™

Multifamily Development OpportunityPrice Reduced $200,000 to $5,795,0006530 Sepulveda Blvd, Van Nuys, CA 91411 | Potential for 68 Units

PRESENTED BY

David J. Harrington National Director - Multifamily

Direct +1.310.295.1170Mobile +1.310.497.5590david.harrington@matthews.comLicense No. 01320460

™

The Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . 4Property Description. . . . . . . . . . . . . . . . . . . . . . . 5Unit Description . . . . . . . . . . . . . . . . . . . . . . . . . 6Local Description. . . . . . . . . . . . . . . . . . . . . . . . . 7Location Maps . . . . . . . . . . . . . . . . . . . . . . . . . 8-9Demographics . . . . . . . . . . . . . . . . . . . . . . . . . 1068 Unit Apartment Development Scenario . . . . . . . . 12-13Sale Comparables . . . . . . . . . . . . . . . . . . . . . . 14-15Rent Comparables . . . . . . . . . . . . . . . . . . . . . . 16-19

TABLE OF CONTENTS

Brent Sprenkle Managing Director - Berkadia

Direct +1.310.470.4982brent.sprenkle@berkadia.com

Daniel Withers Director - Berkadia

Direct +1.818.615.1606brent.sprenkle@berkadia.com

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The Opportunity

Potential Development Profit of $6,800,000 - Buyer to verify projections & assumptions

- Permit Ready Development Opportunity (RTI) - Fully Approved Plans for 68 Units

- High Visibility and High Demand Location - No Low Income or Tenant Relocation

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Property Description

6530 Sepulveda Boulevard is a vacant parcel of land located in a high demand rental market in Van Nuys, just to

the north of the border of Sherman Oaks in the city of Los Angeles, California. The property consist of 28,146

square feet of land zoned R4-1-RIO. The RIO designation is for the river improvement overlay district. The seller has

obtained approval for the construction of 68 apartments in a structure that is four stories over a level of on-grade

parking and one level of subterranean.

The property boasts 95 feet of frontage on the heavily trafficked and high visibility Sepulveda Boulevard, providing

excellent exposure for leasing. The seller has obtained approved plans that are ready to issue (RTI). Because the

property is vacant, a developer could obtain permits and quickly start the development process. In addition, there is

no existing structure to demolish, no tenants to relocate and no low, moderate or affordable housing requirements

per the seller. Buyer to independently verify.

In particular, Matthews Multifamily Advisors & Berkadia Real Estate Advisors, and Seller have not made any

investigation of the actual property, the ability to develop the property in any specific manner, the approval status of

any and all permits, the accuracy, completeness and suitability of any and all plans and drawings, the tenants, the

operating history, financial reports, leases, square-footage, age or any other aspect of the property, including but not

limited to any potential environmental problems that may exist, and make no warranty or representation whatsoever

concerning these issues.

APPROXIMATE UNIT CALCULATIONS

# Mix Square Feet Total Square Feet

2-101-301/UNIT 2 BDRM 2 BATH 895x2 1,790

2-201-401/UNIT 2 BDRM 2 BATH 916x2 1,832

4-102-202-302-402/UNIT 2 BDRM 2 BATH 867x4 3,468

4-103-203-303-403/UNIT 2 BDRM 2 BATH 934x4 3,736

4-104-204-304-404/UNIT 2 BDRM 2 BATH 932x4 3,728

4-105-205-305-405/UNIT 2 BDRM 2 BATH 932x4 3,728

4-106-206-306-406/UNIT 2 BDRM 2 BATH 935x4 3,740

4-107-207-307-407/UNIT 2 BDRM 2 BATH 930x4 3,720

4-108-208-308-408/UNIT 1 BDRM 1 BATH 555x4 2,220

4-109-209-309-409/UNIT 2 BDRM 2 BATH 929x4 3,716

4-110-210-310-410/UNIT 2 BDRM 2 BATH 954x4 3,816

4-111-211-311-411/UNIT 2 BDRM 2 BATH 950x4 3,800

4-112-212-312-412/UNIT 1 BDRM 1 BATH 569x4 2,276

4-113-213-313-413/UNIT 2 BDRM 2 BATH 955x4 3,820

4-114-214-314-414/UNIT 2 BDRM 2 BATH 948x4 3,792

4-115-215-315-415/UNIT 1 BDRM 1 BATH 549x4 2,196

4-116-216-316-416/UNIT 2 BDRM 2 BATH 945x4 3,780

4-117-217-317-417/UNIT 2 BDRM 2 BATH 922x4 3,688

68 Units 58,846

Corridor/Walkway (4 Levels) 7,860

Lobby 288

= 66,994

Recreation (Garage Level) 2050

Total = 69,044

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Unit Description

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Location Description

Home to more than 173,000 residents, the city of Van Nuys is located in the Los Angeles metro area. One of the world’s most significant economic and cultural centers, Los Angeles County is home to more than 10 million residents, comprising 26% of California’s total population and making it the most populous county in the United States.

According to CoreLogic, the median home price in Van Nuys was $695,000 as of July 2015, increasing 18.8% from one year prior. The median household income in the city of Van Nuys is projected to surpass $48,860 by 2020, increasing 4% over the current median income of $46,980.

Warner Center, known as the “Downtown of the Valley”, is a regional center located in the southwestern corner of the San Fernando Valley, just eight miles from the site, and contains a diverse mix of companies and industries with a concentration in healthcare, financial and professional services. Approximately 40,000 employees work within the Warner Center area at major businesses including Health Net, Anthem Blue Cross, and Ajilon Finance.

Major employers located less than 30 minutes from the subject property include: Universal Studios (15,000 employees), Van Nuys Airport (12,300 workers), Walt Disney Studios (7,900 employees), Warner Bros. Studios (7,400 employees), Kaiser Permanente Los Angeles Medical Center (5,500 employees), Paramount Pictures (5,000 employees), Children’s Hospital Los Angeles (5,000 employees), and California State University Northridge (3,708 employees).

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6500 SEPULVEDA BOULEVARD

VAN NUYS, CA 91411

POINTS OF INTEREST AERIAL

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ITE 9sepulveda.BerkadiaREA.com

Location Map

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Aerial View

Population 1-Mile 3-Mile 5-Mile

2021 Projection 44,053 344,539 819,231

2016 Estimate 42,221 329,778 785,453

2010 Census 40,327 314,805 751,692

2000 Census 41,130 304,377 719,789

Growth 2016-2021 4.34% 4.48% 4.30%

Growth 2010-2016 4.70% 4.76% 4.49%

Growth 2000-2010 (1.95%) 3.43% 4.43%

Households

2021 Projection 13,535 102,692 262,492

2016 Estimate 12,875 98,343 251,924

2010 Census 12,148 94,212 242,251

2000 Census 12,509 92,724 236,561

Growth 2016-2021 5.13% 4.42% 4.20%

Growth 2010-2016 5.98% 4.38% 3.99%

Growth 2000-2010 (2.89) 1.60% 2.41%

2016 Est. Average Household Size 3.25 3.32 3.08

Income

$ 0 - $14,999 2,245 137,85 33,039

$ 15,000 - $24,999 1,913 13,154 29,043

$ 25,000 - $34,999 1,787 11852 26,242

$ 35,000 - $49,999 2,086 14729 34,544

$ 50,000 - $74,999 2,056 16496 43,875

$ 75,000 - $99,999 1,234 10323 28,552

$100,000 - $124,999 750 7,010 19,453

$125,000 - $149,999 333 4,008 11,943

$150,000 - $199,999 244 3,697 11,632

$200,000 - $249,999 99 1,479 4,925

$250,000 - $499,999 96 1,391 6,097

$500,000+ 31 418 2,577

2016 Average Household Income $52,581 $63,785 $73,999

2016 Median Household Income $38,541 $45,571 $51,762

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Demographics Report

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Demographics Report

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68 Unit Apartment Development Scenario68 6530 Sepulveda CA 90024

Units Address State Zip

$400,000 66,948 2017Cost/Unit Proforma Cap Net Sq. Ft. Yr. Blt

#DIV/0! $406.29Proforma GRM Cost Per Sq. Ft.

28,147Terms Est. Lot Sq. Ft.

ESTIMATED ANNUALIZED OPERATING DATA: EST. RATE Proforma

$1,824,7203.0% ($54,742)0.5% ($9,124)

$1,760,85532.1% ($585,482)

$1,175,3733.50% ($879,409)

$295,9642.7%

1.34-100%

SCHEDULED INCOME:

# Units Type % Of TotalAvg. Est.

Actual Total IncomeAvg Est Rent

Per Ft12 1+1 17.65% $1,680 $20,160 $3.0056 2+2 82.35% $2,325 $130,200 $2.50

$1,700 Total Monthly Income: $152,060

ESTIMATED ANNUALIZED EXPENSES:Per Unit % $

Taxes: 1.3000% $7,072 $353,600Insurance: $350 $23,800Off Site Management: 3.00% $54,742On Site Management $500 $34,000Utilities: $700 $47,600Administration: $30 $2,040Maintenance & Repairs: $500 $34,000Turnover $300 $20,400Contracted Services: $200 $13,600Advertising & Promotion: $25 $1,700TOTAL EXPENSES: $585,482

$8,610 /UNIT$9.96 /Sq. Ft.

UTILITY REIMBURSEMENT:Water/Sewer: OwnerGas: TenantElectric: Tenant Brent Sprenkle

930Misc/Rubs:

DESCRIPTION

This describes the hypotheticalincome, expenses and potential

value of a new construction 68 unithigh end apartment building

Debt Coverage Ratio:

Rental Upside:

Est. Sq.Footage

560

Less Loan Payments:Pre-Tax Cash Flow:

Cash on Cash:

Less Concessions:Gross Operating Income:

Less Expenses:Net Operating Income:

Loan Amount

Scheduled Gross Income:Less Vacancy:

Down Payment Percent Year 1 GRM Year 2 GRM

$16,320,000 Market Rates

Price Year 1 CAP Year 2 Cap

$10,880,000 40% 14.91 #DIV/0!

Los Angeles (Van Nuys)City

$27,200,000 4.32%

The information listed above has been obtained from sources we believe to be reliable, however, we cannot accept responsibility for its correctness. All proforma market rents and square footages are estimated.

68 Unit Apartment Development Scenario

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68 Unit Apartment Development Scenario68 6530 Sepulveda CA 91411

ResidentialUnits

Address State Zip

$5,995,000 $88,162 $213 $101.96 28,147 66,948 58,800 2017Land Price Cost Per Unit Cost Per Sq. Ft.

LandLand Cost PerSalable Sq. Ft.

Gross LandSq. Ft.

Est. GrossBldg. Sq. Ft.

Est. Net Bldg.Sq. Ft.

Completion Year

$13,230,000 $19,225,000 $225 $463 R1-1/R4-1 865 $2.69 136Estimated Hardand Soft Costs

Total ProjectCosts

Construction Cost/ Net Sq. Ft.

AverageDispositionPrice/Sq.Ft.

Zoning Average UnitSize

Projected RentPer Sq. Ft.

EstimatedParking Spaces

Estimated Construction Costs and Sales Assumptions

($5,995,000)($13,230,000)($19,225,000)

($624,813)Total Project and Carrying Costs ($19,849,813)

$27,200,000($680,000)

($19,849,813)

$6,670,18841.74%

Projected Unit Mix and Sales Assumptions

# UnitsEstimated Per Unit

Sq. Footage Est. Total. Footage12 560 6,72056 930 52,080

Common Areas 8,148Proposed Total Building Square Feet: 66,948 Total Disposition Value:

2+2 $2,325 $130,200

$27,200,000

DESCRIPTION

This describes the development scenario of constructing a 68 unit apartment building.

Buyer to verify all items of this proposed development scenario. All assumptions in thisanalysis are estimated including density, tenant relocation fees, rent control restrictions, low

income or affordable unit requirements, number of allowable units, parking, developmentpotential, constuction costs, time frames, rent control restrictions, lease rates and estimated

sale values.

Type Estimated Rent Per Unit Total Rent1+1 $1,680 $20,160

Closing/Commission Cost at 2.5%Less Total Project and Carrying Costs

Net ProfitAnnualized Cash on Cash Return Assuming 30% Cash Requirement plus Financing in a 24 Month Horizon

Carrying Costs (15 Months, 65% of Total Project Costs, 4% Int. Only)

Project Disposition Price of Completed Project

Land Acquisition CostTotal Hard and Soft Dev. CostsTotal Project Costs

Los Angeles (Van Nuys)City/Neighborhood

68 Unit Apartment Development Scenario

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COMPARABLE SALE PROPERTIES

6530 SEPULVEDA DEVELOPMENT SITE6530sepulveda.BerkadiaREA.com

PROPERTY INFORMATION SALES DATA

Property Units Built Rentable SF Price Price/Unit Price/SF Cap

Rate

GRM Sale

Date

1Magnolia Apartments 10407 Magnolia Boulevard

North Hollywood, CA 91601

110 2008 105,786 $45,900,000 $417,273 $433.89 4.00% - 11/15

2El Dorado Villas 4510 Murietta Avenue

Sherman Oaks, CA 91423

33 2008 55,317 $19,500,000 $590,909 $352.51 3.80% - 9/15

3Valleyheart 14056 Valleyheart Drive

Sherman Oaks, CA 91423

54 1989 65,282 $17,820,000 $330,000 $272.97 4.24% - 6/15

4The Verandas 21535 Roscoe Boulevard

Canoga Park, CA 91304

81 2012 97,800 $26,300,000 $324,691 $268.92 4.25% - 6/15

55235 Kester 5235 Kester Avenue

Sherman Oaks, CA 91411

71 1988 84,347 $22,720,000 $320,000 $269.36 4.02% - 9/15

6Existing Apartment 10830 Kling Street

North Hollywood, CA 91602

12 2015 27,514 $7,500,000 $625,000 $272.59 - - 2/15

7Existing Apartment 4632-4646 Vista Del Monte Avenue

Sherman Oaks , CA 91403

34 2014 41,643 $16,510,000 $485,588 $396.47 4.24% - 6/15

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Comparable Sale Properties

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COMPARABLE SALE PROPERTIES

6530 SEPULVEDA DEVELOPMENT SITE6530sepulveda.BerkadiaREA.com

S. 6530 Sepulveda Development Site 6530 Sepulveda Boulevard Van Nuys CA

1. Magnolia Apartments 10407 Magnolia Boulevard North Hollywood CA

2. El Dorado Villas 4510 Murietta Avenue Sherman Oaks CA

3. Valleyheart 14056 Valleyheart Drive Sherman Oaks CA

4. The Verandas 21535 Roscoe Boulevard Canoga Park CA

5. 5235 Kester 5235 Kester Avenue Sherman Oaks CA

6. Existing Apartment 10830 Kling Street North Hollywood CA

7. Existing Apartment 4632-4646 Vista Del Monte Avenue Sherman Oaks CA

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Comparable Sale Properties Map

COMPARABLE SALE PROPERTIES

6530 SEPULVEDA DEVELOPMENT SITE6530sepulveda.BerkadiaREA.com

S. 6530 Sepulveda Development Site 6530 Sepulveda Boulevard Van Nuys CA

1. Magnolia Apartments 10407 Magnolia Boulevard North Hollywood CA

2. El Dorado Villas 4510 Murietta Avenue Sherman Oaks CA

3. Valleyheart 14056 Valleyheart Drive Sherman Oaks CA

4. The Verandas 21535 Roscoe Boulevard Canoga Park CA

5. 5235 Kester 5235 Kester Avenue Sherman Oaks CA

6. Existing Apartment 10830 Kling Street North Hollywood CA

7. Existing Apartment 4632-4646 Vista Del Monte Avenue Sherman Oaks CA

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