14153 Victory Boulevard, Van Nuys, CA 91401 · The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some

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

1 4 1 5 3 V I C T O R Y B O U L E VA R D , VA N N U Y S , C A

™

DANIEL WITHERS Senior Vice President

D: (818) 923-6107 M: (310) 365-5054E: [email protected] No. 01325901 (CA)

LISTED BY

JOHN BOYETT Associate


DAVID HARRINGTON EVP & National Director


KELLY MORGAN Kelly Morgan Commercial Group

D: (310) 836-3638 A: 2701 Ocean Park Blvd. # 140, Santa Monica, CA 90405E: [email protected] License No. 01898026 (CA)

PROPERTY OVERVIEW LOCATION OVERVIEW4 10 FINANCIAL OVERVIEW12



D: (310) 836-3638 A: 2701 Ocean Park Blvd. # 140, Santa Monica, CA 90405E: [email protected] License No. 01898026 (CA)

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

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The Victory presents a rare opportunity to own a completely remodeled 32-unit apartment building in Van Nuys, CA. The property offers an excellent unit mix of 29 one-bedroom, one-bath, 2 two-bedroom, one-bath and 1 three-bedroom, two-bath. 24 units have been remodeled to provide a high-end mid-century modern appeal.

There is an additional 42% rent upside in the remaining 7 units that yet to be remodeled.

Key unit features include stainless steel appliances, quartz countertops, recessed lighting, brass fixtures, central Quiet Split system air conditioning, ceiling fans, and vinyl wood flooring. Additionally, the community provides tenants with a central courtyard, controlled gated access, parking, and an on-site laundry facility.

Situated in one of the highest density rental markets in Los Angeles, the property offers an excellent walk score of 81. Tenants can enjoy an easy lifestyle with nearby restaurants, coffee shops, shopping, and entertainment.

O P P O RT UN I T Y

» 32-Units, Built in 1977

» Unit Mix: (29) 1+1, (2) 2+1, (1) 3+2

» 24 Fully Renovated Units with New Flooring, Bathrooms, Kitchen, Stainless Steel Appliances

» Secure Gated Access

» On-Site Laundry Facility

» Barn Doors and Balconies in Select Units

» Walk Score of 81 – Very Walkable

» 21,284 Rentable SqFt on a 19,408 SqFt Lot with LAR3 Zoning

P RO P E RT Y D E S C R I P T I ON

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PA R C E L M A P

PHYSICAL DESCRIPTION

GROSS SF

21,284

AVG SF PER UNIT

665

APN

2237-019-028

YEAR BUILT

1977 0.45

LOT SIZENO. OF UNITS

32

VICTORY BLVD

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R E G I ONA L M A P

L O C A L M A P

8

9

L O C A T I O NO V E R V I E W

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ECONOMIC SNAPSHOT

Van Nuys is located in Los Angeles County and part of the Los Angeles-Long Beach-Anaheim MSA, the 13th-most populated metropolitan area in the world and the second-largest MSA in the United States. The city of Van Nuys is a thriving community within central San Fernando Valley and convenient access to Interstate 405 or Metrolink rail service allows for an easy commute to employment hubs throughout Los Angeles County.

• Valley Presbyterian Hospital is a 350-bed general medical and surgical hospital with more than 500 physicians, situated within walking distance of the property.

• Van Nuys Airport (VNY), located two miles northwest of the property, plays a crucial role in the Southern California airport system and ranks as one of the world’s busiest general aviation airports serving an estimated 320,000 passengers per year. With over 100 businesses located in the 730-acre airport, VNY has an economic impact of more than $2 billion annually to the Southern California economy, supporting over 10,480 jobs directly and generating an earnings impact of $707 million.

• Located less than 20 minutes from the property, construction is progressing on NBC Universal’s $1.6 billion Evolution Plan at its 391-acre Universal City campus. This entire project will have an economic impact of $6.3 billion, supporting 31,000 construction and production jobs, and create 12,000 new permanent positions.

• Warner Center, known as the “Downtown of the Valley,” is a regional center located 20 minutes west of the property. Warner Center 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.

Population 1 Mile 3 Mile 5 Mile

2024 Projection 53,801 341,088 753,963

2019 Estimate 52,378 330,666 729,874

2010 Census 53,801 341,088 753,963

Growth 2019-2024 2.72% 3.15% 3.30%

Growth 2010-2019 3.31% 4.36% 4.74%

Households 1 Mile 3 Mile 5 Mile

2024 Projection 17,391 121,760 256,907

2019 Estimate 16,877 117,892 248,417

2010 Census 16,195 112,701 236,857

Growth 2019-2024 3.05% 3.28% 3.42%

Growth 2010-2019 4.21% 4.61% 4.88%

Income 1 Mile 3 Mile 5 Mile

Average HH Income $64,701 $87,244 $95,954

Median HH Income $42,675 $56,764 $61,821

DEMOGRAPHICS

VAN NUYS

Van Nuys is one of the fastest growing cities in Los Angeles with a projected growth of over 4% in 2022. Boasting a population of more than 110,000 it is one of the densest cities in Los Angeles County and home to a large range of employers. Bordering other large cities such as Sherman Oaks, North Hollywood, and Reseda it provides for ample employment, shopping, and dining opportunities.

The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some 50,000 businesses employing over 700,000 workers, the most well-known of which are involved in motion pictures, recording, and television production and the medical and biotech industries. Among the top entertainment companies in the San Fernando Valley are Disney, Warner Brothers, NBC, and DreamWorks. Other important segments of the local economy include financial and health services as well as aerospace, biotech, and high-tech manufacturing, with BlueShield, Amgen, and Kaiser to name a few.

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F I N A N C I A LO V E R V I E W

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14153 VICTORY BOULEVARDVAN NUYS, CA 91401

Sale Price $9,200,000

Price/Unit $287,500

Price/Foot $432.25

Cap Rate (Current | Pro Forma | Market) 5.00% | 5.76%

GRM (Current | Pro Forma | Market) 13.57 | 12.23

I N V E S T M E N T S U M M A R Y

TotalUnits

Unit Mix

Unit Mix%

CurrentAvg Rent

Current Monthly Rent

MarketRent

MarketMonthly Rent

8 1+1 25% $1,285 $10,276 $1,900 $15,200

21 1+1 R 66% $1,860 $39,070 $1,900 $39,900

2 2+1 R 6% $2,023 $4,045 $2,200 $4,400

1 3+2 R 3% $2,600 $2,600 $2,700 $2,700

Scheduled Monthly Rent: $55,991 $62,200

Scheduled Yearly Rent: $671,898 $746,400

U N I T M I X

R = Renovated Unit

Number of Units: 32

Year Built: 1977

APN: 2237-019-028

Gross Sq. Ft.: 21,284

Average S.F. Per Unit: 665

Lot Size (Acres): 0.45

Density: 71

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Pro Forma MarketScheduled Gross Income: $671,898 Current Rent $746,400 11% UpsideLess Vacancy Reserve: $20,157 3.0% $22,392 3.0%Other Income: $6,144 $6,144Gross Operating Income: $657,885 $730,152Expenses: $198,048 29.48% $200,216 26.82%Net Operating Income: $459,837 $529,936Loan Payments: $383,215 $383,215Pre-Tax Cash Flow: $76,622 2.96% $146,721 5.66%Plus Principal Reduction: $114,379 $114,379Total Return Before Taxes: $191,002 7.37% $261,101 10.08%* As a percent of Scheduled Gross Income** As a percent of Down Payment

A N N U A L I Z E D O P E R A T I N G D A T A

% ofSGI

*Pro Forma

Per Unit

% of SGI Market Per

UnitProperty Taxes 1.200000% x Sale Price 16.4% $110,400 $3,450 14.8% $110,400 $3,450Off-Site Management 3.0% x GOI 2.9% $19,737 $617 2.9% $21,905 $685Insurance Actual 2018 1.2% $8,225 $257 1.1% $8,225 $257Payroll $1,000 x 12 Months 1.8% $12,000 $375 1.6% $12,000 $375Repairs & Maintenance $250 x Units 1.2% $8,000 $250 1.1% $8,000 $250Landscaping Actual 2018 0.4% $2,880 $90 0.4% $2,880 $90Pest Control Estimate 0.1% $600 $19 0.1% $600 $19Utilities Actual 2018 4.0% $26,804 $838 3.6% $26,804 $838Trash Actual 2018 0.8% $5,202 $163 0.7% $5,202 $163Pool Estimate 0.1% $1,000 $31 0.1% $1,000 $31General Administration $100 x Units 0.5% $3,200 $100 0.4% $3,200 $100Total Expenses 29.5% $198,048 $6,189 26.8% $200,216 $6,257

P R O F O R M A A N N U A L O P E R A T I N G E X P E N S E S

FINANCINGLoan Amount $6,609,000 Terms: 30Down Payment: 28% $2,591,000 Interest: 4.10%Yearly Pmt: $383,215 Monthly Pmt: $31,935Debt Coverage: 1.20

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# Unit Mix Rent Market Rent1 101 1+1 $1,060 $1,9002 102 1+1 R $1,850 $1,9003 103 1+1 R $1,850 $1,9004 104 1+1 $983 $1,9005 105 1+1 R $1,850 $1,9006 106 1+1 $1,134 $1,9007 107 1+1 R $1,885 $1,9008 108 1+1 $1,850 $1,9009 109 1+1 R $1,850 $1,90010 110 1+1 R $1,850 $1,90011 111 1+1 R $1,850 $1,90012 112 1+1 R $1,800 $1,90013 113 1+1 R $1,885 $1,90014 114 1+1 R $1,850 $1,90015 115 1+1 R $1,850 $1,90016 116 1+1 R $1,850 $1,90017 201 3+2 R $2,600 $2,70018 202 1+1 $1,090 $1,90019 203 1+1 $1,115 $1,90020 204 1+1 R $1,850 $1,90021 205 1+1 R $1,850 $1,90022 206 1+1 $1,194 $1,90023 207 2+1 R $1,945 $2,20024 208 1+1 R $1,850 $1,90025 209 1+1 R $1,850 $1,90026 210 2+1 R $2,100 $2,20027 211 1+1 $1,850 $1,90028 212 1+1 R $1,850 $1,90029 213 1+1 R $1,950 $1,90030 214 1+1 R $1,850 $1,90031 215 1+1 R $1,950 $1,90032 216 1+1 R $1,850 $1,900

TOTALS32

$55,991 $62,200

AVERAGES $1,750 $1,944

R E N T R O L L

R = Renovated Unit

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Property Address Sale Price Year Built Bldg SF Number Of Units

Price Per Unit

Price Per SF

Actual Cap Rate GRM Sale Date

14153 Victory Boulevard$9,200,000

1977 21,284 32 $287,500 $432.25 5.00% 13.57 -

14129-14133 Gilmore St (Part of Portfolio) $3,100,000 - 7,488 12 $258,333 $414.00 - - 2/27/18

7240 Woodman Ave $4,200,000 1952 16,060 18 $233,333 $261.52 - - 1/3/19

7400 Sepulveda Blvd(Part of Portfolio) $21,750,000 1985 83,596 88 $247,159 $260.18 - - 5/2/18

14140 Sylvan St(Part of Portfolio) $9,900,000 1986 29,764 43 $230,232 $332.62 - - 5/2/18

6700 Woodley Ave(Part of Portfolio) $9,400,000 1986 33,192 35 $268,571 $283.20 - - 5/2/18

14133 Calvert St $4,900,000 1986 10,586 16 $306,250 $462.88 4.70% 13.79 8/8/18

15951 Sherman Way $3,500,000 1986 12,208 13 $269,231 $286.70 - - 4/20/18

AVERAGES $259,016 $328.73 4.70% 13.79

SA L E S COM PA R A B L E S

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24

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Address Number of Units Year Built Floor Plan Asking Rent Square Feet Rent PSF

ONE-BEDROOM

14153 Victory Boulevard 32 1977 1+11+1 R

$1,285$1,860 - -

14417 Tiara StVan Nuys, CA 15 1982 1+1 $1,995 792 $2.52

6310 Sylmar AveVan Nuys, CA 54 1985 1+1 $1,598 705 $2.27

6546 Sepulveda BlvdVan Nuys, CA 28 1981 1+1 $1,699 - -

15215 Victory BlvdVan Nuys, CA 42 1969 1+1 $1,950 800 $2.44

15225 Victory BlvdVan Nuys, CA 32 1964 2+2 $2,025 750 $2.70

AVERAGES $1,853 762 $2.48

R E N T COM PA R A B L E S

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2

4

3

R = Renovated Unit

5

20

12

4

3

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TWO-BEDROOM

14153 Victory Boulevard 32 1977 2+1 R $2,023 - -

6310 Sylmar Ave Van Nuys, CA 54 1985 2+2 $1,998 950 $2.10

15225 Victory Blvd Van Nuys, CA 32 1964 2+2 $2,295 1,000 $2.30

15123 Sherman Way Van Nuys, CA 33 1987 2+2 $2,095 1,047 $2.00

14142 Tiara St Van Nuys, CA 8 1990 2+2 $2,250 1,000 $2.25

AVERAGES $2,160 999 $2.16


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2

4

3

R = Renovated Unit

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1

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THREE-BEDROOM

14153 Victory Boulevard 32 1977 3+2 R $2,600 - -

14735 Friar St Van Nuys, CA 14 2014 3+2.5 $2,750 1,480 $1.86

15025 Sherman Way Van Nuys, CA 85 (Condos) 1980 3+2.5 $2,950 1,554 $1.90

6641 Kester Ave Van Nuys, CA 4 1948 3+2.5 $2,400 1,152 $2.08

AVERAGES $2,700 1,395 $1.95


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R = Renovated Unit

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This Offering Memorandum contains select information pertaining to the business and affairs of 14153 Victory Boulevard located in Van Nuys, CA 91401 (“Property”). It has been prepared by Matthews Real Estate Investment Services and Kelly Morgan Commerical Group at KW Commercial. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services and Kelly Morgan Commerical Group at KW Commercial. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or

its contents in any fashion or manner detrimental to the interest of the Seller.

Owner, Matthews Real Estate Investment Services, and Kelly Morgan Commerical Group at KW Commercial expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or Kelly Morgan Commerical Group at KW Commercial or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the MS of affairs of the Property or constitute an indication that there has been no change in the MS of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

LISTED BY


DANIEL WITHERS Senior Vice President

D: (818) 923-6107 M: (310) 365-5054

E: [email protected] No. 01325901 (CA)

JOHN BOYETT Associate

D: (818) 923-6226 M: (707) 815-7472


DAVID HARRINGTON EVP & National Director

D: (310) 295-1170 M: (310) 497-5590


™

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


D: (310) 836-3638 A: 2701 Ocean Park Blvd. # 140, Santa Monica, CA 90405

E: [email protected] License No. 01898026 (CA)

Documents

14153 Victory Boulevard, Van Nuys, CA 91401 · The San Fernando Valley features a strong and well-diversified economy. The Valley is home to numerous large employers, including some