OFFERING MEMORANDUM Entitled 51 UNIT MIXED USE LAND LOS ANGELES, CA OFFERING MEMORANDUM KW COMMERCIAL 1601 Pacific Coast Highway, Suite 265 Hermosa Beach, CA 90254 PRESENTED BY: HYTHUM KISWANI Senior Investment Advisor 310.431.5411 hythum@kwcommercial.com BRE #01313520 TOM WATKINS Principal 310.488.1789 tom@pacificpeakre.com BRE #01754440
OFFERING MEMORANDUM Confidentiality & Disclaimer LOS ANGELES, CA 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 transaction. All 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 conditions,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 Beach Cities in compliance with all applicable fair housing and equal opportunity laws. PRESENTED BY: KW COMMERCIAL 1601 Pacific Coast Highway, Suite 265 Hermosa Beach, CA 90254 HYTHUM KISWANI Senior Investment Advisor 310.431.5411 hythum@kwcommercial.com BRE #01313520 TOM WATKINS Principal 310.488.1789 tom@pacificpeakre.com BRE #01754440 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. www.kwcommercial.com 2
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES PROPERTY INFORMATION 1 PROPERTY INFORMATION PROPERTY INFORMATION 1 EXECUTIVE SUMMARY PROPERTY DESCRIPTION PROPERTY DETAILS COMPLETE HIGHLIGHTS ADDITIONAL PHOTOS www.kwcommercial.com 3
1 PROPERTY INFORMATION Executive Summary SALE PRICE: Subject To Offer UNITS: 51 PRICE PER UNIT: - LOT SIZE: 0.19 Acres BUILDING SIZE: 33,703 SF YEAR BUILT: 2016 ZONING: LACW MARKET: Greater Downtown SUB MARKET: Downtown Los Angeles PROPERTY OVERVIEW 51 units, mixed-use development next to LA City Center Studios in Downtown LA. Property will be delivered with all necessary entitlements to pull permits and begin construction PROPERTY FEATURES Type 1- Construction proposed Automated Valet Parking Skyline Views from most units Prized LACW zoning 88 Walking score "Rockwellian" tree lined street.5 Miles from Central downtown-10 minute walk Full Market Lease Rates. Rooftop Deck w/views CROSS STREETS: Lucas And Bixel www.kwcommercial.com 4
1 PROPERTY INFORMATION Property Description PROPERTY OVERVIEW 51 units, mixed-use development next to LA City Center Studios in Downtown LA. Property will be delivered with all necessary entitlements to pull permits and begin construction LOCATION OVERVIEW LA City Center Residences is a small community of forty-three contemporary residences located in the Studio District of Downtown Los Angeles. City Center Residences offers dramatic skyline vistas, and have a exclusive location only a half block from LA City Center Studios. Furthermore, The project is in very near proximity to the Financial District, 7th and Fig, MOCA, Staples Center, LA Live, the Walt Disney Concert Hall, along with all great new developments coming to downtown LA. PARKING Automated Valet Parking. LOCATION LA CITY WEST-MINUTES FROM DOWNTOWN WALKSCORE WALKSCORE OF 88! www.kwcommercial.com 5
Property Details 1 PROPERTY INFORMATION PROPERTY NAME: LA City Center Residences STREET ADDRESS: 1322 Maryland CITY, STATE, ZIP: APN: 5152-002-011 LOT SIZE: 0.19 AC BUILDING SIZE: 33,703 SF BUILDING CLASS: A ZONING: LACW PARKING SPACES: 60 PARKING RATIO: 1.3/1 YEAR BUILT: 2016 NUMBER OF STORIES: 13 FOUNDATION: CEMENT WALLS: WOOD NUMBER OF UNITS: 51 www.kwcommercial.com 6
Complete Highlights 1 PROPERTY INFORMATION PROPERTY HIGHLIGHTS DELIVERED READY TO PULL PERMITS 51 UNITS & RETAIL EXCELLENT RENTAL AREA SKYLINE DTLA VIEWS OFF ROOFTOP DECK AUTOMATED PARKING www.kwcommercial.com 7
1 PROPERTY INFORMATION Additional Photos www.kwcommercial.com 8
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES LOCATION INFORMATION 2 LOCATION INFORMATION LOCATION INFORMATION 2 REGIONAL MAP LOCATION MAPS AERIAL MAP UNIT MIX SUMMARY
Regional Map 2 LOCATION INFORMATION 1322 Maryland www.kwcommercial.com 10
2 LOCATION INFORMATION Location Maps www.kwcommercial.com 11
2 LOCATION INFORMATION Aerial Map www.kwcommercial.com 12
Unit Mix Summary 2 LOCATION INFORMATION UNIT TYPE COUNT % TOTAL SIZE (SF) RENT RENT/SF MARKET RENT MARKET RENT/SF DEPOSIT Studio 24 47.1 400 $1,050 $2.63 One Bedroom 25 49.0 600 $1,200 $2.00 Two Bedroom 2 3.9 950 $1,950 $2.05 Retail 840 $1,680 $2.00 Totals / Averages 51 100% 26,500 $59,100 $2.23 $0 $0 www.kwcommercial.com 13
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES SALE COMPARABLES 3 SALE COMPARABLES SALE COMPARABLES 3 SALE COMPS SALE COMPS SUMMARY SALE COMPS MAP
3 SALE COMPARABLES Sale Comps SUBJECT PROPERTY 1322 Maryland 1 Sale Price: Subject To Offer Year Built: 2016 Building SF: 33,703 SF Price PSF: - No. Units: 51 Price / Unit: - ON MARKET MIXED-USE MULTI FAMILY APARTMENT BUILDING 1312-1320 W 8th St Sale Price: $2,900,000 1 On market property will be delivered fully entitled to be build 36 rental units and 3,500 Sf of retail. Price represents $80,555 per unit. 2 1135-1145 West 7th Street Los Angeles, CA 90026 Sale Price: $9,200,000 Lot Size: 54929 AC Price PSF: $0.00 Price / AC: $167 Closed: 05/07/2014 2 Fully entitled via Vesting Tentative Tract Map for 117 units, plus 6,881 S.F. of retail. Same Zoning as subject property. 3 THE FLATS 750 S Garland Ave Sale Price: $33,450,000 Year Built: 1968 Building SF: 82,700 SF Price PSF $404.47 No. Units 205 Price / Unit $163,170 CAP: 6% Closed: 09/17/2014 3 Renovated in 2005, the property sold for $404/ SF. The property served Occupancy: 92% as a great value- Add opportunity for the buyer. www.kwcommercial.com 15
3 SALE COMPARABLES Sale Comps 4 1241-1243 W 6th Street Sale Price: $3,300,000 Year Built: 1910 Building SF: 22,978 SF Price PSF $143.62 No. Units 46 Price / Unit $71,739 CAP: 5.76% Closed: 11/25/2014 Occupancy: 46 Units sitting on 90% a 7,418 SF Lot sold GRM: for $3,300,000. 9.73 NOI: $219,425 4 www.kwcommercial.com 16
3 SALE COMPARABLES Sale Comps Summary SUBJECT PROPERTY PRICE BLDG SF PRICE/SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS LA City Center Residences 1322 Maryland Subject To Offer 33,703 SF - - - - - 51 SALE COMPS PRICE BLDG SF PRICE/SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS CLOSE 1 ON MARKET Mixed-use multi family apartment building 1312-1320 W 8th St $2,900,000 - - - - - - - On Market 2 1135-1145 West 7th Street Los Angeles, CA 90026 3 The Flats 750 S Garland Ave 4 1241-1243 W 6th Street $9,200,000 - - $0.00 - - - - 05/07/2014 $33,450,000 82,700 SF $404.47 $0.02 $163,170 6% - 205 09/17/2014 $3,300,000 22,978 SF $143.62 $0.01 $71,739 5.76% 9.73 46 11/25/2014 PRICE PRICE/SF PRICE/SF PRICE/UNIT CAP GRM # OF UNITS TOTALS/AVERAGES $12,212,500 $231.13 $0.01 $97,310 5.88% 9.73 125.5 www.kwcommercial.com 17
3 SALE COMPARABLES Sale Comps Map SUBJECT PROPERTY 1322 Maryland ON MARKET MIXED-USE MULTI FAMILY APARTMENT BUILDING 1 3 1312-1320 W 8th St 1135-1145 West 7th Street Los Angeles, CA 90026 2 THE FLATS 1241-1243 W 6th Street 750 S Garland Ave 4 www.kwcommercial.com 18
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES RENT COMPARABLES 4 RENT COMPARABLES RENT COMPARABLES 4 RENT COMPS RENT COMPS SUMMARY RENT COMPS MAP
regetni ot lin morf noisrevnoc ticilpmi on :rore diuqil regetni ot lin morf noisrevnoc ticilpmi on :rore diuqil 4 RENT COMPARABLES Rent Comps SUBJECT PROPERTY 1322 Maryland 1 BIXEL AT 5TH 1311 W 5th 1 Year Built: 2016 Lot Size: 0.19 AC No. Units: 51 Avg. Rent/SF: $2.23 Avg. Rent: $1,158 Avg. Size: 519 SF Year Built: 2007 Bldg Size: 81,491 SF Lot Size: 35502 AC No. Units: 80 Occupancy: 95% UNIT TYPE # UNITS % OF SIZE SF RENT RENT/ SF MIN RENT MAX RENT UNIT TYPE # UNITS % OF SIZE SF RENT RENT/ SF MIN RENT MAX RENT Studio 24 47.1 400 $1,050 $2.63 One Bedroom 25 49.0 600 $1,200 $2.00 Two Bedroom 2 3.9 950 $1,950 $2.05 Studio $1,499 TOTAL/AVG 0 100% LIQUID ERROR: DIVIDED BY 0 LIQUID ERROR: DIVIDED BY 0 Retail 840 $1,680 $2.00 TOTAL/AVG 51 100% 519 $1,158 $2.23 $0.00 $0.00 Bixel at 5th backs up to subject property. www.kwcommercial.com 20
regetni ot lin morf noisrevnoc ticilpmi on :rore diuqil regetni ot lin morf noisrevnoc ticilpmi on :rore diuqil 4 RENT COMPARABLES Rent Comps 2 1111 WILSHIRE 3 1305 INGRAHAM ST 1111 Wilshire 1305 INGRAHAM ST 2 3 Year Built: 2012 Bldg Size: 215,522 SF No. Units: 210 Occupancy: 95% Year Built: 1915 Bldg Size: 57,924 SF Lot Size: 14616 AC No. Units: 83 Occupancy: 97% UNIT TYPE # UNITS % OF SIZE SF RENT RENT/ SF MIN RENT MAX RENT UNIT TYPE # UNITS % OF SIZE SF RENT RENT/ SF MIN RENT MAX RENT Studio 550 $2,105 $3.83 Studio $1,075 TOTAL/AVG 0 100% LIQUID ERROR: DIVIDED BY 0 LIQUID ERROR: DIVIDED BY 0 TOTAL/AVG 0 100% LIQUID ERROR: DIVIDED BY 0 LIQUID ERROR: DIVIDED BY 0 550 SF rents for $2,105. Amenities Include Fantastic roof deck, saline pool, fire pit area, two level fitness center, parking. Upgraded electrical and plumbing. No on site parking available. www.kwcommercial.com 21
regetni ot lin morf noisrevnoc ticilpmi on :rore diuqil 4 RENT COMPARABLES Rent Comps 4 CANVAS LA 138 N Beaudry Ave 4 Year Built: 2007 Bldg Size: 224,969 SF No. Units: 204 Occupancy: 90% UNIT TYPE # UNITS % OF SIZE SF RENT RENT/ SF MIN RENT MAX RENT Studio 564 $1,913 $3.39 TOTAL/AVG 0 100% LIQUID ERROR: DIVIDED BY 0 LIQUID ERROR: DIVIDED BY 0 Property offers the perfect blend of modern architectural design, resort-quality amenities, and charming interiors that will surely delight tenants. www.kwcommercial.com 22
4 RENT COMPARABLES Rent Comps Summary SUBJECT PROPERTY BLDG SF # OF UNITS OCCUPANCY % LA City Center Residences 1322 Maryland 33,703 SF 51 0.0% RENT COMPS BLDG SF OCCUPANCY % 1 2 3 4 Bixel at 5th 1311 W 5th 1111 Wilshire 1111 Wilshire 1305 INGRAHAM ST 1305 INGRAHAM ST Canvas LA 138 N Beaudry Ave 81,491 SF 95% 215,522 SF 95% 57,924 SF 97% 224,969 SF 90% BLDG SF OCCUPANCY % TOTALS/ 144,977 SF 94.25% AVERAGES www.kwcommercial.com 23
Rent Comps Map 4 RENT COMPARABLES SUBJECT PROPERTY 1322 Maryland BIXEL AT 5TH 1 1311 W 5th 1111 WILSHIRE 2 1111 Wilshire 1305 INGRAHAM ST 3 1305 INGRAHAM ST CANVAS LA 4 138 N Beaudry Ave www.kwcommercial.com 24
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES DEMOGRAPHICS 5 DEMOGRAPHICS DEMOGRAPHICS 5 DEMOGRAPHICS MAP
Demographics Map 5 DEMOGRAPHICS POPULATION 0.5 MILES 1 MILE 1.5 MILES TOTAL POPULATION 21,517 78,399 159,669 MEDIAN AGE 28.9 30.4 32.0 MEDIAN AGE (MALE) 29.1 29.9 31.6 MEDIAN AGE (FEMALE) 28.5 31.0 32.7 HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 1.5 MILES TOTAL HOUSEHOLDS 7,972 29,272 59,133 # OF PERSONS PER HH 2.7 2.7 2.7 AVERAGE HH INCOME $36,402 $39,271 $39,216 AVERAGE HOUSE VALUE $542,683 $491,676 $492,796 RACE 0.5 MILES 1 MILE 1.5 MILES % WHITE 33.7% 37.7% 36.8% % BLACK 5.9% 5.5% 6.3% % ASIAN 12.2% 14.8% 18.2% % HAWAIIAN 0.3% 0.4% 0.3% % INDIAN 1.8% 1.9% 1.3% % OTHER 44.7% 38.4% 35.5% ETHNICITY 0.5 MILES 1 MILE 1.5 MILES % HISPANIC 75.0% 71.0% 65.3% * Demographic data derived from 2010 US Census www.kwcommercial.com 26
OFFERING MEMORANDUM LA PROPOSAL CITY CENTER FOR COMMERCIAL RESIDENCES SERVICES ADDITIONAL INFORMATION 6 ADDITIONAL INFORMATION ADDITIONAL INFORMATION 6