COMMERCIAL REAL ESTATE...COMMERCIAL REAL ESTATE 30 unit hollywood multifamily investment opportunity 1987 construction The hillpointe 2330 N. Cahuenga Boulevard Los Angeles, CA, 90068

offeringmemorandum

C O M M E R C I A L R E A L E S TA T E

30 unit hollywood

multifamily investment

opportunity

1987 construction The

h illpoi nte 2330 N. Cahuenga Boulevard

Los Angeles, CA, 90068

2330 N. Cahuenga Boulevard Los Angeles, CA 90068

The hillpoi nte

Listing AgentsJake ZacutoManaging [email protected] #01377441

benjamin [email protected] #02069968

Jackie lubranoVice [email protected] #02024601

Disclaimer: No warranty,

express or implied, is made

as to the accuracy of the

information contained herein.

This information is submitted

subject to errors, omissions,

change of price, rental or

other conditions, withdrawal

without notice. All parties who

receive this material should

not rely on it, but should use it

as a starting point of analysis,

and should independently

confirm the accuracy of the

information contained herein

through a due diligence

review of the books, records,

files and documents that

constitute reliable sources

of the information described

herein. Logos and images are

for identification purposes

only and may be trademarks

of their respective companies.

All terms provided are

approximate. Buyer to verify.

6/2020

SUMMARY 1

PROPERTY OVERVIEW 3

AREA OVERVIEW 5

FINANCIAL SUMMARY 8

COMPS 10

Benjamin Gribnau

Director

424-322-9309

[email protected]

BRE #02069968

Leor BinshtockSenior Vice [email protected] #01773798

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2330 N. Cahuenga Boulevard

Los Angeles, CA

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SUMMARYZacuto Group is pleased to present the opportunity to acquire a 1987 construction 30 unit multifamily property, which is not subject to Los Angeles Rent Stabilization Ordinance (LA Rent Control), at 2330 N. Cahuenga Boulevard, in Hollywood, CA.

Situated on a 0.30-acre lot, the 26,715 square foot building consists of 10 one bedroom/one bath units, 2 one bedroom/one bath + loft units, 13 two bedroom/two bath units, and 5 two bedroom/two bath + loft units.

This is a unique opportunity to acquire a well-maintained Hollywood asset with rental upside and a potential to convert loft space to additional bedrooms (buyer to verify).

The Hillpointe Apartments offers an attractive mix of amenities including central HVAC, in-unit laundry within 21 of the units, an upgraded fitness center, laundry room, common lounge areas, landscaped grounds and gated garage parking. The property is centrally located with fantastic proximity to all the nightlife, concert venues, renowned restaurants, and coffee shops that Hollywood has to offer.

Price $13,500,000Price/Unit $450,000Price per SF: $505.33Cap Rate 4.34%GRM 15.29Units 30Year Built 1987Building Size 26,715 SFLot Size 13,192 SFParking Spaces 55

2330 N. Cahuenga Boulevard Los Angeles, CA

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Assumable loan of $7,850,000 at 4% interest

only, 2 years remaining

1987 Construction - Not subject to Los Angeles

Rent Stabilization Ordinance (RSO)

Under Market Rents

7 loft to bedroom conversion opportunities*

Ratio Utilities Billing System (RUBS)

implemented to charge tenants directly for water

OVERVIEW

*buyer to confrim 1


Los Angeles, CA

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THE OFFERINGA well positioned 30-unit multifamily investment

property located in Hollywood, CA, one of the premier housing markets in Los Angeles.

THE PROPERTYThe Hillpointe Apartments are comprised of one and

two-bedroom floor plans with central HVAC, upgraded lighting and private outdoor space. Many units have

been updated with granite and stainless steel kitchens and in-unit washer/dryers. Residents enjoy a wide

range of amenities including secured building access, common area lounge with BBQ, updated fitness center,

additional laundry facilities, and garage parking.

CENTRAL HOLLYWOOD LOCATION The Hillpointe Apartments are centrally located near

many of Hollywoods most popular attractions including the Hollywood Bowl, Universal Studios, Griffith Park, Runyon Canyon, The Greek Theatre, the LA Zoo, the

famed Hollywood Sign, and exceptional entertainment and retail along Hollywood Boulevard.

VALUE-ADD OPPORTUNITY In addition to under market rents, 7 of the units have

loft spaces which can be converted into additional bedroom configurations allowing for a substantial value

add opportunity. (Buyer to verify)

OVERVIEW

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• Light and bright apartments with central HVAC, many with in-unit washer/dryers, granite and stainless steel kitchens, upgraded LED lighting and fresh paint

• All units offer private outdoor space

• Newly upgraded and renovated elevator

• Common areas include: Patio with BBQ, laundry facility and fitness center

• 55 gated and covered parking spaces

PROPERTY OVERVIEW

UNIT TYPE UNITS BEDROOMS UNIT SF TOTAL SF

private patio


property Summary

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z a c u t o g r o u p. c o m | 3 1 0 - 4 6 9 - 9 3 0 0Loft space bedroom

exterior

The hillpoi nte 2330 N. Cahuenga Boulevard

Los Angeles, CA

common bbq space

interiorVirtually staged rendering

property overview

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AREA OVERVIEWH O L LY W O O D , C A L I F O R N I AHollywood interconnects the entertainment industry from the San

Fernando Valley through the greater Westside. Home to the film industry

and many historic studios, Hollywood has become a melting pot for all.

With a mix of amenities including renowned restaurants and high end

retail, the area is undergoing an extensive revitalization, transforming into a

truly dynamic live/work/play environment.

2330 N. Cahuenga Boulevard Los Angeles, CA

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area overview

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HOLLYWOOD BOULEVARD/

WALK OF FAME

HOLLYWOOD BOWL

HOLLYWOOD SIGN

HOLLYWOOD & HIGHLAND

GRIFFITH PARK

FRANKLIN VILLAGE

UNIVERSAL CITY

Charming stretch of shoppes, restaurants and theatres known to as one of Hollywoods best kept secrets; attracting celebrities, studio executives and hip locals.

World renowned a film studio and theme park, attracting over 9 millions visitors last year. The rides and attractions are based on popular movies or television shows with the most recent addition of Harry Potter World.

Iconic amphitheater in the Hollywood Hills, hosting some of the worlds most recognized entertainers. It was named one of the 10 best live music venues in America by Rolling Stone magazine in 2018.

An American landmark and cultural icon overlooking Hollywood, Los Angeles. A world recognized beacon of the entertainment capital.

Entertainment destination includes The Chinese Theatre, Walk of Fame, designer shops, nightlife & restaurants.

The Central Park of Los Angeles, where winding trails fill with trendy joggers and local adventurers. The park is home to the Griffith Observatory, the LA Zoo, and the Griffith Park Golf Course.

A Los Angeles cultural icon, with museums, landmarks and other Hollywood attractions that celebrate L.A.’s rich film and entertainment heritage. The boulevard has evolved from a tourist attraction stop, to a sought after neighborhood known for its eclectic mix of restaurants, bars and theaters.

5 minute bike ride / 15

minute walk to Hollywood/

Highland Metro Station

Location highlights

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hollywood walk of fame

franklin avenue

N. Highland avenue


Los Angeles, CA

franklin village

musso & frank grillpig & whistle

roosevelt hotel

no vacancy

dream hotel

mama shelter

hotel cafe

dirty laundryhollywood & highland

whitley market

yamashiro

hollywood bowl

ford theatre

beachwood dr

magic castle

franklin avenue

cahuenga boulevard

Universal studios

madera kitchen

cleo hollywood

capital records

hollywood boulevard

n. cahuenga boulevard

highland avenue

playhouse

101

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Los Angeles, CA

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15,000+Estimated Residents

by 2022

$4.8B+Invested in the development of the

area since 2000

$1BExpected

development

5MNumber of

Emplyees throughout Los Angeles

36Median

Resident Age

100%Increase in residential units

from 2015 - 2022

$97KAverage household income

1.1M+Riders on the Hollywood/Highland Metro Annually

Hollywood continues to be a dynamic neighborhood growing in both popularity and population as new developments take shape. Driven by local jobs, educational institutions, and accessible public transit, the demand for residential properties has surged.

Within the last 5 years, the convergence of technology and entertainment (known as ‘Techtainment’) has created an influx of interest in the area. With the proximity to established studios and the growth of new startups, Hollywood continues to evolve and attract high caliber talent.

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HOLLYWOOD BY THE NUMBERS

Source: Metro.net, LA Tourism and Convention Board, HPOA Board

THE ENTERTAINMENT CAPITAL OF THE WORLD

Trailer Park

Location highlights

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FINANCIALSUMMARY

financial summary


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Summary

Price: $13,500,000

Number of Units: 30

Cost Per Unit: $450,000

Price Per SF: $505.33

Current GRM: 14.89

Market GRM: 13.19

Current CAP: 4.34%

Current Cash on Cash: 4.82%

Market CAP: 5.15%

Market Cash on Cash: 6.75%

Approximate Age: 1987

Approximate Lot Size: 13,192

Approximate Net RSF: 26,715

Assumable Interest Only Loan - 2 Years Remaining

Loan To Value 58% Monthly Payment $26,167

Down Payment $5,650,000 Annual Payment $314,000

Loan Amount $7,850,000 Debt Coverage: 1.87

Interest Rate 4.00% Loan Term (yrs) 30

This information has been secured from sources we believe to be reliable but representations, or warranties, expressed or

implied, as to the accuracy of the references to square footage, land lines/boundaries and age are approximate. Buyer takes

responsibility for all information and bears all risk for any inaccuracies.

Not Subject To Rent Stabilization Ordinance (Los Angeles Rent Control)

Due to its 1987 construction, this property is not subject to Los Angeles

Rent Stabilization Ordinances (Los Angeles Rent Control) which would

typically limit rent increases to 3%-4% annually.

Per California state laws, rents at this property can be increased

annually by 5% plus the rate of inflation with a maximum of a 10%

annual increase. This allows the purchaser to quickly move occupied

units to market rent.

Scheduled Monthly IncomeUnit Mix Current Income Pro-Forma Income101 2+2 $2,385 $2,995

102 2+2 $2,275 $2,995

103 2+2 + Patio $2,525 $3,095

104 1+1 + Patio $2,000 $2,395

105 1+1 + Patio $2,195 $2,395

106 1+1 + Patio $1,975 $2,395

107 1+1 + Patio $1,975 $2,395

108 2+2 $2,545 $2,995

109 2+2 (Vacant) $2,995 $2,995

110 2+2 (Vacant) $2,995 $2,995

201 2+2 $2,595 $2,995

202 2+2 $2,450 $2,995

203 2+2 $2,430 $2,995

204 1+1 (Manager) $0 $0

205 1+1 $1,975 $2,295

206 1+1 (Vacant) $2,295 $2,295

207 1+1 $1,895 $2,295

208 2+2 $2,600 $2,995

209 2+2 (Vacant) $2,995 $2,995

210 2+2 $2,375 $2,995

301 2+2 + Loft (Vacant) $3,495 $3,495

302 2+2 + Loft $2,805 $3,495

303 2+2 $2,375 $2,995

304 1+1 + Loft $2,325 $2,495

305 1+1 + Loft $2,275 $2,495

306 1+1 $1,880 $2,295

307 1+1 (Vacant) $2,295 $2,295

308 2+2 + Loft (Vacant) $3,495 $3,495

309 2+2 + Loft $2,895 $3,495

310 2+2 + Loft (Vacant) $3,495 $3,495

Other Income* $2,761 $2,761

Monthly Scheduled Gross Income: $75,571 $85,316

Annual Scheduled Gross Income: $906,848 $1,023,788

Annualized ExpensesCurrent* Pro-Forma

Estimated

Taxes 1.2001% $162,014 $162,014

Insurance $10,275 $10,275

Utilities $49,043 $49,043

Repairs & Maint $19,500 $19,500

Pest Control $3,603 $3,603

Management Fee (4%) $36,274 $40,952

Landscaping $5,969 $5,969

Misc./Reserves $7,500 $7,500

Total Expenses $294,178 $298,856

Per Net Sq. Ft: $11.01 $11.19

Per Unit $9,806 $9,962

Annualized Operating DataCurrent Pro Forma

Scheduled Gross Income: $906,848 $1,023,788

Less: Vacancy Reserve: $26,212 3.00% $29,720 3.00%

Gross Operating Income: $880,636 $994,068

Less: Expenses: $294,178 33.41% $298,856 30.06%

Net Operating Income: $586,458 $695,212

Less: Loan Payments: $314,000 $314,000

Cash Flow After Debt Service: $272,458 4.82% $381,212 6.75%

Plus: Principal Reduction: $- $-

Total Return Before Taxes: $272,458 4.82% $381,212 6.75%

*Includes Application Fees, Laundry, Parking/Storage, Pet Rent, Revenue Share, Late Fees, RUBS, and NSF Fees.

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3153 BARBARA CT HOLLYWOOD HILLS

SALE PRICE: $6,100,000BUILT: 1950UNITS: 18CAP: 4.00%

5643 CARLTON WAY CLOVER ON CARLTON

SALE PRICE: $7,850,000BUILT: 1965UNITS: 24

CAP: 3.83%

1522 N FORMOSA AVE SUNSET FORMOSA

SALE PRICE: $12,336,000BUILT: 1985UNITS: 36

CAP: 4.19%

1837 N LA BREA AVE


7057 LANEWOOD AVE PINEWOOD LANE APARTMENTS


1420 N MANSFIELD AVE EME MANSFIELD

SALE PRICE: $11,800,000BUILT/RENO: 1991/2017UNITS: 35CAP: 4.16%

10650-10656 MOORPARK ST CHATEAU TOLUCA


SALE COMPS

1 2 3

7654

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2

3

45

6

sales comparison

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2054 N. ARGYLE AVE

RENT: $2,350UNIT TYPE 1 BEDROOM

2026 ARGYLE AVE


7280 HILLSIDE AVE

RENT: $2,600

UNIT TYPE 1 BEDROOM

6543 FRANKLIN AVE


2177 ARGYLE AVE


2037 N LAS PALMAS AVE


LEASE COMPS

1 BEDROOM

1 2 3

654


123 4

56

lease comparison

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on market comparables


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2104 N CAHUENGA BLVD


1802 WHITLEY AVE


2218 BEACHWOOD DR

RENT: $2,995

UNIT TYPE 2 BEDROOM

1950 TAMARIND AVE


1930 N BRONSON AVE


6752 HILLPARK DR


LEASE COMPS

2 BEDROOM

1 2 3

654


12

3 45

6

lease comparison


Los Angeles, CA

on market comparables

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E L E V A T E Y O U R P E R S P E C T I V E

LEASING | INVESTMENTS | ADVISORY

The team

1 0 2 5 0 C O N S T E L L A T I O N B L V D

S U I T E 2 7 7 0

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C O M M E R C I A L R E A L E S TA T E

Jake ZacutoManaging [email protected] #01377441

Leor BinshtockExecutive Vice [email protected] #01773798

Matt [email protected] #02079289

Richard RamerVice [email protected] #02053543

Doug FillmoreSenior [email protected] #02092675

Andrew SinasohnExecutive Vice [email protected] #01951740

Jackie LubranoVice [email protected] #02024601

Connor SearsSenior [email protected] #02010505

Michael SpiegelMarketing [email protected]

Benji [email protected] #02069968

http://instagram.com/zacutogroup

http://linkedin.com/company/zacutogroup

Documents

COMMERCIAL REAL ESTATE...COMMERCIAL REAL ESTATE 30 unit hollywood multifamily investment opportunity 1987 construction The hillpointe 2330 N. Cahuenga Boulevard Los Angeles, CA, 90068