Lee & Associates - LA North/Ventura WOODLAND HILLS, CA ...€¦ · State Bank of India • Tan Salon Pure Barre 10. Dementia Gallery • Something’s Fishy Shirin • Best Western

WOODLAND HILLS, CA 22141 VENTURA BOULEVARD

FOR SALE | OWNER/USER INVESTMENT OPPORTUNITYLee & Associates - LA North/Ventura | Offering Memorandum

Scott Romick Managing Director 818.933.0305 [email protected] License # 01323527

Jay Rubin Principal 818.223.4385 [email protected] License #01320005

Lee & Associates® - LA North/Ventura, Inc. 2

22141 VENTURA BOULEVARD WOODLAND HILLS CA

The material contained herein is confidential and is presented strictly as information for the exclusive use of the prospective purchaser. Acceptance of this offering by the prospective purchaser constitutes an agreement not to divulge, share or distribute the information to any other party, except legal counsel and financial advisors, without the specific written authorization of the Seller or Lee & Associates.

The materials herein have been obtained from sources believed to be reliable. Nevertheless, the Seller nor Lee & Associates make no warranties or representations, expressed or implied, concerning the accuracy or completeness of this information. This document is submitted subject to errors, omissions, changes in price; rental, market or otherwise and withdrawal without notice.

No broker or agent, other than Lee & Associates Seller’s exclusive representative, is authorized to present this investment opportunity.

Interested buyers should be aware that the owner (the “Seller”) of the property known as 22141 Ventura Boulevard, Woodland Hills, CA 91364 (“Property”) is selling the property in “AS IS” CONDITION WITH ALL FAULTS, WITHOUT REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXCEPT WARRANTY OF TITLE. Prior to and/or after contracting to purchase as appropriate, Buyer will be given a reasonable opportunity to inspect and investigate the Property and all improvements thereon, either independently or through agents of Buyer’s choosing.

Buyer shall not be entitled to, and should not, rely on the Seller, or its agents as the (i) the quality, nature, adequacy and physical condition of the Property including, but not limited to the structural element, foundation, roof, appurtenances, access, landscaping, parking facilities and the electrical, HVAC, plumbing, sewage, and utility systems, facilities and appliances. (ii) the quality, nature adequacy and physical condition of soils and geology and the existence of ground water, (iii) the existence, quality, nature adequacy and physical condition of utilities serving the Property, (iv) the development potential of the Property, its habitability, merchantability, or fitness, suitability or adequacy of the Property for any particular purpose, (v) the zoning or the legal status of the Property, (vi)

the Property’s or its operations’ compliance with applicable codes, laws, regulations, statutes, ordinances, covenants, conditions and restrictions of any governmental, quasi-governmental entity or any other person or entity, (vi) the quality of any labor and materials, (viii) the compliance of Property with any environmental protection, pollution or land use laws, rules regulations, orders or requirements including but not limited to those pertaining to the handling, generating, storing or disposing of any hazardous materials, and (ix) except as expressly provided otherwise in an executed contract of sale, the condition of title and the nature, status and extent of any right-of-way, lease, right of redemption, possession, lien, encumbrance, license, reservation, covenant, condition restriction and any other matter affecting the title. Although Seller’s predecessors may have performed work, or contracted for work performed by third parties in connection with the Property, the Seller, and its agents shall not be responsible to Buyer or any successor on account of any errors or omissions or construction defects of such predecessors and/or third parties.

The Seller reserves the right to withdraw the property being marketed at any time without notice, to reject all offers, and to accept any offer without regard to the relative price and terms of any other offer. Any offer to buy must be: (i) presented in the form of a non-binding letter of intent, (ii) incorporated in a formal written contract of purchase and sale to be prepared by or on behalf of the Seller and executed by both parties; and (iii) approved by Seller, and such other parties who may have an interest in the Property. Neither the prospective Buyer nor Seller shall be bound until execution of the contract of purchase and sale, which contract shall supersede prior discussions and constitute the sole agreement of the parties.

The Seller shall not be responsible for the payment of any commission, finder’s fee or other form of compensation to Buyer’s broker other than as set forth in Seller’s commission agreement with Lee & Associates-LA North/Ventura, Inc.

SELLER AND ITS AGENTS MAKE NO REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY OR COMPLETENESS OF SUCH INFORMATION.

DISCLAIMER



CONTENTS

SECTION I PROPERTY OVERVIEW & SPECIFICATIONS . . . . . . . 5

SECTION II MARKET OVERVIEW . . . . . . . . . . . . . . . . . . . . . . . . 16

SECTION III FINANCIAL OVERVIEW & FINANCING . . . . . . . . . . 20

Scott Romick Principal / Managing Director

818.933.0305 [email protected] License # 01323527

Jay Rubin Principal

818.223.4385 [email protected]

License # 01320005

Lee & Associates®-LA North/Ventura, Inc. Corporate ID # 01191898 A Member of the Lee & Associates Group of Companies

15250 Ventura Boulevard, Suite 100 Sherman Oaks, California 91403

Lee & Associates® - LA North/Ventura, Inc.

SECTION I PROPERTY OVERVIEW & SPECIFICATIONS



PROPERTY OVERVIEW & SPECIFICATIONS

THE OFFERING Sale Price $6,950,000 ($338/Sq. Ft. Building)

Address 22141 Ventura Boulevard Woodland Hills, CA 91364

Property Type Multi-Tenant Office Building Available for an Owner-User or as an Investment Assessor’s Parcel Number 2169-026-100

SITE DESCRIPTION Gross Building Area 20,557 Square Feet Parcel Size 11,210 (±100’ x 115’) Zoning / Use Code LAC4 / Office Building Parking (Ratio) 45 Covered Parking Spaces Access Street level walk in from Ventura Blvd. Car access to covered parking lot from Ventura Blvd. Metered street parking in front of the building.

PROPERTY DETAIL Year Built 1989 Exterior Construction Wood framed with stucco facade Roof New roof in 2006

PROPERTY DETAIL Patios & Balconies Two (2) patios; Two (2) balconies Number of Floors Three (3); 48 feet in height HVAC Package units Water & Power LA DWP Gas SoCal Gas Company Interior Improvements Highly improved main building lobby. Above standard tenant improvements. Restrooms Two (2) on each floor Walkability Score 81 Building Height 33 Feet Elevators One (1); New controller in 2011



PROPERTY OVERVIEW & SPECIFICATIONS highlights

PROPERTY HIGHLIGHTS

■ Owner/Users can take advantage of attractive SBA financing.

■ 4 Usable private balconies

■ Covered onsite parking

■ Building identity available

■ Under market rents

■ Good visibility and access

■ Prestigious Ventura Boulevard location

■ LOCATION: The Property benefits from being located in the heart of the West San Fernando Valley, well located directly near the 101 freeway and Topanga Canyon Blvd. Situated on a prime stop of the Valleys main thoroughfare Ventura Boulevard. Surrounded by affluent residential areas and affordable housing. Minutes to Warner Center, which host world class dinning, shopping and new mixed use projects.

■ MARKET CONDITIONS: The West San Fernando Valley is experiencing record low vacancy rates for office.

■ GET IT WHILE YOU CAN: First time on the market in over 20 years. Rare small free-standing office with covered parking.

■ WALKABILITY: Score of 81. Walking distance to residential, banks, and restaurants. Ventura Boulevard serves as the main thoroughfare of the valley.

VALUE ADD AND OWNERSHIP BENEFITSUsers to occupy over 50% of the building, taking advantage of attractive financing and pride of ownership.

Well below market rents with short term tenants allow for increased rent potential. Also with ability to charge for covered parking provides for increased rental income and building value appreciation.

Centralized location surrounded by retail amenities, other businesses and transportation points

(freeways, bus stops, etc.)



PROPERTY OVERVIEW & SPECIFICATIONS operating history

TENANT RENT ROLL

SUITE # TENANT LEASE SQ FT BOMA ‘17 SQ FT MONTHLY RENT RENT PSF309 Insurance Company 1,514 1,624

304 Insurance Company 448 584

209 Home Health Care Services 908 980

204 Computer Consult ing 1,082 1,195

202 Insurance Company 610 584

100 Construction 227 227

LEASE EXPIRATION

5,314 5,194

AVAILABLE FOR OWNER/USER

300 VACANT 7,020 SF

305 VACANT 699 SF

200 VACANT 1,422 SF

201 VACANT 566 SF

203 VACANT 1,004 SF

205 VACANT 485 SF

210/212 VACANT 2,475 SF

211 VACANT 1,687 SF

15,358 SF

OPERATING EXPENSES 2018

Landscaping - Grounds Maintenance $661

Maintenance Labor $11,232

General Repairs & Maintenance $8,831

Total Elevator Expense $1,714

Fire Safety $2,654

Total Janitorial/Porter Expense $15,125

Exterminating Expenses $1,500

Rubbish Contract $7,399

Security Service Contracted $2,250

Electricity $45,096

Water $1,060

Sewer $871

Telephone (Elevator & Alarm) $5,750

Insurance $20,630

Property Tax $23,348

Total Operating Expenses $148,111

Call Broker for full information



PROPERTY OVERVIEW space plans

210/2122,083 RSF

2111,486 RSF

2001,262 RSF

2041,195 RSF

203884 RSF

207/209825 RSF

202584 RSF

201566 RSF

BALCONYBALCONY

205427 RSF

ELEC

TRA

SH

ELEV

MA

CH

JAN

STOR.

PLANTER

MAILBOXES

PARKING GARAGE

100227 RSF

UTILITY

UTILITY

K-3427 HIGHLINETOILETS VITREOUS CHINA 300

6,899 RSF

3091,624 RSF

305567 RSF

304474 RSF

BALCONY

BALCO

NY

FIRST FLOOR

SECOND FLOOR

THIRD FLOOR

Available for Owner/User



PROPERTY OVERVIEW space plans

304

305

309

300

UTILITY

UTILITY

PATIO

PA

TIO

THIRD FLOOR

205

204

207

202

211

203

200 201

212

210

209 BALCONYBALCONY

SECOND FLOOR

Leased



PROPERTY OVERVIEW photos



PROPERTY OVERVIEW aerial views • locator map



PROPERTY OVERVIEW aerial view • plat map

Street Frontage ±100 feet along Ventura Blvd

Location/Shape Mid-block / Rectangle

Ingress/Egress Egress from south side of Ventura Blvd

Freeway Access One (1) block from the 101 freeway southbound on/off ramp at Shoup Ave and .3 miles from Topanga Canyon Blvd

Block Location / Shape Rectangular Lot



PROPERTY OVERVIEW local amenities

1. Starbucks • Arco • Juicy Ladies Nail Salon • 7-11• Florist Yogurt Delite

2. Chevron • California Chicken Cafe Barber Shop

3. Mi Casa Lighting • Barber Shop Huntington Learning Center

4. Veterinarian • AutoNet • Niky’s Sports Dove Hill

5. Computerwise Kids Home Instead Senior Care Shelley’s Stereo

6. ARCO • Veterinarian • Chase Bank Pegasus Fashion Lounge Swings & Things • Florist

7. Sassy Motorsports • Rebound Furniture

8. Subway • Baskin-Robbins • Rite Aid Starbucks • Fedex • Petco • Great Clips Bank of America • Chipotle • Ralphs

8. (cont.) Orangetheory Fitness Dentist • Warner Center Optical Taste of India • Hair Salon Anantra Thai • Dirty Bull Tavern Crazy Tokyo Sushi Nail Salon • Farmers Insurance The Green Station • PostalAnnex+ Massage Envy • Falafel Bar California Pita Grill Western Bagel The Copper Mine • Coffee Bean & Tea Leaf • MOD Pizza • Fatburger Noah’s Bagels • Dickey’s BBQ Urban Plates • Jamba Juice GNC

9. Knights Inn • Boulevard Burgers State Bank of India • Tan Salon Pure Barre

10. Dementia Gallery • Something’s Fishy Shirin • Best Western • Goodwill T-Mobile

11. We The People • Liquor Barber • California Pet Center Porky’s Baseball Cards • Bobbi Rocco Designer Drapery & Blinds Curry Up Cafe Woodland Hills Cigar Co. Maza Mediterranean Restaurant Inn Power Yoga Studio Academy of Culinary Education Ralphs Fuel • Coin Laundry

12. High Tea Cottage The Dessert Tree Woodland Hills Camera Chevron PK Bimmerz • Auto Shop Rockland Academy

13. Shoe Box • Hip Cooks Black Box Security Second Wind Sports Image Resources Film & Video Hair Salon • BST Gold & Silver

14. CVS • Citibank • Monty’s Steakhouse Hair Salon • Satellite City • Go Far Guitar School

15. Krav Maga • Bront Mattress Flags & Banners Unlimited Dentist • Box Brothers Tan Salon Nail Salon • Hair Salon The Villa Restaurant

16. LA Public Library Public Storage

17. Shell • USA Gasoline Leo & Lily

22141 VENTURA BOULEVARD • LOCAL AMENITIES RESTAURANT/DINING



PROPERTY OVERVIEW area amenities


SECTION II MARKET OVERVIEW



MARKET OVERVIEW location overview

Woodland Hills, a suburban community at the western end of the San Fernando Valley, is among the fastest growing markets in the city of Los Angeles.

The community spans 15 square miles and includes Warner Center, a business and transportation hub for the San Fernando Valley, as well as a lively commercial district that runs along Ventura Boulevard and houses every type of retail establishment from car dealerships to restaurants, groceries, bakeries, yoga and fitness studios, beauty salons, banks and other services from insurance to dry cleaners and shops that sell apparel, furniture and everything in between.

The Ventura (101) Freeway taking commuters east and west, is easily accessible from many points in Woodland Hills, as is Topanga Canyon Boulevard, which traverses the Valley from north to south, running all the way to Malibu. Some years ago, city officials designated Warner Center as a transit hub and established the Orange Line, a rapid transit busway operating between Chatsworth and North Hollywood where it connects to the Metro Red Line subway system and downtown Los Angeles.

Woodland Hills’ population of 76,848 residents is comprised mainly of educated professionals. Nearly half of adult residents have a bachelor’s degree or higher and the median household income is $98,000.

The majority of residents (63 percent) are homeowners, however that is changing as development focused in Warner Center brings ever greater numbers of apartment units to the area.

The passage of the Warner Center Specific Plan 2035 established a blueprint to balance housing, jobs and services within a walkable community and sent developers into the community in force. Today, about 5,000 apartment units are in planning or underway. Most of these developments include ground floor retail. Additionally, Mall of America has acquired a 46-acre site with plans to redevelop the former home of Rocketdyne and the owners of Westfield Promenade are planning a $1.5 billion overhaul of the center that will include 1,430 apartment units, a hotel, retail shops and a 15,000-seat entertainment center.

These efforts are certain to enhance what is already an amenity-rich neighborhood that has earned a Walk Score of 81. Woodland Hills enjoys a vast selection of restaurants serving everything from Mediterranean to vegan dishes

and steak houses. It offers all the major grocery chains including Ralphs, Vons, Whole Foods, Sprouts and Smart & Final; a Costco and major department stores including Target, Macys, Nordstrom and Neiman Marcus; Home Depot; fitness facilities from Equinox to independents and a number of hotels.

The office market, which includes the Tarzana/Woodland Hills submarkets and Warner Center, contains more than 11 million square feet. Among the corporate tenants are Anthem Blue Cross, Blackline Inc., B. Riley Financial, Inc., Northrop Grumman, Health Net, Inc. and Viking Cruises. Numerous professional services firms including insurance broker Poms & Associates and accounting firm SingerLewak are also housed in Woodland Hills, and Kaiser Permanente operates a regional medical center here.

Vacancy rates for office space have remained relatively stable, averaging 10.3 percent in Warner Center and 8.3 percent in Woodland Hills over the past year.



MARKET OVERVIEW West San Fernando / Warner Center Overview

■ Cook’s Corner Auto Body is strategically located minutes from one of Los Angeles most up-and-coming cities, Warner Center, also known as the new “Downtown” of The Valley. Warner Center currently has a dozen multi-family and mixed-use developments already in construction and/or proposed and entitled. This rare automotive property is situated in a market that neighbors these future developments as well as almost eight million square feet of office space.

■ California Home Builders is proposing a five-story, 206 apartment complex with a mix of studios, and one and two bedrooms, as well as live/work units. This anticipated development off Califa Street would also include a 24-story tower containing 220,000 square feet of office space. CA Home Builders has also broken ground and started constructing “QWest” and “QEast” housing 562 apartments and approximately 60,000 square feet of retail and office space. The “QWest” and “QEast” developments are one mile from Cook’s Corner Auto Body.

■ Adler Realty is proposing 1,000 apartments and condos, a 24-story hotel, and a trio of 15-story office buildings, currently known as Warner Center Business Park, near De Soto and Burbank avenue. Already in construction at 21221 Oxnard Street is a multi-family development including 380 units, this development is also one and one-half mile from our Auto Body Shop. In addition, ground has been broken on Variel Avenue for about 200 apartments units, less than two miles from our property.

■ It seems as though a month doesn’t go by without a new development being proposed in Warner Center. Our unique automotive property is positioned right next door to this exciting live, work and play market.



WEST SAN FERNANDO / WARNER CENTER proposed developments aerial

Warner Center Business Park• 9 buildings including 1,000 residential units, 228 hotel rooms and 1.4M SF of offices, shops and restaurants.

• Break ground start date in late 2018

QWest: 6263 Topanga Canyon Bl.QEast: NEC Erwin St. @ Variel Ave.

• 562 apartments and approx. 60,000 SF of retail and office space, in addition to an array of amenities that includes multiple courtyards, roof decks, and swimming pools.

• In-Construction

6100 N. Topanga Canyon Bl.

• 1,432 residential units

• 244,000 SF of retail space

• 629,000 SF of office space

• Two hotels with 572 guest rooms

• A 15,000-seat entertainment and sports complex

Promenade 2035

22055-22121 Clarendon St.• 335 studio, one, two, and three- bedroom apartments.

• In-Construction

21221 Oxnard St.• In-construction development

• 380 multi-family units

5955 De Soto Ave.• Proposed development

• 170 units of high end apartments

6606 Variel Ave.• Seven-story apartment building featuring 271 units, including four live/work units - and a parking garage.

• Completion estimated Fall 2019

6041 Variel Ave.• In-Construction development

• 274 Units

5957 Variel Ave.• New hotel development

• 7-story, 170-room boutique hotel

22141 Ventura BlvdWoodland Hills, CA


SECTION III FINANCIAL OVERVIEW & FINANCING



FINANCIAL OVERVIEW & FINANCING SBA - 90% real estate financing

Lee Associates Prepared by Jay D. RubinOWN vs. RENT ANALYSIS: Broker contacts: Lee & Associates - Scott Romick (818) 933-0305 / Jay Rubin (818) 223-4385

Sample Property Size - SF: 20,557 SF 20,557 SF

per SF Amount per SF AmountLease Assumptions: Purchase Assumptions:

Rent per month $45,225 Purchase price $335 $6,886,595Improvements - additional $10 $205,570

Rent per SF 2.2 $2.20 Total $345 $7,092,165

Start-up Costs: Start-up Costs:Prepaid rent and security deposit (2 mo.'s total) $90,451 Borrower cash down payment (10%) * $709,217Lessee TI costs, net of lessor TI allowance ** $0 Estimated fees on 1st mortgage ** $36,557

Est. appraisal, enviromental, other fees ** $6,000Total startup costs $90,451 Total startup costs $751,773

Gross Monthly Costs: Gross Monthly Costs:Rent payment $2.20 $45,225 Mortgage payment * $1.91 $39,206Lease operating costs ** $0.14 $2,878 Ownership operating costs ** $0.76 $15,623Gross monthly cash cost $2.34 $48,103 Gross monthly cash cost $2.67 $54,830

Lease Benefits (per month): Ownership Benefits - excl. appreciation (per month):Depreciation tax benefit at 21% tax rate $0 $0 Depreciation tax benefit at 21% tax rate $0.15 $3,182Avg. monthly principal paydown / equity build $0 $0 Avg. monthly principal paydown / equity build $0.62 $12,737Tax benefit on rent deduction at 21% tax rate $0.46 $9,497 Tax benefit on interest deduction at 21% tax rate $0.27 $5,559Tax benefit on operating costs at 21% tax rate $0.05 $1,007 Tax benefit on operating costs at 21% tax rate $0.16 $3,281Lease-out income (net of tax at 21% rate) $0.00 $0 Lease-out income (net of tax at 21% rate) $0.00 $0

$0 $0 Interest on startup cost difference (net of 21% tax) -$0.05 -$1,075$0.51 $10,505 $1.15 $23,684

NET COST after lease benefits $1.83 $37,599 NET COST after ownership benefits excl. appreciation $1.52 $31,146

Est. appreciation benefit, per month $0.00 $0 Est. appreciation benefit, per month: $0.43 $8,865

NET COST after lease benefits $1.83 $37,599 NET COST after ownership benefits incl. appreciation $1.08 $22,280Projected rent cost in Year 10:

Net rent cost (after tax benefits at 35% rate) $2.39 $49,058Assumed annual rent escalation 3.0%

GROWTH IN PROPERTY VALUE & OWNER EQUITY:

Assumed annual appreciation rate of 1.5%Borrower down payment (10%) $709,217

Property Value Loan Balance Owner Equity

Year 5 $7,640,276 $5,898,855 $1,741,420Year 10 $8,230,747 $4,930,144 $3,300,603Year 15 $8,866,852 $3,681,873 $5,184,979Year 20 $9,552,118 $2,073,229 $7,478,889

LEASE SCENARIO BUY SCENARIO

Disclaimer: This sample analysis is based on a series of assumptions, including loan interest rates and annual appreciation rates, and is meant only to be illustrative in nature. The analysis is not a guarantee of any actual results of any loan or purchase transaction or ownership of any real property, all of which are subject to risks, uncertainties and assumptions that are difficult to predict and beyond our control. No warranties or representations, express or implied, are made as to the accuracy of the information contained herein, and same is submitted subjectto the possibility of errors, omissions, change of price, rental or other conditions, withdrawal without notice, prior sale, lease or financing. We include projections, opinions, assumptions or estimates for example only, and they may not represent future performance of the property.You and your financial and legal advisors should conduct your own evaluation of the property and transaction economics.

Scott Romick Managing Director 818.933.0305 [email protected] License # 01323527

Jay Rubin Principal 818.223.4385 [email protected] License #01320005

Lee & Associates®-LA North/Ventura, Inc. • Corporate ID # 01191898 • A Member of the Lee & Associates Group of Companies15250 Ventura Boulevard, Suite 100, Sherman Oaks, California 91403

No warranty or representation is made to the accuracy of the foregoing information. Terms of sale or lease and availability are subject to change or withdrawal without notice.

For additional information and to schedule a tour of the property, please contact:

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WOODLAND HILLS/WARNER CENTER IS AN EVER GROWING AREA IN ECONOMY, DEMOGRAPHICS AND POPULARITY

VALUE ADD INVESTMENT IN A POPULAR NEIGHBORHOOD WITH INCREASING ECONOMICS

A GOOD INVESTMENT FOR NOW AND THE FUTURE

AMENITY-RICH LOCATION


Documents

Lee & Associates - LA North/Ventura WOODLAND HILLS, CA ...€¦ · State Bank of India • Tan Salon Pure Barre 10. Dementia Gallery • Something’s Fishy Shirin • Best Western