costar ah - 5529 · 2018. 11. 6. · this marketing brochure has been prepared to provide summary,...

An 8-Unit, Value-Add Multifamily Investment OpportunityLocated in the NoHo Arts District, the Premier Live/Work/Play Destination of the San Fernando Valley

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OFFERING MEMORANDUM

NON-ENDORSEMENT & DISCLAIMER NOTICECONFIDENTIALITY & DISCLAIMERThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

NON-ENDORSEMENT NOTICEMarcus & 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 & Millichap, 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 DETAILS.

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MAKAN MOSTAFAVIEncino Office

Cell 818.515.8100 Office 818.212.2706

[email protected] License: 01436120

WILL MACDONALDEncino Office

Cell 805.813.0612Office 818.212.2653


EXCLUSIVELY LISTED BY:

OFFICES NATIONWIDE AND THROUGHOUT CANADA

WWW.MARCUSMILLICHAP.COM

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01ExecutiveSummary

MarketOverview

41The

Property

09FinancialAnalysis

19Market

Comparables

25

Table of Contents

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed 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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap

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Executive Summary

i n v e s t m e n t o v e r v i e w

o f f e r i n g s u m m a r y

s u m m a r y o f t e r m s

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

s e c t i o n 1

Marcus & Millichap, as the exclusive listing agent, is pleased to present to qualified investors this 8-unit, value-add multifamily investment opportunity located at 5529 Bonner Avenue in North Hollywood, California. Located south of Burbank Boulevard, between Lankershim Boulevard and Vineland Avenue, this property benefits from its superior location within the NoHo Arts District - the premier live/work/play destination in the San Fernando Valley. The subject property was built in 1963, and consists of one (1) studio unit, six (6) one-bedroom/one-bathroom units, and one (1) two-bedroom/one-bathroom unit with a gross rentable area of approximately 4,576-square feet. The building features two (2) tuck-under parking stalls at the rear of the building, and six (6) additional parking stalls for a total of eight (8) parking spaces. There is on-site, coin operated laundry which generates additional income for the owners, as well as storage space (above each parking stall) which could be rented for additional income as well. Units are separately metered for gas and electric. The property is situated on a 7,248-square foot lot zoned LAR4 and has been assigned a Tier 3 TOC (Tansit Oriented Community) designation. Benefiting from an irreplaceable North Hollywood location, the subject property is just a short 5-minute walk (less than half a mile) to the North Hollywood Metro Station, providing residents with easy access to local collages, retail destinations, and major employers. As a cultural hub for artists and entertainers, North Hollywood is a major destination for visitors and residents alike as evidenced by the 30+ large-scale development projects currently under construction and/or in planning. There are 7 current major developments within a 1-mile radius of the property; a 70 unit Best Western Hotel, an Ikon Hotel, 329 units at The Weddington on Weddington and Chandler, 144 units at Vineland and Otsego, and 297 Units at Lankershim and Otsego that will house a 26,000 square foot Whole Foods due to open in 2019.

With substantial upside in current rents and a superior NoHo Arts District location, this property provides an excellent opportunity for an investor/operator increase rental income at the property through a more aggressive management style and renovation program. Moreover, the property falls within one of Los Angeles County's designated Qualified Opportunity Zone tracts. As such, this investment presents a unique opportunity for a new investor to benefit from a long term tax advantage. This program was spearheaded by the federal government in 2017 to revitalize area of economic opportunity around the country and its inventive program has two parts: (1) the deferral, until the end of 2026, of taxation equal to the capital gain realized on the sale of the assets, provided the gain is reinvested within six months in a Qualified Opportunity Fund, and (2) the exemption of federal income tax upon the gain (if any) from the disposition of the OZP investment, provided it is held for more than 10 years.

INVESTMENT OVERVIEW

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E X E C U T I V E S U M M A R Y2 E X E C U T I V E S U M M A R Y 3

O F F E R I N G S U M M A R Y

I N T E R E S T O F F E R E D100-percent fee simple interest in 5529 Bonner Avenue, an 8-unit multifamily property located at 5529 Bonner Avenue in North Hollywood, California.

T E R M S O F S A L EThe property is being offered free and clear of any debt, with an asking price of $1,750,000.

P R O P E R T Y T O U R SProspective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. At no time shall the tenants, on-site management or staff be contacted without prior approval.

D U E D I L I G E N C E & C L O S I N GThe timeline for the buyer’s due diligence and closing will be a consideration in the buyer selection process. All appropriate information will be made available at that time. It is the buyer’s responsibility to independently confirm all of the information contained herein. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. All costs and expenses incurred by the buyer will be the sole responsibility of the buyer.

S U M M A R Y O F T E R M S

Property Address 5529 Bonner Avenue, North Hollywood, CA 91601

Price $1,750,000

Price / Unit $218,750

Price / SF $382.43

Current CAP Rate 3.43%

Current GRM 17.06

Market CAP Rate 6.33%

Market GRM 11.13

Year 1 CAP Rate 6.58%

Year 1 GRM 10.81

Number of Units Eight (8)

Rentable SF 4,576

Number of Buildings One (1)

Number of Stories Two (2)

Year Built 1963

Lot Size 0.17 Acres

Assessor's Parcel Number 2350-005-010

Type of Ownership Interest Fee Simple

$1,750,000Total Price 8 Total

UnitsYearBuilt1963

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

TRUE VALUE-ADD INVESTMENT OPPORTUNITY

• Strong rental market, low vacancy rates, rising demand, and accelerated rent growth converge in the NoHo Arts District, allowing a savy investor to capture tremendous rent upside by implementing a systematic renovation program as units naturally turn over and marking rents to market

• Prime "NoHo Arts District" Location - the premier live / work / play destination in San Fernando Valley

• Located within Qualified Opportunity Zone and in the path of rapid gentrification

STRONG IMMEDIATE DEMOGRAPHICS

• Average household income of $96,019 within a 5-mile radius

• Population of 592,982 within a 5-mile radius

• Strong local economy with significant job growth over a multitude of diverse sectors

IRREPLACEABLE TRANSIT-ORIENTED LOCATION

• Tremendous revitalization in North Hollywood over the past decade, over $3 Billion dollars has been invested since 2005 by developers of retail, commercial, residential projects

• As a cultural hub for artists and entertainers, North Hollywood is a major destination for visitors and residents alike

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

• North Hollywood is a place of continuing development as it currently has over 30 large-scale development projects under construction and / or in planning

• Situated in an irreplaceable transit-oriented location just one block from the second largest transportation center (Metro Rail Red Line & Orange Line) in Los Angeles, the Property provides direct access to numerous nearby employment centers including Hollywood, Downtown Los Angeles, and Universal City

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The Property

p r o p e r t y d e s c r i p t i o n

l o c a l a n d r e g i o n a l m a p s

s e c t i o n 2

UTILITIESUTILITY SERVICE PROVIDER PAID BYGas SoCal Gas Tenant Electricity LADWP TenantWater / Sewer LADWP LandlordTrash - LandlordPest - Landlord

PROPERT Y DESCRIPTION

Number of Units 8Year Built 1963Number of Buildings 1Number of Stories 2Acreage 0.17 AcresExterior Construction Wood / StuccoRoof Type FlatTotal Square Footage 4,576 SF

UNIT TYPE # OF UNITS CURRENT AVERAGE RENT

Studio / 1-Bathroom 1 $6381-Bedroom / 1-Bathroom 6 $1,1252-Bedroom / 1-Bathroom 1 $1,159

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P R O P E R T Y D E S C R I P T I O N10 P R O P E R T Y D E S C R I P T I O N 11

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NOHOWalkable, Urban Core5529 Bonner Avenue is located in the trendy North Hollywood Arts District, one of the most walkable neighborhoods in all of Los Angeles. This hip, urban core allows residents to live, work and play in one locale. Filled with live theaters, professional dance studios, art galleries, recording studios, boutiques and a myriad of dining options, the NoHo Arts District is considered on of the most popular cultural destinations in Los Angeles.

Blocks from Future Whole Foods Market 365A half-mile from 5529 Bonner Avenue, a 24,000 square-foot Whole Foods Market 365 will open in late 2019.

Close to North Hollywood ParkWalking distance to 5529 Bonner Avenue, the North Hollywood Park and Recreation Center is an expansive, 55-acre municipal Park offering running trails, picnic

IN THE HEART OF THE NOHO ARTS DISTRICT


IRREPLACEABLETRANSIT-ORIENTED LO CATION

METRO ORANGE LINETransit Station

M

METRO RED LINETransit Station

M

0.3 MILES TO METRO RED/ORANGE LINE

5529 Bonner Avenue is within walking distance of both the North Hollywood Metro Red and Orange Line Stations, which are the second largest transportation hubs in the City of Los Angeles.

More than 140,000 passengers board the Metro Rail Red and Orange Lines daily, accounting for nearly 40% of all ridership in Los Angeles County.

Passengers traveling from the Property can quickly connect to:

■ Universal Studios (4 minutes) ■ Hollywood/Highland (7 minutes) ■ Hollywood/Vine (10 minutes) ■ Koreatown (20 minutes) ■ Downtown LA (20 minutes) ■ Warner Center (35 minutes),,

The increasing desirability of renters to live in close proximity to Los Angeles' expanding Metro Rail system has proven to directly correlate with higher levels of rent growth at properties within one block of a transit station.

LOCA

TION,

LOCA

TION,

LOCA

TION

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GLOBAL CAPITAL COMMITMENTTO THE NOHO ARTS DISTRICT

The emergence of the NoHo Arts District as a world-class location has attracted the attention of capital from around the globe. The largest pension funds, private equity firms, public REITs and opportunity funds have all demonstrated their belief in the market with over $1 billion in recent investments.

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Financial Analysis

f i n a n c i a l s u m m a r y

i n c o m e & e x p e n s e a n a l y s i s

r e n t r o l l & u n i t d i s t r i b u t i o n

n o t e s & a s s u m p t i o n s

s e c t i o n 3

FINANCIAL INDICATORSPrice $1,750,000Price/Unit $218,750Price/SF $382.43Current NOI $59,952Current CAP Rate 3.43%Current GRM 17.06Market NOI $110,795Market CAP Rate 6.33%Market GRM 11.13Year 1 NOI $115,187Year 1 CAP Rate 6.58%Year 1 GRM 10.81Ownership Fee Simple

BUILDING DATAProperty Address 5529 Bonner Avenue,

North Hollywood, CANo. of Units 8Year Built 1963Lot Size (acres) 0.17Lot Size (SF) 7,248Net Rentable SF 4,576APN 2350-005-010

MARKET RATE UNITS CURRENT MARKET LOSS-TO-LEASE

Unit Type # of Gross

Area (SF)Average

Rental RangeAverage

RentAverage Rent/SF

Monthly Income

Average Rental Range

Average Rent

Average Rent/SF

Monthly Income ($) (%)

Studio / 1-Bathroom 1 - $638 - $638 $638 - $638 $1,250 - $1,690 $1,250 - $1,250 ($612) 49.0%1-Bedroom / 1-Bathroom 6 - $1,013 - $1,403 $1,126 - $6,753 $1,650 - $1,950 $1,650 - $9,900 ($3,147) 31.8%2-Bedroom / 1-Bathroom 1 - $1,159 - $1,159 $1,159 - $1,159 $1,950 - $2,535 $1,950 - $1,950 ($791) 40.6%Totals/Weighted Averages 4,576 $1,069 $1.87 $8,550 $1,638 $4.15 $13,100 ($4,550) 34.7%Current Occupancy Annual Current: $102,600 Annual Market: $157,200 ($54,600) 34.7%

ANNUALIZED OPERATING DATA Current MarketMarket Rent $157,200 $157,200

Gain (Loss)-to-Lease 34.7% ($6,825) 0.0% -Gross Potential Rental Income $102,600 $157,200

Less: Vacancy 3.0% ($3,078) 3.0% ($4,716)Less: Non-Revenue Units 0.0% - 0.0% -Less: Concession Loss 0.0% - 0.0% -

Total Rental Income $99,522 $152,484Misc. Other Income $1,860 $1,860

Effective Gross Income $101,382 $154,344Less Expenses 40.9% ($41,430) 28.2% ($43,549)

Net Operating Income $59,952 $110,795

ANNUALIZED OPERATING DATA Current MarketFIXED EXPENSES

Real Estate Taxes 1.19605% $20,931 $20,931Insurance $.062/SF $2,844 $2,844Utilities $773/Unit $6,180 $6,180Reserves $250/Unit $2,000 $2,000

VARIABLE EXPENSESRepairs & Maintenance $250/Unit $2,000 $2,000Trash Removal $338/Unit $2,700 $2,700Pest Control $90/Unit $720 $720Management Fee 4.00% of EGI $4,055 $6,174

Total Expenses $41,430 $43,549Expenses Per Unit $5,179 $5,444Expenses Per SF $9.05 $9.52Expenses as % of EGI 40.9% 28.2%

F I N A N C I A L S U M M A R Y I N C O M E & E X P E N S E A N A L Y S I S

CURRENT (Close of Escrow)

MARKET (@ Market Rent)

YEAR 1 (Trended @ 3%)

NOTES

Average Rent Per Unit $1,069 $1,638 $1,687Average Rent Per SF $1.87 $2.86 $2.95

REVENUE PER UNIT % GPR PER UNIT % GPR PER UNIT % GPRAll Units at Market Rent $157,200 $19,650 $157,200 $19,650 $161,916 $20,240Gain (Loss)-to-Lease $54,600 $6,825 34.7% $0 $0 0.0% $0 $0 0.0%

GROSS POTENTIAL RENT $102,600 $12,825 $157,200 $19,650 $161,916 $20,240 [1]Vacancy Loss (-) ($3,078) ($385) 3.0% ($4,716) ($590) 3.0% ($4,857) ($607) 3.0%Non-Revenue Units (-) $0 $0 0.0% $0 $0 0.0% $0 $0 0.0%Concessions (-) $0 $0 0.0% $0 $0 0.0% $0 $0 0.0%Total Economic Losses ($3,078) ($385) 3.0% ($4,716) ($590) 3.0% ($4,857) ($607) 3.0% [2]

GROSS RENTAL INCOME $99,522 $12,440 $152,484 $19,061 $157,059 $19,632Other Income $1,860 $233 $1,860 $233 $1,860 $233

EFFECTIVE GROSS INCOME $101,382 $12,673 $154,344 $19,293 $158,919 $19,865FIXED EXPENSES PER UNIT % EGI PER UNIT % EGI PER UNIT % EGI

Real Estate Taxes $20,931 $2,616 20.6% $20,931 $2,616 13.6% $20,931 $2,616 13.2% [3]Insurance $2,844 $356 2.8% $2,844 $356 1.8% $2,844 $356 1.8% [4]Utilities $6,180 $773 6.1% $6,180 $773 4.0% $6,180 $773 3.9% [5]Reserves $2,000 $250 2.0% $2,000 $250 1.3% $2,000 $250 1.3% [6]

SUBTOTAL FIXED EXPENSES $31,955 $3,994 31.5% $31,955 $3,994 20.7% $31,955 $3,994 20.1%Fixed Expenses Per Unit $3,994 $3,994 $3,994Fixed Expenses Per SF $6.98 $6.98 $6.98

VARIABLE EXPENSES PER UNIT % EGI PER UNIT % EGI PER UNIT % EGIRepairs & Maintenance $2,000 $250 2.0% $2,000 $250 1.3% $2,000 $250 1.3% [7]Trash Removal $2,700 $338 2.7% $2,700 $338 1.7% $2,700 $338 1.7% [8]Pest Control $720 $90 0.7% $720 $90 0.5% $720 $90 0.5% [9]Management Fee $4,055 $507 4.0% $6,174 $772 4.0% $6,357 $795 4.0% [10]

SUBTOTAL VARIABLE EXPENSES $9,475 $1,184 9.3% $11,594 $1,449 7.5% $11,777 $1,472 7.4%Variable Expenses Per Unit $1,184 $1,449 $1,472Variable Expenses Per SF $2.07 $2.53 $2.57

TOTAL EXPENSES $41,430 $5,179 40.9% $43,549 $5,444 28.2% $43,732 $5,466 27.5%Expenses Per Unit $5,179 $5,444 $5,466Expenses Per SF $9.05 $9.52 $9.56

NET OPERATING INCOME $59,952 $110,795 $115,187

Current is based on current in-place income at Close of Escrow with market economic losses and pro forma expenses.Market is based on operations at projected Market Rents with market economic losses and pro forma expenses.Year 1 is based on operations at projected Market Rents increased by maximum allowable growth rate of 3% under Los Angeles rent control ordinances with market economic losses and pro forma expenses.

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F I N A N C I A L A N A L Y S I S20 F I N A N C I A L A N A L Y S I S 21

R E N T R O L L & U N I T D I S T R I B U T I O N N O T E S & A S S U M P T I O N S

CURRENT MARKETUnit # Unit Type Unit Size (SF) Rent / Month Rent / Year Rent / Month Rent / Year

1 Studio / 1-Bathroom - $638 $7,656 $1,250 $15,0002 1-Bedroom / 1-Bathroom - $1,184 $14,208 $1,650 $19,8003 1-Bedroom / 1-Bathroom - $1,013 $12,156 $1,650 $19,8004 1-Bedroom / 1-Bathroom - $1,403 $16,836 $1,650 $19,8005 1-Bedroom / 1-Bathroom - $1,115 $13,380 $1,650 $19,8006 1-Bedroom / 1-Bathroom - $1,025 $12,300 $1,650 $19,8007 1-Bedroom / 1-Bathroom - $1,013 $12,156 $1,650 $19,8008 2-Bedroom / 1-Bathroom - $1,159 $13,908 $1,950 $23,400

Total 4,576 $8,550 $102,600 $13,100 $157,200

8 Units

Six (6) Units1-Bedroom / 1-Bathroom

(75.00%)

One (1) UnitStudio/ 1-Bathroom

(12.50%)

One (1) Unit2-Bedroom / 1-Bathroom

(12.50%)

[1] GROSS POTENTIAL RENT Market rent levels underwritten using comparable market rents and currently achieved rents.

[2] ECONOMIC LOSSES Economic losses represent pro forma vacancy loss, non-revenue unit loss, and concession loss underwritten at 3.0%, 0.0%, and 0.0% respectively to total 3.0% of Gross Potential Rent (GPR). This is consistent with historical occupancy rates at the subject property and in line with the current North Hollywood submarket's current vacancy rate.

[3] REAL ESTATE TAXES Property Taxes are underwritten to marketed price. Taxes to be re-assessed on sale at ad valorem rate of 1.19605%.

[4] INSURANCE Insurance is underwritten at $0.62/SF, equating to $356 per unit, which is based on current operations.

[5] UTILITIES Utilities are underwritten at $773 per unit, which is based on current operations. All units are separately metered for gas and electric. Water is master metered.

[6] RESERVES Reserves are underwritten at $250 per unit, which represents industry standard.

[7] REPAIRS & MAINTENANCE Repairs and Maintenance are underwritten at $250 per unit, which is based on current operations.

[8] TRASH REMOVAL Trash removal is underwritten at $338 per unit, which is based on current operations.

[9] PEST CONTROL Pest control is underwritten at $90 per unit, which is based on current operations.

[10] MANAGEMENT FEE Management Fee is underwritten at 4.0% of Effective Gross Income (EGI) which is consistent with current operations as well as industry standard.

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Market Comparables

s a l e s c o m p a r a b l e s

r e n t c o m p a r a b l e s

s e c t i o n 4

2

7

6

3

1

48

9

5

S A L E S C O M P A R A B L E SPROPERTIES CLOSE OF

ESCROWSALESPRICE

# OF UNIT S

YEARBUILT $ / UNIT $/ SF CAP % GRM

5529 B onner Avenue, Nor th Hol ly wo o d, CA 91601 TBD $1,750,000 8 1963 $218,750 $382.43 3.43% 17.06

1 5642 K lump Avenue, Nor th Hol ly wo o d, CA 91601 9/28/2018 $1,050,000 5 1964 $210,000 $264.08 - -

2 11419 Ki l l ion Stre et , Nor th Hol ly wo o d, CA 91601 7/12/2018 $1,302,000 6 1963 $217,000 $303.64 - -

3 10909 Morris on Stre et , Nor th Hol ly wo o d, CA 91601 7/10/2018 $1,930,000 8 1963 $241,250 $276.35 - -

4 11502 Ki l l ion Stre et , Nor th Hol ly wo o d, CA 91601 6/20/2018 $1,850,000 6 1978 $308,333 $317.43 3.90% 16.40

5 10924 C amari l lo Stre et , Nor th Hol ly wo o d, CA 91602 6/7/2018 $2,000,000 8 1953 $250,000 $407.50 - -

6 5221 R iver ton Avenue, Nor th Hol ly wo o d, CA 91601 4/13/2018 $950,000 4 1958 $237,500 $395.83 3.76% 20.79

7 5029 C ar tw rig ht Avenue, Nor th Hol ly wo o d, CA 91601 3/8/2018 $1,611,000 6 1952 $268,500 $376.05 3.80% 17.71

8 5504 C amel l ia Avenue, Nor th Hol ly wo o d, CA 91601 3/1/2018 $1,075,000 6 1952 $179,167 $300.78 3.20% 18.05

9 11033 Har ts o ok Stre et , Nor th Hol ly wo o d, CA 91601 12/21/2017 $1,400,000 4 1944 $350,000 $388.24 3.05% 21.39

Totals / Averages $1,463,111 6 1959 $251,306 $336.66 3.54% 18.87

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M A R K E T C O M P A R A B L E S26 M A R K E T C O M P A R A B L E S 27

5 5 2 9 B O N N E R AV E N U ENorth Hollywood, CA 91601

List Price $1,750,000

Sale Date TBD

Year Built 1963

Price per Unit $218,750

Price per Square Foot $382.43

CAP Rate 3.43%

GRM 17.06

Number of Units 8

5 6 4 2 K L U M P AV E N U ENorth Hollywood, CA 91601

Sale Price $1,050,000

Sale Date 9/28/2018

Year Built 1964



CAP Rate -

GRM -

Number of Units 5

1 1 1 4 1 9 K I L L I O N S T R E E TNorth Hollywood, CA 91601


Sale Date 7/12/2018

Year Built 1963



CAP Rate -

GRM -

Number of Units 6

2 3 1 0 9 0 9 M O R R I S O N S T R E E TNorth Hollywood, CA 91601


Sale Date 7/10/2018

Year Built 1963



CAP Rate -

GRM -

Number of Units 8



Sale Date 6/7/2018

Year Built 1953



CAP Rate -

GRM -

Number of Units 8

4 1 1 5 0 2 K I L L I O N S T R E E TNorth Hollywood, CA 91601


Sale Date 6/20/2018

Year Built 1978



CAP Rate 3.90%

GRM 16.40

Number of Units 6

1 0 9 2 4 C A M A R I L L O S T R E E TNorth Hollywood, CA 91602

5


Sale Date 3/8/2018

Year Built 1952



CAP Rate 3.80%

GRM 17.71

Number of Units 6

Sale Price $950,000

Sale Date 4/13/2018

Year Built 1958



CAP Rate 3.76%

GRM 20.79

Number of Units 4

5 2 2 1 R I V E R T O N AV E N U ENorth Hollywood, CA 91601

6 7 5 0 2 9 C A R T W R I G H T AV E N U ENorth Hollywood, CA 91601



Sale Date 12/21/2017

Year Built 1944



CAP Rate 3.05%

GRM 21.39

Number of Units 4


Sale Date 3/1/2018

Year Built 1952



CAP Rate 3.20%

GRM 18.05

Number of Units 6

8 5 5 0 4 C A M E L L I A AV E N U ENorth Hollywood, CA 91601

1 1 0 3 3 H A R T S O O K S T R E E TNorth Hollywood, CA 91601

9

Avg. 18.87

0.00

2.30

4.60

6.90

9.20

11.50

13.80

16.10

18.40

20.70

23.00

5529 BonnerAv enue

11502Killion St

5221Riv ertonAv enue

5029Cartwright

Av e

5504CamelliaAv enue

11033Hartsook

Street

AVER AGEGRM

Avg. 3.54%

0.0

0.4

0.8

1.2

1.6

2.0

2.4

2.8

3.2

3.6

4.0

5529 BonnerAv enue

11502Killion St


5029Cartwright

Av e

5504CamelliaAv enue

11033Hartsook

Street

AVER AGECAP R ATE (%)

Avg. $251,306

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

$360,000

$400,000

5529 BonnerAv enue

5642Klump Ave

11419Killion St

10909Morrison St

11502Killion St

10924Camarillo

Street


5029Cartwright

Av e

5504CamelliaAv enue

11033HartsookStreet

AVER AGEPRICE / UNIT

Avg. $336.66

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

$300.00

$350.00

$400.00

$450.00

$500.00

5529 BonnerAv enue

5642Klump Ave

11419Killion St

10909Morrison St

11502Killion St

10924Camarillo

Street


5029Cartwright

Av e

5504CamelliaAv enue

11033HartsookStreet

AVER AGEPRICE / SF


3

1

52

4

PROPERTIES # OFUNIT S

AVER AGESQUARE FEET

AVER AGERENT

5529 B onner Avenue, Nor th Hol ly wo o d, CA 91601 8 572 $1,068

1 5533 B onner Avenue, Nor th Hol ly wo o d, CA 91601 9 550 $1,645



4 5529 Fu lcher Avenue, Nor th Hol ly wo o d, CA 91601 - 1,000 $2,350

5 11055 Cumpston Stre et , Nor th Hol ly wo o d, CA 91601 25 907 $2,296

Avg. $1,956

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

5529 BonnerAv enue

5533 BonnerAv enue

5514 BonnerAv enue

5555 BonnerAv enue

11055Cumpston

Street

1 Bedroom

Avg. $2,530

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

5529 BonnerAv enue

5514 BonnerAv enue

5555 BonnerAv enue

5529FulcherAv enue

11055Cumpston

Street

2 Bedroom

Avg. $1,692

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

5529 BonnerAv enue

5514 BonnerAv enue

11055Cumpston

Street

Studios

Avg. $1,692

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

5529 BonnerAv enue

5514 BonnerAv enue

11055Cumpston

Street

Studios

Avg. $1,692

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

5529 BonnerAv enue

5514 BonnerAv enue

11055Cumpston

Street

Studios

R E N T C O M P A R A B L E S

AV E R A G E R E N T S

5529BONNER AVENUE

NOHO


UNIT T YPE UNIT S SQUARE FEET RENT RENT/SF

1-B e dro om / 1-Bathro om 1 550 $1,645 $2.99

TOTAL/W TD. AVG. $1,645 $2.99

5 5 3 3 B O N N E R AV E N U ENorth Hol lywood, CA 91601

1


Studio / 1-Bathro om 1 - $638 -

1-B e dro om / 1-Bathro om 6 - $1,125 -

2-B e dro om / 1-Bathro om 1 - $1,159 -

TOTAL/W TD. AVG. $1,068 -

TotalUnits8 Total

Occupancy100% YearBuilt 19635 5 2 9 B O N N E R AV E N U E

North Hol lywood, CA 91601

TotalUnits9 Total

Occupancy100% YearBuilt 1993

TotalUnits29 Total

Occupancy100% YearBuilt 20175 5 1 4 B O N N E R AV E N U E


2



2-B e dro om / 2-Bathro om 16 1,032 $2,888 $2.80

TOTAL/W TD. AVG. $2,692 $2.80

5 5 5 5 B O N N E R AV E N U ENorth Hol lywood, CA 91601

3


Studio / 1-Bathro om 5 465 $1,689 $3.63



TOTAL/W TD. AVG. $2,109 $2.60

TotalUnits24 Total



TotalUnits29 Total

Occupancy100% YearBuilt 19905 5 2 9 F U L C H E R AV E N U E


4


Studio / 1-Bathro om 2 489 $1,695 $3.47



TOTAL/W TD. AVG. $2,296 $2.53

1 1 0 5 5 C U M P S T O N S T R E E TNorth Hol lywood, CA 91601

5



TOTAL/W TD. AVG. $2,350 $2.35

TotalUnits25 Total




5529BONNER AVENUE

NOHO

Market Overview

l o c a t i o n o v e r v i e w

m a r k e t r e s e a r c h

d e m o g r a p h i c s

s e c t i o n 5

5529 Bonner Avenue falls within one of Los Angeles County’s 274 designated Qualified Opportunity Zone tracts. As such, it presents a unique opportunity for a new investor to benefit from a long term tax advantage. This program was spearheaded by the federal government in late 2017 to revitalize areas of economic opportunity around the country.

The incentive program has two parts:

1. The deferral, until the end of 2026, of taxation equal to the capital gain realized on the sale of the assets, provided the gain is reinvested within six months in a Qualified Opportunity Fund, and

2. The exemption of federal income tax upon the gain (if any) from the disposition of the OZP investment, provided it is held for more than 10 years.

Source: https://www.bisnow.com/national/news/economic-development/will-thenew-opportunity-zones-work-as-intended-88945

Opportunity Zones, a long term tax advantage.

TEMPORARYDEFERRAL

A temporary deferral of inclusion in taxable income for capital gains reinvested into an Opportunity Fund.

STEP UPIN BASIS

The basis is increased by 10% if the investment in the Opportunity Fund is held by the taxpayer for at least 5 years and by an additional 5% if held for at least 7 years, thereby excluding up to 15%.

PERMANENT EXCLUSION

A permanent exclusion from taxable income of capital gains from the sale or exchange of an investment in an Opportunity Fund if the investment is held for at least 10 years.

OPPO

RTUN

ITY ZO

NE 5529BONNER AVENUE

NOHO

M A R K E T O V E R V I E W42 M A R K E T O V E R V I E W 43

North Hollywood has transformed into the Valley’s go-to cultural hub over the last decade with an influx of dance studios, art galleries and acting workshops—and now... massive mixed use communites. The immediate area has experienced a development boom that will continue through 2025.

Due to the city’s sought after dining, nightlife and artistic lifestyle...demand for housing has reached an all time high. In order to meet the demand for housing, developers have flocked to North Hollywood to build close to $3 billion in mixed use projects from 2015 - 2020.

Only 1.9 miles from 5529 Bonner Avenue lies NoHO West, a massive 25-acre mixed use development project set to reshape the west side of North Hollywood. The project, a joint venture between Merlone Geier Partners and GPI Companies, recreates the failed shopping mall at 6150 Laurel Canyon Boulevard with a mix of low-rise and mid-rise structures containing a mix of rental apartments, offices, and pedestrianoriented commercial uses.

North Hollywood has experienced a dramatic transformation over the past decade with a steady migration of higher-income residents attracted to the area’s urban amenities, improved schools, and convenient location near key employment and entertainment centers.

Where creativity meets culture, a true urban experience.

NORT

H HOL

LYWO

OD

$3+ BILLION 30+ PROJEC TSINVESTED SINCE 2010 IN THE IMMEDIATE AREA

NOHO ARTS DISTRICT MAGNOLIA BOULEVARD

NOHO WEST DEVELOPMENT PROJECT(1.9-MILES AWAY)


• Four blocks of shops, restaurants and offices

• Mix of local and national retailers

• A state-of-the-art, multi-screen movie theater with full-service dining and reserved seating

• Office space occupying the renovated Macy’s building

• Amenity-rich residential apartment units

• Over two acres of open space

• 642 residential units, seated atop a basement parking garage

• 190,000 square feet of rentable space will include uses such as a gym, a supermarket, and a multiplex cinema

• The four-story old Macy’s structure is being repurposed with more than 500,000 square feet of offices

A transformation is underway for this new mixed-use lifestyle center at the current Macy’s site on Laurel Canyon Boulevard at Oxnard Street in North Hollywood. The redevelopment will repurpose the existing Macy’s building to serve office and retail uses, and incorporate a walkable main street retail concept and amenity-rich residential apartments. The design for the site layout weaves the new development into the existing fabric of the neighborhood to include shopping, working and leisure that compliments the active and contemporary NOHO West community.

NOHO West will offer expanded retail shopping opportunities around a large open air plaza, an office building, new residences and abundant public open spaces. The retail main street may include a mix of regional retailers, restaurants and cafes, a specialty market and cinema. This anticipated mix of uses will create a unique opportunity to live, work and shop in a walkable, vibrant setting.

Three-to-six-story buildings fronting Erwin Street and Radford Avenue at the northeast corner of the development site will comprise up to 642 residential units, seated atop a basement parking garage. The east side of the side will be improved with a new retail paseo, cutting north-to-south between Erwin and Oxnard Streets. The 190,000 square feet of rentable space will include uses such as a gym, a supermarket, and a multiplex cinema. Plans also call for an eight story parking structure toward the western side of the property, with accommodations for up to 2,600 vehicles.At the center of the property, a former Macy’s department store is the lone remnant of the property’s earlier use. The four-story structure is being repurposed with more than 500,000 square feet of offices.

A 25-acre mixed use project,

Transforming the North Hollywood Community


NOHO ARTS DISTRICT

0.4 miles away

NOHO ARTS DISTRICT METRO REDLINE STATION

THE FEDERAL NOHO

North Hollywood’s vibrant “downtown” area is the NoHo Arts District. The NoHo Arts District is a community in North Hollywood that is home to contemporary theaters, art galleries, cafes, and shops. The community is generally bounded by Hatteras Street to the north, Cahuenga Blvd to the east, Tujunga Ave to the west, and Camarillo Street to the south. The area features more than twenty professional theaters, producing new work and classics, diverse art galleries, public art, and professional dance studios. The district also features the largest concentration of music recording venues west of the Mississippi. A Metro Rail station is located here, the North Hollywood station of the Red Line, and serves as the terminus of the Metro Orange Line busway.

Today, The NoHo Arts District, in conjunction with greater North Hollywood, is being transformed into a regional center, in large part as a result of the construction of Metro Stations for the Red Line and the Orange Line, two lines that have made the neighborhood into a regional hub for the San Fernando Valley. Medium- and high-density developments are being built around the Metro Station, making the Arts District a center of citywide development, with the intent of creating a walkable urban village. North Hollywood’s landscape (and the Art’s District as a result) has been transformed in recent years, with condominium towers (including a fifteen-story building on Lankershim Boulevard being built in the midst of older one-story bungalows and small apartment complexes.

The theater district includes two new large venues that expand upon existing theaters, the newly redesigned NoHo Arts Center (formerly the American Renegade Theatre) and the redesigned Historical El Portal. They add to the existing 31 theaters located in and around the NoHo Arts District. NoHo Commons, developed by J.H. Snyder Company, is located near the NoHo Arts District’s commercial core and subway station. The $100-million, 292-unit loft apartment project by Snyder was the first segment to be completed of NoHo Commons, part of a “transit village” taking form at the terminus of the Metro Red Line subway and the Orange Line busway. The NoHo Commons construction and development consisted of three phases, completing with the construction of a Laemmle Theatre. Phase III also consisted of the construction of an eight-story office on the corner of Lankershim and Weddington in 2009. The building’s primary tenant is currently the Art Institute of California Hollywood. NoHo 14, a 180-unit, fourteen-story apartment building, was built in 2004 as one of the first large-scale developments in the neighborhood.migration of higher-income residents attracted to the area’s urban amenities, improved schools, and convenient location near key employment and entertainment centers.

• NoHo Arts District is a population cultural destination with over 30 theatres, art galleries, dance studios, cafes, nightlife, and music recording venues

• Convenenient transportation via the Metro Red and Orange lines

• Idea location for access to major employment hubs including the entertainment and media companies in Universal City, Hollywood, and Burbank

The cultural epicenter of the valley's iconic entertainment industry,

A premier live/work/play community

ENTE

RTAIN

MENT

INDU

STRY


5529 Bonner Avenue offers residents convenient access to local employers, cultural attractions, and entertainment destinations without the use of a car. The property is located near stops for seven different bus lines (163/162, 154, 224, 901, 156/656, 152/353, and 183) which enables residents to easily access various locations within the city. Additionaly, the subject property is less than a quarter-mile from the North Hollywood Metro Red Line Station where residents can enjoy short travel times to Downtown LA, the San Fernando Valley, and West LA.

86 WALK SCORE

"VERY WALKABLE"Daily Errands Do Not Require a Car

The subject property has a Walk Score of 86, which is considered "Very Walkable," and supports travel by bike with a Bike Score of 70. Just a short 5-minute walk from 5529 Bonner Avenue, both the Metro Red Line and Metro Orange Line are quickly and easily accessible and connects to the Expo Line and the Gold Line. The Expo Line can transport travelers from Downtown LA to downtown Santa Monica in 45 minutes while the Gold Line connects the San Vabriel Valley and East LA with Downtown LA.

64 TRANSITSCORE

"GOOD TRANSIT"Many Nearby Public Transportation Options

Residents of 5529 Bonner Avenue are also within a short drive of some of the most desirable submarkets in Los Angeles County. The immediately adjacent neighborhoods (Toluca Lake and Universal City) are within a 5-10 minute drive while other employment centers such as Hollywood, Burbank / Glendale, and Downtown LA are within a fifteen minute drive (during light traffic conditions).

70 BIKESCORE

"VERY BIKEABLE"Flat as a Pancake with Good Bike Lanes 10

MINUTES TO HOLLYWOOD

12MINUTES TO

BURBANK / GLENDALE

14MINUTES TO

DOWNTOWN LA

TRANSIT AND PEDESTRIAN FRIENDLY

MAJOR EMPLOYERSWhile the Valley has grown into the world’s center for entertainment, aerospace giants Boeing and Northrop Grumman, and 21st Century Insurance also generate numerous well-paying jobs. Healthcare is a also a major source of employment with providers that include Kaiser Permanente, and Providence Health & Services. As a result of its large concentration of high-salaries and successful companies, the area’s median household income of $59,846 per year has risen dramatically since 2000.


5529BONNER AVENUE

NOHO

MASS-TRANSIT CONNECTIVIT Y TO 1,000,000+ JOBSResidents of 5529 Bonner Avenue can walk across the street to the Metro Red and Orange Line Stations and within minutes, connect to major employment centers, including:

Metro Red Line - Universal City/Studio City Station

Metro Red Line - Vermont/Sunset Station

Metro Red Line - Hollywood/Vine Station

Metro Orange Line - Warner Center Station

Metro Red Line - 7th & Metro Station (Downtown LA)


POPULATION 1 Mile 3 Miles 5 Miles2022 Projection

Total Population 50,419 275,057 597,7092017 Estimate

Total Population 49,468 272,809 592,9822010 Census

Total Population 46,335 258,024 562,3142000 Census

Total Population 45,700 253,506 549,666Daytime Population

2017 Estimate 37,836 299,135 615,128HOUSEHOLDS 1 Mile 3 Miles 5 Miles2022 Projection

Total Households 21,873 112,259 234,9832017 Estimate

Total Households 20,972 109,703 230,127Average (Mean) Household Size 2.34 2.46 2.54

2010 CensusTotal Households 19,355 102,511 216,072

2000 CensusTotal Households 17,911 100,212 211,474

Growth 2017-2022 4.29% 2.33% 2.11%HOUSING UNITS 1 Mile 3 Miles 5 MilesOccupied Units

2017 Estimate 21,804 112,642 236,574Owner Occupied 3,778 37,482 85,692Renter Occupied 17,195 72,221 144,435Vacant 831 2,939 6,446

HOUSEHOLDS BY INCOME 1 Mile 3 Miles 5 Miles2017 Estimate

$200,000 or More 2.76% 7.33% 8.70%$150,000 - $199,000 3.30% 5.66% 5.98%$100,000 - $149,000 10.64% 13.39% 13.44%$75,000 - $99,999 10.53% 12.47% 12.02%$50,000 - $74,999 20.18% 17.80% 17.04%$35,000 - $49,999 14.68% 12.80% 12.61%$25,000 - $34,999 11.37% 9.39% 9.11%$15,000 - $24,999 12.66% 10.11% 10.13%Under $15,000 13.88% 11.05% 10.96%

Average Household Income $64,572 $89,989 $96,019Median Household Income $47,042 $58,518 $59,846Per Capita Income $27,498 $36,289 $37,406POPULATION PROFILE 1 Mile 3 Miles 5 MilesPopulation By Age

2017 Estimate Total Population 49,468 272,809 592,982Under 20 19.0% 21.0% 21.2%20 to 34 Years 32.7% 25.6% 24.6%35 to 39 Years 9.3% 8.2% 7.9%40 to 49 Years 15.1% 15.3% 15.1%50 to 64 Years 15.6% 18.4% 18.7%Age 65+ 8.3% 11.5% 12.6%Median Age 34.2 37.0 37.6

1-Mile Radius

3-Mile Radius

5-Mile Radius

DEMO GRAPHICS

592,982To t a l P o p u l a t i o n Wi t h i n 5 - M i l e R a d i u s

GENDER

49.75%

50.25%

$96,019Average Household Income within

5 - M i l e R adius

$697,600Median Housing Value in 9 1 6 0 1

Z i p c o d e

230,127To t a l H o u s e h o l d s i n 5 - M i l e R a d i u s

8.82%From 2000

5529BONNER AVENUE

NOHO


5529BONNER AVENUE

NOHO

EXCLUSIVELY LISTED BY:

MAKAN MOSTAFAVIEncino Office

Cell 818.515.8100 Office 818.212.2706


WILL MACDONALDEncino Office

Cell 805.813.0612Office 818.212.2653


costar ah - 5529 · 2018. 11. 6. · this marketing brochure has been prepared to provide summary,...

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