G R O U P

BRANDON MICHAELS

O F F E R I N G M E M O R A N D U M

HILLHURST AVENUELOS ANGELES, CA 90027

19361936

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La La Casting

ANDREW LEFFSenior AssociateDirector, National Retail GroupTel: (818) 212-2815Fax: (818) 212-2710Andrew.Leff@marcusmillichap.com License: CA: 01865688

BRANDON MICHAELSSr. Managing Director InvestmentsDirector, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710Bmichaels@marcusmillichap.comLicense: CA #01434685

InvestmentAdvisors

G R O U P

BRANDON MICHAELS

I. EXECUTIVE SUMMARY

II. PROPERTY OVERVIEW

III. INVESTMENT HIGHLIGHTS

IV. FINANCIALS

V. SALES COMPARABLES

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ContentsMaru Coffee

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Maru Coffee

1936 Hillhurst Avenue is currently 71% occupied. Maru Coffee, the solitary retail tenant, began its occupancy in 2016 and has quickly become the go-to coffee spot on Hillhurst Avenue, and is regarded by many as the best coffee in Los Feliz. The remainder of the property consists of office space tucked behind the coffee shop, with individual access to each unit and private, gated parking in the rear of the property. The property has been meticulously maintained and improved over time and the attention to detail along with the small unit sizes makes the property extremely attractive to a wide variety of potential tenants.

The property is ideally positioned along Hillhurst Avenue, north of Franklin Avenue and south of Clarissa Avenue, directly next door to the popular Mustard Seed Café. The property is surrounded by a variety of unique shopping and dining destinations, bars, a neighborhood movie house, an independent bookstore, under-the-radar boutiques, and a number of longstanding local business-es, which give Los Feliz its distinctive small town vibe.

1936 Hillhurst Avenue offers an investor the unique oppor-tunity to purchase a prime asset along a coveted street where properties rarely change hands. Los Feliz is well-lo-cated in Los Angeles, just minutes away from Downtown Los Angeles, Hollywood, and Silver Lake. Rapid develop-ment in these bordering neighborhoods will further add value to the immediate area over time.

Executive SummaryMarcus & Millichap is pleased to present the opportunity to purchase 1936 Hillhurst Avenue, a 2,765 square-foot multi-tenant mixed use retail & office building located in the heart of Los Feliz Village, one of L.A.’s most trendy and walkable commercial districts.

ADDRESS1936 Hillhurst Avenue, Los Angeles, CA 90027

ASKING PRICE $2,200,000

PROFORMA CAP RATE 4.44%

PRICE/SF (BLDG) $796

BLDG SF 2,765 SF

LOT SIZE 6,752 SF

CURRENT OCCUPANCY 71%

APN 5590-011-009

YEAR BUILT 1925

ZONING LAC4

TYPE OF OWNERSHIP Fee Simple

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Property Overview

1936 Hillhurst Avenue is surrounded by a variety of unique shopping and dining destinations, and a number of longstanding local businesses, which give Los Feliz it’s distinctive small town vibe.

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f ranklin avenue

1936 Hillhurst Avenue

HILLHURST AVENUELOS ANGELES, CA 90027

19361936

LosFeliz

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Investment Highlights

IRREPLACEABLE LOS FELIZ LOCATION

Located at the heart of Los Feliz on Hillhurst Avenue. Hillhurst Avenue is the main retail corridor in Los Feliz. The walkable district includes trendy and hip restaurants and eateries like Alcove, Mustard Seed Cafe, Jeni’s Splendid Ice Creams, Blue Bottle Coffee, and more.

UNIQUE AND WALKABLE NEIGHBORHOOD

Hillhurst Avenue and Vermont Avenue are home to a variety of unique retailers including independent bookstores, local businesses, upscale shopping, dining, and nightlife.

STABLE AND SECURE INCOME

1936 Hillhurst Avenue is 71% occupied. Each tenant has 3% annual rental increases.

POPULAR RETAIL TENANT

The retail tenant, Maru Coffee, is regarded as one of the best coffee shops in Los Feliz by coffee aficionados. Maru Coffee is currently expanding and opening a second location in the Arts District of Downtown Los Angeles due to its success in Los Feliz.

FUTURE POTENTIAL

All tenants have 3 years or less remaining plus options, however leases can be restructured at landlords discretion at option period.

RARE ASSET ON THE MARKET

Few assets exchange in the immediate submarket, especially store-front retail.

DENSE AND AFFLUENT DEMOGRAPHICS

The population within a 5-mile radius is 1,038,340 and average household income within a one-mile radius is $82,049.

Healthworks

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71% RetailOffice

2,765 SF

1925 Los Feliz

Year Built

Occupied Property Type

Bldg SFLocation

Location1936 Hillhurst Avenue, Los Angeles, CA 90027

SiteThe subject property is just south of the southwest corner of Clarissa Avenue and Hillhurst Avenue.

Square FootagesThe building square footage is 2,765 SF on a 6,752 SF lot.

Frontage and AccessApproximately 51 feet of frontage on Hillhurst Avenue.

Year BuiltThe property was built in 1925.

ZoningThe zoning is LAC4.

Property Information

APN’sThe APN is 5590-011-009.

Traffic CountsHillhurst Avenue: 27,080 vehicles per day

Franklin Avenue: 18,214 vehicles per day

ParkingSix spots in the rear.

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HOLISTIC HEALING THERAPYMARU COFFEE

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HEALTHWORKS LA LA CASTINGHEALTHWORKS

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*Option to renew at NEW MONTHLY RENT and TERMS **Option to renew at FMV. All other Terms and Conditions shall remain the same.

Financials

INCOME AND EXPENSE % CURRENT % PROFORMA

Scheduled Lease Income $92,496 $130,740

NNN Charges:

Effective Gross Income: $92,496 $130,740

Expenses $33,030 $33,030

Net Operating Income $59,466 $93,710

EXPENSES ANNUAL PER SF

Taxes @1.25% $27,500 $9.95

Insurance $1,383 $0.50

Repairs & Maintenance $1,936 $0.70

Security $691 $0.25

Misc $968 $0.35

Reserves $553 $0.20

Total Expenses $33,030 $11.95/ $1.00

ANNUALIZED OPERATING DATATENANT UNIT SF % LEASE START

LEASE EXPIRE OPTIONS CURRENT

RENT RENT/SF PROFORMA RENT

PROFORMARENT/SF INCREASES

Maru Coffee 1936 700 25% 4/1/2016 3/31/2020 1-4 Year* $3,713.00 $5.30 $3,824.00 $5.46 3% Ann

VACANT 1938 800 29% $3,000.00 $3.75 3% Ann

Healthworks 1940 960 35% 4/1/2011 3/31/2021 1-5 Year** $3,000.00 $3.13 $3,000.00 $3.13 3% Ann

Suzanne Glickman

1940 1/2 306 11% 8/10/2014 12/31/2019 1-3 Year* $995.00 $3.25 $1,071.00 $3.50 3% Ann

TOTAL 2,766 100% $7,708.00 $2.79 $10,895.00 $3.94

RENT ROLL

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# ADDRESS SALE PRICE PRICE/SF BLDG SF LOT SF CLOSE OF ESCROW

YEAR BUILT

CAP RATE

1 1922 Hillhurst Avenue, Los Angeles $2,500,000 $1,008.06 2,480 6,752 3/3/2017 1959

2 1930 Hillhurst Avenue, Los Angeles $5,000,000 $1,818.18 2,750 6,752 3/3/2017 1922

3 3128 W. Sunset Boulevard, Los Angeles $2,500,000 $1,039.93 2,404 11,962 12/14/2016 1974

4 3709 W. Sunset Boulevard, Los Angeles $13,300,000 $1,267.03 10,497 15,717 1/12/2017 1934/

2016 4.79%

5 1410 N. Virgil Street, Los Angeles $700,000 $1,120.00 625 3,084 11/15/2017 1932

6 4889 Melrose Avenue, Los Angeles $1,700,000 $809.52 2,100 6,490 3/14/2016 1917

Average $4,283,333 $1,177.12 3,476 8,460

Sales Comparables

SALES COMPARABLES PRICE/SF

1922 Hillhurst Avenue, Los Angeles

1930 Hillhurst Avenue, Los Angeles

3128 W. Sunset Boulevard, Los Angeles

3709 W. Sunset Boulevard, Los Angeles

1410 N. Virgil Street, Los Angeles

4889 Melrose Avenue, Los Angeles

Average

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3

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5

6

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Los Feliz is a hillside neighborhood in the central region of Los Angeles, California, abutting Hollywood and encompassing part of the Santa Monica Mountains.

The neighborhood is named after its colonial Spanish-Mexican land grantee, José Vicente Feliz, and, along with present-day Griffith Park, makes up the original Rancho Los Feliz land concession. According to the Mapping L.A. project of the Los Angeles Times, Los Feliz is part of Central Los Angeles. It is flanked on the north by Griffith Park, on the northeast by Atwater Village, on the southeast by Silver Lake, on the south by East Hollywood, and on the northwest by Hollywood and Hollywood Hills. With over 4,210 acres of both natural chapparal-covered terrain and landscaped parkland and picnic areas, Griffith Park is one of the largest municipal parks with urban wilderness areas in the United States and home to the famed Griffith Observatory.

Area Overview

Los Feliz Village is the southern section of Los Feliz, home to most of the commercial storefronts in the district. It is centered on the thoroughfares of Vermont and Hillhurst Avenues and spans from about Prospect Avenue to Los Feliz Boulevard. There are several coffee shops, restaurants, and small clothing and vintage stores. Los Feliz Village is home to numerous bars and restaurants catering to nightlife. They are mostly on Hillhurst Avenue between Los Feliz Boulevard and Prospect Avenue, and on Vermont Avenue between Franklin Avenue and Hollywood Boulevard. Some were classic dive bars in their heyday, frequented by the likes of Charles Bukowski, Lawrence Tierney, sundry working-class drunks, poets, artists, writers, and other creative types.

The neighborhood of Los Feliz is a rare spot in Los Angeles that fosters a diverse, yet cohesive, creative community.

Los Feliz Village: One of LA’s most walkable commercial districts, this collection

of historic storefronts along Vermont and Hillhurst Avenues has it all, including

restaurants, a neighborhood movie house, an independent bookstore, and hip

clothing boutiques.

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Los Feliz’s scenic hillsides give way to a hip and colorful commercial district below with one-of-a-kind shops and dining.

Area Overview

RESTAURANTS

• Messhall Kitchen• Stamp Proper Foods• Little Dom’s• Mexico City• Cafe Los Feliz• Yuca’s• Farfalla• Alcove• Qwench Juice Bar• Daily Donuts• Mustard Seed Cafe• Simply Thai• Ye Rustin Inn• TUb Tim Siam• Green Leaves Vegan• Home Restaurant• Desert Rose• Spitz• Butter Cake Shoppe• Tacos Tu Madre• Palermo Italian• Figaro Bistrot• The Dresden• 1739 Public House• Casual Public• Starfish Sushi• Sidewalk Grill• Rockwell Table & Stage• Juan the Nice Bartenders Place

COFFEE SHOPS

• House of Pies• Bru Coffeebar• Starbucks• Qwench Juice Bar• Blue Bottle Coffee• The Coffee Bean and Tea leaf• H Coffee House• Earth Organic Juice Bar• Maru Coffee• House of Pies

SHOPPING

• Lou Wine Shop• Box Brothers Los Feliz• Spitfire Girl• Glaze Fire• Vamp Shoes• Jasmine Garden• Half Off Clothing Store• Leap• J H Collection• Kingswell• The hanging Company• Co-op 28

POINTS OF INTEREST

• Barnsdall Art Park• Improv Studio• Los Feliz Theatre• Skylight Theatre Company• Skylight Books• Griffith Observatory• The Greek Theatre

Jeni’s Splendid Ice Cream

Kismet

Go Get Em Tiger

Vista Theatre

Skylight Books

Los Feliz Theatre

Mustard Seed Diner Cafe Los FelizAlcove

Glaze Fire

Home

Dresden

UNIQUE RETAILERS

LOS FELIZ’S RETAIL AND DINING

1 MILE 3 MILES 5 MILES

2014 Population 44,260 373,721 1,038,340

2014 Households 21,700 153,780 421,335

2014 Average Household Size 1.98 2.38 2.40

2014 Daytime Population 9,690 108,314 546,486

2014 Owner Occupied Housing Units 22.51% 17.71% 19.96%

2014 Renter Occupied Housing Units 77.49% 82.29% 80.04%

2014 Vacant 1.19% 2.68% 3.19%

$ 0 - $14,999 18.4% 19.3% 20.5%

$ 15,000 - $24,999 11.9% 15.8% 15.1%

$ 25,000 - $34,999 9.8% 12.6% 11.6%

$ 35,000 - $49,999 12.4% 14.1% 13.4%

$ 50,000 - $74,999 15.2% 15.5% 15.0%

$ 75,000 - $99,999 9.2% 7.8% 8.1%

$100,000 - $124,999 7.4% 5.3% 5.6%

$125,000 - $149,999 4.0% 2.9% 3.2%

$150,000 - $199,999 4.4% 2.9% 3.2%

$200,000 - $249,999 2.7% 1.4% 1.5%

$250,000 + 4.7% 2.5% 2.8%

2014 Median Household Income $47,011 $37,165 $37,862

2014 Per Capita Income $40,781 $25,768 $26,715

2014 Average Household Income $82,049 $61,733 $64,618

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Area Overview

DEMOGRAPHICS

Griffith Observatory

Many of Los Feliz’s hilltop homes host celebrity inhabitants.

Los Feliz’s cafes, diners, and envelope-pushing culinary artists contribute to the neighborhood’s chic reputation.

G R O U P

BRANDON MICHAELS

ANDREW LEFFSenior AssociateDirector, National Retail GroupTel: (818) 212-2815Fax: (818) 212-2710Andrew.Leff@marcusmillichap.com License: CA: 01865688

BRANDON MICHAELSSr. Managing Director InvestmentsDirector, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710Bmichaels@marcusmillichap.comLicense: CA #01434685