12211-12221

OFFERING MEMORANDUM12211-12221 Vanowen St. | North Hollywood, CA 91605

28 Unit Multi-Family Investment Offering

Each office independently owned and operated

28 Unit North Hollywood Investment Offering12211-12221 Vanowen St | North Hollywood, CA 91605

STEPHEN LAMPEExecutive Vice President(310) 802-2501slampe@remaxcir.comBRE #01164364

Very well maintained property with gated parking and secured entrance➢

28 units on 2 parcels totaling 22,921 SF of land➢

Approximately 40% upside in rent rates as units turnover➢

Recent capital expenditures include new roofs, new decking/stairs, newexterior paint, new automated parking gate

➢

Excellent location minutes from NoHo Arts District, convenient accessto freeways and employment centers

➢

RE/MAX COMMERCIAL & INVESTMENT REALTY23001 Hawthorne Blvd, Suite 205Torrance, CA 90505(310) 802-2500www.remaxcir.com

INVESTMENT DETAILS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

ANALYSIS

Analysis Date July 2018

PROPERTY

Property 28 Unit North Hollywood InvestmentProperty Address 12211-12221 Vanowen St

North Hollywood, CA 91605

Year Built 1958

FINANCIAL INFORMATION

All Cash

PURCHASE INFORMATION

Property Type MultiFamilyPurchase Price $4,750,000Units 28Total Rentable Sq. Ft. 17,394

LOANS

Type Debt Term Amortization Rate Payment LO CostsAll Cash

INCOME & EXPENSES

Gross Operating Income $357,024Monthly GOI $29,752Total Annual Expenses ($165,683)Monthly Expenses ($13,807)

EXECUTIVE SUMMARY12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Acquisition CostsPurchase Price, Points and Closing Costs $4,750,000Investment - Cash $4,750,000

Investment InformationPurchase Price $4,750,000Price per Unit $169,643Price per Sq. Ft. $273.08Income per Unit $13,140Expenses per Unit ($5,917)

Income, Expenses & Cash FlowGross Scheduled Income $367,913Total Vacancy and Credits ($10,889)Operating Expenses ($165,683)Net Operating Income $191,341Debt Service $0Cash Flow Before Taxes $191,341

Financial IndicatorsCash on Cash Return Before Taxes 4.03%

Debt Coverage Ratio N/ACapitalization Rate 4.03%Gross Rent Multiplier 12.91Gross Income / Square Feet $21.15Gross Expenses / Square Feet ($9.53)Operating Expense Ratio 46.41%

PROPERTY DESCRIPTION12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

INVESTMENT OFFERINGPROPERTY DESCRIPTION: The investment offering is a 28 unit multifamily investment property comprised of two 14 unit apartment complexes ontwo separate, but adjacent parcels. Each building has 12 one bedroom one bath units, and 2 two bedroom one bathunits. The property has been very well maintained by the same family who has owned and operated the building fortwo generations. Over the years, approximately 50% of the plumbing has been upgraded to copper piping. Recentcapital improvements consist of new roofs, new decking/stairs, new exterior paint, new automated parking gate. Severalunits have been upgraded with hardwood floors and stainless steel appliances as they have turned over, yielding up toa 40% increase in rent rates. The property has a common driveway entering the secured parking with 14 tuck underparking spaces per building for a total of 28 vehicles. The property is subject to the Soft-Story Retrofit Ordinance#183893 which the buyer shall be responsible for compliance after the closing. This is an excellent turn-key investmentwith significant upside.

LOCATION: The property is located in North Hollywood, just minutes from the NOHO Arts District, Universal Studios, Burbank,Toluca Lake and Sherman Oaks, and is within a few blocks of the Whitsett Sports Fields, Bellingham Elementary,eateries, and Ralphs Grocery on Laurel Canyon. This location provides convenient access to the major employmentcenters of Downtown Los Angeles and Hollywood via the 170/134/101 freeway system. There has been continueddemand for new apartment units in North Hollywood, as the area has experienced a significant increase in employmentopportunities and commercial investment over the past several years.

FINANCIAL SUMMARY12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

UNIT MIX & MONTHLY SCHEDULED

Type Units Actual Total Proforma Total One Bedroom One Bath 24 $1,043 $25,021 $1,190 $28,560Two Bedroom One Bath 4 $1,307 $5,226 $1,350 $5,400TOTALS 28 $30,247 $33,960

ANNUALIZED INCOME Description Actual Proforma

Gross Potential Rent $362,969 $407,520Less: Vacancy ($10,889) ($12,226)Misc. Income $4,944 $4,944Effective Gross Income $357,024 $400,238Less: Expenses ($165,683) ($161,621)Net Operating Income $191,341 $238,617

ANNUALIZED EXPENSES Description Actual Proforma

Property Tax (New 1.193%) $56,668 $56,668Building Insurance $5,965 $5,965Electric $2,415 $2,415Gas $6,913 $6,913Water $18,721 $18,721Sewer $13,854 $13,854Trash Collection $4,933 $4,933Maintenance & Repairs $23,662 $19,600Management Fees $14,206 $14,206Onsite Management $3,824 $3,824Legal Fees / License & Permits $3,323 $3,323Reserves $11,200 $11,200Total Expenses $165,683 $161,621Expenses Per RSF $9.53 $9.29Expenses Per Unit $5,917 $5,772

INVESTMENT SUMMARY

Price: $4,750,000Year Built: 1958Units: 28Price/Unit: $169,643RSF: 17,394Price/RSF: $273.08Lot Size: 22,921 sfFloors: 2APN: 2321-013-063;062Cap Rate: 4.03%Proforma Cap Rate: 5.02%GRM: 12.91Proforma GRM: 11.52

RENT ROLL12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Unit Bed / Bath Rent Notes12211 A 1 Bed / 1 Bath $1,024.3112211 B 1 Bed / 1 Bath $816.3912211 C 1 Bed / 1 Bath $1,390.5012211 D 1 Bed / 1 Bath $924.5312211 E 2 Bed / 1 Bath $1,467.8612211 F 1 Bed / 1 Bath $1,089.4312211 G 1 Bed / 1 Bath $816.3912211 H 1 Bed / 1 Bath $1,037.5612211 I 1 Bed / 1 Bath $1,069.2412211 J 2 Bed / 1 Bath $1,005.2412211 K 1 Bed / 1 Bath $816.3912211 L 1 Bed / 1 Bath $1,390.5012211 M 1 Bed / 1 Bath $1,044.7912211 N 1 Bed / 1 Bath $840.8812221 A 1 Bed / 1 Bath $985.3812221 B 1 Bed / 1 Bath $1,087.2712221 C 1 Bed / 1 Bath $1,076.7412221 D 1 Bed / 1 Bath $985.3812221 E 2 Bed / 1 Bath $1,058.0812221 F 1 Bed / 1 Bath $1,495.0012221 G 1 Bed / 1 Bath $1,044.7912221 H 1 Bed / 1 Bath $1,373.8612221 I 1 Bed / 1 Bath $821.7912221 J 2 Bed / 1 Bath $1,695.00 Manager12221 K 1 Bed / 1 Bath $865.2012221 L 1 Bed / 1 Bath $1,395.0012221 M 1 Bed / 1 Bath $814.9312221 N 1 Bed / 1 Bath $814.93

Total: $30,247.36

RENT SURVEY12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Address Beds Baths Rent

6717 Wilkinson Ave 1 1 $1,385

6819 Hinds Ave 1 1 $1,395

6706 Laurelgrove Ave 1 1 $1,450 Median $1,450

6835 Laurel Canyon Blvd 1 1 $1,500

6706 Laurelgrove Ave 1 1 $1,545

6841 Whitsett Ave 1 1 $1,700

Average: $1,496

12300 Sherman Way 2 1 $1,538

6836 Radford Ave 2 2 $1,825

6901 Laurel Canyon Blvd 2 2 $1,850

11835 Vanowen St 2 2 $1,895 Median $1,895

11850 Dehougne St 2 1 $1,950

6900 Laurel Canyon Blvd 2 2 $2,095

6949 Laurel Canyon Blvd 2 1 $2,110

Average: $1,895

PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

PROPERTY PHOTOS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Subject 1 2 3 4 5 6

1%

2%

3%

4%

5%

6%

7%

8%

Avg.4.435

Cap Rate

Subject 1 2 3 4 5 6

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

Avg.13.667

Gross Rent Multiplier

Subject 1 2 3 4 5 6

$31,000

$62,000

$93,000

$124,000

$155,000

$186,000

$217,000

$248,000

Avg.$197,302

Price per Unit

Subject 1 2 3 4 5 6

$35

$70

$105

$140

$175

$210

$245

$280

Avg.$223.27

Price per Sq. Ft.

SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

S 28 Unit North Hollywood Investment Offering12211-12221 Vanowen StNorth Hollywood, CA 91605

Sale Price $4,750,000Units 28Price/Unit $169,643Price/SqFt $273.08Cap Rate 4.03%Year Built 1958GRM 12.91

# Units Unit Type24 One Bedroom One Bath4 Two Bedroom One Bath

1 7027 Fulton AveNorth Hollywood, CA 91605

Sale Price $1,150,000Units 6Price/Unit $191,667Price/SqFt $232.09Cap Rate 4.52%Year Built 1957Sale Date 4/17/2018GRM 14.0

# Units Unit Type2 One Bedroom One Bath3 Two Bedroom One Bath1 Three Bedroom Two Bath

2 13135 Vanowen StNorth Hollywood, CA 91605

Sale Price $3,450,000Units 14Price/Unit $246,429Price/SqFt $228.98Cap Rate 4.03%Year Built 1960Sale Date 3/30/2018GRM 13.9

# Units Unit Type1 One Bedroom One Bath6 Two Bedroom One Bath2 Two Bedroom Two Bath5 Three Bedroom Two Bath

SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

3 12641-12647 Vanowen StNorth Hollywood, CA 91605

Sale Price $2,150,000Units 12Price/Unit $179,167Price/SqFt $232.43Cap Rate 4.48%Year Built 1956Sale Date 9/29/2017GRM 13.7

# Units Unit Type4 One Bedroom One Bath8 Two Bedroom One Bath

4 7100 Fulton AveNorth Hollywood, CA 91605

Sale Price $7,300,000Units 41Price/Unit $178,049Price/SqFt $229.63Cap Rate 4.65%Year Built 1960Sale Date 8/18/2017GRM 12.7

# Units Unit Type22 One Bedroom One Bath19 Two Bedroom One Bath

5 6938 Coldwater Canyon AveNorth Hollywood, CA 91605

Sale Price $1,855,000Units 10Price/Unit $185,500Price/SqFt $172.62Cap Rate 4.1%Year Built 1964Sale Date 7/14/2017GRM 13.7

# Units Unit Type4 One Bedroom One Bath6 Two Bedroom Two Bath

SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

6 13127-13129 Vanowen StNorth Hollywood, CA 91605

Sale Price $1,015,000Units 5Price/Unit $203,000Price/SqFt $243.87Cap Rate 4.83%Year Built 1960Sale Date 5/10/2017GRM 14.0

# Units Unit Type2 One Bedroom One Bath2 Two Bedroom One Bath1 Three Bedroom One Bath

SALE COMPARABLES12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

S 12211-12221 Vanowen StNorth Hollywood, CA, 91605$4,750,000

1 7027 Fulton AveNorth Hollywood, CA, 91605$1,150,000

2 13135 Vanowen StNorth Hollywood, CA, 91605$3,450,000

3 12641-12647 Vanowen StNorth Hollywood, CA, 91605$2,150,000

4 7100 Fulton AveNorth Hollywood, CA, 91605$7,300,000

5 6938 Coldwater Canyon AveNorth Hollywood, CA, 91605$1,855,000

6 13127-13129 Vanowen StNorth Hollywood, CA, 91605$1,015,000

MAPS AND AERIALS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection byand/or with the appropriate professionals.

LOCATION MAP12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

REGIONAL MAP12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

DEMOGRAPHICS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Population 1 Mile 3 Mile 5 Mile

Male 20,434 (52.09 %) 160,148 (50.13 %) 353,397 (49.15 %)Female 18,795 (47.91 %) 159,321 (49.87 %) 365,632 (50.85 %)Total Population 39,229 319,469 719,029

Age Breakdown 1 Mile 3 Mile 5 Mile

Ages 0-4 2,418 (6.16 %) 18,828 (5.89 %) 42,759 (5.95 %)Ages 5-9 2,859 (7.29 %) 21,876 (6.85 %) 49,863 (6.93 %)Ages 10-14 2,612 (6.66 %) 19,603 (6.14 %) 44,873 (6.93 %)Ages 15-19 2,569 (6.55 %) 19,037 (5.96 %) 43,165 (6.00 %)Ages 20-24 2,802 (7.14 %) 20,842 (6.52 %) 45,964 (6.39 %)Ages 25-29 2,907 (7.41 %) 22,138 (6.93 %) 48,169 (6.70 %)Ages 30-34 2,962 (7.55 %) 23,048 (7.21 %) 50,361 (7.00 %)Ages 35-39 3,024 (7.71 %) 24,272 (7.60 %) 53,686 (7.47 %)Ages 40-44 3,065 (7.81 %) 25,331 (7.93 %) 56,995 (7.93 %)Ages 45-49 3,028 (7.72 %) 25,448 (7.97 %) 57,969 (8.06 %)Ages 50-54 2,697 (6.88 %) 23,429 (7.33 %) 53,402 (7.43 %)Ages 55-59 2,330 (5.94 %) 20,432 (6.40 %) 46,464 (6.46 %)Ages 60-64 1,894 (4.83 %) 16,704 (5.23 %) 37,785 (5.26 %)Ages 65-69 1,393 (3.55 %) 12,695 (3.97 %) 28,732 (4.00 %)Ages 70-74 1,016 (2.59 %) 9,097 (2.85 %) 20,537 (2.86 %)Ages 75-79 663 (1.69 %) 6,288 (1.97 %) 14,148 (1.97 %)Ages 80-84 412 (1.05 %) 4,055 (1.27 %) 9,280 (1.29 %)Ages 85+ 578 (1.47 %) 6,346 (1.99 %) 14,877 (2.07 %)

DEMOGRAPHICS12211-12221 Vanowen St | North Hollywood, CA 91605

The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteedand should be personally verified through personal inspection by and/or with the appropriate professionals.

Household Income 1 Mile 3 Mile 5 Mile

Median Income $40,703 $49,134 $54,070Less than $10,000 891 6,448 13,487$10,000 -$14,999 912 6,781 14,058$15,000 - $19,999 994 7,487 14,769$20,000 -$24,999 1,119 6,637 14,424$25,000 - $29,999 1,064 6,901 13,716$30,000 - $34,999 820 6,065 13,516$35,000 - $39,999 671 5,140 11,848$40,000 - $44,999 680 5,789 12,624$45,000 - $49,999 524 4,466 10,487$50,000 - $59,999 859 9,665 20,077$60,000 - $74,999 1,067 10,791 24,788$75,000 - $99,999 1,078 12,214 29,311$100,000 - $124,999 592 7,458 18,644$125,000 - $149,999 253 3,639 10,090$150,000 - $199,999 437 4,235 11,246Greater than $200,000 128 3,068 11,768

Housing 1 Mile 3 Mile 5 Mile

Housing Units 12,924 116,896 266,729Occupied Units 12,242 109,881 250,764Owner Occupied Units 3,590 40,276 97,953Renter Occupied Units 8,652 69,605 152,811Vacant Units 682 7,015 15,965

Race Demographics 1 Mile 3 Mile 5 Mile

Population Non Hispanic White 19,527 179,610 409,649Population Black 1,170 10,041 21,747Population Am In/Ak Nat 82 603 1,244