Offering Memorandum...INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes

9581 ALCOTT STREET9581 Alcott Street • Los Angeles, CA 90035

Offering Memorandum

1

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

Confidentiality and DisclaimerThe 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. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & 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.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

9581 ALCOTT STREET

Los Angeles, CA

ACT ID ZAA0121690

2

TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03Sales Comparables

Rent Comparables

9581 ALCOTT STREET

3

9581 ALCOTT STREET

4

INVESTMENT

OVERVIEW

9581 ALCOTT STREET

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

CBS Enterprises 20,000

Green Equity Investors IV LP 15,000

Ucla Health System Auxiliary 11,154

Yf Art Holdings Gp LLC 10,600

Live Nation Worldwide Inc 8,930

Cedars-Sinai Medical Center 5,334

Earth Technology Corp USA 4,655

Los Angeles Dept Wtr & Pwr 4,655

Magic Workforce Solutions LLC 4,539

Ticketmaster Entertainment LLC 4,390

West Los Angeles V A Med Ctr 4,374

University Cal Los Angeles 4,074

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 35,813 327,501 789,322

2010 Census Pop 33,884 309,343 746,856

2019 Estimate HH 16,597 155,883 358,738

2010 Census HH 15,521 145,217 334,152

Median HH Income $97,254 $79,301 $71,781

Per Capita Income $73,645 $61,103 $54,318

Average HH Income $158,784 $127,810 $118,531

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

14 2+2

1 2+2.5 TH

1 3+2

16 Total 26,975

VITAL DATA

Price $9,750,000 CURRENT POTENTIAL

Down Payment 100% / $9,750,000 CAP Rate 3.69% 4.76%

Loan Type All Cash GRM 16.52 13.89

Price/Unit $609,375Net Operating Income

$360,224 $464,209

Price/SF $361.45Net Cash Flow After Debt Service

3.69% / $360,224 4.76% / $464,209

Number of Units 16 Total Return 3.69% / $360,224 4.76% / $464,209

Rentable Square Feet 26,975

Year Built 1971

Lot Size 0.31 acre(s)

5

9581 ALCOTT STREET

OFFERING SUMMARY

▪ Superb Beverlywood Location- Very Low Turnover

▪ 16 Units Built in 1971

▪ Excellent Unit Mix (Units Average over 1400 SF Each)

▪ 28 On-Grade Parking Spaces (22 Individual and 6 Tandem)

▪ Extremely Spacious Units with Central A/C, Bar Area, Fireplaces, and Balconies

▪ Delivered with 7 Vacancies

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present 9581 Alcott Street, a three story, 16 unit apartment building located in the Beverlywood neighborhood of Los Angeles. 9581 Alcott

St is located in one of the best pockets in the city of Los Angeles, and is in a very strong rental market. The Building consists of Fourteen (14) Two Bedroom/Two Bathroom

units, One (1) Two Bedroom/Two and Two Half Bathroom Townhouse, and One (1) Three Bedroom/Two Bathroom unit. All the units are extremely spacious averaging over

1400 square feet each. In addition to the spaciousness, tenants are also attracted to the property with its diverse amenity package including central A/C, 28 gated parking

spaces, fireplaces, balconies, and a bar area in each unit. The property has tremendous upside for an investor to renovate the units and raise rents as units vacate.

Additionally, a buyer will benefit from taking over the property with 7 vacancies to begin remodeling right away.

9581 Alcott is located just two blocks west of Beverly Drive and less than one block south of Pico. This investment presents an excellent opportunity to own a beautifully

maintained property, in one of the most prime sub-markets of Los Angeles. The buildings close proximity to Wilshire and Olympic Boulevard offers easy access to Beverly

Hills, Beverly Grove and West Hollywood with all of their unique and fine destinations. Century City Mall, The Beverly Center and Grove Malls are only a short drive away

along with the countless other fine dining and shopping options this exquisite area has to offer.

This is an incredible opportunity to own an extremely well located apartment building in an area where turnover is rare. Additionally, an astute investor will capitalize on the

immediate upside offered by taking over the property with 7 vacancies.

INVESTMENT OVERVIEW

6

9581 ALCOTT STREET

PROPERTY SUMMARY

OFFERING SUMMARY

PROPOSED FINANCING

First Trust Deed

Loan Type All Cash

Debt Coverage Ratio

THE OFFERING

Property 9581 Alcott Street

Price $9,750,000

Property Address 9581 Alcott Street, Los Angeles, CA

SITE DESCRIPTION

Number of Units 16

Year Built/Renovated 1971

Rentable Square Feet 26,975

Lot Size 0.31 acre(s)

Type of Ownership Fee Simple

7

AERIAL PHOTOS

9581 ALCOTT STREET

8

AERIAL PHOTOS

9581 ALCOTT STREET

9

UNIT 103

9581 ALCOTT STREET

10

UNIT 103

9581 ALCOTT STREET

11

UNIT 301

9581 ALCOTT STREET

12

UNIT 301

9581 ALCOTT STREET

13

PHOTOS

9581 ALCOTT STREET

14

REGIONAL MAP

9581 ALCOTT STREET

15

LOCAL MAP

9581 ALCOTT STREET

16

AERIAL PHOTO

9581 ALCOTT STREET

17

Marcus & Millichap closes

more transactions than any other

brokerage firm.

12

9581 ALCOTT STREET

18

PROPERTY PHOTO

9581 ALCOTT STREET

19

FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

9581 ALCOTT STREET

RENT ROLL SUMMARY

20

FINANCIAL ANALYSIS

9581 ALCOTT STREET

21

RENT ROLL DETAIL

FINANCIAL ANALYSIS

9581 ALCOTT STREET

OPERATING STATEMENT

22

FINANCIAL ANALYSIS

9581 ALCOTT STREET

PRICING DETAIL

23

MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage offices

$6.24 billion

total national

volume in 2018

Access to more

capital sources

than any other

firm in the

industry

Optimum financing solutions to

enhance value

Our ability to enhance buyer

pool by expanding finance

options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender progress,

insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,678

debt and equity

financings

in 2018

ACQUISITION FINANCING

9581 ALCOTT STREET

24

9581 ALCOTT STREET

25

MARKET

COMPARABLES

9581 ALCOTT STREET

SALES COMPARABLES MAP

26

9581 ALCOTT STREET

(SUBJECT)

1470 Rexford Dr

9500 W Olympic Blvd

1489 S Canfield Ave

9595 W Olympic Blvd

300 S Doheny Dr

815 S Shenandoah St

9617-9625 Charleville Blvd

SALES COMPARABLES

1

2

3

4

5

7

6

27

PROPERTY NAME9581 ALCOTT STREET

SALES COMPARABLES

Avg. 3.00%

0.0

0.4

0.8

1.2

1.6

2.0

2.4

2.8

3.2

3.6

4.0

9581 AlcottStreet

1470Rexford Dr

9500 WOlympic

Blvd

1489 SCanfield

Ave

9595 WOlympic

Blvd

300 SDoheny Dr

815 SShenandoah

St

9617-9625Charleville

Blvd

Average Cap Rate

Avg. 20.33

0.00

2.40

4.80

7.20

9.60

12.00

14.40

16.80

19.20

21.60

24.00

9581 AlcottStreet

1470Rexford Dr

9500 WOlympic

Blvd

1489 SCanfield

Ave

9595 WOlympic

Blvd

300 SDoheny Dr

815 SShenandoah

St


Blvd

Average GRM

SALES COMPARABLES SALES COMPS AVG

28


SALES COMPARABLES

Avg. $531.31

$0.00

$80.00

$160.00

$240.00

$320.00

$400.00

$480.00

$560.00

$640.00

$720.00

$800.00

9581 AlcottStreet

1470Rexford Dr

9500 WOlympic

Blvd

1489 SCanfield

Ave

9595 WOlympic

Blvd

300 SDoheny Dr

815 SShenandoah

St


Blvd

Average Price Per Square Foot

Avg. $547,059

$0

$80,000

$160,000

$240,000

$320,000

$400,000

$480,000

$560,000

$640,000

$720,000

$800,000

9581 AlcottStreet

1470Rexford Dr

9500 WOlympic

Blvd

1489 SCanfield

Ave

9595 WOlympic

Blvd

300 SDoheny Dr

815 SShenandoah

St


Blvd

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

SALES COMPARABLES

rentpropertyname1

rentpropertyaddress1

rentpropertyname1


rentpropertyname1


29

SALES COMPARABLES

Units Unit Type

Offering Price: $9,750,000 14 2+2

Price/Unit: $609,375 1 2+2.5 TH

Price/SF: $361.45 1 3+2

CAP Rate: 3.69%

GRM: 16.52

Total No. of Units: 16

Year Built: 1971

Underwriting Criteria

Income $572,676 Expenses $212,452

NOI $360,224 Vacancy ($17,656)

9581 ALCOTT STREET9581 Alcott Street, Los Angeles, CA, 90035

1

Units Unit Type

Close Of Escrow: 8/30/2019 2 Studio 1 Bath

Sales Price: $14,000,000 3 1 Bdr 1 Bath

Price/Unit: $538,462 20 2 Bdr 2 Bath

Price/SF: $383.14 1 3 Bdr 2 Bath

CAP Rate: 3.32%

GRM: 17.71


Year Built: 1969

1470 REXFORD DR1470 Rexford Dr, Los Angeles, CA, 90035

Units Unit Type

Sales Price: $7,475,000 2 Studio 1 Bath


Price/SF: $663.27

CAP Rate: 2.49%

GRM: 21.95


Year Built: 1948

2

9500 W OLYMPIC BLVD9500 W Olympic Blvd, Beverly Hills, CA, 90212

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


30

SALES COMPARABLES

Units Unit Type




Price/SF: $363.32 1 3 Bdr 2 Bath

CAP Rate: 2.83%

GRM: 20.06


Year Built: 1964

3

1489 S CANFIELD AVE 1489 S Canfield Ave, Los Angeles, CA, 90035

4

Units Unit Type

Close Of Escrow: 11/21/2018 12 1 Bdr 1 Bath

Sales Price: $6,388,888

Price/Unit: $532,407

Price/SF: $704.24

CAP Rate: 3.01%

GRM: 22.50


Year Built: 1949

9595 W OLYMPIC BLVD9595 W Olympic Blvd, Beverly Hills, CA, 90212

Units Unit Type




Price/SF: $563.66

CAP Rate: 2.63%


Year Built: 1946

5

300 S DOHENY DR300 S Doheny Dr, Beverly Hills, CA, 90211

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

SALES COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


31

SALES COMPARABLES

Units Unit Type




Price/SF: $339.42

CAP Rate: 3.33%

GRM: 17.73


Year Built: 1971

6

815 S SHENANDOAH ST815 S Shenandoah St, Los Angeles, CA, 90035

7

Units Unit Type


Sales Price: $4,650,000

Price/Unit: $775,000

Price/SF: $702.10

CAP Rate: 3.42%

GRM: 22.00


Year Built: 1934

9617-9625 CHARLEVILLE BLVD9617-9625 Charleville Blvd, Beverly Hills, CA, 90212

8

9581 ALCOTT STREET

RENT COMPARABLES MAP

9581 ALCOTT STREET

(SUBJECT)

9319 Alcott St

9217 Alcott St

9812 Vidor Dr

1434 S Canfield Ave

9372 W Olympic Blvd.

463 South Rexford Dr

9315 Alcott St

1125 Cardiff Ave # 4

1109 Glenville Dr

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

7

8

9

1

2

3

5

6

32


RENT COMPARABLES

33

AVERAGE RENT - MULTIFAMILY

Avg. $4,147

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

9581 AlcottStreet

9319Alcott St

9217Alcott St

9812Vidor Dr

1434 SCanfield

Ave

9372 WOlympic

Blvd.

463 SouthRexford Dr

9315Alcott St

1125CardiffAve # 4

1109Glenville

Dr

3 Bedroom

Avg. $3,633

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

$2,800

$3,200

$3,600

$4,000

9581 AlcottStreet

9319Alcott St

9217Alcott St

9812Vidor Dr

1434 SCanfield

Ave

9372 WOlympic

Blvd.

463 SouthRexford Dr

9315Alcott St

1125CardiffAve # 4

1109Glenville

Dr

2 Bedroom

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


34

YEAR BUILT: 1971

rentpropertyname1rentpropertyaddress1

Unit Type Units SF Rent Rent/SF

2+2 14 $2,995 $0.00

2+2.5 TH 1 $3,850 $0.00

3+2 1 $3,261 $0.00

Total/Avg. 16 $3,065

9581 ALCOTT STREET9581 Alcott Street, Los Angeles, CA, 90035

YEAR BUILT: 1970

1


2 Bdr 2 Bath 1,200 $3,750 $3.13

Total/Avg. $3,750

9319 ALCOTT ST9319 Alcott St, Los Angeles, CA, 90035

2

YEAR BUILT: 1947


2 Bdr 1.5 Bath $3,800

Total/Avg. $3,800


PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


35

YEAR BUILT: 1991

3


2 Bdr 2 Bath 1,500 $3,500 $2.33

Total/Avg. $3,500

9812 VIDOR DR9812 Vidor Dr, Los Angeles, CA, 90035

YEAR BUILT: 1937

4


2 Bdr 2 Bath 1,400 $3,400 $2.43

Total/Avg. $3,400

1434 S CANFIELD AVE1434 S Canfield Ave, Los Angeles, CA, 90035

5

YEAR BUILT: 1936


2 Bdr 2 Bath $3,850

Total/Avg. $3,850

9372 W OLYMPIC BLVD.9372 W Olympic Blvd., Beverly Hills, CA, 90212

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


36

YEAR BUILT: 1960

6


2 Bdr 2 Bath $3,495

Total/Avg. $3,495

463 SOUTH REXFORD DR463 South Rexford Dr, Beverly Hills, CA, 90212

YEAR BUILT: 2007

7


3 Bdr 2.5 Bath $3,995

Total/Avg. $3,995


8

YEAR BUILT: 1956


3 Bdr 2 Bath $4,150

Total/Avg. $4,150

1125 CARDIFF AVE # 41125 Cardiff Ave, Los Angeles, CA, 90035

PROPERTY NAME

MARKETING TEAM

9581 ALCOTT STREET

RENT COMPARABLES

rentpropertyname1


rentpropertyname1


rentpropertyname1


37

YEAR BUILT: 1936

9


3 Bdr 1.5 Bath $4,295

Total/Avg. $4,295

1109 GLENVILLE DR1109 Glenville Dr, Los Angeles, CA, 90035

Documents

Offering Memorandum...INVESTMENT OVERVIEW 01 Offering Summary Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 02 Rent Roll Summary Rent Roll Detail Operating Statement Notes