4037 EAGLE ROCK BLVD. - LoopNet...5 PROPERTY DETAILS Physical Address 4033, 4035, 4037, 4039, 4041...

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4037 EAGLE ROCK BLVD.Los Angeles, CA 90065

Prime development opportunity located at 4037 Eagle Rock Blvd., in

the burgeoning Glassell Park neighborhood.

Large lot (26,500 sf. / 0.61 acres)

Prime development location of Glassell Park

Build 17 small lot homes or 25-unit apartment building

Development due diligence complete (environmental reports, faultstudies, land use feasibility study)

Contact Eric at (310) 850-9052 | [email protected]

OFFERING MEMORANDUM$3,190,000

2

This Memorandum (“Offering Memorandum”) has been prepared by the SBD Real Estate Five, LLC (“Seller”) based on information that was

furnished to us by sources we deem to be reliable. No warranty or representation is made as to the accuracy thereof; subject to correction

of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its

acceptance hereof, each recipient agrees that it will not copy, reproduce, or distribute to others this Memorandum in whole or in part, at

any time, without the prior written consent of Seller, and it will keep permanently confidential all information contained herein not already

public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related

thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need, or desire. All financial

projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner

and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the

business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Seller to prospective purchasers with the understanding that all prospective purchasers will

conduct their own independent investigation of those matters which they deem appropriate in order to evaluate this offering. Additional

information and an opportunity to inspect the site will be made available to interested and qualified prospective purchasers. Seller reserves

the right to request the return of any or all of the information enclosed.

NOTICE TO RECIPIENT

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TABLE OF CONTENTS

1. Property Overview

2. Neighborhood Overview

3. Due Diligence

4. Recent Comparable Land Sales

5. 17 Small Lot Home Development Potential

6. 25 Unit Mixed-Use Apartment Development Potential

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SECTION 1PROPERTY OVERVIEW

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5

PROPERTY DETAILS

Physical Address4033, 4035, 4037, 4039, 4041 Eagle Rock BlvdLos Angeles, CA 90065

APN 5473-004-052

Lot Area 26,500 sf. / 0.61 acres

Lot Dimensions 100 sf. X 265 sf.

Commercial Floor Area 4,050 sq.

Residential Floor Area None

BuildingsOffice Building 1 (1,998+ sf.)Office Building 2 (1,380 sf.)Three Bay Garage / Shop (672 sf.)

Tenants None – currently vacant

Year Built 1971

Topography Gradual slope up from street

Ownership Fee simple

Frontage 100 Feet on Eagle Rock Blvd

Traffic Count 41,244 Vehicles/Day

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6

SURROUNDING AREA

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SECTION 2NEIGHBORHOOD OVERVIEW

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REGIONAL MAP

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The Eagle Rock / Glassell Park neighborhoods are vibrant and

growing communities that are inhabited by a wide variety of

socioeconomic groups and is experiencing significant

demographic change and economic development. The median

household income in Eagle Rock is $63,205 and Glassell Park is

$58,812, as of 2017. (link) **

Average home prices in Glassell Park rose from below $400k in

2012, to nearly $800k in 2017. This rapid rate of growth

drastically outpaces the national average, and even significantly

outpaces the general Los Angeles county area. Rental rate

appreciation shows a similar trend, rising from an average of

$2100/mo. In 2012, to nearly $3000/mo in 2017, again

outpacing both the national average, and Los Angeles county.

According to Curbed Los Angeles, Glassell Park is one of LA’s

next hot neighborhoods, and recently shot ahead of super-

competitive West Adams. (link) **

A number of nearby newly constructed small lot home projects

in Glassell Park and Eagle Rock are a reflection of this rapid rise

in growth and demand.

WE ARE COMMITTED TO OUR GOALS AND POLICY!

** Data is believed to be accurate, but you are responsible for performing your own due diligence. 14

EAGLE ROCK / GLASSELL PARK

https://www.point2homes.com/US/Neighborhood/CA/Los-Angeles-County/Los-Angeles/Glassell-Park-Demographics.html#IncomeFinancial

https://la.curbed.com/2017/1/9/14214062/glassell-park-cypress-park-hot-neighborhoods-los-angeles

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LOCAL MAP & AREA ATTRACTIONS

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Easy access to the Glendale Freeway and the new nearby Transit Pavilion provides convenient transportation access. (link)

TRANSPORTATION

https://www.theeastsiderla.com/2017/07/glassell-park-transit-pavilion-taking-shape/

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HOME PRICES AND RENTS INCREASING RAPIDLY

Chart includes all residential property types. Retrieved from https://www.redfin.com/blog/data-center on 10/4/2017.

Chart includes all residential property types. Retrieved from www.zillow.com/home-values/ on 10/4/2017.

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Design for “The Erb”, under-construction development at 4121 Eagle Rock BlvdDesign for future development at 4515 Eagle Rock Blvd

NELA Union project completed in 2015 at 3901 Eagle Rock Blvd Project completed in 2015 at 2224 Yosemite Dr

NEW SMALL LOT HOMES IN THE AREA

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HOUSING DATA & DEMOGRAPHICS

Glassell Park Eagle Rock Los Angeles City Los Angeles County

Median Home Price $753,000 $825,000 $650,000 $590,000

Median Days on Market 26 30 36 30

Average Rent $2,919 $3,069 $2,707 n/a

Median Household Income $58,812 $63,205 $58,108 $56,993

College Degree 25.3% 29.0% 25.2% 24.2%

Population Growth Since 2010

1.0% 0.9% 0.9% 1.0%

Median Age 35.5 38.4 35.2 34.3

Data sources: Redfin.com, Point2Homes.com, Zillow.com for current month of October 2017

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SECTION 3DUE DILIGENCE

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TITLE REPORT & PARCEL MAP WITH PLOTTED EASEMENTS

Title Insurance / Report:

• No title exceptions of concern.

• Premium ALTA title insurance policy purchased with new ALTA survey performed by surveyor protecting against encroachments and other legal/title issues.

• ALTA insurance binder purchased to transfer policy to future buyer.

• Endorsement 100.6 added to cover present & future violations of the CC&R’s (known or unknown).

• Endorsement 28-06 added to cover damage from any easements (known or unknown).

Plotted Easements & ALTA Survey:

• Parcel map with plotted easements provided by title company (displayed to the right), shows no easements encroaching on the property.

• ALTA survey found no encroachments of concern.

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ALTA / BOUNDARY SURVEY

High resolution and AutoCAD ATLA/Boundary survey provided upon request.

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TOPOGRAPHIC SURVEY

High resolution and AutoCAD Topographic survey provided upon request.

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NATURAL HAZARDS & ENVIRONMENTAL STUDY RESULTS (PHASE 1 & PHASE 2)The information included in the table below is taken from the Natural Hazard Disclosure Report on 06/01/2017, Phase 1 Environmental Site Assessment on 06/28/2017 and Phase 2 Environmental Site Assessment on 07/25/2017. These reports will be provided upon request.

Earthquake Fault Zone Yes, in fault zone designated by the City of Los Angeles. See next page for further details on this issue.

Liquefaction Zone Yes. Liquefaction is a soil phenomenon that can occur when loose, water saturated granular sediment

within 40 feet of the ground surface, are shaken in a significant earthquake. The soil temporarily becomes

liquid-like and structures may settle unevenly. A significant portion of the greater Los Angeles area is in a

liquefaction zone.

Landslide Zone No

Flood Zone No

Tsunami Inundation Zone No

Coastal Zone No

Very High Fire Hazard Zone No

Methane Hazard Zone No

Airport Noise Hazard No

High Wind Velocity Zone No

Oil Wells None within 2 miles

Phase 1 Study Results No records found in the search results of all environmental databases involved. No historical uses of

concern found for subject property. A few nearby properties were found to have past pollution issues, but

all cases have been closed with corresponding regulatory agencies.

Phase 2 Study Results Soil and vapor samples were taken from four 20’ bored holes in the ground. No pollutants found that

exceeded regulatory thresholds.

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FAULT STUDY RESULTS

Background:

• The City of Los Angeles Building & Safety Dept. requires that for properties located in a fault zone, that a fault study must be conducted prior to any new construction.

• The purpose of the fault study is to prove that no active fault exists at or near a property.

Fault Study Progress & Results:

• A Phase 1 study was conducted boring 8 holes to inspect soil layers. Data was inconclusive, requiring further investigation.

• A Phase 2 study was conducted by digging a 10-20 foot deep trench along the entire length of the property. City and State officials inspected the trenches and soil layers and concluded that no active fault exists at on the property.

• Fault study report was produced by the geologist, submitted to the city and received approval on 12/19/2017 (proving that no fault exists on the property).

• A final fault study is in progress to prove that no fault exists within 50 feet of the front of the property. Drilling in the street of Eagle Rock Blvd is scheduled and results are expected by mid-January with the city approval of results expected by the end of January.

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LAND USE FEASIBILITY STUDY

• An independent consulting firm, Land Use Developers Corp. (www.landusedevelopers.com), evaluated the various zoning and building regulations that apply to the subject property.

• The feasibility study, dated July 14, 2017, will be made available to potential buyers upon request.

• The study evaluated three potential development types:

• Mixed-Use Small-Lot Subdivision

• Mixed Use For-Rent Multifamily Project with 35% Ministerial Density Bonus

• Mixed Use For-Rent Multifamily Project with 35% Ministerial Density Bonus and three Incentives

• On Eagle Rock Blvd, near the subject property, several mixed-use small lot subdivisions and mixed-use for-rent multifamily projects have been recently approved by the City of Los Angeles. This precedent should provide confidence to potential buyers intending to develop this property. Section 3, Recent Comparable Land Comparables, includes descriptions of a few Eagle Rock Blvd projects as reference. Other approved project examples can be provided upon request.

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KEY BY-RIGHT ZONING CHARACTERISTICS

Zoning Code [Q]C2-1VL-CDO

Zoning Description Commercial Zone

Floor Area Ratio (FAR) 1.5-to-1, as defined by height district ‘-1VL’ in zoning code

Buildable Area (for FAR) 26,500 sf.

Max Floor Area 39,750 sf. (based on FAR x Buildable Area)

Max Lot Coverage Ratio 100% in commercial zones

Max # of Residential Units 17 (limited by Q condition)

Max Height 45 feet tall

Max # of Floors No limit

Min Front Setback None

Min Side Setback Commercial floors: NoneResidential floors: 5 ft. + 1 ft. for each floor over 2nd

Min Rear Setback Commercial floors: NoneResidential floors: 15 ft.

Residential Parking Required Studio: 1; 1-Bedroom: 1.5 stalls; 2+ bedrooms: 2 stalls; guest: none required.

Commercial Parking Required 1 space per 500 sf of commercial floor area (Enterprise Zone)

Covered Parking Required? No

Min Open Space Per Unit 100 sf for 0-2 bed units; 125 sf for 3+ bed units; 50 sf must be private

Zoning Overlays (e.g. ZI, Q, etc.) ZI-2130 Enterprise Zone (§ 2.2.3)ZI-2401 Cypress Park and Glassell Park Community Design OverlayQ-Condition:

1. One hundred percent (100%) residential development prohibited.2. Residential density limited to the RD1.5 zone.

Specific Plan Area No

Hillside Zoning Area No

The table below describes the “by right” minimum and maximum zoning parameters for this property, when no discretionary

approvals (e.g. condominium tract map) are request and no affordable housing density bonuses are applied. Note: many of these

zoning characteristics do not apply to small lot subdivisions. Zoning characteristics can be found later in this document for small

lot subdivisions.

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SECTION 3RECENT COMPARABLE LAND SALES

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RECENT SALES COMPARABLES OF LAND

# Address City (Neighborhood)MilesAway Sale Date Sale Price

LandSq. Ft.

Sale PerLot Sq. Ft.

BuildingSq. Ft.

Sale PerBldg Sq. Ft. Zoning

1 4320-4340 Eagle Rock Blvd L.A. (Eagle Rock) 0.3 7/14/2015 $11,100,000 77,587 $143 5,498 $2,019 C2-1VL

2 4515 Eagle Rock Blvd L.A. (Eagle Rock) 0.7 8/18/2015 $9,000,000 56,044 $161 17,680 $509 C2-1XL

3 4344 Eagle Rock Blvd L.A. (Eagle Rock) 0.4 9/28/2016 $2,000,000 19,389 $103 5,280 $379 C2-1VL

4 3815 W Avenue 43 L.A. (Eagle Rock) 0.3 11/22/2016 $1,975,000 17,276 $114 2,300 $859 C2-1VL

5 4608 Eagle Rock Blvd L.A. (Eagle Rock) 0.8 8/7/2015 $790,000 7,029 $112 3,850 $205 C4-1XL

6 3402 Eagle Rock Blvd L.A. (Glassell Park) 0.7 4/4/2017 $1,250,000 7,178 $174 5,403 $231 CM-1

7 3730 Eagle Rock Blvd L.A. (Glassell Park) 0.3 10/21/2015 $850,000 8,088 $105 2,585 $329 C2-1VL

8 3375 Eagle Rock Blvd L.A. (Glassell Park) 0.7 2/28/2017 $1,325,000 12,561 $105 4,800 $276 R3-1

9 3716 Eagle Rock Blvd L.A. (Glassell Park) 0.4 9/2/2015 $3,070,000 13,024 $236 9,400 $327 C2-1VL

10 3501 Eagle Rock Blvd L.A. (Glassell Park) 0.6 10/12/2016 $4,220,000 35,710 $118 18,039 $234 CM-1VL

11 5015-5023 N Figueroa St L.A. (Highland Park) 2.1 9/8/2016 $3,150,000 25,017 $126 5,760 $547 C4-2D

12 3160 Riverside Dr L.A. (Atwater Village) 2.7 4/5/2016 $5,279,000 28,750 $184 1,338 $3,945 R4-1

13 3040 Waverly Dr L.A. (Atwater Village) 2.7 4/20/2016 $1,559,000 12,197 $128 1,616 $965 RD1.5-1XL

14 703 Bridewell St L.A. (Highland Park) 3.4 4/15/2016 $1,525,000 13,939 $109 1,024 $1,489 RD1.5-1

15 2657 Blimp St L.A. (Frog Town) 2.5 9/28/2016 $21,000,000 213,008 $99 20,000 $1,050 CM-1VL

16 4972 N Figueroa St L.A. (Highland Park) 2.0 4/11/2016 $3,225,000 34,067 $95 0 n/a R3-1

17 1430 Rock Glen Ave Glendale 1.5 5/17/2016 $2,400,000 20,140 $119 2,842 $844 R4

18 408 E Elk Ave Glendale 2.1 8/29/2016 $2,050,000 11,219 $183 1,637 $1,252 R4

19 1232 S Orange St Glendale 2.1 4/14/2017 $1,280,000 8,155 $157 1,344 $952 R4

Averages 32,651 $135

4037 Eagle Rock Bl (Subject)

Value Based on Sales Comps L.A. (Glassell Park) $3,585,722 26,499 $135 1,998 $1,795 C2-1VL

The properties included in the table below are believed to be sold at or near land value. This assumption is based on the fact that the

property was re-developed after the sale or the observation that the existing structure on the property is old and of minimal value.

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RECENT SALES COMPARABLES OF LAND

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4

7

6

11

5

8

9

12

13

14

15

10

16

1718

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LAND SALES COMPARABLES

#1 - 4320-4340 Eagle Rock Blvd, Los Angeles (Eagle Rock)Miles Away: 0.3

Sale Price: $11,100,000

Sale Date: 7/14/2015

Lot Area: 77,587 sq. ft.

Sale Per Lot Area: $143 per sq. ft.

Building Area: 5,498 sq. ft.

Sale Per Building Area: $2,019

Zoning: C2-1VL

Comments Mix of old commercial office buildings and vacant lot. 45 small lot homes are currently under construction at this property. The property was entitled for the project at the time of this sale.

#S - 4037 Eagle Rock Blvd, Los Angeles (Glassell Park) – Subject PropertyMiles Away: 0.0

Sale Price: $2,000,000

Sale Date: TBD





Zoning: C2-1VL

Comments Subject property contains a old two story office building and a mechanics shop in the back. A developer, by right, per zoning, may build a 17 unit small lot subdivision, or a 3-4 story commercial or mixed-use apartment building.

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#3 - 4344 Eagle Rock Blvd, Los Angeles (Eagle Rock)Miles Away: 0.4


Sale Date: 9/28/16




Sale Per Building Area: $379

Zoning: C2-1VL

Comments Old commercial office building. To be torn down to build a 13 unit small lot subdivision. This project is also a South Bay Developers LLC project.








Zoning: C2-1XL

Comments Old warehouse and market. To be torn down to build a 38 unit small lot subdivision. The “1XL” zoning code restricts this project to 33’ tall, versus subject property can go to 45’ tall.

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Sale Price: $790,000

Sale Date: 8/7/2015





Zoning: C4-1XL

Comments Old commercial office building. The “1XL” zoning code restricts this project to 33’ tall, versus subject property can go to 45’ tall.

#4 - 3815 W Avenue 43, Los Angeles (Eagle Rock)Miles Away: 0.7


Sale Date: 11/22/2016





Zoning: C2-1VL

Comments Two old single family homes. Same zoning as subject property. Given the high purchase price per building sq. ft., it is expected that these homes will be demolished to build a new development.

29


#7 - 4344 Eagle Rock Blvd, Los Angeles (Glassell Park)Miles Away: 0.3

Sale Price: $850,000

Sale Date: 10/21/2015





Zoning: C2-1VL

Comments Mechanics shop and parking area.



Sale Date: 4/4/2017





Zoning: CM-1

Comments Old warehouse building with parking in back.

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Sale Date: 9/2/2015





Zoning: C2-1VL

Comments Old warehouse.








Zoning: R3-1

Comments Old commercial building and duplex.

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#11 - 5015-5023 N Figueroa St, Los Angeles (Highland Park)Miles Away: 2.1


Sale Date: 9/8/2016





Zoning: C4-2D

Comments Small mechanics shop and parking lot.



Sale Date: 10/12/2016





Zoning: CM-1VL

Comments Single story warehouse, vacant lot, two small old single family homes and a duplex included in sale.

32


#13 - 3040 Waverly Dr, Los Angeles (Atwater Village)Miles Away: 2.7







Zoning: RD1.5-1XL

Comments Old duplex. Given the high purchase price per building sq. ft., it is expected that these homes will be demolished to build a new development.

#12 - 3160 Riverside Dr, Los Angeles (Atwater Village)Miles Away: 2.7


Sale Date: 4/5/2016





Zoning: R4-1

Comments Currently a vacant building on large vacant lot. Developer is in the process of entitling this land for a 52 unit apartment building.

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#15 - 2657 Blimp St, Los Angeles (Frog Town)Miles Away: 2.5

Sale Price: $21,000,000






Zoning: CM-1VL

Comments Mix of warehouses and vacant land. Developer, has submitted plans for a 100 unit small lot subdivision community.

#14 - 703 Bridewell St, Los Angeles (Highland Park)Miles Away: 3.4







Zoning: RD1.5-1

Comments Abandoned house to be torn down to build an 8 unit small lot subdivision, which has already been approved. The property was entitled for the project at the time of this sale. Faces the 110 fwy, which is not desirable.

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#17 - 1430 Rock Glen Ave, GlendaleMiles Away: 1.5







Zoning: R4

Comments Old fourplex. Given the high purchase price per building sq. ft., it is expected that these homes will be demolished to build a new development.

16 - 4972 N Figueroa St, Los Angeles (Highland Park)Miles Away: 2.0





Building Area: 0 sq. ft.

Sale Per Building Area: n/a

Zoning: R3-1

Comments Current parking lot. To be developed into townhomes by Olsen Homes.

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#19 - 1232 S Orange St, GlendaleMiles Away: 2.1







Zoning: R4


#18 - 408 E Elk Ave, GlendaleMiles Away: 2.1







Zoning: R4


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SECTION 417 SMALL LOT HOME

POTENTIAL DEVELOPMENT

37

3D RENDERING OF POTENTIAL SMALL LOT SUBDIVISION

38


39


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SMALL LOT SUBDIVISION ZONING GUIDANCE

Floor Area Ratio (FAR) 1.5-to-1, as defined by height district ‘-1VL’ in zoning code

Buildable Area (for FAR) 26,500 sf.

Max Floor Area 39,750 sf. (based on FAR x Buildable Area); garage floor area is excluded.

Max Lot Coverage Ratio 75% per small lot

Max # of Residential Units 17 (limited by Q condition)

Max Height 45 feet tall

Max # of Floors No limit

Min Front Setback of Subdivision Perimeter None

Min Side Setback of Subdivision Perimeter 5 ft.

Min Rear Setback of Subdivision Perimeter 10 ft.

Min Setbacks Between Lots in Subdivision 0 ft. (no yards required along interior lot lines)

Residential Parking Required 2 parking spaces per unit; 4 guest parking spaces.

Commercial Parking Required 1 space per 500 sf of commercial floor area (Enterprise Zone). If less than 250 sf. of commercial in each small lot building, then no commercial parking is required because any fractional parking space at or below 0.5 spaces is rounded down.

Covered Parking Required? No

Min Open Space No open space requirements

Zoning Overlays (e.g. ZI, Q, etc.) ZI-2130 Enterprise Zone (§ 2.2.3)ZI-2401 Cypress Park and Glassell Park Community Design OverlayQ-Condition:

1. One hundred percent (100%) residential development prohibited.2. Residential density limited to the RD1.5 zone.

The table below describes the zoning parameters that apply to this property, when the use is a small lot subdivision. Buyer is

advised to do its own due diligence to confirm the laws and regulations of any development at this property.

41

PRELIMINARY SITE PLAN FOR A 17 UNIT SMALL-LOT SUBDIVISION

Gu

est Parkin

g

265'-0"

10

0'-0

"

Eagle

Ro

ck Blvd

Building Setback

15'-0"

5'-

0"

5'-

0"

Building Setback

Building Setback

Footprint

748 sq. ft.

33'-0" 28'-0"

Footprint

748 sq. ft.

13'-6" 13'-6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

34

'-0

"3

4'-

0"

22

'-0

"

Pu

blic Sid

ewalk

Tand

em

Parking

10'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

Tand

em

Parking

Gu

est P

ark

ing

Gu

est Pa

rkin

g

Gu

est Pa

rkin

g

20'-0"

Pedestrian Walkway

Pedestrian Walkway

TrashBins

6" 10'-0"

33'-0" 23'-0" 6" 10'-0"6'-6"

5'-0"

5'-0"

5'-

0"

5'-

0"

Commercial

Land

scape

dC

om

mo

n A

reaP

rivate Y

ardP

rivate Y

ard

Landscape Landscape

Fire TruckTurn Around Area

Pe

destrian

Walkw

ay

Pe

destrian

Walkw

ayP

ed

estrian W

alkway

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0" 6"

Footprint

782 sq. ft.

GarageParking

18'2" X 18'6"

23'-0"

28'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

6" 28'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

28'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

6" 28'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

6" 28'-0"

Footprint

952 sq. ft.

GarageParking

18'2" X 18'6"

6"

Footprint

176 sq. ft.

Footprint

176 sq. ft.

Unit Type A Unit Type B

Unit Type C

42

UNIT MIX, FLOOR AREA AND SALE ESTIMATES OF POTENTIAL SMALL LOT PROJECT BASED ON PRELIMINARY SITE PLAN

GarageFloor 1

Comm.Floor 1

Res.Floor 1

Res.Floor 2

Res.Floor 3

GrossFloor Area

Less Res.Circulation

Total Res.Floor Area

Total Res. + Comm.

Floor Area

EstimatedSale Price

Per Sq.EstimatedSale Price

Unit 1 (Type A) 508 240 176 924 924 2,772 -162 1,862 2,102 $430 $904,000

Unit 2 (Type A) 508 240 176 924 924 2,772 -162 1,862 2,102 $430 $904,000

Unit 3 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 4 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 5 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 6 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 7 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 8 (Type B) 400 0 552 952 952 2,856 -196 2,260 2,260 $430 $972,000

Unit 9 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 10 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 11 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 12 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 13 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 14 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 15 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 16 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Unit 17 (Type C) 437 0 345 782 782 2,346 -153 1,756 1,756 $470 $825,000

Total 480 43,794 33,088 33,568 $15,065,000

Total Units 17

Average Unit Size (sq. ft.) 1,975

43

RECENT SMALL LOT HOME SALES (1600-1900 SF)

Size: 1600-1950 Sq Ft City (Neighborhood) Type

Dist.From

Subject (Mi.)

YearBuilt Beds Baths Sq Ft

SaleDate Sale Price

Sale Price

PerSq Ft.

Time Since Sale

Adjuster

Adjusterfor

Other

SubjectAdj.

PricePer Sq Ft

SubjectSq Ft

AdjustedSubject

Sale Price Notes

3801 Eagle Rock Bl #9 L.A. (Glassell Park) Townhouse 0.3 2015 3 2.5 1,600 8/2/2017 $600,000 $375 0.9% 10% $416 1,756 $730,574 Townhome with $290 HOA

2874 Allesandro Street L.A. (Glassell Park) Small Lot 1.0 2016 3 3 1,603 6/26/2017 $799,000 $498 1.5% 0% $506 1,756 $887,971 Adj. down for better location

2980 Ripple Pl #204 L.A. (Glassell Park) Townhouse 0.8 2016 3 2.5 1,607 7/14/2017 $609,000 $379 1.2% 10% $421 1,756 $740,035 Townhome with $417 HOA

1647 N Adamson St 10 L.A. (Echo Park) Small Lot 5.0 2014 2 2.5 1,607 12/30/2015 $859,982 $535 8.9% -10% $529 1,756 $929,421 Adj. down for better location

2722 Auburn St L.A. (Silver Lake) Small Lot 3.3 2015 3 2.25 1,638 1/29/2016 $995,000 $607 8.5% -10% $598 1,756 $1,050,606 Adj. down for better location

2926 Rowena Ave #5 L.A. (Silver Lake) Small Lot 2.8 2016 2 2.5 1,681 7/12/2017 $874,255 $520 1.2% 10% $579 1,756 $1,015,847 Adj. down for better location

4776 Rock Row Dr L.A. (Eagle Rock) Small Lot 1.8 2010 2 2 1,693 3/25/2016 $676,000 $399 7.7% 15% $490 1,756 $860,500 Adj. up since older, and less bedrooms and baths

1426 N Prism L.A. (Eagle Rock) Small Lot 0.4 2016 3 3.5 1,705 5/26/2016 $688,000 $404 6.9% 0% $431 1,756 $757,306 No adj.

4280 Perlita Ave L.A. (Atwater Village) Small Lot 3.4 2010 3 2.5 1,714 11/15/2016 $895,000 $522 4.5% -5% $520 1,756 $912,409 Adj. down for slightly better location

2507 N Via Artis Ave L.A. (Silver Lake) Small Lot 2.9 2013 3 2.5 1,730 11/21/2016 $830,000 $480 4.4% -10% $453 1,756 $795,503 Adj. down for better location

364 N Avenue 53 #1 L.A. (Highland Park) Townhouse 2.0 2015 3 2 1,750 8/22/2016 $649,000 $371 5.7% 5% $410 1,756 $720,719 Adj. up for townhouse & $350 HOA

3540 La Clede L.A. (Atwater Village) Small Lot 1.8 2016 3 3 1,800 8/11/2017 $920,000 $511 0.8% 5% $541 1,756 $949,763 Adj. up since older

4772 Rock Row Dr L.A. (Eagle Rock) Small Lot 1.8 2010 3 3 1,836 3/29/2016 $702,500 $383 7.7% 5% $431 1,756 $757,027 Adj. up since older

5041 Mosaic Ct L.A. (Eagle Rock) Townhouse 1.2 2013 3 2.5 1,845 6/30/2017 $722,000 $391 1.4% 10% $436 1,756 $765,491 Townhome with $201 HOA

3005 Peak Pl L.A. (Glassell Park) Small Lot 1.1 2013 3 2 1,859 8/16/2016 $755,000 $406 5.8% 10% $470 1,756 $825,517 Adj. up for worse location & not nice exterior

Averages 1,711 $771,649 $452 $482 $846,579

Unit Type C Sale Price Estimate 1,756 $825,000 $470

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RECENT SMALL LOT HOME SALES (1900-2400 SF)

Size: 1950-2250 Sq Ft City (Neighborhood) Type

Dist.From

Subject (Mi.)

YearBuilt Beds Baths Sq Ft

SaleDate Sale Price

Sale Price

PerSq Ft.

Time Since Sale

Adjuster

Adjusterfor

Other

SubjectAdj.

PricePer Sq Ft

SubjectSq Ft

AdjustedSubject

Sale Price Notes

3000 Peak Pl L.A. (Glassell Park) Small Lot 0.5 2013 3 2 1,914 3/31/2017 $840,000 $439 2.6% 0% $450 2,260 $1,018,072

2034 Vestal Ave L.A. (Echo Park) Small Lot 4.0 2015 3 2.5 1,926 2/24/2016 $1,035,000 $537 8.1% -15% $501 2,260 $1,131,136 Adj. down for better location & unique community

3943 Eagle Rock Bl #42 L.A. (Glassell Park) Townhouse 0.3 2015 4 3.5 1,944 9/8/2015 $670,000 $345 10.5% 10% $415 2,260 $938,212 Townhome with $290 HOA

2980 Ripple Pl #207 L.A. (Glassell Park) Townhouse 0.8 2016 4 2.5 1,949 6/8/2017 $729,000 $374 1.7% 10% $418 2,260 $944,217 Townhome with $417 HOA

2926 Rowena Ave #2 L.A. (Silver Lake) Small Lot 2.9 2016 3 3.5 1,962 7/7/2017 $972,431 $496 1.3% -15% $428 2,260 $966,687 Adj. down for better location

2730 Auburn St L.A. (Silver Lake) Small Lot 3.3 2015 3 2.25 2,016 12/23/2015 $1,150,000 $570 9.0% -15% $536 2,260 $1,211,835 Adj. down for better location

1769 N New Hampshire L.A. (Los Feliz) Small Lot 4.9 2017 3 3.5 2,041 5/19/2017 $1,230,000 $603 2.0% -15% $524 2,260 $1,184,549 Adj. down for better location

1641 Morton Ave #17 L.A. (Echo Park) Small Lot 5.0 2015 3 4 2,044 1/4/2016 $924,000 $452 8.8% -10% $447 2,260 $1,009,748 Adj. down for better location

1342 Douglas St L.A. (Echo Park) Small Lot 5.3 2014 3 4 2,082 10/14/2015 $866,500 $416 10.0% -15% $395 2,260 $893,166 Adj. down for better location

1825 N Kenmore Ave L.A. (Los Feliz) Small Lot 4.9 2016 3 3.5 2,110 3/28/2017 $1,250,000 $592 2.7% -15% $519 2,260 $1,173,981 Adj. down for better location

1841 N Alexandria Ave L.A. (Los Feliz) Small Lot 4.9 2015 3 3.5 2,162 6/28/2017 $1,349,000 $624 1.4% -15% $539 2,260 $1,218,716 Adj. down for better location

1041 Manzanita St L.A. (Silver Lake) Small Lot 4.2 2016 3 3.5 2,247 1/4/2017 $1,100,000 $490 3.8% -15% $435 2,260 $982,694 Adj. down for better location

3272 Kazaz Ln L.A. (Atwater Village) Small Lot 2.3 2013 2 4 2,323 5/12/2016 $1,075,000 $463 7.1% -5% $472 2,260 $1,067,479 Adj. down for slightly better location

Averages 2,055 $1,014,687 $492 $468 $1,056,961

Unit Type A Sale Price Estimate 2,102 $904,000 $430

Unit Type B Sale Price Estimate 2,260 $972,000 $430

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FINANCIAL PROJECTIONS FOR 17 HOME SMALL LOT SUBDIVISIONFinancial ProjectionsRevenue:Sale Price 15,066,000 Less Sale Closing Costs (603,000)Total Revenue 14,463,000

Expenses:Land Cost 3,200,000 Acquisition Closing, Reports & Fees 27,000 Architect, Engineers & Consultants 206,000 City & Utility Fees 404,000 Property Taxes & Insurance 100,000 Business Expenses (Legal, Accounting, Tax, etc.) 12,000 Site Cleanup / Demolition 30,000 Construction Cost 6,090,000 Constr. Loan Fees & Interest (Deferred) 419,000 Total Project Cost 10,488,000

Estimated Profit $3,975,000

Investor Contributions:Total Cost 10,488,000 Cash Reserves 50,000 Less Loan Amount (6,989,000)Less Deferred Interest Payments (315,000)Total Investor Contributions Required 3,234,000

Project Metrics:Years to Complete Project 2.5Project Return on Investment (Leveraged) 123%Project Annualized ROI (Leveraged) 49%Project Return on Investment (Unleveraged) 39%Project Annualized ROI (Unleveraged) 16%

Sources & UsesSources:

Equity Investment 3,234,000 Construction Loan 6,989,000 Constr. Interest Payments Deferred Until Sale 315,000 Less Cash Reserves (50,000)

Total $10,488,000

Uses: Acquisition Price 3,200,000 Acquisition Closing, Reports & Fees 27,000 Soft Development Costs 610,000 Property Tax & Insurance 100,000 Business Expenses (Legal, Accounting, Tax, etc.) 12,000 Site Cleanup / Demolition 30,000 Construction Cost 6,090,000 Constr. Loan Fees & Interest 419,000

Total $10,488,000

The seller makes no warranties or guarantees of any of the financial projections included in this document. Each potential buyer should perform its own due diligence and financial analysis.

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CONSTRUCTION COST ESTIMATE FOR 1,800 SF. SMALL LOT HOME

Itemized Cost Based on 2018 Craftsman National Build Cost ManualSquare Feet/ # of Units Cost Per Unit Total Cost

Baseline cost per sf. for "Best Standard" quality single family house 1,944 $ 150.79 $ 293,136 Cost for garage 400 $ 58.03 $ 23,212 Cost for paver driveway & walkways 550 $ 18.00 $ 9,900 Cost for balconies 50 $ 40.00 $ 2,000 Cost for roof deck 350 $ 25.00 $ 8,750 Cost for A/C and heating 1,944 $ 5.80 $ 11,275 Yard fencing 25 $ 16.70 $ 418 Retaining wall 100 $ 40.00 $ 4,000 Adjustment for Los Angeles area cost of construction (+8%) 108% $ 27,862 Total $ 380,552 Backing out soft costs (plans and permits) and profit included in Craftsman's costs $ (68,499)Total Hard Construction Costs $ 312,053

Cost per square foot of Residential Floor Area (RFA) 1,800 $ 173.36 Cost per square foot of Gross Building Area 1,944 $ 160.52 Cost per square foot of Gross Building Area + Garage 2,344 $ 133.13

Above cost estimates derived from 2018 Craftsman National Build Cost Manual. Per manual, “costs include labor, material, equipment, plans, building permit, supervision, overhead and profit.“

A more conservative assumption of $181 per square foot (RFA) was used for the financial projections on the prior page.

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SECTION 525 UNIT MIXED-USE APARTMENT

POTENTIAL DEVELOPMENT

48

EXAMPLE RENDERING OF MIXED-USE APARTMENT BUILDING

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MIXED-USE APARTMENT PROJECT ZONING GUIDANCE

DEVELOPMENT STANDARD APARTMENTSBY-RIGHT

APARTMENTSDENSITY BONUS (35%)

MINISERIAL

APARTMENTSDENSITY BONUS (35%) with

3 ON MENU INCENTIVESUnit Density 1,500 sf of lot area/unit 1,500 sf of lot area/unit 1,500 sf of lot area/unit

Units (max by zone) 17 25(w/ 2 very low income units)

25 (w/ 2 very low income units)

Parking - Residential See page 22 Reduced parking options available

Reduced parking options available

Parking – Commercial 1 space / 500 sf 1 space / 500 sf 1 space / 500 sf

Setback - Front 0 ft 0 ft 0 ft

Setback - Rear 15’ (residential); 0’ (commercial)

15’ (residential); 0’ (commercial)

≤20% reduction

Setback – Sides (2) 5’-7’’ (residential); 0’ (commercial)

5’-7’’ (residential); 0’ (commercial)

≤20% reduction

Buildable Area (approx.) 26,499 sf 26,499 sf 26,499 sf

Floor Area Ratio (FAR) 1.5:1 1.5:1 2.025:1

Max Floor Area (approx.) 39,749 sf 39,749 sf 53,661 sf

Height 45 ft 45 ft 56 ft

Maximum # of stories no limit on # of stories (within 45 ft height)

no limit on # of stories (within 45 ft height)

no limit on # of stories (within 56 ft height)

The table below describes the zoning parameters that apply to this property, when the use is an mixed use apartment building.

Buyer is advised to do its own due diligence to confirm the laws and regulations of any development at this property.

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Contact Eric at (310) 850-9052 | [email protected]

4037 EAGLE ROCK BLVD. - LoopNet...5 PROPERTY DETAILS Physical Address 4033, 4035, 4037, 4039, 4041...

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