FOR SALE OR LEASE 12169 - LoopNet

1 | NAI CAPITAL INVESTMENT SERVICES

INVESTMENTS E R V I C E S G R O U P

FOR SALE OR LEASE

Cheryl Pestor Senior Vice President626.204.1529 | [email protected] DRE Lic #00810674

Glenn Melnick Senior Vice President626.204.1519 | [email protected] DRE Lic #01260850

OFFERING MEMORANDUM

RETAIL TROPHY OWNER USEROR INVESTMENT

C A L I F O R N I A , 9 1 6 0 4

VENTURA B O U L E VA R D

1216 9STUDIO CITY

Disclaimer and Confidentiality Agreement

The enclosed materials in this Offering Memorandum are being furnished to recipient solely for the purpose of review and purchase of 12169 Ventura Boulevard, Studio City, CA (“Property”) and contains highly confidential information and shall be returned to NAI Capital or Owner promptly upon request. The recipient shall not contact tenants or employees of the Property directly or indirectly without the prior written consent of NAI Capital or Seller. Acceptance of this Offering Memorandum indicates agreement to hold it in the strictest confidence and not, under any circumstances, photocopy or disclose information contained herein, in whole or in part to any third party without the written consent of Owner or NAI Capital.

The Property is being marketed and sold “as-is,” “where-is”, in its present condition unless otherwise agreed in a binding written agreement. NAI Capital, the Owner or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors disclaim any and all liability for any representations, guarantees or warranties, express or implied, as to the accuracy or completeness of information herein or omitted from this Offering Memorandum, or other written or oral communication transmitted or made available to the recipient, including but not limited to information regarding the condition of the Property, whether the Property has required governmental permits or complies with applicable laws, status of repairs or maintenance, and physical condition of the improvements, the size and square footage of the property and improvements, the presence or absence of contamination substances, PCB’s, mold, asbestos or other contaminants, environmental matters, and/or financial analysis or future projections concerning the Property, or the financial condition or business prospects of any tenant or any tenant’s plans or intentions to continue occupancy of the Property whether received from the Owner or any party, even if given to recipient by NAI Capital. Nothing contained in this Offering Memorandum shall be relied upon as a promise or representation as to the future performance of the Property. The assumptions contained herein may or may not be proven to be correct, and there can be no assurance that such estimates will be attained.

Recipients of this Offering Memorandum agree to rely on their own verification of all information received from any source, or available to recipient from any source, and to perform appropriate investigations and inspections through qualified consultants selected by recipient as part of recipient’s due diligence. Recipient is also informed that the Americans with Disabilities Act is a federal law that requires many business establishments to make many properties equally accessible to persons with a variety of disabilities, sometimes requiring making modifications to real property. State and local laws also may require changes. NAI Capital is not qualified to advise as to what, if any, changes may be required, now or in the future. Recipient should consult their attorneys and qualified professionals for information regarding these matters and reviewing, investigating and analyzing the Property.

The information contained herein is subject to change without notice. This Offering Memorandum is a solicitation of interest only and is not an offer to sell the Property. The Owner reserves the right, at its sole and absolute discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any entity at any time, with or without notice. This offering is made subject to correction of errors, omissions, change of terms or price, prior sale or withdrawal from the market without notice.

To the extent Owner or any agent of Owner corresponds with any interested party, any interested party should not rely on any such correspondence or statements as binding Owner. Owner shall have no legal commitment or obligation to any interested party whatsoever until a binding written Real Estate Purchase Agreement has been fully executed, delivered, and approved by Owner and any conditions to Owner’s obligations thereunder have been satisfied or waived.

NAI CAPITAL INVESTMENT SERVICES | 3

12169 Ventura Boulevard, Studio City, CA

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Investment Overview

Property Overview

Area Overview

Sale Comparables

Table of Contents

NAI CAPITAL INVESTMENT SERVICES

1 INVESTMENT OVERVIEW


ADDRESS 12169 Ventura Blvd., Studio City, CA 91604

OFFERING PRICE $7,500,000 ($656.22/SF)

BUILDING AREA TOTALING 11,429 SF

± 7,259 SF Ground Floor± 2,092 SF 2nd Floor / Mezzanine± 2,078 SF Basement

OCCUPANCY Vacant Owner-User Retail or Investment.

LEASE RATE $32,000.00 Per Month (entire building)

LEASE TYPE NNN ( $0.45/ SF / Month)

YEAR BUILT/RENOVATED 1947/1995

TOTAL LAND AREA 18,949 SF i.e. 0.435 AC

APN 2367-016-003

TYPE OF OWNERSHIP Fee Simple

ZONING BUILDLING C2-1L-RIO

ZONING PARKING P-1L-RIO Part of the Ventura / Cahuenga Boulevard Corridor Specific Plan and River Improvement Overlay District.

PARKING SPACES The parcel includes a portion of the parking lot to the rear of the building that is shared with a reciprocal agreement of over 400 spaces in the block. The parking is maintained and managed by the Studio City Shopping Center Association who charges the property owners annual CAM charges. Parking is 2 hours free. Employeeparking is free at north end of lot.

All Cash or Cash to New Financing. See George Smith Partners SBA Financing Assumptions Page 6

The Property is being sold free and clear of debt

INVESTMENT SUMMARY

FINANCING SUMMARY

12169 VENTURA BLVD, STUDIO CITY, CALIFORNIA | 5



SOURCES AND USES

Amount %

SOURCES

New 1st Trust Deed $6,750,000 90%

Borrower’s Cash Equity at Closing $760,000 10%

Total Sources of Funds $7,510,000 100%

USES

Purchase Price $7,500,000 100%

Financing Cost

Estimated Closing Cost $10,000 0%

Mortgage Broker’s Fee (GSP) TBD 0%

Total Uses of Funds $7,510,000 100%

LOAN SUMMARY

Senior Loan Request $6,750,000

Purchase Price $7,500,000

Loan to Purchase Price 90%

All-in Interest Rate (as of 2/24/2021) 3%

Amortization 25

Annual Debt Service $394,726

Monthly Debt Service $32,894

Loan per SF $591

Loan Term 25 year

• Interest rate is subject to change.• The Financing Assumptions above is provided by George Smith Partners for discussion purposes only.• The terms and conditions herein will be subject to satisfactory review of borrower’s creditworthiness and financial strength, and no change in the financial, banking,

capital or secondary market conditions and receipt of all necessary internal committee and other approvals by Lender.• Tenant Improvements can be included and funded as well.

Gilda RiveraSenior Vice President

Office: (310) 867-2977Cell: (310) 367-9999

Email: [email protected] # 01702175

Jarek YorkAsistant Vice PresidentOffice: (310) 867-2915Cell: (805) 766-6566

Email: [email protected] # 02071521

FINANCING ASSUMPTIONS


PROPERTY HIGHLIGHTS• Pride of Ownership Asset – The property was occupied as

a former GAP store for 28 years since 1993. Rare opportunity to acquire a prominent, highly sought after “Trophy” street front retail with tremendous visibility along Ventura Blvd.

• Generational Purchase Opportunity – Sellers have owned this asset for more than 37 years. The building is now vacant and an ideal opportunity for both an owner-user and/or investor.

• Excellent Visibility and Frontage – Situated at the signalized T Intersection at Vantage and Ventura Blvd. (combined 40,400 cars per day), the building offers 55’ of frontage along Ventura Blvd.

• Ease of Access and Parking – 12169 Ventura Blvd. features traditional sidewalk frontage with ample and convenient accessible parking in the rear of the property shared by a reciprocal parking agreement of ±400 total spaces. First 2 hours free.

• Flexibility for Single User or Multi-Tenant - Building can accommodate a single user for entire building of ±11,429 SF or multi-tenant for ± 7,259 SF on the ground floor and elevator served to second floor/mezzanine of ± 2,092 SF and basement of ± 2,078 SF to meet the high demand of small to medium retailers.

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12169 Ventura Boulevard, Studio City, CA 8 |

PROPERTY HIGHLIGHTS• LA C2 Zone - Allows for uses such as Restaurants, Offices and Retail Sales with either a CUP or SPR (standard Ministerial Site Plan Review). Please check with the

Los Angeles Code of Ordinances to confirm.

• No In-Place Financing – The Property is offered free and clear of existing debt and is available for a quick close to accommodate 1031 Exchange identification and closing periods. A new Owner-User or Investor will be able to purchase all cash or with new financing


(RENDERING IS CONCEPTUAL)

2 PROPERTY OVERVIEW



PROPERTY PHOTOS


Property Images


Floor Plan

FLOOR PLAN - MAIN LEVELThe main level is approximately ±7,259 square feet with 55 feet of frontage facing Ventura Boulevard. The drop ceiling height is approximately 10’9”. The drop ceiling could be removed to have exposed ductwork and open to the bow truss ceiling above (buyer to verify height). There are 7 fitting rooms, 2 stairwell emergency exits connected to the basement and mezzanine/2nd floor. There are 2 entrances, 1 on Ventura Blvd. and the other from the rear parking lot. In addition there is an elevator with access to the rear exterior of the building, the Main Level, Mezzanine/2nd floor and Basement.

PLEASE NOTE: Floor plans are for information purposes only. Scale and layout may not be accurate.


Floor Plan

FLOOR PLAN - MEZZANINE/2ND FLOOR & BASEMENTThe Mezzanine/2nd Floor is approximately ±2,092 SF and comprised of 3 private offices, open storage area, two restrooms and is elevator served. The ceiling height is approximately 7’6”.

The Basement is approximately ±2,078 SF and comprised of several storage areas, a stockroom with roller racking units and building electrical panels. The Basement is elevator served.

PLEASE NOTE: Floor plans are for information purposes only. Scale and layout may not be accurate.


Property Aerial

Parcel Map


3 AREA OVERVIEW



• Point of Destination Location – Situated at the gateway of Studio City and centrally located on the most desired blocks of Ventura Blvd. Located one half block west of Laurel Canyon Blvd.

• Convenient Regional and Local Location – The property is ideally situated less than 2.2 miles to the Universal City Metro Station, 2.8 miles to the 101 Freeway (over ±274,000 cars per day) and 5.4 miles to the 405 Freeway. Located just one half block west of the strategic intersection of Ventura Boulevard and Laurel Canyon Convenient accessibility of 6.5 miles to the Hollywood Burbank Airport.

• In the Center of The Studio City Business District (studiocitybusinessdistrict.com) with boundaries of Ventura Blvd from Coldwater Blvd to Carpenter Ave. Studio City Business District provides a unique blend of upscale shopping, dining, professional services and urban living within its 1.5 mile boundaries. The district is home to over 200 businesses.

• High Profile Retail Location – Prime retail hub in the same block that includes FedEx, BevMo, Panera Bread, CVS, Citibank, Lululemon, Peets and Chipotle. Vons Market is located on the outparcel adjacent to the parking area. Other national retailers in Studio City Business District are Barnes and Noble, Urban Outfitters, Chico’s, T-Mobile, Starbucks, First Republic Bank, Message Envy, Sephora, Trader Joe’s, Tender Greens, Daily Grill and Comerica Bank.

AREA HIGHLIGHTS



• Strong Traffic – Pedestrian friendly streets with Heavy Foot Traffic. Average Daily Traffic Counts of approximately 40,400 on Ventura Boulevard Eastbound and Westbound between Laurel Canyon Blvd. and Whitsett Avenue. (Sites USA February 2021)

• “Beverly Hills” of the San Fernando Valley – Studio City is one of the most desirable places to live in the San Fernando Valley. Known for its chic shopping district which includes high end national and boutique clothing stores and innovative restaurants that draw Angelinos and tourists from all over the world. CBS Studio Center is located within blocks of the subject property. Studio City is also known to have many celebrities living in the neighborhood due to its close proximity to NBC, CBS and Universal Studios.

• Affluent Neighborhood Demographics – Studio City is home to high-income earners. Within a 1-mile radius, the average annual household income exceeds $171,979 a year and $133,539 in a 3-mile radius.

• Dense Infill, Urban Location – In Excess of 592,602 People within a 5-Mile Radius, reflecting Studio City’s excellent high quality-of-life factors. In a 3 mile radius there are 76,199 employees, many from the movie and finance industry sectors.

AREA HIGHLIGHTS

Retail Map - Studio City, CA


Around 1926 famed “King of Comedy” Mack Sennett joined a newly formed real estate syndicate to buy 503 acres of land in what was then known as North Hollywood. The syndicate wanted to bring all of the motion picture studios into a single district. In exchange for being the first to build a studio in the district, Sennet was gifted 20 acres of land, in hopes other studios, lured by Sennett’s new studio would follow his lead. The corporation christened their new community ”Studio City”. In 1927 and early 1928 construction of the Mack Sennett Studios occurred and single-family homes and apartment houses also began to rise in anticipation of the 3,000 employees who the syndicate said would soon be working in Studio City. The stock market crash of 1929 forced Sennett into bankruptcy and in 1933 was sold to Mascot Studios which became part of Republic Pictures. In 1963, the complex was taken over by CBS, and is known today as CBS Studio Center.

HISTORY

NAI CAPITAL INVESTMENT SERVICES | 2012169 VENTURA BLVD, STUDIO CITY, CALIFORNIA | 20

Area Highlights - Studio City, CA


LOCATION

Studio City is home to approximately 40,000 residents and is bordered by Mulholland Dr. to the south, Toluca Lake & Universal City to the east (Hollywood Freeway and Lankershim Blvd.), Valley Village to the north (101 Freeway) and Sherman Oaks to the west (Coldwater Canyon). Studio City is an attractive suburb of Los Angeles nestled at the base of the scenic Santa Monica Mountains and numerous parks and hiking throughout the area.

Ventura Blvd is the primary east-west thoroughfare in Studio City. The corridor’s main shopping area is The Studio City Business District (www.studiocitybusinessdistrict.com) encompassing Ventura Blvd. from Coldwater Canyon on the west to Carpenter Avenue on the East including Ventura Place and Laurel Canyon near Ventura Blvd. The Studio City Business District, (which includes 12169 Ventura Blvd. and over 200 businesses) provides services to the district including sweeping the sidewalks and gutters daily, emptying over 100 trash cans 3 times a week, removing weeds from sidewalks, removing stickers and graffiti, providing security to run their bike patrol with trained officers on duty 7

days a week from 10 AM to 6 PM to help keep the district safe, maintain 5 medians and 4 garden spaces throughout the BID with drought tolerant plants, trim trees to help keep the canopy above business signs and to promote the health of trees.

THE NEIGHBORS

Studio City is one of the most desirable places to live in the Los Angeles area. The appeal is revealed in the beautiful treelined residential streets and picturesque Santa Monica Foothill mountains. The interesting mix of luxurious hillside homes and mid-century modern gems along with close proximity to most of the major Hollywood studios has long attracted residents from the film industry, writers, musicians and actors. Also, more affordable condos and townhouses can be found along Whitsett Ave., Moorpark Street, Studio Village and Colfax Ave. Studio City offers a unique blend of upscale boutiques, trendy eateries and nightlife spots that attracts area residents and visitors from around the world.

Area Highlights - Studio City, CA



KEY DEMOGRAPHICS

DAILY TRAFFIC COUNTS

Walkers Score 92 out of 100 (Walker’s Paradise)

Bikers Score 70 out of 100 (Very Bikeable)

Daytime Population

Average HH Income

Median Age

DaytimeEmployees

College Degree

1 Mile 20,910 $171,979 39.2 11,668 62.5%

3 Mile 193,746 $133,539 38.2 76,199 52.3%

5 Mile 592,602 $123,316 37.6 307,547 47.1%

Intersection ADT

101 Freeway at Laurel Canyon Blvd. 274,000 (2017 Caltrans)

Ventura Blvd. between Laurel & Whitsett 40,400 (Cites USA February 2021)



According to the Los Angeles County Valley Economic Corporation, as the Valley’s population grew in the 20th Century so did the region’s business opportunities. One of the earliest industries to arrive in the Valley was film making and today this “Valley of the Stars” is the center of motion picture and television production in America. Disney, Warner Bros., Universal Studios, and Dreamworks Animation are all headquartered here. This multi-billion dollar economic engine supports countless allied companies and creative professionals who showcase their art from here. However, entertainment is far from the only star that lights up the San Fernando Valley’s economy.

Aerospace is also a key industry here. Aviation and defense interests employ thousands of skilled research and development engineers and designers. The Valley is very independent and quite entrepreneurial. Half of all L.A. County contractors, a third of all business professionals, and many healthcare professionals have Valley addresses. Professional service firms are also major employers from Calabasas and Warner Center in the west portion of the San Fernando Valley to Burbank and Glendale in the east.

Feeding technical, creative, and professional talent to these core industries is an outstanding group of educational institutions including Cal State University, Northridge, Woodbury University, and four community

colleges as well as suburban campuses of many private

colleges and universities.

SAN FERNANDO VALLEY TOP EMPLOYERS

Notable Locations


Regional Map




3 SALE COMPARABLES

12169 Ventura Blvd. | Studio City, CA 91604

Asking Price: $7,500,000Square Feet: 11,429Floors: Grnd, Bsmt, MezzPrice Per SF: $656.22CAP Rate: N/AYear Built: 1947Occupancy: Vacant Owner UserLand SF: ±18,948Parking: Approx. 54 spacesComments: Parking Reciprocal w/

over 400 spaces

12029-35 Ventura Blvd. | Studio City, CA 91604

Close of Escrow: 5/7/2020Sale Price: $5,000,000Square Feet: 7,000Floors: 2Price Per SF: $714.29CAP Rate: N/AYear Built: 1928Occupancy: 75%Land SF: 4,792Parking: 12 tandem spacesComments: Owner User to occupy

2nd floor of building

11265-73 Ventura Blvd | Studio City, CA 91604

Close of Escrow: 11/4/2020Sale Price: $18,000,000Square Feet: 38,750Floors: 1Price Per SF: $659.46CAP Rate: N/A High VacancyYear Built: 1984Occupancy: 24.21%Land SF: 109,336Parking: Approx. 131 spacesComments: Multi-Tenant retail w/

high vacancy


Close of Escrow: 11/20/2020Sale Price: $5,100,000Square Feet: 6,035Floors: 1Price Per SF: $845.07CAP Rate: Not disclosedYear Built: 1975Occupancy: 100%Land SF: 12,502Parking: 10 spacesComments: Owner of Vet next door

purchased the property

14600-12 Ventura Blvd. | Sherman Oaks, CA 91403

Close of Escrow: 3/13/2020Sale Price: $10,750,000Square Feet: 14,450Floors: 2Price Per SF: $743.94CAP Rate: 5.00%Year Built: 1940Occupancy: 100%Land SF: 14,362Parking: LADOT Lot 629 in rearComments: Purchased by Investor.

Urban Outfitters and Medici Pizza are tenants

Sale Comparables

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Close of Escrow: 8/20/2020Sale Price: $2,525000Square Feet: 3,600Floors: 1Price Per SF: $687.50CAP Rate: N/A 66% VacantYear Built: 1926Occupancy: 44%Land SF: ±12,632Parking: 7 spacesComments: Purchased by an

Investor. 4 retail stores

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Close of Escrow: 8/20/2020Sale Price: $4,500,000Square Feet: ±6,116Floors: Grnd, Bsmt, MezzPrice Per SF: $735.78CAP Rate: N/AYear Built: 1947Occupancy: Bar to be a Jazz ClubLand SF: ±12,489Parking: 23 spacesComments: Purchased by an Owner

User

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14106 Ventura Blvd | Sherman Oaks, CA 91423

Close of Escrow: 2/9/2021Sale Price: $6,250,000Square Feet: 9,159Floors: 1Price Per SF: $682.39CAP Rate: 1.83%Year Built: 1938Occupancy: 93%Land SF: ±27,878Parking: 40 spacesComments: Multi-tenant investment

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SUBJECT PROPERTYSUBJECT PROPERTY

11820 Ventura Blvd. | Studio City, CA 91604Close of Escrow: 8/20/2020Sale Price: $2,525000Square Feet: 3,600Floors: 1Price Per SF: $687.50CAP Rate: N/A 66% VacantYear Built: 1926Occupancy: 44%Land SF: ±12,632Parking: _______ spaces

Comments: Purchased by an Inves-tor. 4 retail stores


28 | NAI CAPITAL INVESTMENT SERVICES

Exclusive Advisors:

Glenn Melnick Senior Vice President

626.204.1519 | [email protected] DRE Lic #01260850

Cheryl Pestor Senior Vice President

626.204.1529 | [email protected] DRE Lic #00810674

NAI Capital – Pasadena 225 S. Lake Avenue, Suite 1170

Pasadena, CA 91101

INVESTMENTS E R V I C E S G R O U P

12169 VENTURA BOULEVARD Studio City, CA

Documents

FOR SALE OR LEASE 12169 - LoopNet