Urbane Final - High Quality

8/12/2019 Urbane Final - High Quality

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Urbane: Characterized by Elegance or Sophistication.


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Market Analysis ................................................................................................. 4

Introduction ....................................................................................................... 5

User Prole ......................................................................................................... 7

Location - Art District ........................................................................................

Development Opportunity ................................................................................. 9

Background + Settings- Existing Facility .......................................................... 11

Background + Settings - Transportation ........................................................... 12

Background + Settings - Culver City Zip Code 90232 ...................................... 13

Demographics - Culver City ............................................................................

Upcoming Multi-Family Housing Supply ......................................................... 21

Comparable Study .......................................................................................... 23

Precedent Study .............................................................................................. 27

Summary + Conclusion .................................................................................... 29

Program + Parking ........................................................................................... 32

Design - Plans + 3D View ................................................................................. 33

Feasibility Analysis - For Rent Apartment Scenario .......................................... 40

Conclusion ....................................................................................................... 48

Content

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Market Analysis


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Introduction

The Heart of Screenland - Anonymous

As you walk along the tree lined streets you can feel the light breeze and warmth of the sunshine. In the air you smell fresh baked bread or perhaps a barbeque.You can hear the chatter and the sound of glasses clinking together in cheers. You look right as you hear the sounds of children playing in the fountains. Then yousmile as you look down and you are holding the hand of the one you love. Welcome to Culver City.

Culver City has an ecclectic blend of small town charm with big city amenities. This makes the area of about 39,000 residents a highly desirable place to live, workand play. With the recent addition of the Culver City Expo stop and the further expansion west to Santa Monica, Culver City is positioned perfectly on the path of

progress, expansion and positive growth.

The development being presented looks at Culver City and all it has to offer as a community now and into the future. As well, we did thorough research to establisha user prole in order to determine the market demand for the product type. Being a community that cares about the people that reside here as well as the qualityof life, our proposed development taps into each of these areas. With 20 Architectural spaces providing a mix of live / work, studio, one, two and three bedroomspaces, we are catering to the needs of the growing community and the young professional Urban dwellers that are creating an impact and looking for more than

just a place to live. Through the use of Architecture, space, light and nature our intent is to create an Urban courtyard living community that will be the envy of thecity. A place that is more than an apartment, but rather a place to live, a place to work and a place to play. At the base of the units rests 8,580 sf of retail and com-mercial space. The perfect setting for a gallery, restaurant, small retail and creative shops to ll the need and support the community that is mixed within.

The development is located along the path of growth. Downtown Culver City is already thriving. In a statement about Culver City and the recession a broker states, I never saw rents dip because demand always exceeded supply . Mix that demand with an Architectural Gem, not just a place to reside, but a place to live

and grow into and you create a formula for success. As the market research shows, growth is eminent and the Art District is in the direction of the growth. With20 for rent Architectural spaces and 8,580 square feet of retail commercial space a value of over 20% is being added to the project. The projected Project IRR isrounding in at 40% while the Investor IRR is nearing 30% with a prot potential if sold in year 5 of almost $9,000,000. With limited risk due to demand and a highreturn, now is the time for action.


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Introduction

All roads lead to Culver City - Harry Culver

Since the early 1920s Culver City has been the center for motion pictures and television production. The former home to MGM studios, Helms Bakery and theHughes Aircraft Company, Culver City is now home to the National Public Radio West, Sony Pictures, the NFL network and numerous creative company headquar-ters.

Culver City has also become a premiere dining destination with its own restaurant row, centered within the historic downtown core of the city. The City offers aselection of casual and award winning restaurants, American gastropubs, bars, local coffee shops, bakeries and specialty ice cream shops. This is the perfect

setting for a night out or a stroll with the family through the tree lined streets.

A short distance from the downtown core is the converted Helms Bakery building. Herein lies another distinct community within Culver City. Continuing the theme

from the downtown core, there are restaurants and gastropubs to support the urban lifestyle. In addition there are creative studios, furniture show rooms and apedestrian only walking area with water features that surround the restaurants and pubs.

Just East of Helms are the Galleries of Culver City that make up the Art District. Culver City is known for having a thriving Art Scene and the make up and qualityof galleries prove this to be true. Much like Helms, the Art District, is starting to see an inux of Creative studios and companies, restaurants and upscale housing.The Art District, coupled with Helms Bakery and the Downtown core make Culver City the pedestrian friendly, upscale community that it is and will continue to be

in the years to come.

With the addition of the recently completed Expo line adjacent to Helms and a short distance from the Art District and the Downtown core, Culver City is poised for

growth as more companies relocate nearby, restaurants and gastropubs are added and housing options and quality are increased. This is a true destination for thenew consumer and the urban lifestyle that is sought after in Los Angeles. Culver City truly provides the small town charm with the big city amenities.


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User Prole

A holistic quality of life is important - Anonymous

The greatest percent of the population of Culver City is the 25 - 44 year old range with a percentage of 31.1%. This is largely the target demographic, while alsomixing in the 45 - 64 year old range at 28.2%. This age range will be made up of mostly the young to mid level professionals. They are starting to dene their life,theirs beliefs and starting families or starting new careers as entrepreneurs. They care about the community they are living in, the environment for their children,

their social status and social life as well as their economic outlook for the future. They are not as concerned with the material things in life as they are with theirown well being. However, they do have expensive taste for high quality space, good food and quality goods, they no longer believe in abundance. Simple qualitymight sum it up.

The majority of Culver City at 50.4% has a Bachelor Degree or higher. Although this does not guarantee a high paying job, the likelihood is there. The averageincome within Culver City is $71,504 with 47.7% of the population making $75,000+. This income level, with a projected amount of income spent on rent of 39.3%+,will support a monthly rent of $2,340. The owner renter occupied housing mix is almost an even split at owner occupied being 54.3% and renter occupied being45.7%. This shows there is a mix but still a strong demand for rental housing. With the newly completed Expo and redevelopment of Culver City the demand willonly increase therefore placing a greater demand for quality housing to accommodate the User Prole of the area.

In studying the household types for the area, the two highest types are married couples with families at 40.7% and people living alone at 33.7%. This shows that agood mix of units will need to exist in order to accommodate the wide range of needs for families as well as the upper middle class lifestyle.

As for the spatial needs and amenities, their is a large demand for outdoor living or the indoor / outdoor lifestyle. This user group is big on friends and family aswell as health and living a sustainable lifestyle. Their connection with nature is important. They do yoga, shop at Farmers Markets and do their best to enjoy their

life through eating, exercise and moderation of the abundant lifestyle the city has to offer.


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Location - Art District

A nascent Chelsea - New York Times

The subject property is located in the Art District community of Culver City. Here there is a cluster of more than 30 contemporary art galleries. As you will see fromthe gallery maps that follow, the property is located directly adjacent to these galleries. This provides many opportunities for the site, from housing its own galleryspace to bringing in local artists to create murals or art for the development.

Facing Washington Boulevard, which is the Main Street through Culver City, the live / work units as well as the commercial spaces will have street frontage on themain Boulevard through the city. This street frontage is lined with trees, galleries, newly open restaurants, gastropubs and creative work spaces.

Situated between the 10 Freeway and the 405 Freeway and adjacent to the newly constructed Expo line, the Art District provides easy access for the commuter aswell as the weekend getaway. This easy access is there if you need it, but can be easily bypassed if you do not. With the location to major bus lines and the Expo,

the development is ideally situated for the urban professional who chooses a better quality of life.

As stated earlier, All roads lead to Culver City. Access to and from the area is done with ease. Culver Citys Art District is situated in the heart of the Westsidemaking this a commuters paradise and a pleasant environment to raise a family. The best of both worlds are really at your ngertips here.


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Development Opportunity

Opportunity

The opportunity is to be part of a

Triple Top Line development. Thistype of development factors in theeconomic, environmental and social

assets of the development in orderto be an advocate for change to cre-ate a better built environment. With

20 Urban Courtyard for rent apart-ments, the development is help-ing to shape the built environment

through Architecture that creates asense of community and longevityin an area that is known for its so-

phistication, upscale amenities andSouthern California lifestyle.

Location

The development is centrally locat-

ed on the Westside of Los Ange-les, 5 miles from the Ocean and acouple hours drive to the mountains.

Located within the growing Art Dis-trict of Culver City this property willbe a pleasant addition to the thriving

community. Being walking distanceto the newly constructed Expo lineprovides an alternate opportunity for

travel. With a walk score of 88, thesurrounding area is full of life withrestaurants, bars, ice cream shops,

retail shopping and gallery space.An added benet is being tuckedaway a bit into the small town charm

that Culver City has to offer. You re-ally feel you are part of somethingspecial here.

Approvals

The site is currently zoned Com-

mercial General in the East Wash-ington Overlay Zone. This will allowfor Commercial, Retail Mixed Use

Apartments and Live / Work units.The approval process is such thatthe project will be required to go

through a planning review commis-sion in order to obtain nal approval.In speaking with the city, they were

favorable for a development of thistype, however the process will stillapply. Major building could trigger

an EIR, which is why our develop-ment is leaning toward a develop-ment that will benet all involved aswell as the community affected bythe development. We feel that thecare that is taken by the planningcommission will only benet our goalof creating a Triple Top Line devel-opment.

Study

The study focuses on nding mar-

ket demand and supporting thatdemand by creating an Architecturethat reects the needs of the usersproled. Demographics for housing,population, income were all studiedto understand the market, the needsand the potential for growth and de-

mand. Existing and upcoming hous-ing was also studied as were Archi-tecture precedents that pertained to

the type of development being pro-posed.

Triple Top Line Location,

Location,

Location

Commercial,

Retail Mixed Use,

Residential,Live / Work

Urban

Courtyard

Housing


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Development Opportunity

Site

Located in the growing Art District

of Culver City, the development isprime for creative professionals andurban dwellers alike. The scale issmall to t into the charm and char-acter of the Culver City communityand surrounding areas.

Building

The Building consists of 20 apart-

ments and 3+ commercial spaces.Live / Work units are mixed in withretail, restaurant, ofce and apart-ments to create a community thatis both diverse and ever changing.At the small scale this provides the

charm that a family will seek as wellas the urban opportunites soughtafter by young professionals just

starting out. The amenities areintended to be few, as this is not aone stop self contained complex,

but rather a living, breathing com-munity that explores the urbanlifestyle and walks in nature to bring

a sense of calm to the noise that thecity is so fond of providing.

Financials

Land Cost =

$2,000,000

Hard Cost =$5,750,200

Soft Cost =$690,024

Effective Gross Income =$1,504,800 / year

NOI =

$1,061,280 / year

Value @ 5.5% Cap =$19,296,000

IRR @ 5.5% =

40%

Conclusion

Based on thorough market research

and nancial analysis, there doesnot seem to be a better time to buildfor the future. Interest rates are low,consumer condence is growingand there is a growing market forthe urban lifestyle that is being sup-ported through this development.

The property is in the path of growthand we want you to join us in beingon the front end of that path.

The Art District Live / Work, Retail, Restaurant

20Apartments

3+Commercial Spaces

IRR @ 5.5% Cap Rate

40%

The time is Now!


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Background + Settings - Existing Facility

The existing property has a site area of 17,850 sf.

Already existing on the site is a class B ofce building estimated at about 9,000 sf total.

The site contains 20 surface parking spaces.

Currently the site is owner / user occupied with a retail store and ofce space.

The property is currently listed at $4,200,000.

This existing building will likely have to be removed to accomodate the new development.If upon further inspection any portion of the building can remain, this will be considered.


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Background + Settings - Transportation

Culver City Expo Station, One stop on the way to progress- Anonymous

Construction began in 2006 on the rst phase of the Expo line, a light rail line from Downtown Los Angeles to a terminal station at the Culver Junction near Veniceand Robertson Boulevard in Culver City. The Expo station opened in June 2012. The link is currently being extended westward to Santa Monica. The completionof the Expo line will provide increases in population along the rail line as well as increased living opportunities for the urban environment.

The Expo line is located within a mile of the Art District allowing people to leave their car and walk to their preferred method of transportation.

Culver City is situated along a number of bus lines and provides for easy access within the city as well as for commuters to Downtown Los Angeles or the Beach

Cities. The site is within a block of Bus lines for easy access to key points with the city.

To create an incentive to not be a lone driver, there are numerous carpool lanes open to 2 or more people only. This and the easy access to the freeways provides

a good alternative to public transportation on days you need to drive.

Along with the Expo Line, Buses, Carpool lanes, etc., The Los Angeles International Airport is located just 7 miles south west of Culver City.

With many options at your disposal, Culver City and the Art District in particular provides a walkable urban lifestyle to support the growing demand for such anenvironment. In fact, the project site (Culver City) received a walk score of 88 or very walkable from walkscore.com, which provides data for how walkable your

location is in relation to amenities.


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Background + Settings - Culver City Zip Code 90232

Transportation

Santa Monica Freeway (I-10)

San Diego Freeway (I-405)

Metro Expo Line

Metro Expo Line - Culver City Station

Culver City Bus

Site

Helms Bakery

Downtown Culver City


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Galleries

1 International Art Objects

2 Francois Ghebaly

3 Honor Fraser

4 LA>


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Ofces

1 Morphosis Architects

2 Clive Wilkinson Architects

3 AHBE Landscape Architects

4 Sony Pictures Studios5 SPF:architects

6 Michael Hong Architects

7 wHY Architecture

8 Eric Owen Moss Architects

9 LETTER FOUR

10 XTEN Architecture

11 Steven Ehrlich Architects

12 Shubin & Donaldson Architects

13 Abramson Teiger Architects

14 HOK Architects

15 Vitra

1

92

3

4

5

6

7

8

10

11

1213

14

15


Site


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Restaurants

1 City Tavern

2 Meet

3 S & W Country Diner

4 Akasha Restaurant5 Fords Filing Station

6 Honeys Kettle Fried Chicken

7 Rush Street Restaurant

8 LYFE Kitchen

9 Tender Greens

10 Ugo An Italian Cafe

11 Public School

12 Bottlerock

13 Novecento Pasta & Grill

14 Kabab Bistro

15 Libra Brazilian BBQ

16 Novecento Pasta & Grill

17 Native Foods Cafe

18 Kays n Daves

19 K-Zo

20 La Dijonaise

21 Lukshon

22 Fathers Ofce

23 Muddy Leek

Site

1-3

4-17

18

19-23

24


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Public Parks

1 Syd Kronenthal Park

2 Blair Hills Park

3 Culver City Park

4 Media Park5 Dr Paul Carlson Memorial Park

6 Tellefson Park


Site

Public Parks


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Demographics - Culver City

Total Population

38,883 people in Culver City

Age Distribution

Under 1818.8% (7,312)

18-247.0% (2,711)

25-4431.1% (12,098)

45-6428.2% (10,956)

65 and over14.9% (5,806)

Median Age

40.5 years

Education Attainment

Less than High School Diploma8.9% (2,566)

High School Graduate or Equivalent12.0% (3,457)

Some College, No Degree21.3% (6,155)

Associates Degree7.5% (2,159)

Bachelors Degree30.3% (8,740)

Graduate or Professional Degree

20.1% (5,789)

Commuting to Work

Car, truck, or van -- drove alone78.5% (15,788)

Car, truck, or van -- carpooled7.3% (1,471)

Public transportation3.4% (674)

Walked1.7% (333)

Other means2.2% (442)

Worked at home

7.0% (1,405)

Mean travel time (minutes)

25

Workers 16 years and over

20,113

Source: U.S. Census 2010 and American Community Survey 2007-2011

People

38,883

Median age

40.5

Bachelor degree +

50.4%

Minutes to work

25


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Household Types

Married Couple Families40.7% (6,826)

Non-Married Families15.0% (2,518)

Non-Family10.6% (1,786)

People Living Alone33.7% (5,649)

Average household size

2.3 persons

Household Income

Less than $10,0005.9% (956)

$10,000 to $29,99913.7% (2,223)

$30,000 to $49,99915.4% (2,484)

$50,000 to $74,99917.4% (2,818)

$75,000 to $124,99923.6% (3,810)

$125,000 to $199,999

16.7% (2,696)

$200,000 or more7.4% (1,198)

Median household income

$71,504

Housing Occupancy

Total housing units100% (17,491)

Occupied housing units95.9% (16,779)

Vacant housing units4.1% (712)

Vacant for rent1.9% (333)

Homeowner vacancy rate

0.7%

Rental vacancy rate

4.1%

Housing Tenure

Occupied housing units100% (16,779)

Owner-occupied housing units54.3% (9,111)

Renter-occupied housing units45.7% (7,668)

Source: U.S. Census 2010

Persons per household

2.3

Median income

$71,504

Occupied units

95.9%

Renter occupied

45.7%


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Climate Data - Culver City, CA

Average High (F)73.8

Average Low (F)

54.0

Precipitation (Inches)

13.32

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The addition of the climate data is to show that Culver City provides a year round indoor / outdoor living environment.

The beach is a 5 -10 minute drive and ski resorts and mountain ranges are within a 1.5 - 5 hour drive, depending on your

preference. You can go from surf / sand to ski / snow in the same day and be back home for time with family and friends.

With the Southern California weather and lifestyle you can ride your bike or walk to work, an arguably better way of life.

This data simply proves the need for living environments that can take advantage of the indoor / outdoor lifestyle andcapture the consumers who live, work and play in both.


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Upcoming Mixed-Use Developments

Project Name Developer # Units or Area (SF): Year1 NMS@Culver City NMS Properties 131 Units + 12,500 SF Retail 2014

2 The Platform The Runyon Group 40,000 SF Retail 2013

3 Legado Crossing Legado 115 Units + 31,000 SF Retail 2014

4 Parcel B Combined Properties/ /Hudson Pacic 115,000 SF Retail/Ofce

5 Washington/National Lowe Enterprises 5.2 AC Site (Residential/Ofce/Retail/Hotel)

6 Motor Avenue Apartments Frost Chaddock Developers 115 Units + Retail 2016

7 Westside Market Hall John Mehigan, VP Investments 1.5 AC Site (Retail) Regency Centers Acquisition LLC

8 Tilden Terrace (Affordable Housing) Los Angeles Housing Partnership 33 Units + 10,700 Retail 2013

Upcoming Multi-family Housing Supply


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1

1

NMS@Culver City

9901 Washington Blvd.131 Units + 12,500 SF Retail

3

2

Legado Crossing

8770 Washington Blvd.

115 Units + 31,000 SF Retail

Parcel B

9300 Culver Blvd.115,000 SF Retail/Ofce

4

2

The Platform

8810 Washington Blvd.40,000 SF Retail

34

Tilden Terrace

11042-11056 Washington Blvd.33 Units + 10,700 SF Retail

8

Washington/National

Washington Blvd./NationalResidential/Retail/Ofce/Hotel

5

5

8

6

Motor Avenue Apartments

3425 Motor Ave.115 Units + Retail

6

77

Upcoming Multi-family Housing Supply

Westside Market Hall

Washington/Centinela1.5 AC Site (Retail)


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MODAA (Museum of Design Art and Architecture) Lofts8609 Washington Blvd., Culver City, CA

Mixed-use development that comprises of 7 live/work lofts for creative neighbors; spacious design ofces, galleries, and a neighborhood restaurant.

Lot Size: 21,230 sfUnits: 7

Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF NotesLive/Work Loft (Owner occupied) 1 3,600 4 4 $10,000 $2.78 $100/mo per parking spaceLive/Work Lofts 6 1,800 2 2 $5,000 $2.78 $100/mo per parking space

Unit Amenities: Building Amenities:

Exposed wood truss ceilings Subterranean parkingSealed, unpolished concrete oors

Comparable Study - Existing


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Regent Lofts10000 Regent Street, Los Angeles CA 90034

The Regent Lofts is located just steps away from Culver Citys vibrant downtown district. Culver City, one of Los Angeless most stylish and creative neighbor-

hoods, is a magnet for lovers of the arts, good food, and culture. Culver City offers everything from innovative restaurants and happening bars, to cutting-edgeart galleries and unique boutiques.

Lot Size: .38 acUnits: 28

Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF NotesOpen Loft 1 Bedroom - 900 1 1 $2,295+ $2.55 10 feet ceilingsPenthouse Loft 1 Bedroom - 1,100 1 1 $2,850 - $3,200 $2.59 - $2.90 19 feet ceilings

Unit Amenities: Building Amenities:Expansive views, 10-19 feet ceilings, Floor to ceiling windows, Polished Gym, Gated covered parking, Outdoor Lounge

concrete oors, Large balconies, Custom designed kitchen & baths,Stainless steel appliances, Stone countertops, Walk-in closet, HydroSystem oversized soaking tub, In unit washer and dryer

Comparable Study - Existing


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Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF NotesStudio - 450 1 1 $2,000+ $4.44*1-Bedroom - 500 - 700 1 1 $2,000 - $3,000 $4.14*2-Bedroom - 900 - 1,100 2 2 $2,700 - $4,000 $3.32*3-Bedroom - 1,100 - 1,400 3 3 $3,000 - $4,700 $3.04*Retail - $ $

Unit Amenities: Building Amenities: Subterranean parking, Adjacent to Expo Line

Notes:* Estimated per comparable NMS Properties community

Comparable Study - New

NMS@Culver City9901 Washington Blvd., Culver City, CA

131 luxury apartment homes are currently under development and will be open in 2014 in the citys vibrant downtown neighborhood. Ultra-modern, ve-story

apartment community will feature one-, two- and three-bedroom dwellings, as well as studio apartments. The apartments will be situated above ground levelretail and two levels of subterranean parking.


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Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF Notes1-Bedroom - 700 1 1 $ $2-Bedroom - - 2 1 $ $3-Bedroom - 1,800 3 2 $ $Retail 31,000 $ $3.75

Unit Amenities: Building Amenities: Subterranean parking, Public plaza, Adjacent to Expo Line

Comparable Study - New

Legado CrossingWashington Blvd./Landmark St.

8770 Washington Blvd., Culver City, CA

A transit-oriented, mixed-use project adjacent to the newly built Exposition Line in Culver City. The project will contain 115 apartment units and approximately

31,000 square feet of street-level commercial/retail space along with a public plaza and park to serve the residents as well as the surrounding commerical, pro-fessional and residential communities rapidly developing around the new light-rail development. Completion is expected by rst quarter 2014.


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The Charmer1737 Chalmers Street, San Diego, CA

A 19-unit multifamily project in San Diegos Little Italy neighborhood. The Charmer takes the pedestrian-friendly planning of historic courtyard apartments and

combines it with restrained modern design, creating such an appealing place to live that the 2012 residential architect Design Awards judges selected it asProject of the Year.

Lot Size: .07 acUnits: 19

Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF Notes1-Bedroom Bungalow 6 360 1 1 $900 $2.50 1 Parking space2-Bedroom 10 1,050 2 1 $2,200 $2.10 2 Parking space3-Bedroom 3 1,200 3 2 $2,400 $2.00 2 Parking spaceCommercial 5,000

Unit Amenities: Building Amenities:Dishwasher, Washer and Dryer, Refrigerator and Freezer , Microwave Covered parkingStainless steel appliances, Stove/Oven, Air conditioning/Central heat

High/Vaulted ceiling

Notes:Construction Coist: $105/SFArchitect/Builder/Developer: Jonathan Segal, FAIA

Precedent Study - Design Concept


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The Union1945 B Street, San Diego CA

The Union is a 13 individual for rent sustainable town homes. It offers two-level interiors, modern kitchens, sizable outdoor spaces, large windows, and utilizes

innovative and minimum waste materials. The Union is constructed with a solar electric system using rooftop photovoltaic cells to generate the majority of theprojects electricity.

Lot Size: .46 AC (22,567 sf)Units: 15

Floor Plans No. of Units Size (SF) Bed Bath Asking Rent Rent/SF NotesStudio - 400 0 1 $1,100 $2.75 Loft w/ 16-0 ceilings; No pkgLive Work Lofts 2 - - - $ $3-Bedroom - 1,070 3 2 $2,200 $2.06 2 Parking spaceOfce 1 4,574

Unit Amenities: Building Amenities:Washer and Dryer, Refrigerator and Freezer, Central heat Covered parkingHigh/Vaulted ceiling, Skylights, Balcony, deck or patio

Notes:Construction Cost: $2,336,579; Town Homes $93/SF; Ofce - $52/SFArchitect/Builder/Developer: Jonathan Segal, FAIA

Precedent Study - Design Concept


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Summary + Conclusion

Rental Rates

Studio @ 450 sf(450 sf ave. = $ 2,000 / month)

1 Bedroom @ 500 - 700 sf(600 sf ave. = $2,450 / month)

2 Bedroom @ 900 - 1,100 sf(1,000 sf ave. = $3,300 / month)

3 Bedroom @ 1,100 -1,400 sf(1,250 sf ave. = $3,750 / month)

2 Bedroom Live Work @ 1,800 sf(1,800 sf ave. = $5,000 / month)

Median Household Income

$71,504

Gross Rent as a % of Income

Less than 15.0% spend 10%

15.0% - 19.9% spend 14.9%

20.0% - 24.9% spend 16.4%

25.0% - 29.9% spend 12.2%

30.0% - 34.9% spend 7.2%

35.0% or more spend 39.3%

Monthly Rent as a % of Income

39.3% of median income = $2,340

Source: 2008-2010 American Community

Survey 3-Year Estimates

Average rent

$3,300

Income spent on rent

39.3%

Rent rate at 39.3% of $71,504

$2,340 +

Median income

$71,504


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Apartments

20 Units @ 650 - 2,115 sfLevel 1 & Level 2

Commercial Space(Revenue)

8,580 sf / Level 1

Parking

17,850 sf / Level B1

Apartment Mix

Studio5 at 650 sf = 3,250 sf

1 Bedroom2 at 950 - 1,035 sf = 1,985 sf

2 Bedroom3 at 1,110 - 1,360 = 2,470 sf

3 Bedroom2 at 1,675 = 3,350 sf

Live / Work

8 at 1,340 - 2,115 sf = 12,005 sf

Apartment Total Rentable

24,420 sf

Assuming a 90% Efciency

Commercial Space (Revenue)

3 Suites at 2,860 sf = 8,580 sf

Commercial Total Rentable

8,580 sf

Assuming a 90% Efciency

Total Rentable Square Footage

Apartment Total Rentable

24,420 sfCommercial Total Rentable

8,580 sf

Total = 33,000 sf

Residential Units

20

Live / Work

8

Commercial Spaces

3+

Total Rentable sf

33,000


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Apartment Income

Lease Rate

$4.00 sf / month *

100% Occupancy

$4.00 x 24,420 sf = $97,680 / month

5% Vacancy

$4,884 / month

Apartment Total Rent

$92,796 / month

* Price per sf / month is based on compa-rable and upcoming properties in the Art

District and immediate surrounding areas.

Commercial Income

Lease Rate

$4.00 sf / month

100% Occupancy

$4.00 x 8,580 sf = $34,320 / month

5% Vacancy

$1,716 / month

Commercial Total Rent

$32,604 / month

Total Rental Income

Apartment Total Rent

$92,796 / month

Commercial Total Rent

$32,604 / month

Total = $125,400 / month

Gross Effective Rent

$125,400 / month$1,504,800 / year

Operating Expenses

Assume 28% Potential Gross$36,960 / month$443,520 / year

Valuation

$19,296,000 =5.5% Cap Rate @ 4% per year

Building Cost Assumptions

$5,750,200 Hard Cost$690,024 Soft Cost

Per month lease rate

$4.00

Vacancy

5%

Per month income

$125,400

Per year gross effective rent

$1,504,800


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Program + Parking

Unit Type Area

Parking

Unit Mix

Level 1

Level 2

Level 2 (2-story)

Total

% of Total

ST

0

5

0

5

25%

1BD-A

1

0

0

1

5%

1BD-B

0

1

0

1

5%

2 BD-A

1

0

0

1

5%

2 BD-B

2

0

0

2

10%

3BD

0

2

0

2

10%

L/W-A

0

0

6

6

30%

L/W-B

0

0

1

1

5%

L/W-C

0

0

1

1

5%

Total

4

8

8

20

100%

ST

1BD-A

1BD-B

2 BD-A

2 BD-B

3BD

L/W-A

L/W-B

L/W-C

Total

Level 1

0

950

0

1,110

2,720

0

0

0

0

4,780

Level 2

3,250

0

1,035

0

0

3,350

0

0

0

7,635

Level 2 (2-story)

0

0

0

0

0

0

8,040

1,850

2,115

12,005

Total

3,250

950

1,035

1,110

2,720

3,350

8,040

1,850

2,115

24,420

Avg SF

650

950

1,035

1,110

1,360

1,675

1,340

1,850

2,115

Commercial

Studio

1 Bedroom (> 900 SF)

2 Bedroom

3 Bedroom

Live/Work

Live/Work (>1500 SF)

Guest Parking

Total

Area or Units

8,580

5

2

3

2

6

2

12

Parking Required

1 per 350

1 per Unit

2 per Unit

2 per Unit

2 per Unit

3 per Unit

4 per Unit

1 per 4 Units

Total Required

25

5

4

6

4

18

8

3

73

Parking Provided

12*

5

4

6

4

18

8

3

60*

* Based on agreement with Culver City for retail street parking.


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Design - Site Plan

Site Plan

Washington Boulevard

McManusAvenue

FayAvenue

FayAvenu

e

McManusAvenue


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Design- Parking Floor Plan

Ramp up

to street

Below Grade Parking

60 spaces

Parking Floor Plan


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35

Design - Level 1 Floor Plan

Commercial

8,580 sf

2BD-A1,110 sf

1 BD-A950 sf

Level 1 Floor Plan

2BD-B1,360 sf

2BD-B1,360 sf

Ramp down

to parking

Commercial


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Design - Level 2 Floor Plan

L/W-C1,285 sf

1BD-B

1,035 sf

ST

650 sf

L/W-A

465 sf

3BD845 sf

3BD845 sf

L/W-B1,020 sf

Level 2 Floor Plan

L/W-A

465 sf

L/W-A

465 sf

L/W-A

465 sf

L/W-A

465 sf

L/W-A

465 sf

ST

650 sf

ST

650 sf

ST

650 sf

ST

650 sf

Outdoor Patio


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37

Design- Level 3 Floor Plan

L/W-A

875 sf

L/W-C

830 sf

3BD

830 sf

3BD

830 sf

L/W-B

830 sf

L/W-A

875 sfL/W-A

875 sfL/W-A

875 sfL/W-A

875 sfL/W-A

875 sf

Level 3 Floor Plan


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Design - Roof Plan

RooftopGardens

Rooftop

Gardens

Roof Plan


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Design- 3D View

View from Washington Boulevard


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Feasibility Analysis


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41

Feasibility Analysis

The following analysis outlines the nancial feasibility of creating a for rent mixed use community of 20 live / work, individual aparment units and retail spaces withinthe Art District of Culver City, California.

The pro forma for the project is meant to be conservative in regards to the location, the type of unit and the lifestyle benets of such a community.

With rents trending higher and quality space being limited, the conservative assumptions made should simply create a community that will prosper and stand thetest of time. Although additional units are being proposed within a close proximity, none have the character or charm that is reminiscent of Culver City. This is anadditional benet to creating a true urban living environment that is based on the needs of the community it will serve.

Thank You for your time and consideration. Please enjoy as you review the analysis.


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For Rent - Apartment Scenario

For Rent - Apartment Assumptions

Total Land Area = 17,850 gsf

Apartments : 20 units @ 24,420 rsf

Unit MixStudio5 at 650 sf = 3,250 sf

1 Bedroom2 at 950 - 1,035 sf = 1,985 sf

2 Bedroom

3 at 1,110 - 1,360 = 2,470 sf

3 Bedroom2 at 1,675 = 3,350 sf

Live / Work8 at 1,340 - 2,115 sf = 12,005 sf

Commercial8,580 rsf

Income

Apartment Rent

@ $4.00/rsf @ 24,420 rsf = $97,680Potential Apartment Gross Income of $97,680 / monthLess Vacancy of 5% = $4,884Total Apartment Project Gross Effective Income = $92,796 / month

Commercial Rent@ $4.00/rsf @ 8,580 rsf = $34,320Potential Apartment Gross Income of $34,320 / monthLess Vacancy of 5% = $1,716Total Commercial Gross Effective Income = $32,604 / month

Total ProjectTotal Apartment and Commercial Gross Effective Income = $125,400 / monthAnnualized = $1,504,800 / yearLess Operating Expenses @ 28% = $443,520 / year

Net Operating Income = $1,061,280 / year

Total Land Area =

17,850 gsf

Total Rentable sf =

24,420 sf- Apartments

8,580 sf- Commercial

NOI =

$1,061,280

Median rental rates in CulverCity than the California average.

15.7%greater

National average

74%greater


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Project Value

@ 6.50% CAP = $16,327,385

@ 6.00% CAP = $17,688,000

@ 5.50% CAP = $19,296,000

@ 5.00% CAP = $21,225,600

Value at 6.5% Cap Rate =

$16,327,385


$17,688,000


$19,296,000


$21,225,600


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Market Rate Residential Construction Cost Estimate Assumptions

Land

Cost @ $112.04/sf @ 17,850 sf = $2,000,000

Land Cost / Residential Unit = $100,000

Hard Costs

Above Grade Costs:

Residential @ $120/gsf @ 26,605 gsf = $3,192,600Commercial @120/gsf @ 8,580 gsf = $1,029,600Off-site Costs = $100,000 (Estimate)

Below Grade Costs:

Subterranean Garage @ 80/gsf @ 17,850 gsf = $1,428,000

Hard Costs Sub-Total = $5,750,2005% Contingency = $287,510

Soft Costs @ 12% of Hard Cost of Construction/Contingency

Engineering

Permits and Impact Fees

Title ClosingProfessional Fees

Inspecting EngineerFFE Set UpOperating DecitLoan CostsDeveloper FeeTI and Retail Leasing Commissions

Contingency

Soft Costs Sub-Total @ 12% of Hard Cost = $690,024

Land Cost (Assumed) =

$2,000,000

Land Cost / Unit at 20 units =

$100,000

Hard Costs =

$5,750,200

Soft costs =

$690,024


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Cash Flow Analysis

Residential Cost @ $120 =

$3,192,600

Commercial Cost @ $120 =

$1,029,600

Project IRR @ 5.5% Cap Rate

36%

For Sale Price =

$20,077,473

*Assumes 4% increase per year

Year

Effective Gross IncomeProject Value

Operating Expenses

Net Operating Income

Less:

Soft Costs

On (Dev. Cost ) /Off Site

Acquisition

Amenities (Landscape, etc)

Bank Loan Costs (60% @ 6% Interest Only)

Brokers Commission (3.75%)

Total Expenditure

Net Cash Flow

Internal Rate of Return (IRR)

0

$0$0

$0

$0

$0

$100,000

$100,000

$0

$303,848

$0

$503,848

-$503,848

40%

1

$0$0

$0

$0

$100,000

$1,500,000

$100,000

$0

$303,848

$0

$2,003,848

-$2,003,848

2

$1,504,800$0

-$443,520

$1,061,280

$300,000

$4,150,200

$300,000

$50,000

$303,848

$0

$5,104,048

-$4,042,768

3

$1,564,992$0

-$452,390

$1,112,602

$290,024

$0

$1,500,000

$0

$303,848

$0

$2,093,872

-$981,270

4

$1,627,592$0

-$461,438

$1,166,153

$0

$0

$0

$0

$303,848

$0

$303,848

$862,305

5

$1,692,695$21,705,376

-$470,667

$22,927,404

$0

$0

$0

$0

$0

$813,952

$813,952

$22,113,453


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Cash required =

$3,376,090

Total Prots =

90%of total prots

Investor IRR =

27%

Investor Cash Flow =

$7,456,903


* Investor to provide 40% of all cash needed in the project.* Investor to receive 90% of project prots.

Joint Venture Investor Cash Flow / IRR

Year

Net Cash FlowAcquisition Cost

Brokers Commission (3.75%)

Investor Cash Flow (@ 90%)

Joint Venture Partner Cash Flow (@10%)

Internal Rate of Return (IRR)

0

-$503,848$0

$0

-$3,376,090

$0

30%

1

-$2,003,848$0

$0

$0

$0

2

-$4,042,768$0

$0

$0

$0

3

-$981,270$0

$0

$0

$0

4

$862,305$0

$0

$776,075

$86,230.54

5

$22,113,453-$8,440,224

-$813,952

$11,573,349

$1,285,928


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Conclusion

Urbane is looking to the future of lifestyle developments. This is a true Triple Top Line development opportunity providing economic, environmental and socialbenets to everyone involved. It is a true win - win.

The property is located in the direction of development and is poised to be a value generating Architectural gem.

Developing to the needs of the users and consumers along with supporting demographics, favorable nancing and low interest rates, the property at Urbane issure to be a desired development for investors and users alike.

We welcome your interest in being on the forefront of the path of development and this exciting opportunity.

Best Regards,

Jeremy L Tooke, AIA LEED [email protected]

Urbane Final - High Quality

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