3 7 9 1...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

3 7 9 1 R E D W O O DAV E N U E

A 14 - U N I T APARTM ENT B U I LD I NG NEARS I L I CON B EAC H& DEL RAY ART D I STR I C T

N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E

C O N F I D E N T I A L I T Y & D I S C L A I M E R

The 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. © 2020 Marcus & Millichap. All rights reserved.

N O N - E N D O R S E M E N T N O T I C E

Marcus & 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.

A L L P R O P E R T Y S H O W I N G S A R E B Y A P P O I N T M E N T O N LY.P L E A S E C O N S U LT L I S T I N G A G E N T F O R M O R E D E TA I L S .

S P E C I A L C O V I D - 1 9 N O T I C E

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

T A B L E O F C O N T E N T S

5F I N A N C I A L O V E R V I E W

1E X E C U T I V E S U M M A R Y

2P R O P E R T Y O V E R V I E W

3M A R K E T O V E R V I E W

4M A R K E T C O M P A R A B L E S

1E X E C U T I V E S U M M A R Y

I N V E S T M E N T O V E R V I E W

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

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

6

I N V E S T M E N T O V E R V I E W

Marcus & Millichap is pleased to present the opportunity to acquire a 14-unit apartment building, located at 3791 Redwood Avenue in Los Angeles. This location is within close proximity to Silicon Beach and Del Ray art district, and known for its great walkability with a walk score of 87 and a 55 transit score. Sitting on the Venice Boulevard corridor, renters can reach a plethora of restaurants, coffee shops, and retail destinations in just minutes. Multiple transit stops are situated close by for renters to benefit from the Expo Line.

Constructed in 1957 and set on a 6,000 square foot lot, the asset offers a fantastic location and has been diligently maintained. The two-story property offers an excellent unit mix of eight bachelor units and six 1 bed/1 bath units.

Based on the financial summary, an investor can acquire the property at a 3.77% going-in cap rate, with significant rental upside. The pro-forma cap rate on this deal is 5.59%. Coupled with a low price per unit of $239,286, this property will appeal to an investor seeking a strong value-add opportunity in an ideal location to capture the exploding rents in the area.

A new owner will benefit from the boundless growth continuing to occur in Silicon Beach. The area is a technology, media, and entertainment hub—home to technology startups and some of the world’s most recognizable brands, including Google, Yahoo!, YouTube, Facebook, Electronic Arts, Sony, and more.

3 7 9 1R E D W O O D

AV E N U E

7

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

VALUE ADD OPPORTUNITY

Low price per unit of $239,286 coupled with under-market rents presents an opportunity to further upgrade units to increase NOI, including stainless steel appliances, quartz countertops and cabinets faces.

IDEAL LOCATION

Close proximity to Silicon Beach, with a plethora of restaurants, coffee shops, and retail destinations minutes away on the Venice Boulevard corridor. Multiple transit stops are situated close by for renters to benefit from the Expo Line.

EASY ACCESS TO HIGH PROFILE EMPLOYERS

Centrally located to major employers and employment hubs in the technology, innovation and entertainment sectors.

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3 7 9 1R E D W O O D

AV E N U E

9

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

$ $3,350,000 14 UNITS

COST PER UNIT $239,286

CAP RATE—CURRENT 3.77%

CAP RATE—PRO FORMA 5.59%

GRM—CURRENT 16.29

GRM—PRO FORMA 12.39

2P R O P E R T Y O V E R V I E W

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

S T R A T E G I C V A L U E - A D D

12

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

Address3791 Redwood Avenue

Los Angeles, CA 90066

APN 4245-023-003

Units 14

Unit Breakdown

8 (Bachelor)6 (1 Bd/1 Ba)

Amenities Parking

Gross SF 5,288

Lot Size .14 AC

13

14

S T R AT E G I C VA L U E - A D D

There is a clear

opportunity in the

submarket to upgrade

all units with higher-end

finishes inlcuding new

cabinet faces, stainless

steel appliances, quartz

countertops, modern

lighting, and fixtures.

By renovating to the

standards depicted here,

the property will be able

to further augment the

income stream.

I N T E R I O RU P G R A D E S

15

N E W C A B I N E T F A C E S

S T A I N L E S S S T E E L A P P L I A N C E S

T I L E B A C K S P L A S H

Q U A R T Z C O U N T E R T O P S

S T A I N L E S S S T E E L F I X T U R E S

U P D A T E D L I G H T I N G

3M A R K E T O V E R V I E W

L O C A T I O N O V E R V I E W

D E M O G R A P H I C S

18

L O C AT I O N O V E R V I E W

Known in the past as a sleepy beach town, haven to

a strong artist community and bohemian, alternative

lifestyle, over the past several years, Venice has

transformed into the heart of Silicon Beach—Los

Angeles’ thriving technology, entertainment, and media

hub. Covering approximately a four-mile stretch along

the L.A. coast including Santa Monica, Venice, Marina

del Rey and Playa Vista, Silicon Beach is home to many

of the most well-recognized companies in the world,

such as Google, Facebook, Snapchat, Hulu, Electronic

Arts, and Beats by Dre, among many others.

Along with this economic transformation has come

an increase in a young, affluent, educated population,

employed by companies who invest heavily in

attracting top-tier talent. With the median home price

in Venice surpassing $1.5 million (over $1,000 per

square foot), rental demand is strong in this urban-

beach enclave with high walkability and bikeability

to world-famous Venice Beach, Santa Monica, and

some of the most desireable restaurants, shops, and

entertainment hotspots that Los Angeles has to offer.

V E N I C E , C A L I F O R N I A

19

20

D E M O G R A P H I C S

48.52%

51.48%

554,959T O TA L P O P U L AT I O N W I T H I N

5 - M I L E R A D I U S

264,898T O TA L H O U S E H O L D S I N

5 - M I L E R A D I U S

12.2%F R O M 2 0 0 0

$85,445AV E R A G E H O U S E H O L D I N C O M E

W I T H I N 5 - M I L E R A D I U S

$1 ,976,481AV E R A G E H O U S I N G VA L U E

21

POPULATION 1 MILE 3 MILE 5 MILE

2000 Population

Total Population32,796 239,573 500,975

2010 Population


2018 Estimate


2023 Projection


Daytime Population

2018 Estimate28,541 296,722 708,079

HOUSEHOLDS BY INCOME 1 MILE 3 MILE 5 MILE

2018 Estimate

Under $14,999 7.4% 9.7% 9.8%

$15,000 - $24,999 6.4% 6.7% 6.3%

$25,000 - $34,999 5.6% 6.4% 5.8%

$35,000 - $49,999 8.8% 8.9% 8.5%

$50,000 - $74,999 14.1% 14.6% 14.1%

$75,000 - $99,999 12.2% 12.7% 12.7%

$100,000 - $124,999 10.4% 10.3% 10.5%

$125,000 - $149,999 7.1% 6.7% 6.8%

$150,000 - $199,999 10.5% 9.4% 9.6%

$200,000 - $249,999 6.7% 5.6% 5.7%

$250,000 + 10.7% 9.1% 10.3%

Median Household Income $90,309 $81,816 $85,445

Per Capita Income $64,250 $60,287 $63,725

Average Household Income $137,760 $125,784 $132,734

HOUSEHOLDS 1 MILE 3 MILE 5 MILE

2000 Households


2010 Households


2018 Estimate


2023 Projection


HOUSING UNITS 1 MILE 3 MILE 5 MILE

Occupied Units

2018 Estimate

Owner Occupied 44.8% 32.9% 35.6%

Renter Occupied 55.2% 67.1% 64.4%

Vacant 7.9% 4.5% 4.4%

4M A R K E T 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 A L E S C O M P A R A B L E S

24

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

PROPERTY UNIT TYPE CURRENT RENT

1 3829 Wade StLos Angeles, CA 90066

1 Bed/1 Bath $1,795

2 3875 Wade StLos Angeles, CA 90066

1 Bed/1 Bath $1,895

3 12730 Pacific AveLos Angeles, CA 90066

1 Bed/1 Bath $1,895

4 3747 Inglewood BlvdLos Angeles, CA 90066

Studio $1,495

5 12726 Venice BlvdLos Angeles, CA 90066

Studio $1,250

$ 1 , 8 6 21 B E D / 1 B AT H

AV E R A G E M A R K E T R E N T

$ 1 , 3 7 3S T U D I O

AV E R A G E M A R K E T R E N T

25

23

4

15

26

S A L E S C O M PA R A B L E S

PROPERTY UNITSYEAR BUILT

SALES PRICE

PRICE/UNIT

PRICE/SF

SALE DATE

UNIT MIX

3791 Redwood AveLos Angeles, CA 90066

14 1957 $3,350,000 $239,286 $633.51 —8 (Bachelor)

6 (1+1)

1 3581 S Centinela AveLos Angeles, CA 90066

10 1963 $2,680,000 $268,000 $419.80 7/2/191 (Bachelor)

9 (1+1)

2 12726 Pacific AveLos Angeles, CA 90066

9 1969 $2,670,000 $296,667 $519.66 11/27/198 (1+1)1 (2+1)

3 4080 Redwood AveLos Angeles, CA 90066

9 1958 $3,402,295 $378,032 $641.22 12/30/195 (1+1)4 (2+1)


9 1962 $2,783,696 $278,369 $418.85 12/30/193 (Bachelor)

1 (1+1)5 (2+1)


9 1960 $2,119,010 $235,445 $412.58 12/30/196 (1+1)2 (2+1)1 (3+2)

$ 2 9 1 , 3 0 3AV E R A G E

P R I C E / U N I T

$ 4 8 2 . 4 2AV E R A G E P R I C E / S F

27

1

2

43

5

5F I N A N C I A L S U M M A R Y

R E N T R O L L

P R I C I N G A N A LY S I S

O P E R A T I N G D A T A

30

R E N T R O L L

UNIT # UNIT TYPE CURRENT PRO FORMA

1 0 Bedroom/1 Bathroom $876 $1,395


3 1 Bedroom/1 Bathroom + Parking $1,595 $1,895



6 0 Bedroom/1 Bathroom $1,150 $1,395


8 0 Bedroom/1 Bathroom (Vacant) $1,395 $1,395


10 1 Bedroom/1 Bathroom + Parking (Vacant) $1,895 $1,895



13 0 Bedroom/1 Bathroom $1,150 $1,395


14 TOTAL $17,133 $22,530

31

P R I C I N G A N A LY S I S & O P E R AT I N G D ATA

PRICE $3,350,000

UNITS $14

PRICE/UNIT $239,286

GROSS SF 5,288

PRICE/SF $633.51

CAP RATE—CURRENT 3.77%

CAP RATE—PRO FORMA 5.59%

GRM—CURRENT 16.29

GRM—PRO FORMA 12.39

YEAR BUILT 1957

LOT SIZE 6,000 SF

TYPE OF OWNERSHIP Fee Simple

INCOME CURRENT PRO FORMA

Gross Scheduled Rent $205,602 $270,360

Loss/Gain to Lease $64,758 —

Vacancy $4,112 $5,407

EFFECTIVE RENTAL INCOME $201,490 $264,953

Other Income $455 $455

EFFECTIVE GROSS INCOME $201,945 $265,408

EXPENSES CURRENT PRO FORMA

Real Estate Taxes (1.174%) $39,329 $39,329

Insurance $1,956 $1,956

Utilities $7,770 $7,770

Repairs & Maintenance $11,760 $11,760

City Business Tax $198 $198

Trash Removal $2,775 $2,775

Pest Control $650 $650

Landscaping $1,200 $1,200

Reserves $1,800 $1,800

Management Fee (4%) $8,060 $10,598

TOTAL EXPENSES $75,498 $78,036

Per Unit $5,393 $5,574

Per SF $14.28 $14.76

Percent of EGI 37.4% 29.4%

NET OPERATING INCOME $126,447 $187,372

JEFF BENSON

Senior Vice President Investments

Director, National Multi Housing Group

Direct | 310.909.5420

[email protected]

License: CA 01327285

SAM NEUMARK

Investment Sales Associate

Direct | 310.909.5433

[email protected]

License: CA 02090800

3 7 9 1R E D W O O D

AV E N U E

Documents

3 7 9 1...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