ELES, NG CA A 9 S 00 O 3 L 2 DOWNTOWN LOS ANGELES 4 8 N 3 7 R D HU N NTINGTO OFFERING MEMORANDUM Huntington Dr N El Sereno Ave A 20-Year NNN Leased Arroyo Vista Family Healthy Center with Annual Rental Increases Ideally Located on the Northwest Signalized Corner of Huntington Drive and El Sereno Avenue in Los Angeles, CA brandonmichaelsgroup.com INVESTMENT ADVISORS Brandon Michaels Senior Managing Director of Investments Senior Director, National Retail Group Tel: 818.212-2794 [email protected] CA License: 01434685 Matthew Luchs First Vice President Investments COO of The Brandon Michaels Group Tel: 818.212.2727 [email protected] CA License: 01948233 Ingrid Farias-Eisner Investments Associate National Retail Group Tel: 310.909.5449 [email protected] License #02071328 Contents 04 Executive Summary 12 Property Overview 18 Area Overview 28 FINANCIAL ANALYSIS Executive Summary 4 4837 Huntington Dr N The Offering A 20 Year NNN Leased Arroyo Vista Family Healthy Center with Annual Rental Increases Ideally Located on the Highly Trafficked Northwest Signalized Corner of Huntington Drive and El Sereno Avenue in the densely populated Los Angeles County Sub-Market of El Sereno The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively represent for sale Arroyo Vista Family Health Center, a 13,600 square foot single tenant medical office building located on 31,164 square feet of land located at 4837 N. Huntington Drive in Los Angeles, CA. Arroyo Vista Family Health Center has been operating out of this location for 13 years, and they recently just executed a brand new, twenty-year absolute NNN lease with annual two percent rental increases, creating a stable and secure investment opportunity. There are a total of 38 parking spaces, a 3 certification. The Office of Statewide parking ratio of 2.79 per 1,000 square feet. Health Planning and Development The property features 171 feet of frontage is responsible for writing regulations on Huntington Drive North, 107 feet of pertaining to licensed clinics. These frontage on El Sereno Avenue, and the regulations are identified in the California rear parking lot features an additional 50 Building Standards Code as “OSHPD 3”. feet of frontage on Locke Avenue. OSHPD 3 requirements for clinics shall only be applied to clinics that are licensed Arroyo Vista Family Health Center is a non- pursuant to Health and Safety Code (H&S) profit community health center licensed Section 1200 (which includes primary care by the State of California Department clinics and specialty clinics) or outpatient of Health Services. The company is a services of a hospital licensed pursuant to Federally Qualified Health Center, their H&S Section 1250. funding is provided through Public Health Services Act, with additional funding from 4837 Huntington Drive North is supported the State of California, Los Angeles County by a flourishing community that has and private sources. The company has four attracted several national credit tenants physical locations, one each in Highland within close distance to the subject Park, Lincoln Heights, El Sereno – Valley property, including Chase Bank, Little Boulevard, and El Sereno – Huntington, in Caesars, McDonalds, Jack-in-the-Box, addition to their mobile medical clinic. Pizza Hut, and O’Reilly Auto Parts. The subject property has undergone substantial renovations and capital improvements and holds desirable OSHPD Executive Summary 5 DOWNTOWN LOS ANGELES USC L O O D W H C O O S M D O H G IU D IG D RO H ER STA W WILSON ASCOT HILLS PARK L O E L O S H E C R S EN LE O MIDD El Sereno Ave EL SERENO 6 4837 Huntington Dr N MONTECITO D HEIGHTS O D M G IU HAPPY VALLEY ER STAD ERNEST E. DEBS REGIONAL PARK ROSE HILL LINDEN HEIGHTS CONDO Via Mia Huntington Dr N Intersection: Over 60,000 El Sereno Ave Vehicles Per Day Executive Summary 7 investment highlights ARROYO VISTA FAMILY HEALTH CENTER HAS SUCCESSFULLY OPERATED OUT OF THIS LOCATION SINCE 2007 AND JUST EXECUTED A NEW TWENTY YEAR NNN LEASE • Arroyo Vista Family Health Center has successfully been operating out of this location for 13 years • Arroyo Vista Family Health Center recently signed a new 20-year NNN lease which runs through April of 2040 • There are two percent annual increases • Arroyo Vista Family Health Center has three other physical locations in addition to a mobile medical clinic MEDICAL USE BUILDING WITH EXCEPTIONAL ASCOT HILLS PARK UNDERLYING FUNDAMENTALS • 38 parking spaces spread across two parcels • Located at the Northwest signalized corner of Huntington Drive and El Sereno Avenue • High daily traffic counts exceeding 60,000 vehicles per day • Frontage on three streets • OSHPD 3 certified • The subject property has undergone extensive renovations and upgrades • NNN leased to a government backed company that has been successfully operating out of this property for 13 years 8 4837 Huntington Dr N investment highlights EXCELLENT LOS ANGELES LOCATION IN THE DENSELY POPULATED AND GENTRIFYING EL SERRANO SUB- MARKET • Multiple national credit tenants in the immediate area, including Chase Bank, Little Caesars, McDonalds, Jack-in-the-Box, Pizza Hut, O’Reilly Auto Parts, and several schools and churches • Less than three miles from California State University, Los Angeles • Significant development in and around the immediate area • Median age of 35 years old within the immediate sub-market USC CAMPUS STRONG UNDERLYING DEMOGRAPHICS AND DENSE IMMEDIATE POPULATION • Over 34,000 people are located within one mile of the property, 280,400 within three miles of the property, and 781,500 within five miles • There are over 9,900 households located within one mile of the property, 86,000 within three miles, and 251,700 within five miles • Affluent sub-market with an average household income north of $81,200 within one mile of the subject property, $92,100 within three miles of the property, and $91,800 within five miles of the property • Vibrant surrounding SFR market with median home values exceeding $643,000 within one mile USC VILLAGE of the subject property Executive Summary 9 NEARBY AMENITIES Retail 1. Arco 2. USPS 3. Chase Bank 4. Autozone 5. Food 4 Less 6. O’Reilly Auto Parts 7. Big Saver Foods ELEPHANT HILL OPEN SPACE Restaurants 6 7 1. Thai Beam Cuisine 6 2. Mariscos El Kora De Nayarit 4 5 3. McDonald’s 3 4. Jack in the Box 5 5. Little Caesars Pizza 4 6. Pizza Hut 2 3 2 Huntington Dr N1 1 El Sereno Ave 10 4837 Huntington Dr N property summary Address 4837 Huntington Dr N Los Angeles, CA 90032 Price $11,600,000 Building Size 13,669 SF Lot Size 31,164 SF Price/SF (Building) $849 Price/SF (Land) $372 CAP Rate 5.29% Occupancy 100% Tenant Arroyo Vista Family Health Center Guarantor Arroyo Vista Family Health Foundation Lease Type NNN Least Start 5/1/2021* Lease Expiration 4/30/2040 Term Remaining 20 Years Options None Rent Increases 2% Annual Parking 38 Spaces; 2.79 per 1,000 SF Year Built/Renovated 1943/1976/2020 APN Number 5213-001-034, 5213-002-013 Zoning C4, Los Angeles * Arroyo Vista Family Health Center has operated at this location since 2007 Property Overview 11 Property Overview 12 4837 Huntington Dr N property description LOCATION 4837 Huntington Dr N Los Angeles, CA 90032 SITE The property is located at the signalized intersection of Huntington Drive N and El Sereno Avenue. BUILDING SIZE 13,669 SF LOT SIZE ELES, NG CA A 9 31,164 SF S 00 O 3 GRIFFITH L 2 OBSERVATORY PARKING 4 8 N 3 7 R D HU N NTINGTO 38 Parking Spaces; A Parking Ratio of 2.79 Parking Spaces per 1,000 SF DODGER STADIUM ZONING UNIVERSITY OF SOUTHERN C4, Los Angeles CALIFORNIA - LOS ANGELES TRAFFIC COUNTS Intersection of Huntington Drive and El Serreno Avenue: over 60,000 Vehicles per day Property Overview 13 14 4837 Huntington Dr N capital improvements Current Ownership has completed extensive improvements, renovations, and upgrades to the property including: • Recently re-coated the roof with a TPO system • New Title 24 lighting, which provides energy savings • New front entrance • 90% of the building has new electric panels and subpanels • New flooring throughout 85% of the building • Updated plumbing throughout the original unit of the Arroyo Vista Family Health Center • 90% of the building walls feature new metal stud framed up to the ceiling • New fire sprinkler system and fire alarm system • 9 brand new restrooms • Fire/smoke graded Tunnel Corridor • 8 new RTU-HVAC units • New T-Bar ceiling • 80% of the indoor frames are new • New low voltage cap 6 wiring with high-speed internet • New cabinets throughout the property • The parking lot was recently slurry coated and re-striped with new handicap signage and parking stalls • New cutting-edge dental equipment • Property is OSHPD 3 certified • New security cameras Property Overview 15 property PHOTOS 16 4837 Huntington Dr N Property Overview 17 parcel map APN #5213-001-013 APN #5213-001-034 18 4837 Huntington Dr N Property Overview 19 ARROYO VISTA FAMILY HEALTH CENTER TENANT PROFILE LEASE ABSTRACT Made for the community, by the community, Arroyo Tenant Arroyo Vista Family Health Center Vista is a non-profit community health center governed by a consumer Board of Directors with a trusted team of Guarantor Arroyo Vista Family Health Foundation healthcare professionals serving the Greater Northeast Square Footage 13,669 SF Los Angeles since 1981. We are licensed by the State of California Department of Health Services. As a Federally Monthly Rent $51,116 Qualified Health Center (FQHC), funding is provided Annual Rent $613,389 through Public Health Services Act, section 330, with additional funding from the State of California, Los Angeles Rent Per SF $3.74 Per Month County and private sources.