Valley Village Apartment Project

VALLEY VILLAGE, CA

5327-5333 HermitageAvenue

OFFERING MEMORANDUM

CONFIDENTIALITY AND DISCLAIMER

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

VALLEY VILLAGE, CA

5327-5333 Hermitage Avenue

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOURMARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NON-ENDORSEMENT NOTICE

Section 1 PRICING AND FINANCIAL ANALYSIS

Section 2 PROPERTY DESCRIPTION

Section 3 RECENT LAND SALES

Section 4 RECENT APARTMENT SALES

Section 5 RENT COMPARABLES

Section 6 MARKET OVERVIEW

Section 7 DEMOGRAPHIC ANALYSIS

TABLE OF CONTENTS


5327-5333 Hermitage AvenueVALLEY VILLAGE, CA

PRICING AND FINANCIAL ANALYSIS

Unit Number Unit

Type

Current

Rent

Notes

5333 3 Bdr 1.5 Bath $1,500

5341 3 Bdr 1 Bath $1,400

5327-1 2 Bdr 2 Bath $1,400

5327-2 2 Bdr 2 Bath $1,000

5327-3 2 Bdr 2 Bath $904

5327-4 2 Bdr 2 Bath $1,251

5327-5 2 Bdr 2 Bath $1,123

5327-6 2 Bdr 2 Bath $1,209

5327-7 2 Bdr 2 Bath $850

5339-1 Single 1 Bath $600

5339-2 Single 1 Bath $950 vacant








TOTAL $0

18 TOTAL $18,371

18 TOTAL $18,371

1



This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as tothe accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for anyinaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2014 Marcus & Millichap.All rights reserved.

RENT ROLL

2



Summary

Property Address 5327-5333 Hermitage Avenue

Valley Village, CA 91607

Price $4,195,000

Down Payment 100% / $4,195,000

Lot Size (SF) 24,036

Price/SF $174.53

Lot Size (Acres) 0.7380

Price/Acre $5,684,282

Number Of Units 43

Price/Unit $97,558

Number Of Lots 3

Price/Lot $1,398,333

Type of Ownership Fee Simple


Site Description

Assessor's Parcel Number 2347-025-005;2347-

025-012

Zoning LAR3

Financing

FIRST TRUST DEED

Loan Type All Cash

FINANCIAL OVERVIEW

*Note: Regarding Number of Units (43) stated above,

this is the maximum allowable buildable units including

square footage from alley and 35% density bonus.

Buyer to do own investigations regarding the number

of units that can be built or the best suitable use of the

property for buyer. Broker makes no representations

or warranties relating to this property.


PROPERTY DESCRIPTION

Marcus & Millichap, as the exclusive listing agent, is pleased to present a rare development opportunity to purchase 3 contiguous parcels totaling 24,036 square feet of land with alley in the back in the Valley Village submarket of the San Fernando Valley area. The subject property is zoned LAR3 which allows the construction of up to 43 apartment units on the site (this amount includes a 35% density bonus).* Existing improvements on the site consist of 18 apartment units with current income during the planning and entitlement phase of development.

Valley Village is one of the most desirable neighborhoods within the Los Angeles metropolitan area nestled among the desirable neighborhoods of Studio City, Sherman Oaks, and North Hollywood markets. The property is situated on a tree-lined, multi-family residential neighborhood within walking distance to the Laurel Canyon MTA Orange Line Station. Commuter access to this site is offered through the 101, 134 and 170 Freeways. The subject location is highlighted by a multitude of dining, shopping, and entertainment facilities while offering easy access to employment centers in Hollywood, Downtown, and West Los Angeles.

The subject development will be among the more unique developments of the area due to the impressive size and location of the project offering competitive advantage in occupancy rates.

Investment Highlights

■ Pride of Ownership Development Opportunity Located inthe Desirable Valley Village Area

■ Rare Large Scale Development Project

■ Potential of Constructing 43 Apartment Units WithinWalking Distance to the Laurel Canyon Orange Line Metro

■ Property Consists of 3 Contiguous Lots in Two Legal Parcelsoffering 24,036 Square Feet of Buildable Land

■ Occupancy Rates in The Area Consistently Above 95%

■ Property Offers Current Income from the Existing 18 Units

■ Ideal Land Bank Potential

■ Desirable Residential Neighborhood with Easy Access toShopping, Dining, and Entertainment Facilities and VariousEmployment Bases in the Los Angeles Area

4




INVESTMENT OVERVIEW

*Buyer to do own investigations regarding the number of units that can be built or the best suitable use of the property forbuyer. Broker makes no representations or warranties relating to this property.

5




PROPERTY PHOTOS

Local Map Regional Map

6




AREA MAPS

7




PLAT MAP

8




AERIAL PHOTO


RECENT LAND SALES

1)

2)

3)

4)


5247-5253 Vantage Avenue

11108 Riverside Drive

11208-11214 Peach Grove Street

11003-11019 Otsego Street

10

RECENT LAND SALES



RECENT SALES MAP

1

2

Comments

Maximum number of units: 17 ($104,117 per door).

5247-5253 Vantage Avenue



North Hollywood, CA 91602

Comments




Comments

Maximum number of units: 43 ($97,558 per door). This includes 35% density bonus.

Subject Property

Close of Escrow: 8/28/2014 Lot Size (SF): 16,274

Sale Price: $1,770,000 Price/SF: $108.76

Down Payment: N/A Lot Size (Acres): 0.3700

Down Payment %: N/A Price/Acre: $4,783,784

Zoning: LAR3 Lot Dimensions: 120x135

11


Sale Price: $725,000 Price/SF: $94.78

Down Payment: $725,000 Lot Size (Acres): 0.1800

Down Payment %: 100% Price/Acre: $4,027,778

Zoning: LAR3 Lot Dimensions: N/A

RECENT LAND SALES



RECENT SALES

Sale Price: $4,195,000 Lot Size (SF): 24,036

Down Payment: $4,195,000 Price/SF: $174.53

Down Payment %: 100% Lot Size (Acres): 0.7380

Zoning: LAR3 Price/Acre: $5,684,282

Lot Dimensions:

3

411003-11019 Otsego Street


Comments


11208-11214 Peach Grove Street


Comments



Sale Price: $4,100,000 Price/SF: $185.10




12


Sale Price: $960,000 Price/SF: $96.00




RECENT LAND SALES



RECENT SALES


RECENT APARTMENT SALES

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

5056

Laurel

Canyon

Boulevard

12916

Moorpark

Street

12740

Oxnard

Street

5716

Whitsett

Avenue

Average GRM

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

18.00

5056

Laurel

Canyon

Boulevard

12916

Moorpark

Street

12740

Oxnard

Street

5716

Whitsett

Avenue

Average Cap Rate

14




CAP RATE AND GRM

Average Price per Square Foot

Average Price per Unit

0.00

30.00

60.00

90.00

120.00

150.00

180.00

210.00

240.00

270.00

300.00

5056

Laurel

Canyon

Boulevard

12916

Moorpark

Street

12740

Oxnard

Street

5716

Whitsett

Avenue

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

550,000

600,000

5056

Laurel

Canyon

Boulevard

12916

Moorpark

Street

12740

Oxnard

Street

5716

Whitsett

Avenue

15




PRICE PER SF AND PRICE PER UNIT

1)

2)

3)

4)


5056 Laurel Canyon Boulevard

12916 Moorpark Street

12740 Oxnard Street

5716 Whitsett Avenue

16




RECENT SALES MAP

12740 Oxnard Street

No. of Units: 15 Units Unit Type

Year Built: 2005 5 2 Bdr 2 Bath

Sale Price: $4,725,000 10 3 Bdr 2 Bath

Price/Unit: $315,000

Price/SF: $245.00

CAP Rate: 4.91%

GRM: 13.98

12916 Moorpark Street

Studio City, CA 91604





Price/SF: $212.46

CAP Rate: 4.59%

GRM: 14.11

Comments

Close of Escrow: 4/10/2013


5056 Laurel Canyon Boulevard



Comments





Price/SF: $310.36

CAP Rate: 4.80%

GRM: 17.10

2

312740 Oxnard Street


17



Comments


1

RECENT SALES


No. of Units: Units Unit Type

Year Built:

Sale Price:

Price/Unit:

Price/SF:

CAP Rate:

GRM:

Comments





Price/SF: $230.53

CAP Rate: 5.20%

GRM: 13.20

5716 Whitsett Avenue


Comments

No. of Units: Units Unit Type

Year Built:

Sale Price:

Price/Unit:

Price/SF:

CAP Rate:

GRM:

Comments

Close of Escrow:

Close of Escrow:

4

5

6

18




RECENT SALES


RENT COMPARABLES

1)

2)

3)

4)


Allegro Apartments

IMT Valley Village

IMT Sherman Village

Avery Apartments

20

RENT COMPARABLES



RENT COMPARABLES MAP

Subject Property

Comments

Comments

1

Comments

No. of Units

Occupancy: N/A

Year Built:



No. of Units 97

Occupancy: N/A

Year Built: 2009

No. of Units 144

Occupancy: N/A

Year Built: 2011

Allegro Apartments

11945 Magnolia Boulevard


IMT Valley Village



Unit Type Units SF Rent Rent/SF

2 Bdr 2 Bath 1,026 - 1,162 $2,385 - $2,721 $2.33

3 Bdr 2.5 Bath 1,529 - 1,566 $3,007 - $3,400 $2.07

Total/ Avg. $2,878 $2.20


2 Bdr 2 Bath 988 - 1,476 $2,275 - $3,140 $2.20

Total/ Avg. $2,707 $2.20

2

21

RENT COMPARABLES


Unit Type Units Rent

N/A 0 $

Total/Wtd. Avg. $0


RENT COMPARABLES

No. of Units 48

Occupancy: N/A

Year Built/Renovated: 2013

IMT Sherman Village



No. of Units 121

Occupancy: N/A

Year Built/Renovated: 2014

No. of Units

Occupancy:

Year Built/Renovated:

Avery Apartments

12005 Albers Street


Comments

Comments

Comments


1 Bdr 1 Bath 802 $2,023 $2.52

2 Bdr 2 Bath 1,056 - 1,293 $2,434 - $3,259 $2.42

Total/ Avg. $2,434 $2.47


1 Bdr 1 Bath 814 - 1,283 $1,925 - $2,855 $2.28

2 Bdr 2 Bath 1,175 - 1,433 $2,550 - $2,895 $2.09

Total/ Avg. $2,556 $2.19

Unit Type Units Rent

Total/Wtd. Avg.

5

4

22

RENT COMPARABLES

3



RENT COMPARABLES

VALLEY VILLAGE, CA

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Valley Village Apartment Project

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