OFFERING MEMORANDUM

737 - 747 N WESTERN AVENUE

LOS ANGELES, CA 90029

FULLY ENTITLED DEVELOPMENT OPPORTUNITY | 51 UNITS + 7,700 SF RETAIL

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710bmichaels@marcusmillichap.comLicense: CA #01434685www.BrandonMichaelsGroup.com

PRESENTED BY:

BEN BROWNSTEINSenior AssociateDirector, National Retail GroupDirector, Industrial Properties GroupTel: (818) 212-2812ben.brownstein@marcusmillichap.comLicense: CA: #02012808www.BrandonMichaelsGroup.com

NON-ENDORSEMENT AND DISCLAIMER NOTICE

NON-ENDORSEMENTSMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Milli-chap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DE-TAILS.

DISCLAIMER

THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS OF VALUE AND SHOULD NOT BE CONSIDERED AN AP-PRAISAL.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, express or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2017 Marcus & Millichap. All rights reserved.

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737 - 747 N WESTERN AVE

AREA OVERVIEW

COMPARABLES ANALYSIS

FINANCIAL ANALYSIS

OFFICES NATIONWIDEwww.marcusmillichap.com

G R O U P

BRANDON MICHAELS

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Rare opportunity to purchase in a strong rental market. Significant amount of movement and turnover in the immediate marketplace, creating an opportunity for new construction to enter the market and position the submarket for the future. With $3 Billion in the development pipeline, Hollywood will bring an added 4,393 residential units, 1,696 hotel rooms, and 1.2 million square feet of office space.

Median age: 34

Average household income within a 5 mile radius: $74,445

Population within a 5 mile radius: 1,104,691

Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre.

• 25 million visitors annually, averaging 5,000 people per hour

• 640,000 square feet of retail shops, restaurants and nightclubs

• Metro Red Line serving 137,000 riders each day with direct access for the growing 50,000 residents of downtown Los Angeles

DEVELOPMENT

DEMOGRAPHICS

NEIGHBORHOOD

GLOBAL TOURISM DESTINATION

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The neighborhood's oldest hangouts are cherished with a new appreciation for nostalgia, while brand-new spots emulate the old with fresher, more innovative flavors. All the while, L.A.'s most celebrated chefs continue to keep the bar high with some of the nation's best restaurants right here in Hollywood.

From vintage clothing bargains to fine art, shopping in Hollywood spans a wide range of budgets. Hollywood spans tastes, too, and it's a particularly good neighborhood to visit if your interests are specific. Whether you're looking for movie memorabilia, Dr. Martens shoes, or rare vinyl, there's a store for you.

You can tuck your car away in one of the many lots and stroll to great restaurants, cafes, bars, nightclubs, shopping, and live entertainment. Hollywood boasts an international reputation that no other neighborhood in Los Angeles has. Hollywood still sparkles with gems of old glamorous hotels and celebrity hangouts along with an emerging urban cityscape and working production scene.

DINING

SHOPPING

WEATHER

GETTING AROUND

Southern California’s persistently pleasant weather means it’s practically always the best time to visit Los Angeles. It’s sunny almost 300 days a year and the average high temperature in many parts of L.A. fluctuates less than 10 degrees through the year.

WHY BUYIN

HOLLYWOOD?

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The Brandon Michaels Group of Marcus & Millichap has been selected to exclusively market for sale 737-747 N. Western Avenue, located near the corner of Melrose Avenue and Western Avenue in a highly sought-after neighborhood of Los Angeles, CA. The subject property is an existing Martial Arts Store and Laundromat with approximately 20,803 SF of Land. Located south of Santa Monica Boulevard and just North of Melrose Ave, this prime corner project makes for an ideal site for redevelopment.

This Rare, fully entitled development allows opportunity for a 51- Unit Mixed Use Project. Zoned LAC4-1D in a Tier 3 TOC with a 70% density bonus t is entitled for 45 Market Rate Units, 6 Low Income, and 7,700 SF of Retail, all on a 61,050 FAR. The subject property is situated on the cusp of Hollywood, surrounded by Paramount Pictures, Los Angeles City College, Hollywood Palladium, & Lemon Grove Recreation Center to name a few. Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. Hollywood attracts millions of visitors each year who travel there to pay homage to their favorite stars and perhaps even catch a glimpse of a few famous personalities. Sometimes they're lucky! And while, for years, Hollywood had a rather seedy reputation, the town has endeavored to make recent improvements in many areas, adding a new kind of charm to this interesting neighborhood.

There is tremendous potential as current rent in the area has created an affluent community surrounding Melrose Avenue, making this an ideal time to purchase property in Hollywood. Upon the completion of the surrounding developments and continuing improvements to the immediate area, the rental market will experience significant growth and offer outstanding long-term returns for investors. There has been a significant amount of movement and turnover within the marketplace, creating an opportunity for new concepts to enter the market and position this submarket for the future. With $3 Billion in the development pipeline, Hollywood will bring an added 4,393 residential units, 1,696 hotel rooms, and 1.2 million square feet of office space.

A RARE OPPORTUNITY TO ACQUIRE A FULLY ENTITLED DEVELOPMENT OPPORTUNITY IN THE HEART OF HOLLYWOOD, CA

EXECUTIVE SUMMARY

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2,1161.72,116 Businesses within a

1 square mile of 737-747 N Western1.7 square miles of walkable hotspots, restaurants, nightlife, and shopping in

Hollywood, CA

737-747 N Western scores an 89/100 on Walkscore.com

897

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Property Address737-747 N Western avenue

Los Angeles, CA 90029

Price $7,000,000

Land Price/ SF $334.22

Land SF 20,803

Property Type Fully Entitled Land Development

Entitlements 51 Apartment Units | 7,700 SF of Retail

APN's 5535-017-001, 5535-017-002, 5535-017-003

Year Built 1922

Zoning LAC4-1D

Type of Ownership Fee simple

Parking 20 Surface Spaces

PROPERTY OVERVIEW

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INVESTMENT HIGHLIGHTS

FULLY ENTITLED DEVELOPMENT OPPORTUNITY – Fully Entitled Mixed Use Project- 51 Units + 7,700 SF of Storefront Retail.

HOLLYWOOD CORNER LOCATION – Hollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre. No other corner of LA is steeped in as much mythology as Hollywood. It's here that you'll find the Hollywood Walk of Fame, the Capitol Records Tower and Grauman's Chinese Theatre, where the hand- and footprints of entertainment deities are immortalized in concrete.

REVITALIZATION OF HOLLYWOOD –

• 25 million visitors annually, averaging 5,000 people per hour.

• Metro Red Line serving 137,000 riders each day with direct access for the growing 50,000 residents of downtown Los Angeles.

• Tremendous revitalization in Hollywood over the past decade, 4.8 billion dollars has been invested since 2000 by developers of multifamily, commercial, and hospitality.

• Creative businesses are taking root in Hollywood due to its access to the Metro, city life, and live/work spaces.

SIGNIFICANT FOOT TRAFFIC - 737-747 N Western Avenue has a score of 89/100 for walkability. Iconic retailers and trendy/hip boutiques and restaurants populate Melrose Avenue and it is a popular haven for the rich and famous.

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LOCATION737-747 N Western Avenue, Los Angeles, CA 90029

SITEThe subject property is located on the southwest corner of N Western Avenue and Marathon Street Avenue, just 300 feet north of Melrose Avenue.

SQUARE FOOTAGES

ZONING737-747 N Western Avenue is located within zoning of LAC4-1D

YEAR BUILTThe subject property was built in 1922

TRAFFIC COUNTSIntersection of N Western Avenue and Melrose Avenue:38,252 vehicles per day

PARKING20 Surface Spaces are available; Ratio of 1.55/1,000 SF

PROPERTY SUMMARY

PLAT MAP

Three adjacent parcels of land totaling 20,803 square feet

RENT ROLL

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737 N WESTERN AVENUE

747 N WESTERN AVENUE

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ENTITLEMENTS

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ENTITLEMENTSVALUATION

Site Address 737-747 N Western Ave

City Los Angeles, CA 90029

Price $7,000,000

Price Per SF (Land) $334.22

Total Land SF 20,803

Zoning LAC4-1D

Community Plan Area Hollywood

Area Planning Commision Central

Neighborhood Council Hollywood Studio District

Current Building SF 12,190

Square Footage of Proposed Development 61,050

Height 71 Feet

Number of Stories 6

Parking 2 Levels of Subterranean Parking

Number of Parking Spaces 86

Total Units 51

Extremly Low Income Units @11% 6

Market Rate Units 45

Price per Buildable Unit $137,254.90

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# UNITS BEDS SF

1 Retail 2300

1 Retail 5400

4 Studio 500

12 1 Bed 710

8 1 Bed 700

8 1 Bed 730

4 2 Bed 1040

5 2 Bed 950

4 2 Bed 1070

4 2 Bed 1090

1 3 Bed 1500

1 3 Bed 1450

UNIT BREAKDOWN BY SF2ND 3RD 4TH 5TH 6TH TOTAL

Studio 1 1 1 1 0 41 bed 7 7 7 7 0 282 bed 4 4 4 4 1 173 bed 0 0 0 0 2 2TOTAL 12 12 12 12 3 51

RESIDENTIAL UNITS PER FLOOR

COMMERCIAL SF RESIDENTIAL SF TOTAL SF

6th - 6,790 6,790 5th - 11,510 11,510 4th - 11,510 11,510 3rd - 11,510 11,510 2nd - 11,510 11,510 1st 7,700 520 8,220 TOTAL 7,700 51,350 61,050

AREA TABULATION

PARKING

Parking for Residential

32 Units x 1 (Studio &1BED) = 32

19 Units x 2 (2BED & 3BED) = 38

TOTAL = 70 Cars

Parking for Commercial

1/500 SF

Proposed Parking = 16 Cars

Total Parking

86 Cars

COMPANY SF RENT RENT/SF LEASE OPTION

Laundrywood 7,700 $9,000 $1.16 2023 Two-5 Year Options

Golden Tiger 5,170 Vacant at COE

RENT ROLL

ENTITLEMENTS

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ENTITLEMENTS

SITE PLAN18

ENTITLEMENTS

BASEMENT - 219

BASEMENT - 1

ENTITLEMENTS

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1ST FLOOR PLAN

ENTITLEMENTS

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2ND FLOOR PLAN

ENTITLEMENTS

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3RD - 5TH FLOOR PLAN

ENTITLEMENTS

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6TH FLOOR / ROOF DECK

ENTITLEMENTS

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ROOF PLAN

ENTITLEMENTS

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NORTH & EAST ELEVATION

ENTITLEMENTS

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WEST & SOUTH ELEVATION

ENTITLEMENTS

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SECTION 1 & 2

ENTITLEMENTS

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LANDSCAPE PLAN

ENTITLEMENTS

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AREA OVERVIEW

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HOLLYWOOD, CAHollywood is the hub of Los Angeles entertainment, offering world-class retail, red carpet movie premieres and celebrated live theatre.

LOCATIONHollywood is flanked by Hollywood Hills to the north, Los Feliz to the northeast, East Hollywood or Virgil Village to the east, Larchmont and Hancock Park to the south, Fairfax to the southwest, West Hollywood to the west and Hollywood Hills West to the northwest.

CLIMATELos Angeles has a Subtropical-semi-arid climate with year-round warm weather. The record high temperature of 111 °F was recorded September 26, 1963, while the record low of 24 °F was recorded on January 4, 1949. Snow is rare in Los Angeles, with the last accumulation occurring in 1949. Rainfall is sparse (only 13 inches annually), and falls mainly during winter months.

ACCOMODATIONSHollywood hosts world-renowned hotels such as the The Hollywood Roosevelt, Loews Hollywood Hotel, W Hollywood, Dream Hollywood, Mama Shelter, and Kimpton Everly Hotel.

DININGFrom celebrity chefs to celebrity diners, famed faces might turn your head while you eat. There is no guarantee that you'll have a celebrity sighting while eating in Hollywood, but at least you can dine like one. Musso and Frank's Grill, Pizzeria Mozza, Pink's Famous Hot Dogs, Petit Trois, and Yamashiro are just a few of the exciting dining choices located in Hollywood.

SHOPPINGFrom vintage clothing bargains to fine art, shopping in Hollywood spans a wide range of budgets. Hollywood spans tastes, too, and it's a particularly good neighborhood to visit if your interests are specific. Whether you're looking for movie memorabilia, Dr. Martens shoes, or rare vinyl, there's a store for you. Check out our guide to get started on your Hollywood shopping adventure.

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HOLLYWOOD ENTERTAINMENT DISTRICTHollywood Boulevard is a Los Angeles cultural icon, with museums, landmarks and other attractions that celebrate L.A.’s rich film and entertainment heritage. You can see the footprints of the stars at the TCL Chinese Theatre, see the stars on the Hollywood Walk of Fame, do some serious shopping at Hollywood & Highland, or visit the famous Hollywood Wax Museum. Along its stretch from Highland Avenue to Orange Drive, you can find a day’s worth of activities that will give you a true Hollywood experience. You never know who you'll run into! Arnold Schwarzenegger recently shocked fans by making an appearance at Madame Tussauds Hollywood.

MELROSE AVENUEMelrose Avenue is renowned throughout the world as one ofLos Angeles’ most walkable and unique shopping, dining andentertainment destinations. Downtown Melrose encompasses the 22blocks along Melrose Avenue that stretch from Fairfax to Highland.More than 300 alternative and independent stores offer a wide arrayof merchandise found nowhere else in the city.

NEARBY HOT SPOTS

TOP ATTRACTIONS

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Total Population of Hollywood, CA. The median age is 34.

MALE

High School Associates Degree Bachelor’s Degree Grad Degree

FEMALE

DEMOGRAPHICS

106,104

46%54%

8.8%20.6% 34.5% 16.8%

EDUCATION

BUSINESSES

Hollywood is home to innovative industries and a magnet for highly skilled professionals. Companies ranging from retail, tourism and nightlife, restaurants, entertainment and media, as well as arts and design are drawn to the area's creative workforce, as well as its high quality of life.

• Metro• IAC/CityGrid Media• City of Hollywood

• Paramount Pictures• Live Nation Entertainment• Trailer Park

• Walt Disney Co• Warner Bros Studio• Cedar-Sinai Medical enter

TOP EMPLOYERS

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• Walt Disney Co• Warner Bros Studio• Cedar-Sinai Medical enter

$74,445Average HH income within 5-m radius

$46,244Median HH income within 1-m radius

699,560Daytime Population within 5-m radius

87,613Owner Occupied Households

within 5-m radius

352,608Renter Occupied Households

within 5-m radius

1,104,691Population within a 5-m radius

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737 - 747 N WESTERN AVENUE

LOS ANGELES, CA 90029

BRANDON MICHAELSSenior Managing Director of InvestmentsSenior Director, National Retail GroupTel: (818) 212-2794Fax: (818) 212-2710bmichaels@marcusmillichap.comLicense: CA #01434685www.BrandonMichaelsGroup.com

BEN BROWNSTEINSenior AssociateDirector, National Retail GroupDirector, Industrial Properties GroupTel: (818) 212-2812ben.brownstein@marcusmillichap.comLicense: CA: #02012808www.BrandonMichaelsGroup.com