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4 - U n i t A p a r t m e n t C o m m u n i t y L o c a t e d i n B e v e r l y G r o v e / M i r a c l e M i l e

APARTMENT EXPERT GROUP

600 NORTH SPAULDING

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PRESENTED BY:

RICH JOHNSMultifamily AdvisorKW Commercial4061 Laurel Canyon Blvd.Studio City, CA 91604 T 818.432.1575richjohns@kw.comCalBRE Lic#01432215

ADAM ZUNDERMultifamily AdvisorKW Commercial4061 Laurel Canyon Blvd.Studio City, CA 91604 T 818.432.1684azunder@kw.comCalBRE Lic##01349349

All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided 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 investigations 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 transactionAll 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 condi-tions,vacancy 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 AGREEMENT

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600 NORTH SPAULDING4 - U n i t A p a r t m e n t C o m m u n i t y L o c a t e d i n B e v e r l y G r o v e / M i r a c l e M i l e

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EXECUTIVE SUMMARY

FINANCIAL SUMMARY

RENT COMPARABLES

LOCATION OVERVIEW

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

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

The Offering KW Commercial is pleased to present 600 North Spaulding Avenue, a 4-unit investment opportunity located just one block South of Melrose Avenue in the Beverly Grove / Miracle Mile (90036) submarket.

The property offers investors a unique and rare opportunity to acquire a very manageable investment or owner-user opportunity in one of LA’s strongest and stable rental markets with historically low vacancy and long-term appreciation.

The unit composition consists of Four (4) very large Two Bedroom – One Bathroom apartment homes which average nearly 1,200 SF each.

The asset, built in 1926, consists of 4,791 SF of improvements on a prominent 6,354 SF parcel on the highly visible corner of Clinton Street and Spaulding Avenue.

Three (3) of Four (4) units have undergone a major gut-level renovation and have been reimagined through a variety of a comprehensive upgrades that include in-unit washer and dryer, central air conditioning(2 units) and enhanced living spaces with expanded doorways / openings, new stylized baths and kitchens with stone counter tops and new cabinetry, energy efficient stainless steel appliances (gas range, modern hood venting, refrigerator, dishwasher), hardwood floors, lighting, locks, hardware, and designer finishes.

Common areas have been upgraded with new parking lot pavement, wrought iron work, new landscaping and new exterior color palette.

Parking is provided for 7 vehicles.

Building systems improvements include updated structural/foundation improvements featuring installation of sill plate anchor bolts and cripple wall plywood (2014). Electrical service upgrades include new 5-gang electrical service meter panel including house meter and permit for (12) 20-amp circuits(2010).

The offering is perfectly positioned to capitalize on the tremendous momentum within the submarket. Furthermore, 600 North Spaulding Avenue’s transit-oriented and highly walkable location (WalkScore of 88) offers residents exceptional access to a variety of restaurants, shopping and entertainment.

Given the property’s location and strong income potential, 600 North Spaulding Avenue is an ideal investment for apartment operators seeking long term wealth preservation and appreciation.

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THE OFFERING: 600 North Spaulding, is a 4-unit investment or owner-user opportunity located in Beverly Grove neighborhood (90036), a densely populated rental submarket of Los Angeles known for excellent rent growth and low vacancy rates.

IMMEDIATE RETURNS: 600 North Spaulding Avenue achieves strong and stable rental income thus facilitating robust investor returns. There is the potential for additional rental upside as the remaining unrenovated unit vacates through attrition.

RARE OPPORTUNITY: The Beverly Grove / Miracle Mile area has one of the lowest transactions rates in all of Los Angeles County thus creating a rare demand within the submarket.

WELL LOCATED: The immediate area supports a plethora of entertainment and retail venues and within immediate proximity is Melrose and Fairfax Avenues. Walk in the other direction and you’re right by The Grove and the Farmer’s Market. A short drive puts you in Beverly Hills and West Hollywood. 

I N V E S T M E N T H I g H L I g H T S

gREAT WALKABILITY: 600 North Spaulding Avenue enjoys an excellent Walk Score of 88.

STRONg EMPLOYMENT: The area contains one of the strongest employment centers in the Los Angeles MSA and offers access to a diverse set of employers.

NO SEISMIC RETROFIT REQUIRED: 600 North Spaulding Avenue is not on the list of buildings that require a soft-story seismic retrofit.

EXCEPTIONAL BUILDINg IMPROVEMENTS: Common area improvements include new landscaping, new paved parking area and upgraded electrical.

NEW STYLIZED INTERIORS: 3 of 4 interior units have undergone a “gut-level” renovation fitting of the area’s well-heeled and upwardly mobile demographic.

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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:

These materials are based on information and content provided by others which we believe are accurate. No guarantee, warranty or representation is made by Keller Williams Realty/KW Commercial or its personnel, and all interested parties must independently verify

its accuracy and completeness.

600 North Spaulding Avenue5527-023-014

One1926

ApartmentsLARD1.5

Two

44,7916,354

Separately Metered - LADWPSeparately Metered - LADWP

Raised Wood Frame

StuccoFlat

Offering Price:Current Cap:Market Cap:Price/Unit:Price/SF:Current GRM:Market GRM:

$2,350,000 3.7%5.3%

$587,500 $491

18.7413.99

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LO C AT I O N O V E R V I E W

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The property is located blocks away from the core of three of the most enticing neighborhoods in Los Angeles County- Bev-erly Hills, Beverlywood, and Hollywood. Due to its eclectic lo-cation and walkability, residents enjoy unparallaled access to a wide variety of employment, entertainment, and cultural experiences that few other neighborhoods in Los Angeles can match.

Following this uprising of trendy and eclectic residents is a diverse base of restaurants, bars, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighbor-hood via short commute.

You can get there from here: Melrose District is convenient to West Hollywood, Beverly Hills, Culver City, Sunset Strip and more, making it a great place to live for people who hate long commutes.

Melrose Avenue is a shopping, dining and entertainment desti-nation in Los Angeles that starts at Santa Monica Boulevard, at the border between Beverly Hills and West Hollywood. It ends at Lucille Avenue in Silver Lake.

Beverly Grove within the Mid-Wilshire Sub Market

LOCATION FUNDAMENTALSMillennials have ditched the suburbs for a more active and dynamic urban lifestyle. Many don’t own or want to own cars, so they rely on walking, biking, Metro or Uber. There is a limited supply of housing in Los Angeles, and especially in Melrose, which is causing upward pressure on rents.

URBAN LIVING WITH WALKABILITYAs the most densely populated area in Los Angeles, Melrose District is a highly walkable submarket. Residents can travel on foot to complete their daily errands and stroll to the many restaurants, clubs, chic hotels and restaurants. Scoring 88 out of 100, The property is located in what walkscore.com considers “Very Walkable”.

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CENTRALLY LOCATED - SUPER HIGH DENSITY | RAPIDLY EXPANDING RENTAL MARKET TRUE TRANSPORTATION ORIENTED COMMUNITY | RICH IN AMENITIES - RESTAURANTS, RETAIL, ENTERTAINMENT

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The subject property is within walking distance of popular destinations such as Starbucks, Urban Outfitters, Snake Pit Alehouse Whiskey Bar & Kitchen, Melrose Umbrella Co., and countless other local amenities along Melrose Boulevard thereby offering residents the perfect balance of urban activity and quiet neighborhood charm. Highlighted below are notable establishments within walking distance.

Retail Amenities

• Starbucks

• Urban Outfitters

• Melrose Umbrella Co.

• Snake Pit Alehouse

• Fairfax High School

• Melrose Trading Post

• Crumbs & Whiskers

• The Hart and the Hunter

• Genghis Cohen

• Pink’s Hot Dogs

• Cinefamily

• Canter’s Restaurant

• Crossroads Kitchen

• Adidas Originals

• Supreme

• The Parlor

• Bludso’s Bar & Que

• Blu Jam Cafe

WALK SCORE: 88“VERY WALKABLE”

TRANSIT SCORE: 63“GOOD TRANSIT”

WALK SCORE: 61“BIKABLE”

URBAN OUTFITTERS STARBUCKS

MELROSE TRADING POST

PINK’S HOT DOGS

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F I N A N C I A LS U M M A R Y

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NotesNew Property Taxes: Underwritten at 1.22% of purchase priceRepairs & Maintenance: Underwritten at $500 per unit / year based on market ratesUtilities: Based upon actual 2017 figuresGarbage & Recycling: Based upon actual 2017 figuresProperty Insurance: Underwritten at 45 cents / SF per year based on market ratesPest Control: Underwritten at $55 per month based on market ratesLandscaping: Underwritten at $70 per month based on market rates

# of Units Unit Type Avg. Rent Total Avg. Rent Income

Total Rental Income $10,448 $14,000

Total Monthly Income $10,448 $14,000Total Annual Income $125,381 $168,000

Scheduled Gross Income $125,381 $168,000Less Vacancy 2.0% $2,508 2.0% $3,360Gross Operating Income $122,874 $164,640Less Expenses 30.2% $37,058 22.4% $37,058Net Operating Income $85,816 $125,230Less Loan Payment $0 $0Pre‐Tax Cash Flow $85,816 $125,230Return on Investment 3.7% 5.3%

MARKETCURRENTSOURCE OF INCOME

CURRENT MARKETEST. ANNUALIZED OPERATING DATA

FINANCIAL SUMMARY 600 North Spaulding AvenueLos Angeles, CA 90036

Offering Price $2,350,000Down Payment #REF!Current CAP 3.7%Market CAP 5.3%Current GRM 18.74Market GRM 13.99Cost Per SF $491Cost Per Unit $587,500

Cash on Cash Return 3.7%Expenses Per Unit ‐$9,264Expenses Per Sq Ft ($7.73)

Units 4Year Built 1926Lot Sq Ft 6,354Bldg Gross Sq Ft 4,791Parking Spaces 7 Spaces

BUILDING DATA

FINANCIAL INDICATORS

New Property Taxes $28,670Utilities:

Electricty $657Water $1,152Sewer $625

Pest Control $660Garbage & Recycling $1,152Property Insurance $2,156Registration Fees $216Landscaping $840Repairs & Maint (est) $2,000Total Estimated Expenses $37,058

ESTIMATED ANNUALIZED EXPENSES

4 2 Bedroom / 1 Bathroom $2,612 $10,448 $3,500 $14,000

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RENT ROLL 600 North Spaulding AvenueLos Angeles, CA 90036

UNIT STATUS UNIT TYPE Approx SF Notes

600 Occupied 2 Bedroom / 1 Bathroom 1,197 $3,004 $3,450RENOVATED ‐ New Bath/Kitchen/In‐Unit Washer‐

Dryer/Air Conditioning/Formal Dining Room

600 1/2 Occupied UPPER 2 Bedroom / 1 Bathroom 1,197 $3,204 $3,550RENOVATED ‐ New Bath/Kitchen/In‐Unit Washer‐

Dryer/Air Conditioning/Formal Dining Room

602 Occupied 2 Bedroom / 1 Bathroom 1,197 $2,904 $3,450RENOVATED ‐ New Bath/Kitchen/In‐Unit Washer‐

Dryer/Formal Dining Room

602 1/2 Occupied UPPER 2 Bedroom / 1 Bathroom 1,197 $1,338 $3,550 Formal Dining Room & Private Service Porch

21188 $10,448 $14,000

CURRENT      RENT

MARKET      RENT

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

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RENT COMPARABLES MAP

1)

2)

3)

4)

5)

6)

842 North Genesee Avenue

844 North Genesee Avenue

314 North Stanley Avenue

321 North Stanley Ave

637 North Hayworth Avenue

360 North Sierra Bonita Avenue

600 North Spaulding Avenue

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842 North Genesee Avenue

844 North Genesee Avenue

314 North Stanley Avenue

321 North Stanley Ave

637 North Hayworth Avenue

360 North Sierra Bonita Avenue

600 North Spaulding Avenue

RENT COMPARABLESTWO BEDROOM

Property UnitsYearBuilt Owner / Manager

600 North Spaulding AvenueLos Angeles, CA 90036

1

2

3

4

5

6

4

2

2

4

4

7

4

1926

1924

1924

1928

1928

1958

1927

Rent SF Rent/SF

842 North Genesee AvenueLos Angeles, CA 90046

844 North Genesee Avenue Los Angeles, CA 90046

314 North Stanley AvenueLos Angeles, CA 90036

321 North Stanley Ave Los Angeles, CA 90036

637 North Hayworth Avenue Los Angeles, CA 90048

$2,612

$5,800

$4,800

$3,900

$3,900

$3,450

$3,000

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-

-

-

-

-

-

-

-

-

-

-

-

-

Private Owner Owner Managed

AVERAGE:

Private Owner Owner Managed

Private Owner Owner Managed

Private Owner Owner Managed

Private Owner Owner Managed

Private OwnerOwner Managed

$4,141.66

$5,800$3,000

HIGH: LOW:

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Private Owner Owner Managed

360 North Sierra Bonita AvenueLos Angeles, CA 90036

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APARTMENT EXPERT GROUP

PRESENTED BY:

RICH JOHNSMultifamily AdvisorKW Commercial4061 Laurel Canyon Blvd.Studio City, CA 91604 T 818.432.1575richjohns@kw.comCalBRE Lic#01432215

ADAM ZUNDERMultifamily AdvisorKW Commercial4061 Laurel Canyon Blvd.Studio City, CA 91604 T 818.432.1684azunder@kw.comCalBRE Lic##01349349