113,088

Expenses Per Sq. Ft: $10.40 Pre-Tax Cash Flow: $102,321 $113,088

Expenses Per Unit: $7,738.89 Percentage Return: 3.47% 3.84%

PROPERTY ABSTRACT

Units: 9

Year Built: 1991

Lot Sq. Ft: 10,744

Building Gross Sq. Ft: 6,698

Parking Spaces: 12

11 | FINANCIAL SUMMARY

ESTIMATED ANNUALIZED EXPENSES RENT ROLL

1.2% of Price Taxes: $34,500 CURRENT MARKET Insurance: $.35 per sq. ft $3,400 UNIT MIX RENT RENT License & Fees: Actual $400 1 2+2 $1,650 $1,850 Utilities: Actual $10,300 2 1+1 $1,450 $1,550 Repairs & Maintenance: $10,000 3 2+2 $1,750 $1,850 Gardener: Actual $1,400 4 2+2 $1,850 * $1,850 Pest Control: Actual $540 5 2+2 $1,850 * $1,850 Trash: Actual $4,910 6 1+1 $1,550 * $1,550 Total Expenses $67,450 7 1+1 $1,550 * $1,550

8 1+1 $1,275 $1,550

9 2+2 $1,600 $1,850

LOAN QUOTE AVAILABLE UPON REQUEST MONTHLY RENT $14,525 $15,450 ANNUAL RENT $174,300 $185,400

*currently vacant

12 | NICHOLAS HACOPIAN broker president Lic. # 01093883 INVESTMENT REAL ESTATE ASSOCIATES SYLMAR6628 AVE David Leibowitz APARTMENTS [email protected] (818) 574-5132 (818) 500.0303 ext. 329 [email protected] Lic. # 01912487