3232 West Avenue 32, Los Angeles, CA 90065

16-Unit NON-RENT Controlled in Glassell Park

THEPROPERTY

04 11

EXECUTIVE SUMMARY

16LOCATION

22

RENTCOMPARABLES

26DEMOGRAPHICS

Adam ZunderMultifamily Investment Advisor818.554.5560azunder@kw.com

CalBRE Lic. #01821053

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are pro-vided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investiga-tions including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacan-cy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction

CONFIDENTIALITY & DISCLAIMER

Presented By:

Rich JohnsMultifamily Investment Advisor818.432.1575richjohns@kw.com

CalBRE Lic. #01432215

T H E P R O P E R T Y

THE O F F E R I N G

KW Commercial is pleased to present 3232 W. Avenue 32 a 16 Unit NON-RENT CON-TROLLED apartment community located in Glassell Park, CA (90065)

Glassell Park is experiencing a dramatic and significant shift like what Silver Lake and Echo Park experienced over the past 20 years with the biggest news for the area being the LA River revitalization master planned project which would run just 1 mile away from the offering(s). This mammoth undertaking is poised to alter the face of LA and specifically, Glassell Park, for generations to come. A world class team, including land-scape / urban design architect Frank Gehry (think-Washington Monument) is leading the charge to transform the LA River into a recreational green oasis.

The offering, built in 1990, features 16 large apartment homes with an exceptional unit composition featuring Ten (10) Large 2 Bedroom-2 Bathroom, Four (4) 2 Bed-room-1.5 Bathroom, One (1) 4 Bedroom-2.5 Bathroom and One (1) 4 Bedroom- 2 bath-room apartment homes encompassing +/-16,128 square feet of improvements. Each unit includes central air conditioning and heating. The common areas feature 2 laundry rooms (building owned equipment), lobby and central courtyard. Each unit includes one or more balconies and select upper units feature treetop views of the surrounding city.

Seven (7) of Sixteen (16) apartment homes (43% of units) have been upgraded with completely reimagined interior spaces featuring new wood flooring, decorative paint finishes, upgraded baths with new vanities, tile surrounds and kitchens with new cab-inetry and appliance packages along with new lighting, locks, hardware and innova-tive finishes throughout.

Since the assets are not subject to rent control, the remaining Nine (9) un-renovated units will provide the astute investor future increased rent potential when vacated.

The common and exterior spaces of both properties have undergone a significant renovation highlighted by updated entries, passages, staircases, lighting along with draught resistant landscaping and redesigned exterior color palate.

Glassell Park (90065) is as diverse as the people living in it. Thanks to its neighborhood feel, the area is perfect for young people looking for a “next-level” coffee experience and a community vibe. Within blocks you will find many of L.A.’s newest foodie revolu-tion hot spots along with Habitat Coffee for a barista inspired espresso, Lemon Poppy Kitchen for European pastries, Tres Palmas for seafood tacos, dog friendly Division 3 for an alfresco breakfast or Verdugo Bar for craft beer on the patio.

HIGHLIGHTS

West Avenue 323232

i n v e s t m e n t h i g h l i g h t s

the OPPORtUnitY: 3232 W. Avenue 32 is a Sixteen (16) non-rent-controlled apartment community located in Glassell Park, CA (90065) a densely populated rental market of Los Angeles and recently known for excellent rent growth.

VALUE ADD OPPORTUNITY: 3232 W. AVENUE 32 features 9 unrenovated units (+/-56%) thus allowing future increased rent potential as the remaining units turn over.

CURRENT RETURNS: 3232 W. AVENUE 32 has undergone a systematic renovation of Seven (7) of the Sixteen (16) apartment homes (+/-43% of units) thus creating growing income metrics. Investors could experience significant increasing returns with further renovations when units turn over, thus facilitating strong and stable income metrics.

THE gAme ChAngeR:The mammoth LA River revitalization master planned project runs just 1 mile away from the properties and is poised to alter the face of LA and specifically, Glassell Park, for generations to come. A world class team, including landscape / urban design architect Frank Gehry (think-Washington Monument) is leading the charge to transform the LA River into a recreational green oasis.

Well lOCAteD: Glassell Park (90065), adjacent to Atwater Village and Glendale and also a short drive to Silver Lake and DTLA, is as diverse as the people living in it. Thanks to its neighborhood feel, the area is perfect for young people looking for a “next-level” coffee experience and a community vibe. Within blocks you will find many of L.A.’s newest foodie revolution hot spots.

stROng emPlOYment: Hollywood-Silver Lake is one of the strongest employment centers in the Los Angeles metropolitan area and offers access to a diverse set of employers.

lACK OF hOUsing AFFORDABilitY: There is a significant affordability gap to home ownership in Glassell Park with the median home price of $809,600 with the average list price/sf of $571. Home values have gone up 11.4% over the past year with predictions that prices will continue to rise +/- 11.5% within the next year.

nO seismiC RetROFit ReQUiReD: The property is not on the list of buildings that require a seismic retrofit.

OPPORTUNITY ZONE BENEFITS:3232 W. AVENUE 32 is located within a newly established Qualified Opportunity Zone for investment, established by the Tax Cuts and Jobs Act, Section 1400Z. The new section 1400Z allows any taxpayer to defer paying tax on capital gains from the sale of property if those gains are timely invested in a Qualified Opportunity Fund (QOF) which, in turn, must invest 90 percent of its assets in businesses located or property used in designated communities.

EXTERIOR

INTERIOR LIVING SPACES

INTERIOR LIVING SPACES

E X E C U T I V E S U M M A R Y

FINANCIAL SUMMARY 3232 West Avenue 32Los Angeles, CA 90065

New Property Taxes $76,860Electrical Utilities $2,072Gas Utilities $544Water & Sewer $18,752Waste Removal $5,040Property Insurance $4,007Repairs & Maintenance $9,600Pest Control $900Landscaping $3,600Onsite Management $6,000Offsite Management (3%) $12,789Reserves & Replacements  $3,200Total Estimated Expenses ‐$143,364

ESTIMATED ANNUALIZED EXPENSES

Offering Price $6,300,000Down Payment #REF!Current CAP 4.36%Market CAP 5.26%Current GRM 14.78Market GRM 13.00Cost Per SF $391Cost Per Unit $393,750

Cash on Cash Return 4.36%Expenses Per Unit $8,960Expenses Per Sq Ft $8.89

Units 16Year Built 1990Lot Sq Ft 12,846Bldg Gross Sq Ft 16,128Parking Spaces 32

BUILDING DATA

FINANCIAL INDICATORS

# of Units Unit Type Avg. Rent Total Avg. Rent Income1 4 Bed / 2.5 Bath $4,000 $4,000 $4,000 $8,0001 4 Bed / 2 Bath $4,000 $4,000 $4,000 $4,00010 2 bed / 2 Bath $1,919 $19,185 $2,295 $22,9504 2 Bed / 1.5 Bath $1,998 $7,992 $2,295 $2,295

Total Rental Income $35,275 $40,130

Laundry Income  $250 $250

Total Monthly Income $35,525 $40,380Total Annual Income $426,300 $484,560

Scheduled Gross Income $426,300 $484,560Less Vacancy 2.0% ($8,526) 2.0% ($9,691)Gross Operating Income $417,774 $474,869Less Expenses 34% ($143,364) 30% ($143,364)Net Operating Income $274,410 $331,505

CURRENT MARKET

SOURCE OF INCOME

EST. ANNUALIZED OPERATING DATA

CURRENT RENTS MARKET RENTS

Notations:

1)  OnSite Manager:  Given a $500 a month rent credit (Estimated credit by new owner)

2)  Repairs & Maintenance: Based upon $600 Per Unit Per Year

3)  Contract Services: Underwritten for Pest Control (Actual ‐ $75/mo) and Landscaping (Proforma‐300/mo) and Trash ($420/mo) based on actual expenses.

4)  Utilities: Based upon actual figures from July 2017 to June 2018.

5)  Property Management Fee: Projected at 3% of Total Annual Income.

6)  Real Estate Taxes: Taxes have been underwritten based a tax rate of 1.22%

7)  Property Insurance: Based upon actual figures.

8) Reserves & Replacements : Based upon $200 per unit per year.

RENT ROLL 3232 West Avenue 32Los Angeles, CA 90065

UNIT STATUS UNIT TYPE NOTATIONS

1 Occupied 4 Bed / 2.5 Bath Renovated $4,000 $4,0002 Occupied 4 Bed / 2 Bath Renovated $4,000 $4,0003 Occupied 2 Bed / 2 Bath $1,750 $2,2954 Occupied 2 Bed / 2 Bath $2,000 $2,2955 Occupied 2 Bed / 1.5 Bath Renovated $2,195 $2,2956 Occupied 2 Bed / 2 Bath Renovated $2,195 $2,2957 Occupied 2 Bed / 2 Bath $1,650 $2,2958 Occupied  2 Bed / 2 Bath Renovated $2,295 $2,2959 Occupied 2 Bed / 1.5 Bath Renovated $2,295 $2,29510 Occupied 2 Bed / 1.5 Bath $1,750 $2,29511 Occupied 2 Bed / 2 Bath $1,850 $2,29512 Occupied 2 Bed / 2 Bath $1,750 $2,29513 Occupied 2 Bed / 1.5 Bath $1,850 $2,29514 Occupied 2 Bed / 2 Bath $1,850 $2,29515 Occupied 2 Bed / 2 Bath Renovated  $2,095 $2,29516 Occupied 2 Bed / 2 Bath $1,750 $2,295

0 $35,275.00 $40,130

  * RENTS SHOWN ARE REFLECTIVE OF OCTOBER 2018

POST RENOVATION MARKET RENT

CURRENT RENT

DEBT QUOTE SCENARIOS

Loan Options 

5‐yr Fixed 7‐Yr Fixed 10 Year FixedMax Loan Amount $3,890,000 $3,800,000 $3,750,000Current Interest Rate  4.30% 4.45% 4.55%Term 30 Years 30 Years 10 YearsAmort Term 30 Years 30 years 30 YearsInterest Only Up to 3 Years Up to 3 Years Up to 3 yearsRate Index at Adjustment 6 Month Libor 6 Month Libor N/ARate Spread at Adjustment 2.25% 2.25% N/AMaximum LTV 70% 70% 70%Minimum DSCR 1.15x 1.15x 1.20xRecourse No No NoPrepayment Penalty 5,4,3,2,1 4,3,2,1 Yield MantinenceLender Processing Fees $3,000.00 $3,000.00 $12,500.00QCP Loan Broker Fee 1% 1% 1%Monthly Payment I/O Period $18,613 $14,092 $14,219Monthly Payment Amortizing $26,624 $26,914 $27,105

Jarret TarnolQuantum Capital Partners

(310) 402-0022 Direct(818) 335-1152 Cell

jtarnol@quantumcp.comwww.quantumcp.com

Property Details

Address:Assessor’s Parcel Number: Buildings: Year Built: Land Use: Zoning: Stories:

SITE DESCRIPTIONUnits: Gross Square Footage: Lot Size Square Footage:

UTILITIESElectric: Gas:

CONSTRUCTIONFoundation: Framing: Exterior: Roof:

3232 West Avenue 32, Los Angeles, CA 900655458-014-016

One1990

ApartmentsLARD2

Three

16± 16,128 ± 12,846

Separately Metered - LADWPSeparately Metered - LADWP

Concrete/Raised FoundationWood Frame

StuccoFlat

LO C AT I O N S

CENTER OF

LA

GLASSELL PARK - NEW LA RIVER PROJECTFrank Gehry hired to come up with a new, greener LA River.

Los Angeles County hired world-renowned architect Frank Gehry to work up a master plan for the restoration of the 51-mile Los Angeles River, two county supervisors announced.

Gehry, who is known for his fanciful building designs, including the Disney Hall in downtown L.A., will work with OLIN, a worldwide landscape and urban design firm, known for landscaping the Washington Monument and the plaza in front of the Metropolitan Museum of Art in New York City.

They will work with engineering firm Geosyntec, which will keep the flood-control aspects and hopefully create more storm-water capture elements, said Supervisor Sheila Kuehl, who along with Supervisor Hilda Solis, made the joint announcement.

Kuehl said the county has been working since 2016 to coordinate what she called piecemeal plans around since 1996 into something that is more cohesive.

“The master plan is an attempt to pull together a lot of smaller plans in order that there would be a vision, a continuous idea of what the river is for,” Kuehl said in an interview Monday.

River LA, a nonprofit involved with conceptualizing improvements to what is mostly a concrete flood control channel, will work with the two firms. Also, a steering committee is being formed of community leaders and technical experts to work with the architects.

“This world-class team, including LA County, Frank Gehry, and other partners, as well as wide community input and participation, will ensure that the L.A. River serves the mental and physical well being of residents and tourists for generations to come,” said Solis in a prepared statement.

Gehry has already studied the river for several years, which flows out of Big Tujunga in the Angeles National Forest and Bell Creek near Canoga Park, into the Sepulveda Dam and through the western San Fernando Valley, then turns east past Universal City, Griffith Park and south through downtown Los Angeles and also through various smaller cities and empties into Long Beach. It also receives water from several other tributaries, including the Arroyo Seco above Pasadena.

Frank Gehry is a Canadian-American architect known for postmodern designs, including the Walt Disney Concert Hall and the Guggenheim Museum in Bilbao, Spain.

Frank Gehry was born Frank Owen Goldberg in Toronto, Canada on February 28, 1929. He studied at the University of Southern California and Harvard University. Gehry, based in Los Angeles since the 1960s, is among the most acclaimed architects of the 20th century, and is known for his use of bold, postmodern shapes and unusual fabrications. Gehry’s most famous designs include the Walt Disney Concert Hall in Lost Angeles and the Guggenheim Museum in Bilbao, Spain.

Frank Gehry

GLASSELL PARK - NEW LA RIVER PROJECTArchitects propose seven ways to reinvigorate the Los Angeles river...

The LA River Downtown Design Dialogue celebrates the 10th anniversary of the Los Angeles River Revitalisation project, which Frank Gehry is also working on. The project is designed to overhaul areas along the barren canal-like waterway that weaves through the Californian city.

Led by the Bureau of Engineering and Mayor Garcetti’s Office, The City of Los Angeles assigned each firm, including Gruen Associates, WSP, CH2M, Chee Salette, Mia Lehrer + Associates, AECOM and Tetra Tech, with a mile-long stretch of the river to revitalise.

In their proposals the firms were required to imagine new ways in which to improve the public connection to the river, while taking into account projects that are already underway and future plans.

Assigned a mile that runs between Barclay and Spring St, the scheme by local firm Gruen Associates integrates fields and public pathways with the existing railway yard.

Colourful playgrounds, undulating pathways and a spot for kayaking are among the proposals made by seven architecture firms to revitalise areas along the Los Angeles river.

Gruen Associates’ scheme integrates fields and public pathways with the existing railway yard. WSP’s proposal lines the area between Spring St and Cesar Chavez Ave with a walkway that features integrated terraced seating.

WSP’s proposal lines the area between Spring St and Cesar Chavez Ave with a walkway, along which terraced seating will overlook the river and areas of planting. Parts of the river will be widened to curve into the pathway, while stepping stones will provide a bridge across the water.

Other parts of the scheme include a bridge that will lead from the roadside to an outlook over the river, while an abundance of trees will buffer the rail track from the promenade.

In the next section, CH2M proposes a new bicycle path to replace an existing one that has been closed, and includes look-out points and cafes.

In the section reimagined by Chee Salette, a crossing made up of long platforms will allow pedestrians to walk along the middle of the river. Vegetation will be planted between each of the sections and continue up the tiered seating on the western bank.

Chee Salette have proposed a crossing made up of long platforms that will allow pedestrians to walk along the middle of the river.

Mia Lehrer + Associates’s scheme includes an undulating path-way that leads to a launch pad for kayaking.

Tetra Tech have imagined a glazed walkway with a restaurant and a new cycle pathway that meets with the riverside

CH2M proposes a new bicycle path to replace an existing one that has been closed.

GLASSELL PARK - NEW LA RIVER PROJECTArchitects propose seven ways to reinvigorate the Los Angeles river...

Glassell ParkThe development of Glassell Park began in the early 20th Century, as subdivisions between Verdugo and San Fernando Roads began to be sold in 1907. In 1912, the city of Los Angeles annexed most of Glassell Park, annexing the remainder in 1916.[10] The Glassell fam-ily continued to subdivide their land, selling off what is now Forest Lawn Memorial Park during the Great Depression. The growing neighborhood was served by a line of the Los Angeles Railway, which traveled in the median of Eagle Rock Boulevard towards Eagle Rock

Today, Glassell Park is experiencing significant and steady demographic shifts due to its abundant crafts-men and hillside homes, and convenient location close to Downtown Los Angeles, Silver Lake, and Highland Park. Glassell Park’s median home price is increasing at a rapid pace, significantly exceeding that of Los An-geles County. In 2016, the median home price in Los Angeles County rose by about 7 percent; in that same period, the median home price in Glassell Park rose 25.3 percent.

Glassell Park stands to benefit greatly from the city’s $1.6-billion Los Angeles River revitalization project. The project will restore habitat, widen the river, create wet-lands and provide access points and bike trails along an 11-mile stretch of the Los Angeles River that runs from downtown Los Angeles through Glassell Park.

If you’re an eastsider, Atwater Village is where you move if you want to feel a little bit grown up, but aren’t quite ready to be Eagle Rock grown up. Once no more than poppy fields, this lesser known, little-brother neighborhood is on the rise. Com-pete with other “creatives” to get a “I can’t believe we actually got it” house . Atwater is a place as diverse as it is welcoming. Quiet, tree-lined streets? Check. Surplus of locals-heavy happy hours and vibrant weekend energy? Yep. New bars, cafes and interesting shops opening on the regs? All the time. That elu-sive ‘community feel’? In spades. It’s the perfect LA neighbor-hood for discovery...and also brunch.

Eagle Rock was a farming community at first, but the trolley soon snaked its way up from Los Angeles, with a line that ran along Eagle Rock Boulevard all the way to Colorado Boulevard, a dusty thoroughfare that became the Main Street of what was now a suburb of a restlessly growing city.

With its surfeit of pizza parlors and coffeehouses, laid-back at-mosphere and relationship to Occidental College, it feels more akin to a well-to-do Midwestern college town than an outpost of one of the world’s most massive conurbations.

President Barack Obama, Ben Affleck and Terry Gilliam are just a few of the notables who attended school here, and the collegiate atmosphere has over the years drawn such writers as John Steinbeck and Dalton Trumbo to take up residence in one of the sturdy bungalows in the shadow of the eagle rock.

Atwater Village...

Eagle Rock...

R E N TC O M PA R A B L E S

RENT COMPARABLES

1)

2)

3)

4)

3546 Fletcher Drive

719 East Acacia Avenue

1130 East Colorado Street

3949 Los Feliz Blvd

3232 Avenue 32

RENT COMPARABLES

TWO BEDROOM

Property UnitsYearBuilt Owner / Manager

3232 West Avenue 32Los Angeles, CA 90065

1

2

3

4

16

24

30

25

102

1990

1989

1986

2009

1972

Rent SF Rent/SF

3546 Fletcher DriveLos Angeles, CA 90065

719 East Acacia AvenueGlendale, CA 91205

1130 East Colorado StreetGlendale, CA 91205

3949 Los Feliz BlvdLos Angeles, CA 90027

$1,934

$2,195

$2,150

$2,650

-

-

980

-

1,250

-

-

$2.23

-

$2.12

-

Private Owner Owner Managed

AVERAGE:

Private Owner Owner Managed

Private Owner Owner Managed

Private Owner Owner Managed

Private Owner Owner Managed

HIGH: LOW:

$2,331$2,650$2,150

1,115

1,250980

$4,000

$4,000$4,000

1,200

1,2001,200

$3.33$3.33$3.33

$4,000

-

-

-

$4,000

-

-

-

-

$3.33

Rent SF Rent/SF

FOUR BEDROOM

$2.17

$2.23$2.12

-

-

-

-

1200

D E M O G R A P H I C SS N A P S H O T

G L A S S E L L P A R K

TOTAL POPULATION

MEDIAN AGE

MALE POPULATION

FEMALE POPULATION

POPULATION 46,008

35.45

23,086

22,922

TOTAL HOUSEHOLDS

# OF PERSONS PER HH

AVERAGE HH INCOME

AVERAGE HH HOUSE VALUE

FAMILY HOUSEHOLDS

NON-FAMILY HOUSEHOLDS

14,585

3.14

$78,352

$632,209

10,295

4,290

HOUSEHOLDS & INCOME

49+5150.2% 49.8%

Male Population

Female Population

Family Households

Non-family Households307070.6%

29.4%

Exclusively Listed By:

Rich JohnsMultifamily Investment Advisor818.432.1575richjohns@kw.com

CalBRE Lic. #01432215

Adam ZunderMultifamily Investment Advisor818.432.1634azunder@kw.com

CalBRE Lic. #01821053