MULTI-HOUSING INVESTMENT in Prime Palms Area...RYAN O’CONNOR Lee & Associates - LA North/Ventura 818.444.4965 | [email protected] DRE Lic # 01931694 MULTI-HOUSING INVESTMENT in

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

15350 Ventura Blvd., Suite 100, Sherman Oaks, CAP: 818.986.9800 F: 818.783.9260 | www.lee-associates.com

RYAN O’CONNORLee & Associates - LA North/Ventura818.444.4965 | [email protected] Lic # 01931694

MULTI-HOUSING INVESTMENT in Prime Palms Area3666 Clarington Avenue, Los Angeles

MULTIFAMILY INVESTMENT | CLARINGTON APARTMENTS3666 Clarington Avenue, Los Angeles, CA 90034

3666 CLARINGTON AVENUE

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EXECUTIVE SUMMARY ........................................................................................ 3-4

PROPERTY DESCRIPTION ................................................................................... 5-8

LOCATION OVERVIEW ........................................................................................9-15

FINANCIAL SUMMARY ...................................................................................... 16-18

MARKET OVERVIEW ......................................................................................... 19-22

BROKER RESUME ............................................................................................. 23-24

TABLE OF CONTENTS

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EXECUTIVE SUMMARY



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EXECUTIVE SUMMARY

Lee & Associates is pleased to present the exceptionally located

Clarington Apartments, a 7-unit multifamily investment opportunity in

the Palms neighborhood of the City of Los Angeles and just a short

walk to Downtown Culver City. The property has a walkscore of 88,

meaning that it is very walkable and is primed to take advantage of the

revitalization of Culver City which is directly adjacent to the property.

The property is located nearby both the Palms Metro Station and Culver

City Metro Station along the Expo Line. In addition the property is nearby

approximately 3 million square feet of new developments including the

highly anticipated 500,000 square foot Ivy Station, the Cumulus, a 1.9

million square foot development located at the intersection of Jefferson

& La Cienega, and the Culver Steps which is located between Trader

Joe’s and Culver Hotel and in front of the Culver Studios.

Culver City and the surrounding areas are experiencing explosive

growth with the influx of major entertainment and tech companies such

Amazon Studios, Apple, Beats by Dre, Google, HBO, Sony Pictures and

more.

The Offering

Property Overview

Address: 3666 Clarington Avenue Los Angeles, CA 90034

APN’s: 4313-007-015

Units: 7

Unit Mix: 5(1+1), 1(1+1+loft), 1(2+2.5)

Year Built: 1988

Building Size: 5,632 SF

Lot Size: 5,833 SF

Zoning: R3-1

TOC Program: Tier 3-eligible for up to 70% density bonus (Call agent for more details regarding TOC Program)

• First Time on Market in over 15 Years

• Located Nearby Approximately 3 million square feet of New Developments

• Nearby Palms and Culver City Metro Stations along Expo Line

• Amenity Rich Neighborhoods with Many Shops, Restaurants, and Nightlife Destinations

• Ease of Transportation Located Nearby the 405 and 10 Freeways and Expo Line Metro Station

• Nearby Major Employers such as Sony Pictures Studios, Amazon Studios, Apple, HBO, Google and Beats by Dre

Investment Highlights

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PROPERTY DESCRIPTION



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PROPERTY DESCRIPTION 3666 Clarington Avenue

Property Summary

Property Address: 3666 Clarington Avenue Los Angeles, CA 90034

Location: The subject property is located on the east side of Clarington Avenue, west of Dunn Drive and east of Empire Drive. Regent Street is north and Venice Blvd is south.

Units: 7

Year Built: 1988

Building Size: 5,632 SF

APN: 4313-007-015

Property Description

The Clarington Apartments is a 7-unit multifamily property constructed in 1988 and is located just east of the 405 Freeway, just south of the 10 Freeway, and is walking distance to the Palms Station Metro Line. The Property is situated in the Palms area of the City of Los Angeles which is directly adjacent to Downtown Culver City as well as centrally located to the Beach Cities, Beverly Hills, and Downtown Los Angeles. The property has a great unit mix consisting of five one-bedroom one-bath unit, one one-bedroom one-bath with a loft unit, one two-bedroom two and ½ bath unit. The property has a high walk score of 88, meaning that it is “very walkable.”

Lee & Associates® - LA North/Ventura • 15250 Ventura Blvd, #100, Sherman Oaks, CA 91403 • 818.986.9800 • Corp ID #01191898

7No 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.

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PROPERTY DESCRIPTION Aerial Map



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PROPERTY DESCRIPTION Plat Map

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LOCATION OVERVIEW



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LOCATION OVERVIEW Amenities Aerial



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LOCATION OVERVIEW Palms

Just North of Culver City, Palms is a small community in the city of Los Angeles offering easy access to the Santa Monica (10) Freeway and the San Diego (405) Freeway as well as the Expo Line connecting west to Santa Monica.

Dubbed “Best Place in L.A. for Millennials” by Niche, Inc. nearly half of Palms’ population of 45,475 residents falls within the 19-35 age range. Palms’ proximity to freeways and public transit and location just five miles from UCLA has curried favor with a highly educated demographic seeking more affordable housing than can be found in UCLA’s Westwood neighborhood or rapidly gentrifying Culver City. Many of its 45,475 residents are undergrad or graduate students,

and it’s not unlikely to see UCLA Bruins gold and blue throughout the neighborhood. But the community has also attracted single moms, gay couples and struggling artists priced out of Culver City.

The neighborhood has a high walk score of 87 with plentiful restaurants within close proximity. Among them, n/naka was named among Eater. com’s ‘America’s Essential Restaurants 2017’ and ranked No.1 on LA Weekly’s list of ‘LA’s Best Restaurants.’

The higher than average population density of Palms has attracted developers over the past five years and numerous apartment buildings and mixed use projects have recently been completed or are underway.



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LOCATION OVERVIEW Palms

New Developments

California Landmark Group has just completed a $25 million apartment complex with 79 market rate apartments and seven affordable units, a fitness center, community room and rooftop deck.

Greystar Real Estate Partners is constructing a 135-unit project with 14,000 square feet of ground-floor retail and underground parking. With 11 units designated as affordable housing, Greystar won a density bonus for the project.

Although Palms is largely residential, it shares a border with Culver City offering a vibrant job center that includes Sony Picture Studios. Also under development in Culver City, which has been rapidly gentrifying in recent years, is a new HBO headquarters, an expansion of the Culver Studios campus and a makeover for the 1920s-era West End Hotel, among other projects.



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LOCATION OVERVIEW Culver City

Steeped in the history of movie making, Culver City is now a cosmopolitan city offering myriad employment and recreational options within a compact 5 square miles.

It is located in the Westside region of Los Angeles with the Santa Monica (10) Freeway and San Diego (405) Freeway along its northern and western borders respectively. The Metro Expo line Culver City stop carries passengers to downtown Los Angeles at its eastern end and to downtown Santa Monica at its western terminus, and Culver City runs its own bus line with routes to Palms, Westwood, Marina del Rey and Century City among others.

Culver City enjoys an affluent, educated population of approximately 40,000 residents, 19 percent of whom also work in Culver City. The median household income is $86,791, thanks in large part to the numerous entertainment companies and the major motion picture studios located in Culver City.

In addition to Sony Pictures, Culver City houses the Culver Studios and HBO is currently building offices across the street from the Expo line. Google is also increasing its presence in Los Angeles with its 14 year lease of 585,000 square feet of office space of the Westside Pavilion which is currently being redeveloped and will be called One Westside with expected completion in 2022.

The city operates numerous parks and recreational programs and classes for youth and adult sports from skateboarding to soccer; ceramics, fine arts and performance arts and fitness.



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LOCATION OVERVIEW Culver City

There is a weekly Farmers Market, Fiesta La Ballona, a summer fair held at Veteran’s Park; and a Summer Concert Series. Culver City also offers summer camps for kids focusing on theatre, comedy, dance French language, art and sciences.

The Culver City Arts District has been called one of the ’10 Best Art Districts’ by USA Today. There are 14 contemporary and fine art galleries located mostly along Washington Boulevard and La Cienega Boulevard.

New Developments

Developers have been active in Culver City, and along with the expansion of Culver Studios, new development including the Culver Steps project is underway. The Culver Studios expansion will add 400,000 square feet of offices, stages and parking. Culver Steps, a mixed-use development from Hackman Capital Partners, will include office and retail space with a public plaza. Amazon Studios announced plans to move to the Culver Studios complex and lease office space at Culver Steps.

Another creative office building is underway with 66,000 square feet of office space and ground floor retail from Runyon Group; and Ivy Station, a $300 million development consisting of apartment units, a hotel, offices and retail, is expected to be completed next year.



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LOCATION OVERVIEW Metro Rail & Station

The Subject Property is exceptionally located nearby multiple Metro Stations along the Expo Line, providing residents with short commute times

and ease of access to Santa Monica, Downtown Los Angeles, and all of Greater Los Angeles. 3666 Clarington Avenue is located just 0.4 miles

from the Palms Metro Station and 0.8 miles from the Culver City Metro Station.

3666 Clarington Ave.Los Angeles, CA

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FINANCIAL SUMMARY



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FINANCIAL SUMMARY Investment Analysis

PROPERTY NAME NUMBER OF UNITS 7

ADDRESS BUILDING SIZE (SQ. FT.) 5,632

CITY, STATE, ZIP LOT SIZE (SQ. FT.) 5,833

PRICE COST PER UNIT $432,143

YEAR BUILT COST PER SQFT $537.11

□ Less than a mile to Metro Lightrail Palms Sta�on □ Prime Westside Loca�on

RENTAL INFORMATIONNO. UNITS BDRMS BATHS AVG. RENT RENT Monthly Income

5 1 1 $2,211 $2,395 $11,9751 1 1 w/ loft $2,362 $2,650 $2,6501 2 2.5 TH $2,730 $3,450 $3,450

Scheduled Monthly Income: $18,075

ANNUAL PROPERTY OPERATING DATACURRENT INCOME/YEAR

AS % GOI AS % GOI AS % GOIScheduled Gross Income $193,762 98.78% $216,900 98.91% Taxes $36,300 18.51%Other Income $0 0.00% $0 0.00% Insurance $2,750 1.40%Laundry $2,400 1.22% $2,400 1.09% Utilities $6,500 3.31%Gross Operating Income $196,162 CURRENT MARKET $219,300 Repairs/Maintanence $9,808 5.00%Vacancy Reserve $9,808 5.00% $10,965 5.00% Landscaping $1,800 0.92%Effective Gross Income $186,354 15.42 13.79 $208,335 Trash $2,400 1.22%Expenses $60,258 30.72% $60,258 27.48% Miscellaneous($100/un) $700 0.36%Net Operating Income $126,096 64.28% 4.17% 4.90% $148,077 67.52%Debt Service $81,502 $81,502Pre‐Tax Cash Flow $44,594 2.95% 4.40% $66,575Principal Reduction $28,919 $28,919Return on Equity $73,513 4.86% 6.31% $95,494

TOTAL EXPENSES $60,258 30.72% MORTGAGE FINANCING INFORMATIONLoan Amount $1,512,500 Monthly Loan Payment $6,792 Expense / NRSFDown Payment $1,512,500 50% Annual Loan Payment $81,502 Expense / Unit5‐Year Fixed Rate 3.50% Year 1 Interest Amount (approx.) $52,583Amortization Period (Yrs) 30 Year 1 Principal Paydown (approx.) $28,919

$8,608

ESTIMATED ANNUAL EXPENSES

$10.70

$11,055

GRM

MARKET INCOME/YEAR

$16,147

Return On Equity

Cash on Cash

$2,362

Monthly Income

$2,730

CAP Rate

Market Income

Los Angeles, CA 90034

Current Income

□ Signicant Rental Upside

1988

INVESTMENT HIGHLIGHTS

$3,025,000

3666 Clarington Ave.

The information provided herein is from sources we believe are reliable. While we do not doubt its accuracy, we have not verified it and make no representations, guarantees or warranties about it.

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PROPERTY DESCRIPTION Rent Roll

Unit Type Rent Market

101 1+1 $2,395.00 $2,395.00

102 1+1 $2,395.00 $2,395.00

103 1+1 $2,130.00 $2,395.00

104 2+2.5 TH $2,730.00 $3,450.00

201 1+1 $2,150.00 $2,395.00

202 1+1 $1,985.00 $2,395.00

203 1+1 w/ loft $2,361.81 $2,650.00

Total: $16,146.81 $18,075

Annual Rent: $193,762 $216,900

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PROPERTY DESCRIPTION Rent Roll

*Note: Unit 102 is Vacant

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MARKET OVERVIEW



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MARKET OVERVIEW New Development and Expansion Projects

1. Ivy Station

Ivy Station is the highly anticipated 500,000 square foot development located near the intersection of Venice Boulevard and Culver Boulevard. Ivy Station is a $300 million development that will include 200 residences, 200,000 square foot office building, 148 room boutique hotel, and over 50,000 square feet of retail. Ivy Station is the centerpiece of a $1 billion transit-oriented cluster covering about 20 acres surrounding the station and around the Expo Line. Ivy Station will also have a park-like public space that could hold as many as 800 people for a concert and will hold events such as dance classes, jazz performances and move nights where shows will be projected on an inflatable theater screen.

2. The Cumulus

The Cumulus is a 1.9 million square foot development located at the intersection of Jefferson Boulevard and La Cienega Boulevard. The Cumulus will include a seven-story podium building, a 30-story high rise building, about, 1,200 residential units, and 100,000 square feet of retail. The development will also include a 1-acre public park plaza.

3. The Culver Steps

The Culver Steps development is currently underway and is located between Trader Joe’s and the Culver Hotel and in front of the Culver Studios. The Culver Steps will have expansive public open space, 75,000 square feet of offices above 40,000 square feet of retail and restaurant space, plus a 35,000 square foot public plaza.



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This redevelopment has plans to grow the existing 385,000 square foot campus which consists of studio and media production space to a complex larger than 720,850 square feet including sound stages, production space, and offices designed by Gensler. The new additions include five new office buildings, four of which will be occupied by Amazon. Amazon has a big presence in Culver City occupying 530,000 square feet of the Culver Studios.

5. 8777 Washington Blvd

This project will consist of 128,000 square feet of creative office space located across from the Ivy Station. The construction is still underway, however, Apple has already leased the entire space for its entertainment division. Apple announced its plans to increase its presence in Los Angeles and expects to have over 1,000 employees in Culver City over the next three years.

6. Westside Pavilion-One Westside

This redevelopment, referred to as One Westside, is designed by Gensler and repurposes the landmark shopping center to a 584,000 square foot office campus which is leased entirely by Google on a 14 year lease. One Westside will retain access to the remaining retail space at the Westside Pavilion, including the Landmark Theatre, through an existing pedestrian bridge over Westwood Boulevard.

MARKET OVERVIEW New Development and Expansion Projects



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MARKET OVERVIEW New Developments Map

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BROKER RESUME



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ABOUT LEE Broker Resume

RYAN O’CONNOR Lee & Associates-LA North/Ventura, Inc. Corporate ID# 01191898; License ID #01931694 A Member of the Lee & Associates Group of Companies 15250 Ventura Blvd. Ste. 100 Sherman Oaks, CA 91403 d: 818.444.4965 l c: 805.341.1273 l f: 818.385.4365 E-mail: [email protected]

Specialty / Expertise Ryan O’Connor is a Principal of Lee & Associates-LA North/Ventura and a member of the multifamily specialty group, Berzack Investment Property Advisors, with a broad-based background in real estate, property management and property tax assessment.

He has worked extensively with property owners and financial institutions evaluating and preparing properties for sale and representing buyers and sellers in the acquisition and disposition of multifamily and retail assets.

Mr. O’Connor’s expertise also includes assisting property owners to reduce property taxes by analyzing assets including income generation, researching comparable properties and filing appeals with the County Assessor. He is also familiar with all aspects of unlawful detainer/abandonment cases.

Career History / Professional Recognition Mr. O’Connor was honored as Associate of the Year for his performance in 2018 and elevated to principal status. In 2019 he won the Gold Award for the “Best Multifamily Sale” in the San Fernando Valley Business Journal’s annual Commercial Real Estate Awards competition.

He joined Lee & Associates as a sales assistant and was promoted to associate after less than a year. He previously worked for Jamison Services, Inc., a prominent real estate investment firm with a portfolio in excess of 150 properties. Earlier in his career, Mr. O’Connor served with Assessment Appeal Advisors LLC-Commercial Realty Consultants.

Representative Sales (partial list) • 80-Unit Multifamily; 2156-2196 Kendall Dr., San Bernardino, CA; $10,250,000 • 28-Unit Multifamily; 6611 Woodley Ave., Van Nuys, CA; $4,575,000 • 9-Unit Multifamily; 11558 Sylvan St., North Hollywood, CA; $1,580,000 • 5,165-SF Retail; 21980 N 83rd Ave., Peoria, AZ; $2,735,000 • 14-Unit Multifamily; 4309 Dixie Canyon Ave., Sherman Oaks, CA; $6,150,000 • 12-Unit Multifamily; 2504, 2508, 2510 Pacific Ave., Venice, CA; $3,930,000 • 15,620-SF Retail; 100 China Grade Loop, Bakersfield; CA; $4,100,000 • 1,974-SF Retail; 1365 W Olive Ave., Fresno, CA; $2,200,000 • 33-Unit Multifamily; Palms, CA; $9,500,000 • 13,755-SF Retail; Van Nuys, CA; $6,732,000 • 8-Unit Multifamily; North Hollywood, CA; $2,430,000 • 9,956-SF Retail; San Bernardino, CA; $3,800,000 • 5,754-SF Retail; Port Charlotte, FL; $3,025,000

Associations / Education • B.A., University of Southern California College of Letters Arts and Sciences where his academic achievements included membership in the USC Chapter of

Sigma Alpha Lambda’s Honor’s Society and Dean’s List recognition.

• California Bureau of Real Estate Salesperson License

Documents

MULTI-HOUSING INVESTMENT in Prime Palms Area...RYAN O’CONNOR Lee & Associates - LA North/Ventura 818.444.4965 | [email protected] DRE Lic # 01931694 MULTI-HOUSING INVESTMENT in