5 1 4 3WH I T E OA K

WHITE OAK REGENCY5143 White Oak AvenueEncino, CA 91316

TABLE ofCONTENTSSECTION 01

EXECUTIVESUMMARY6 The Offering

SECTION 03

PROPERTYOVERVIEW20 Property Detai ls22 Property Photos

SECTION 02

MARKETOVERVIEW13 Multifamily Trends15 Area Highlights16 Demographics

SECTION 04

FINANCIALANALYSIS26 Pricing Detai ls27 Operating Data + Cash Flow29 Rent Roll30 Rent Comparables34 Sales ComparablesPRESENTED BY

CORY STEHRLicense ID #01851029818.933.0304cstehr@lee-re.com

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5143 White Oak Ave., (the “Property” or “White Oak Regency”) is a unique opportunity to own one of the only newer-vintage, boutique apartment buildings located in the heart of Encino just steps from vibrant Ventura Blvd. Originally built as condos in 2007, White Oak Regency consists of a mix of twenty (20) 3 bedroom + 3 bath units and four (4) 2 bedroom + 2.5 bath units averaging a robust 1,800+ sq. ft. The Property rises four stories and has a building height of 45’, the maximum height limit for the area. All units boast high quality finishes, including granite countertops, stainless steel appliances, bathroom marble work and in-unit washer/dryers. The building also recently underwent exterior upgrades to the façade, lobby area and common areas as well as a new landscaping plan. In-place rents for the three bedrooms units are currently ~15%+ below three bedrooms at nearby Avalon Encino (2008 vintage) and IMT Park Encino (2014 vintage), creating the potential for immediate rental upside.

With an attractive basis of $376 per sq. ft. (~20% below replacement cost), a new owner has the flexibility to continue to operate the property as one of Encino’s only boutique, newer-vintage apartment buildings or, given the property is individually condo-mapped, convert and sell off units as condos. Over the past 12 months, 2006 vintage or newer condos in Encino have sold for $400-$600 psf. The property is walking distance to a Ralph’s Fresh Fare and proximate to a plethora of retail and dining options along Ventura Blvd. Encino and neighboring Sherman Oaks are true urban/suburban markets, offering the perfect mix of high-density retail & office along Ventura Blvd. and quiet, multi-million dollar single-family neighborhoods. A growing preference for urban/suburban living has made Encino one of LA County’s most sought-single-family home markets of late, attracting A-list celebrities and well-heeled Angelenos who are attracted to its palatial estates, beautiful nearby hiking trails and close proximity to the 101 & 405 freeways and multiple major job corridors.

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Why Multifamily Investment Now?Los Angeles, with its high housing costs and barriers to entry, has long been a favored locale for multifamily investment. That formula appears to be holding as millennials come of age. According to ApartmentList Rentonomics, 12.3 percent of millennials said they expected to rent forever, up from 10.7 percent in the prior year. In Los Angeles that percentage is even higher—14.5 percent. Where families once helped the younger generation with a down payment, millennials say that option is no longer available to them. Coupled with the burden of repayingstudent loans and the high price of housing, this generation is less likely to own their own home than the generations that came before. At the same time, rental housing options are undergoing a seismic shift. Once limited to urban cores, multi-family housing is becoming more and more plentiful and diverse in suburban markets, providing millennials with the space and amenities they seek outside of home ownership.

Millennial MindsetAs millennials age, the generation aged 25-39 is seeking some of the same lifestyle changes as its predecessors: Space to raise families and family-friendly amenities along with lower cost housing more likely to be found in suburbs than city centers. In 2018, some 27,000 millennials left cities marking the fourth consecutive year of declines in the millennial population of major cities. These demographic trends bode especially well for regions like the San Fernando Valley of Los Angeles which has long afforded a lower cost-of-living option along with more living space.

Not Your Father’s SuburbiaOnce a place where families lived in a kind of exile, today’s suburbs are looking more and more like cities in certain respects. Suburbs like the San Fernando Valley submarkets of Encino and North Hollywood are walkable, and residents enjoy the same level of amenities found in urban cores. There are good transit options, a variety of shopping districts, cafes and restaurants dotting what is a greener and more expansive landscape than can be found in cities, giving these residents the best of both worlds.

Declining Home AffordabilityHome affordability is declining throughout the Southern California area, fueling renter demand at all income levels. In Encino, for example, the median home price is just short of $1.4 million, and while the median household income is just under $85,000, among the strongest in Los Angeles County, it is insufficient to afford a median-priced home. This glaring shortfall has boosted the condominium market as well as the multifamily sector.

The New WorkplaceThe pandemic has forced employers to invest in the technology needed for a tele-workforce. At the same time, studies are increasingly suggesting that working from home can make employees more productive. As a result, many economists like Brookings are concluding that “telecommuting will likely continue long after the pandemic.” Twitter and Square, facebook, Nationwide Insurance and Barclays have already said they will make telecommuting permanent. Google, JPMorgan and Capital One are among the companies that have extended work-from-home options on a permanent basis. The shift to telecommuting is likely to have a massive impact on where Angelenos choose to live. No longer is the commute to the office an issue. Residing close to amenities will replace the desire to be close to centers of employment. Budgets free of gas costs, dry cleaning and lunches out can be freed up to cover higher rent costs, giving renters more options and investors a more hospitable environment in which to operate.

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14.5%Expected Life-Long Mil lenial Renters

41%Employees Likely to Work Remotely Post-Pandemic*

*Gartner HR Survey (4 / 14/2020)

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A short walk from the Subject Property is the Encino Commons portion of Ventura Boulevard, the main commercial thoroughfare of the San Fernando Valley. Known as the Valley’s Miracle Mile, Encino Commons is populated with some 300 businesses that serve as the community’s Central Business District with a mix of goods and services that include hair salons, fitness clubs; every type of restaurant from sushi to steakhouses, hole-in-the-wall taco stands and upscale cantinas; bars, grocery and apparel stores.

The wide variety of housing coupled with a multitude of amenities in Encino has attracted residents of all kinds, and celebrities, families and industry leaders all live alongside one another in this community. Among the celebrities who have called Encino home are Michael Jackson, Kelly Clarkson, Johnny Cash and Samuel L. Jackson. While these A-listers have resided in luxury homes designed by such architectural luminaries as Richard Neutra and Ray Kappe, more modest single-family homes attract a sizeable middle class to Encino’s family-friendly community.

Encino offers highly ranked schools including many public and private options within a 2-mile radius of the Subject Property, and local organizations cater to the population with a number of annual and weekly special events including a farmers market, Haunted History Day for Halloween, Victorian Day in the Park, an annual living history event, and Taste of Encino, an opportunity for residents to sample the many restaurant offerings.

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The population of Encino has remained relatively stable since 2010 and growth is forecast to continue relatively unchanged through 2024 due to the area’s barriers toentry for new housing development.

#28in population for

Los Angeles County

#15for median household income in Los Angeles

County

The vast majority of Encino’s residents are employed in white-collar jobs. The largest percentage, 23.9 percent, are employed in education and healthcare fields, followed by 17.5 percent in professional services and 11.6%

in finance/real estate occupations.

#19for 6-figure incomes

in Los Angeles County

Encino possesses a large number of households dispaying incomes of over $125,000, making it one of the most affluent neighborhoods in Los Angeles County.

WH I T E OA K R E G E N C Y

Address:5143 White Oak Ave, Encino CA

APN:2162-013-018 - 040 (Individual APN’s)

Units:24

Year Built:2008

Lot Size (SF):19,994

Gross Building SF:43,850

Zoning:R3

Height:45’ (four stories)

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5143 White Oak Ave.Encino, CA 91316

4940 Paso Robles Ave.Encino, CA 91316

16350 Ventura Blvd.Encino, CA 91316

16710 Ventura Blvd.Encino, CA 91436

17720 Magnolia Blvd.Encino, CA 91316

16100-16120 Ventura Blvd.Encino, CA 91436

2bed+2bath3bed+3bath

$3,134$3,967

1,6001,700

$1.96$2.33

YEAR BUILT: UNITS: 242007

2bed+2bath3bed+3bath

$3,142$3,967

1,6001,700

$1.96$2.33

YEAR BUILT: UNITS: 522014

2bed+2bath3bed+2bath

$3.020$3,700-$4,000

1,1361,458

$2.66$2.54-$2.74

YEAR BUILT: UNITS: 1312008

2bed+2bath $3,400 1,357 $2.51

YEAR BUILT: UNITS: 1252010

2bed+2bath $3,395 1,290 $2.63

YEAR BUILT: UNITS: 502015

2bed+2bath $3,475 1,322 $2.63

YEAR BUILT: UNITS: 512009

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4309 DIXIE CANYON AVE.SHERMAN OAKS, CA 91423

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$571,429

01/08/2019

$452.28

Units

Price Per Unit

COE Date

Price Per SqFt

4297 COLDWATER CANYON AVE.STUDIO CITY, CA 91604

10

$650,000

08/26/2019

$327.29

Units

Price Per Unit

COE Date

Price Per SqFt

SALE PRICE

$6,500,000

11611 MOORPARK ST.NORTH HOLLYWOOD, CA 91602

6

$945,833

Active

$515.91

Units

Price Per Unit

COE Date

Price Per SqFt

730 W. DORAN ST.GLENDALE, CA 91203

20

$630,000

01/16/2020

$416.53

Units

Price Per Unit

COE Date

Price Per SqFt

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SALE PRICE

$8,000,000SALE PRICE

$6,500,000

SALE PRICE

$12,600,000

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14403 TIARA ST.SHERMAN OAKS, CA 91401

8

$687,500

Under Contract

$317.59

Units

Price Per Unit

COE Date

Price Per SqFt

5220 SATSUMA AVE.NORTH HOLLYWOOD, CA 91601

12

$629,166

03/16/2020

$359.95

Units

Price Per Unit

COE Date

Price Per SqFt

SALE PRICE

$7,550,000

SALE PRICE

$5,500,000

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CORY STEHRPrincipal

818.933.0304cstehr@lee-re.comBRE Lic # 01851029

Lee and Associates® LA North/VenturaA Member of the Lee & Associates Group of Companies

Corporate ID # 0119189826050 Mureau Rd. Ste 101, Calabasas, CA 91302

818.223.4388 M | 818.591.1450 F

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.