700-02 S Louise Street · Pest Control Actual T12 $250 $42 0% Utilities Actual T12 $5,400 $900 6%...

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

700-02 S Louise StreetGlendale, CA 91205

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E X C L U S I V E LY L I S T E D B Y

Direct +1 818 923 6123 Mobile +1 818 926 8889 [email protected] License No. 01974130

M I C H A E L A S T O R I A NA S S O C I A T EM U L T I F A M I L Y


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C O N T E N T S4 I Property Overview

6 I Area Overview

12 I Financial Overview

• Prime Glendale Location: Mariposa Neighborhood in Glendale

• Dense Rental Demand | 30,026 People Per Square Mile

• 50% Rental Upside To Capture

• Great Unit Mix of 2BR/1BA Units

• Half a Mile Away From the Americana at Brand & Maple Park

• Opportunity for an Investor to Add Value by Repositioning a Well-Located Investment

O P P O R T U N I T Y

P R O P E R T Y O V E R V I E W

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PROPERTY DESCRIPTION

• 6 Units | Built in 1954

• Unit Mix | (6) 2BR/1BA Units

• No Rent control | Over 50% Rental Upside

• 6 Parking Spaces + Ample Street Parking

• Units Average Approximately 900+ SF Each

30,026PEOPLE PER

SQUARE MILE

50%RENT UPSIDE

900+ SFUNITS

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LOS ANGELES MSAAs the second largest metropolitan area in the United States, the Los Angeles Metropolitan Statistical Area, or the Southland, consists of both Los Angeles and Orange Counties. These two counties also make up the inner core of the Greater Los Angeles urbanized region. Los Angeles County, one of California’s original 27 counties, is one of the nation’s largest counties both in land area and population. With nearly 10 million residents, the Los Angeles population accounts for approximately 27 percent of California’s population. The area continues to grow, especially given the vigorous residential development in downtown LA.

Famously known for a heavily entertainment industry based economy, the Los Angeles metropolitan area attracts many visitors. Consequently, leisure and hospitality is also a leading industry and has experienced recent growth in employment. It is now the sixth largest hotel market in the United Sates. The Los Angeles-Orange County metro area alone has an enormous economy with an estimate $866 billion GMP. Together with Ventura, Riverside and San Bernardino Counties, Orange and Los Angeles county make up the Greater Los Angeles Area, a combined statistical area that is the third largest economic center in the world after the Greater Tokyo and New York metropolitan areas.

A R E A O V E R V I E W

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TOP EMPLOYERS

ECONOMY The LA economy is famously and heavily based on the entertainment industry, with a particular focus on television, motion pictures, interactive games, and recorded music - the Hollywood district of Los Angeles and its surrounding areas are known as the “Movie Capital of the United States” due to the region’s extreme commercial and historical importance to the American motion picture industry. Other significant sectors include shipping/ international trade - particularly at the adjacent Port of Los Angeles and Port of Long Beach, together comprising the United States’ busiest seaport - as well as aerospace, technology, petroleum, fashion and apparel, and tourism.

POPULATION AT A GLANCE

DEMOGRAPHICSPOPULATION 1-MILE 3-MILE 5-MILE

2000 Census 62,431 238,902 642,359

2010 Census 57,914 231,926 617,795

2017 Estimate 60,054 241,641 643,204

2022 Projection 62,051 250,479 666,142

POPULATION GROWTH 1-MILE 3-MILE 5-MILE

% Change: 2000 to 2010 -7.24 -2.92 -3.82

% Change: 2010 to 2017 3.69 4.19 4.11

% Change: 2017 to 2022 3.33 3.66 3.57

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2010 Census 21,760 87,875 233,097

2000 Census 21,623 87,835 231,766

2017 Estimate 22,906 91,956 244,142

2022 Projection 23,840 95,588 253,681

INCOME 1-MILE 3-MILE 5-MILE

2017 Avg. Household Income

$59,289 $83,359 $81,851

18.7 MillionPOPULATION

$55,509MEDIAN

HOUSEHOLD INCOME

4.4% UNEMPLOYMENT

RATE

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MARIPOSA NEIGHBORHOODSituated at the east end of the San Fernando Valley and surrounded by mountainous scenery, Mariposa sits in Glendale, a California city with one of the largest Armenian communities in America. The neighborhood, which lies tucked away next to downtown Glendale, has a culturally diverse mix of working professionals and families. The people who live here enjoy sunny weather much of the year, as well as convenient proximity to amenities. Though locals have no trouble finding what they need within Glendale’s borders, they also have easy access to nearby Los Angeles, making Mariposa an ideal location for commuters as well as those who like to explore.

3rd Largest City in LA County 8 Miles North of DowntownLos Angeles

GLENDALEBisected by the Verdugo Mountains, Glendale is a city that lies on the southeastern end of the San Fernando Valley. It is a suburb of the Greater Los Angeles Area just 15 minutes from downtown Los Angeles. At the center of some of Los Angeles’ up and coming neighborhoods, Glendale is the perfect home base for enjoying the best of the City of Angels.

There are plenty of job opportunities in Glendale as the city houses the headquarters of Nestlé US, Americas United Bank, and International House of Pancakes. The Grand Central Business Centre is home to Disney’s Consumer Products, Disney Too Studios, Disney Interactive, The Muppets Studio, and Marvel Animation Studios.

ATTRACTIONS

Located less than a mile from the subject property, the Americana at Brand is the ultimate shopping, dining, and entertainment complex. The Americana at Brand offers everything from larger stores including Nordstrom and Bloomingdale’s to carefully chosen unique boutiques.

Americana at Brand

As the go to shopping destination, the Glendale Galleria is a large shopping center with a unique feel and a distinctive variety of stores. It is the fourth largest mall in L A County. In 2016, the Glendale Galleria saw 30 million visitors alone.

Glendale Galleria

With over 50 public parks within the city limits, Glendale has plenty of natures settings in which residents can partake in outdoor recreational activities. Local hikers frequent Deukmejian Wilderness Park - one of the most gorgeous and sparsely visited parks in L A county. The trails go through waterfalls, creeks, and stunning vistas that can feel worlds away from Los Angeles.

Outdoor Recreation

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The Glendale Amtrak/Metrolink Station, referred to as the Larry Zarian Transportation Center, is an Amtrak and Metrolink rail station. The LZTC serves as a central transportation hub for the City of Glendale. Several public transportation systems; such as Amtrak, Metrolink, Greyhound, Metro, and the Glendale Beeline utilizes the LZTC as a transfer point and/or layover. Ten Pacif ic Surfliner trains serve the station daily and 54 Metrolink trains serve the station each weekday, as well as serving the Antelope Valley Line on Saturdays.

LARRY ZARIAN TRANSPORTATION CENTER

TRANSPORTATION

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LOCATION MAP

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F I N A N C I A L O V E R V I E W

RENT ROLL

# Unit Mix Rent Market Rent

1 1 2+1 $1,200 $1,795

2 2 2+1 $1,200 $1,795

3 3 2+1 $1,200 $1,795

4 4 2+1 $1,200 $1,795

5 5 2+1 $1,200 $1,795

6 6 2+1 $1,200 $1,795

Totals $7,200 $10,770

Averages $1,200 $1,795

UNIT MIX

Total Units Unit Mix Unit Mix % Current Avg Rent Current Monthly Rent Market Rent Market Monthly Rent6 2+1 100% $1,200 $7,200 $1,795 $10,770

Scheduled Monthly Rent: $7,200 $10,770Scheduled Yearly Rent: $86,400 $129,240

INVESTMENT SUMMARY

Offering Price: $2,085,000 Number of Units: 6Property: 700-02 S. Louise Street Year Built: 1954

Glendale, CA 91205 APN: 5641-011-001Price Per Unit: $347,500 Gross Sq. Ft.: 5,637Price Per S.F.: $369.88 Average S.F. Per Unit: 940Cap (current / market): 2.18% / 4.09% Lot Size (Acres): 7,195GRM (current / market): 23.74 / 15.96 Zoning: R-1650 (Medium Density Res.)

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ANNUALIZED OPERATING DATA

Current MarketScheduled Gross Income: $86,400 $129,240 50% Upside

Less Vacancy Reserve: 3.0% $2,592 3.0% $3,877

Laundry Income: $1,440 $1,440Gross Operating Income: $85,248 $126,803Expenses: 46.1% $39,833 32.11% $41,495Net Operating Income: $45,415 $85,308Pre-Tax Cash Flow: 2.18% $45,415 4.09% $85,308Total Return Before Taxes: 2.18% $45,415 4.09% $85,308

* As a percent of Scheduled Gross Income

** As a percent of Down Payment

PRO FORMA ANNUAL OPERATING EXPENSES

Current Per Unit % of SGI*Taxes 1.082% x Sale Price $22,560 $3,760 26%Off-Site Management 4.0% x GOI $3,410 $568 4%*Insurance $0.35 x GSF $1,973 $329 2%Repairs & Maintenance & Turnover $500 x Units $3,000 $500 3%Landscaping $120 T12 $1,440 $240 2%Pest Control Actual T12 $250 $42 0%

Utilities Actual T12 $5,400 $900 6%Trash $120 x 12 Months $1,200 $200 1%General Administration $100 x Units $600 $100 0.69%Total Expenses $39,833 $6,639 46.1%

Current Per Unit % of SGINon-controllable expenses: Taxes, Ins., Reserves: $24,533 $4,089 28.4%Total Expense with out Taxes $17,273 $2,879 19.99%

** Seller will be performing a 1031 Exchange and is requesting to have optional extensions of escrow periods with notice to buyer and escrow

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RENT COMPARABLES

ADDRESS ASKING RENT SF YEAR NOTES

2 BEDROOM 1 BATHROOM

700-02 S. LOUISE STREET, GLENDALE, CA 91205 $1,200 900 1954

1437 E. Maple Street, Glendale, CA 91205 $1,995 900 1952

838 Fischer Street, Glendale, CA 91205 $1,795 740 1970

1438 Dixon Street, Glendale, CA 91205 $1,995 775 1948

AVERAGES: $1,928 805 1956

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Property located at 700-02 S Louise Street, Glendale, CA (“Property”) . I t has been prepared by Matthews Retai l Advisors. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Retai l Advisors. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Retai l Advisors expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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700-02 S Louise Street · Pest Control Actual T12 $250 $42 0% Utilities Actual T12 $5,400 $900 6%...

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