22-Unit Portfolio - Los Angeles, CA

1645 Courtney Ave

PRICING & FINANCIAL ANALYSIS

22-Unit Portfolio

PREPARED FOR

Alan P. Cutter

TABLE OF

Contents CONTENTS

SECTION

Location Overview

01

Portfolio Overview

02

1645 Courtney Ave

03

7706 Hollywood Blvd

04

Comparables

05

James Capital Advantage

06

MEET YOUR ADVISORS

ELLIOT HASSAN Senior Director (424) 325-2643

MIKE HANASSAB Senior Director (424) 325-2642

JOHN KATNIK Senior Associate (424) 325-2644

Joseph Lieberman Associate (424) 325-2641

7706 Hollywood Blvd

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

SECTION ONE

LOCATION OVERVIEW

4

22-UNIT PORTFOLIO

Los Angeles, CA 90046

5

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

LOCATION OVERVIEW

HOLLYWOOD

Hollywood, CA No trip to Los Angeles is complete without a visit to Hollywood, the home of movie studios, many of L.A.’s most popular and historic tourist destinations, and its world-famous namesake boulevard. Many stars, past and present, live in neighbouring communities such as Beverly Hills and Bel Air. As the capital of the global entertainment industry, Hollywood is both a state of mind and a very real place. A larger-than-life symbol of the entertainment business, Hollywood beckons tourists with landmarks like the TCL Chinese Theatre and star-studded Walk of Fame.

Hollywood sees millions of tourist flood the streets to get a little taste of the Hollywood life. Highlights include Paramount Pictures, historic music venues like the Hollywood Bowl, and Dolby Theatre, home of the Oscars.

Scenesters can choose from improv comedy clubs, retro-cool bars and velvetroped nightclubs as well as amazing outdoor adventures. Los Angeles is a trend-setting global metropolis with a fascinating history and a rich cultural heritage. LA’s cultural attractions are second to none, whether it’s the Space Shuttle Endeavour, Walt Disney Concert Hall, the Getty Center or art galleries and urban art.

6

LOCATION OVERVIEW

WEST HOLLYWOOD West Hollywood, CA Founded in 1984 as the 84th city in Los Angeles County, West Hollywood is a young, vibrant community with a colorful and entertaining past. Located in the heart of metropolitan Los Angeles, at 1.9 square miles, West Hollywood is a robust economic and cultural center instilled with idealism and creativity.

West Hollywood shares boundaries with the cities of Beverly Hills and Los Angeles. Its history stretches back over 300 years. West Hollywood is at the cultural and geographical heart of the Los Angeles region, surrounded by must-see hotspots in every direction. If you want to experience Southern California, booking a hotel in walkable West Hollywood will give you convenient access to everything and situate you in one of the hottest hubs of L.A. At present, the city has grown to 39,000 residents and remains Los Angeles’ hottest destination for the entertainment industry with its boutique hotels, celebrityowned restaurants, unparalleled nightlife and shopping and world-renowned events like the HBO Emmy Party, Sir Elton John’s Annual Oscar Party, & LA PRIDE. West Hollywood continues to set the standard for progressive, creative individuals on the cutting edge of trends and new ideas, working together as a community in one of the most exciting destinations in the country.

7

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

LOCATION OVERVIEW

Point of Interest A. The Comedy Store

The historic Comedy Store was opened in 1972 and has since gained world renowned fame. The most famous comedians stop by this venue to perform in the 450seat main room located in West Hollywood, CA.

B. TLC Chinese Theatre

TCL Chinese Theatre is a movie palace on the historic Hollywood Walk of Fame. It holds many block buster premiers that attract tourism and famous individuals from all corners of the world. It holds more than 930 movie-goers.

C. The Laugh Factory

8

D. Hollywood Gaba Gallery Wax Museum

The the At worldGabba famousGallery Hollywood displays Wax disciplines—photography, Museum is the most visited attraction street, design, on Hollywood collage Boulevard and fine since art—this 1965. contemporary Each Hollywood gallery sceneis gives a cultural you haven the chance that maintains to be stareclectic among cool the while appealing stars.

Take selfies, to dance many. with divas, mingle at an A-list cocktail party.

E. Hollywood Walk of Fame

With about 24 induction ceremonies annually broadcast around the world, the constant reinforcement provided to the public has made the Walk of Fame a top visitor attraction. This cultural monument attracts millions of visitors a year.

F. The Hollywood Roosevelt

Opening its doors in 1979, the World Famous Laugh Factory has been recognized as “the #1 comedy club in the country” by such high-profile

Located along the Hollywood Walk of Fame, this hip, upscale hotel dating from 1927 is across the street from the TCL Chinese Theatre. Chic,

media as USA Today. Comedy’s top stars & upcoming talent shine on its legendary stage.

modern rooms and suites make this hotel one of the best experiences in Hollywood.

LOCATION OVERVIEW

Point of Interest G. El Capitan Theatre

El Capitan Theatre is a fully restored movie palace. The theater and adjacent Hollywood Masonic Temple is owned by The Walt Disney Company and serves as the venue for a majority of the Walt Disney Studios’ film premieres.

J. Wattles Garden Park

This historically significant site features a mansion, community gardens, trails & a stream. It is a perfect walk from the subject property for some daylight sun, a jog in the park or a perfectly filling picnic.

H. Chateau Marmont

Lodging with Old Hollywood glamour, plus a pool, an intimate restaurant & an elegant cocktail bar, the Chateau Marmont is elegant hotel and bar that will give you the maximum Hollywood experience for Locals and visitors.

I. The Hollywood Bowl

This venue in Los Angeles, CA was named one of the 10 best live music venues in America by Rolling Stone magazine in 2018. It can hold more than 17,000 people. This venue has been played by the most famous musicians in the world.

9

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

PROPERTY OVERVIEW

TRANSIT

Metro Stops 1. North Hollywood 2. Universal City / Studio City 3. Hollywood / Highland 4. Hollywood / Vine 5. Hollywood / Western 6. Vermont / Sunset 7. Vermont / Santa Monica 8. Vermont / Beverly 9. Wilshire / Western 10. Wilshire / Normandie 11. Wilshire / Vermont 12. Westlake / MacArthur Park 13. 7th St. / Metro Center 14. Pershing Square 15. Civic Center / Grand Park 16. Union Station

10

PROPERTY OVERVIEW

POINTS OF INTEREST

A

C

L.A. Live

Los Angeles City College

Dodger Stadium

L.A. LIVE is home to the best Downtown Los Angeles attractions that include the Microsoft Theatre & ESPN Studios.

This college in East Hollywood has over 20,000 enrolled students and offers a wide range of degrees & certifications.

Dodger stadium is home to Major League Baseball’s Los Angeles Dodgers. It can hold up to 56,000 people at one time.

D

11

B

E

F

KOREATOWN

Universal Studios / City Walk

Hollywood Bowl

Koreatown’s amenities, restaurants and venues makes for a buzzing place to work, visit and live.

Universal Studios Hollywood is a film studio and theme park in the San Fernando Valley area of Los Angeles.

This amphitheater in Los Angeles, CA was rated one of the 10 best live music venus in America in 2018.

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

LOCATION OVERVIEW

DEVELOPMENTS

8555 Santa Monica Development

The proposed mixed-use complex would rise just west of La Cienega Boulevard, 2 miles from the subject properties and only a 10-minute drive.

The project, previously envisioned as featuring 95 apartments above commercial space, has been retooled following its hearing last year before the West Hollywood Planning Commission, when Commissioners were unable to render a decision on the proposed development due to provisions of the City’s zoning code. Soto Capital has since acquired an adjacent property along West Knoll Drive - addressing concerns that the site was not large enough to allow a mixed-use project - allowing for a slightly larger building with 111 apartments.

Likewise, the number of on-site affordable housing units proposed has increased from 12 to 19.

7617 Santa Monica Blvd Development

The project, which would rise at 7617 Santa Monica Boulevard, will be less than 1 mile away from the subject property calls for the construction of a four-story building containing 71 apartments, 9,240 square feet of ground-floor retail space, and parking for 177 vehicles. Plans call for a mix of studio, one-, and two-bedroom dwellings, including for 11 to be set aside for very low-income households. The contemporary low-rise structure, designed by Office Untitled, would include open space amenities such as a central courtyard and a rooftop pool deck. Renderings show a sleek exterior featuring corrugated metal panels and fiber reinforced cement. The project’s Sustainable Communities Environmental Assessment anticipates an approximately 30-month construction timeline, beginning in late 2019 and concluding in 2022.

LaTerra Development, based out of Century City, has a number of similar mixed-use and multifamily residential buildings under construction in Mar Vista, Downtown, Santa Monica, and Los Feliz.

12

LOCATION OVERVIEW

DEVELOPMENTS

$500-Million Sunset Strip Hotel-Condo

The project, called the Pendry Hotel & Residences West Hollywood, is located at the former site of the House of Blues nightclub at Sunset Boulevard and Olive Drive. This development is less than one mile away from the subject property and only a three minute drive. Co-developers AECOM Capital and Combined Properties are building 40 for-sale residences within the project, with prices starting at $3 million. The Pendry development is being designed by EYRC Architects, with Cuningham Group serving as executive architect. Martin Brudnizki Design Studio is providing interior design services and Lifescape is serving as landscape architect. Plans call for a mix of floor plans ranging from 2,900 to 6,000 square feet, some of which will include private terraces featuring swimming pools, spas, and outdoor kitchens. The condominiums will all have access to communal amenities including a rooftop deck and a fitness center.

The hotel component of the project, featuring 149 guest rooms, will have its own array of amenities.

Additionally, the project will include a new private music venue, billed as the first new venue in West Hollywood in more than two decades.

Cedars-Sinai Takes 30,000SF at the Pacific Design Center

Cedars-Sinai has leased additional office space at the Pacific Design Center in West Hollywood, according to an announcement earlier this week by Charles Cohen, the property’s owner and developer.

This development is only 2.7 miles away from the subject property and less than a 12 minute drive.

The new lease, which accounts for approximately 30,000 square feet of space, increases CedarsSinai’s presence at the PDC’s Blue and Green Buildings to more than 100,000 square feet.

13

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

LOCATION OVERVIEW

DEMOGRAPHICS

14

Population

1-Mile

3-Mile

5-Mile

2024 Projection

46,869

281,560

830,963

2019 Estimate

46,260

275,251

818,252

2010 Census

44,475

250,245

776,284

Growth ‘19 - ‘24

1.32%

2.29%

1.55%

Growth ‘10 - ‘19

4.01%

9.99%

5.41%

Households

1-Mile

3-Mile

5-Mile

2024 Projection

27,524

145,279

368,465

2019 Estimate

27,293

142,321

363,231

2010 Census

26,949

131,115

346,971

Growth ‘19 - ‘24

0.85%

2.08%

1.44%

Growth ‘10 - ‘19

1.28%

8.55%

4.69%

Average Income

$93,427

$102,300

$92,996

Median Income

$63,106

$69,111

$60,900

15

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

SECTION TWO

PORTFOLIO OVERVIEW

16

22-UNIT PORTFOLIO

Los Angeles, CA 90046

17

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

PORTFOLIO OVERVIEW

PORTFOLIO SUMMARY

$7,750,000 Number of Units

22 Units

Average CAP Rate

CURRENT

PRO FORMA

4.84%

6.48%

Average Price / Unit

$352,273

Effective Gross Income

$560,189

$692,652

Total Sq. Ft

57,002 SF

Total Expenses

$185,310

$190,610

$374,879

$502,042

Average Price / Sq. Ft

17,580 SF

Total NOI

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

18

PORTFOLIO OVERVIEW

Portfolio Pricing Analysis

19

ADDRESS

PRICE

# OF UNITS

PRICE / UNIT

SQ. FT.

PRICE / SF

NOI

CAP Rate

GRM

1645 Courtney Ave

$4,250,000

12 Units

$354,167

9,240 SF

$459.96

$224,188

5.28%

12.89

7706 Hollywood Blvd

$3,500,000

10 Units

$350,000

8,340 SF

$419.66

$150,691

4.31%

14.26

TOTALS & AVERAGES

$7,750,000

22 Units

$352,273

17,580 SF

$440.84

$374,879

4.84%

13.48

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

SECTION THREE

1645 Courtney Ave

20

PROPERTY ONE

Los Angeles, CA 90046

21

1645 COURTNEY AVE, LOS ANGELES, CA 90046

PROPERTY OVERVIEW

DETAILS

Street Address City State Zip Code APN

Los Angeles CA 90046 5551-013-009

Number of Units Occupancy

12 Units

Flat

Parking

On-Site

Number of Buildings

2

Zoning

R3

Number of Stories

2

Unit Mix

Water

Master-Metered

9,240 SF

Electric

Individually Metered

Lot Size

9,932 SF

Gas

Individually Metered

Construction

Wood-Frame Stucco

1949

Roof

59%

Rentable Square Feet

Year Built

22

1645 Courtney Ave

(2) Singles (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath

FINANCIAL ANALYSIS

PRICING ANALYSIS

$4,250,000 Price

CAP Rate GRM

$4,250,000

Gross Income

Price per Unit

$354,167

Expenses

Price per Square Foot

$459.96

NOI

CURRENT

PRO FORMA

5.28%

6.60%

12.89

10.90

$320,974

$379,500

$96,786

$99,128

$224,188

$280,372

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

23

1645 COURTNEY AVE, LOS ANGELES, CA 90046

FINANCIAL ANALYSIS

FINANCING

Down Payment

$1,575,000

Loan Amount

$2,925,000

Interest Rate

3.75%

Amortization / Fixed-Period

30 Years / 5 Years

Term

24

360 Months

CURRENT

PRO FORMA

Debt Service

-$162,554

-$162,554

Pre-Tax Cash Flow

$61,635

Principle Reduction

-$53,784

Total Return

$115,419

(4.14%)

$117,818

(7.92%)

-$53,784 (7.76%)

$171,603

(11.54%)

FINANCIAL ANALYSIS

INCOME AND EXPENSE ANNUAL

25

INCOME

CURRENT

PRO FORMA

Base Rental Income

$329,664

Laundry Income

ANNUAL

EXPENSE

CURRENT

PRO FORMA

$390,000

Property Taxes

$46,971

$46,971

$1,200

$1,200

Insurance

$4,620

$4,620

Gross Potential Income

$330,864

$391,200

DWP

$9,000

$9,000

Vacancy Allowance

$9,890

$11,700

Gas

$3,000

$3,000

Effective Gross Income

$320,974

$379,500

Repairs & Maintenance

$6,000

$6,000

Operating Expenses

$96,786

$99,128

Trash

$6,480

$6,480

Net Operating Income

$224,188

$280,372

Management Fee

$12,838

$15,180

Pest Control

$960

$960

Landscaping

$2,400

$2,400

Direct Assessments

$1,517

$1,517

Reserves

$3,000

$3,000

Operating Expenses

$96,786

$99,128

1645 COURTNEY AVE, LOS ANGELES, CA 90046

FINANCIAL ANALYSIS

RENT SCHEDULE

PRO FORMA

PRO FORMA

$3.98

$2,050

$3.98

$2,050

$3.98

$2,050

$3.98

725 SF

$1,749

$2.41

$2,400

$3.31

1 Bed / 1 Bath

725 SF

$1,807

$2.49

$2,400

$3.31

105

1 Bed / 1 Bath

725 SF

$1,807

$2.49

$2,400

$3.31

106

1 Bed / 1 Bath

725 SF

$1,799

$2.48

$2,400

$3.31

107*

1 Bed / 1 Bath

725 SF

$2,400

$3.31

$2,400

$3.31

108

1 Bed / 1 Bath

725 SF

$1,814

$2.49

$2,400

$3.31

109

2 Bed / 1 Bath

975 SF

$2,373

$2.43

$3,500

$3.59

110

2 Bed / 1 Bath

975 SF

$2,373

$2.43

$3,500

$3.59

111*

2 Bed / 1 Bath

975 SF

$3,500

$3.59

$3,500

$3.59

112*

2 Bed / 1 Bath

975 SF

$3,500

$3.59

$3,500

$3.59

9,280 SF**

$27,222

UNIT #

UNIT TYPE

SQ. FOOTAGE

RENT

RENT PER SF

101*

Single

515 SF

$2,050

102*

Single

515 SF

103

1 Bed / 1 Bath

104

TOTAL

*Vacant ** Unit Squre Footage is estimated/ Buyer to Verify

26

RENT

$32,500

RENT PER SF

27

1645 COURTNEY AVE, LOS ANGELES, CA 90046

SECTION FOUR

7706 Hollywood Blvd

28

PROPERTY TWO

Los Angeles, CA 90046

29

7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

PROPERTY OVERVIEW

DETAILS

Street Address City State Zip Code APN

Los Angeles CA 90046 5551-013-001

Number of Units Occupancy

10 Units

Flat

Parking

On-Site

Number of Buildings

1

Zoning

R3

Number of Stories

2

Unit Mix

Water

Master-Metered

8,340 SF

Electric

Individually Metered

Lot Size

10,367 SF

Gas

Individually Metered

Construction

Wood-Frame Stucco

1950

Roof

80%

Rentable Square Feet

Year Built

30

7706 Hollywood Blvd

(8) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath

FINANCIAL ANALYSIS

PRICING ANALYSIS

$3,500,000 Price Price per Unit Price per Square Foot

$3,500,000 $350,000 $419.66

CURRENT

PRO FORMA

CAP Rate

4.31%

6.33%

GRM

14.26

10.88

Gross Income

$239,215

$313,152

Expenses

$88,524

$91,482

NOI

$150,691

$221,670

This information has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless James Capital Advisors, Inc. from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

31

7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

FINANCIAL ANALYSIS

FINANCING

Down Payment

$1,225,000

Loan Amount

$2,275,000

Interest Rate

3.75%

Amortization / Fixed-Period

30 Years / 5 Years

Term

32

360 Months

CURRENT

PRO FORMA

Debt Service

-$126,431

-$126,431

Pre-Tax Cash Flow

$24,260

Principle Reduction

-$41,832

Total Return

$66,092

(1.98%)

$95,239

(7.77%)

-$41,832 (5.40%)

$137,072

(11.19%)

FINANCIAL ANALYSIS

INCOME AND EXPENSE ANNUAL

33

INCOME

CURRENT

PRO FORMA

Base Rental Income

$245,376

Laundry Income

ANNUAL

EXPENSE

CURRENT

PRO FORMA

$321,600

Property Taxes

$46,971

$46,971

$1,200

$1,200

Insurance

$4,170

$4,170

Gross Potential Income

$246,576

$322,800

DWP

$7,800

$7,800

Vacancy Allowance

$7,361

$9,648

Gas

$2,700

$2,700

Effective Gross Income

$239,215

$313,152

Repairs & Maintenance

$5,000

$5,000

Operating Expenses

$88,524

$91,482

Trash

$5,400

$5,400

Net Operating Income

$150,691

$221,670

Management Fee

$9,568

$12,526

Pest Control

$900

$900

Landscaping

$1,800

$1,800

Direct Assessments

$1,715

$1,715

Reserves

$2,500

$2,500

Operating Expenses

$88,524

$91,482

7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

FINANCIAL ANALYSIS

RENT SCHEDULE

PRO FORMA

PRO FORMA

$2.50

$2,400

$3.31

$1,301

$1.79

$2,400

$3.31

725 SF

$1,623

$2.23

$2,400

$3.31

1 Bed / 1 Bath

725 SF

$1,895

$2.61

$2,400

$3.31

105

1 Bed / 1 Bath

725 SF

$1,710

$2.35

$2,400

$3.31

106

1 Bed / 1 Bath

725 SF

$1,854

$2.55

$2,400

$3.31

107*

1 Bed / 1 Bath

725 SF

$1,965

$2.71

$2,400

$3.31

108

1 Bed / 1 Bath

725 SF

$2,400

$3.31

$2,400

$3.31

109

2 Bed / 1 Bath

975 SF

$2,484

$2.54

$3,500

$3.58

110*

2 Bed / 1 Bath

975 SF

$3,500

$3.58

$3,500

$3.58

7,750 SF**

$20,548

UNIT #

UNIT TYPE

SQ. FOOTAGE

RENT

RENT PER SF

101

1 Bed / 1 Bath

725 SF

$1,816

102

1 Bed / 1 Bath

725 SF

103

1 Bed / 1 Bath

104

TOTAL

* Vacant ** Unit Squre Footage is estimated/ Buyer to Verify

34

RENT

$26,200

RENT PER SF

35

7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

SECTION FIVE

COMPARABLES

36

22-UNIT PORTFOLIO

Los Angeles, CA 90046

37

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

COMPARABLES

RENT COMPARABLES

38

#

ADDRESS

UNIT TYPE

RENT

SQ. FOOTAGE

RENT PER SF

1

920 N. Orange Grove Ave, Los Angeles, CA 90046

Studio

$1,750

500 SF

$3.50

2

1153 N. Vista St, Los Angeles, CA 90046

Studio

$1,795

500 SF

$3.59

3

1221 N. Genesee Ave, Los Angeles, CA 90046

1 Bed / 1 Bath

$1,950

625 SF

$3.12

4

1145 N. Ogden Dr, Los Angeles, CA 90046

1 Bed / 1 Bath

$2,225

850 SF

$2.61

5

1001 N. Curson Ave, West Hollywood, CA 90046

1 Bed / 1 Bath

$2,399

725 SF

$3.30

6

7542 Norton Ave, Los Angeles, CA 90046

2 Bed / 1 Bath

$2,375

850 SF

$2.96

7

1320 N. Alta Vista Blvd, Los Angeles, CA 90046

1 Bed / 1 Bath

$2,895

800 SF

$3.62

8

1846 El Cerrito Pl, Los Angeles, CA 90068

Studio

$2,100

500 SF

$4.20

9

1654 N. Stanley Ave, Los Angeles, CA 90046

2 Bed / 1 Bath

$3,200

1,000 SF

$3.20

COMPARABLES

RENT COMPARABLES

39

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

COMPARABLES

RENT COMPARABLES

01

02

oRent Éå í

920 N. Orange Grove Ave

1153 N. Vista St

Los Angeles, CA 90046

oRent Éå í

1221 N. Genesee Avenue

Los Angeles, CA 90046

Los Angeles, CA 90046

Unit Type

Studio

Unit Type

Studio

Unit Type

Monthly Rent

$1,750

Monthly Rent

$1,795

Monthly Rent

$1,950

Square Footage

625 SF

Square Footage Rent per Square Foot Year Built Number of Units

40

03

oRent Éå í

500 SF $3.50 1959 9 Units

Square Footage Rent per Square Foot Year Built Number of Units

500 SF $3.59 1930 8 Units

1 Bed / 1 Bath

Rent per Square Foot

$3.12

Year Built

1962

Number of Units

19 Units

COMPARABLES

RENT COMPARABLES

04

05

oRent Éå í

1145 N. Ogden Dr Los Angeles, CA 90046

Unit Type

7542 Norton Avenue

Unit Type

Unit Type

Los Angeles, CA 90046

1 Bed / 1 Bath

2 Bed / 1 Bath

Monthly Rent

$2,225

Monthly Rent

$2,399

Monthly Rent

$2,375

Square Footage

850 SF

Square Footage

725 SF

Square Footage

850S F

Rent per Square Foot

$2.61

Rent per Square Foot

Year Built

1966

Year Built

Number of Units

41

oRent Éå í

1001 N. Curson Avenue Los Angeles, CA 90046

1 Bed / 1 Bath

06

oRent Éå í

22 Units

Number of Units

$3.30 1958 12 Units

Rent per Square Foot Year Built Number of Units

$2.96 1956 8 Units

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

COMPARABLES

RENT COMPARABLES

07

08

oRent Éå í

oRent Éå í

1320 N. Alta Vista Blvd

1846 El Cerrito Place

Unit Type

Unit Type

Studio

Unit Type

$2,100

Monthly Rent

Los Angeles, CA 90046

1 Bed / 1 Bath $2,895

Monthly Rent

Square Footage

800 SF

Square Footage

Year Built Number of Units

1654 N. Stanley Ave

Los Angeles, CA 90046

Monthly Rent

Rent per Square Foot

42

09

oRent Éå í

$3.62 1939 16 Units

Rent per Square Foot Year Built Number of Units

Los Angeles, CA 90046

500 SF $4.20 1941 36 Units

Square Footage Rent per Square Foot Year Built Number of Units

2 Bed / 1 Bath $3,200 1,000 SF $3.20 1930 9 Units

43

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

COMPARABLES

SALES COMPARABLES

44

#

ADDRESS

SALE PRICE

# OF UNITS

CAP RATE

GRM

PRICE / UNIT

PRICE / SF

01

1233 N. Orange Grove Ave, West Hollywood, CA 90046

$4,300,000

10 Units

4.28%

15.80

$430,000

$570

02

1323 N. Harper Ave, West Hollywood, CA 90046

$4,200,000

10 Units

3.98%

-

$420,000

$454

03

1205 N. Hayworth Ave, West Hollywood, CA 90046

$3,925,000

10 Units

4.18%

16.01

$392,500

$404

04

1837 N. La Brea Ave, Los Angeles, CA 90046

$6,090,000

16 Units

4.25%

15.50

$406,000

$436

05

7631 Norton Ave, West Hollywood, CA 90046

$3,695,000

10 Units

4.11%

15.73

$369,500

$431

COMPARABLES

SALES COMPARABLES

00

1645 Courtney Ave

7706 Hollywood Blvd

Los Angeles, CA 90046

Close of Escrow

Los Angeles, CA 90046

-

Close of Escrow

12/9/2019

List Price

$4,250,000

Sale Price

$3,500,000

Sale Price

$4,300,000

CAP Rate

5.28%

CAP Rate

4.31%

CAP Rate

4.28%

GRM

14.26

GRM

GRM Number of Units Year Built

12.89 12 Units 1949

Number of Units Year Built

10 Units 1950

Number of Units Year Built

15.80 10 Units 1956

Rentable Square Feet

9,240 SF

Rentable Square Feet

8,340 SF

Rentable Square Feet

7,546 SF

Price per Square Foot

$459.96

Price per Square Foot

$419.66

Price per Square Foot

$570

Price per Unit

$354,167

Price per Unit

Unit Mix

45

Close of Escrow

oSale Éå í

1233 N. Orange Grove Ave

Los Angeles, CA 90046

-

01

oSale Éå í Subject

o Éå í Subject

(2) Singles (6) 1 Bed / 1 Bath (4) 2 Bed / Bath

Unit Mix

$350,000 (8) 1 Bed / 1 Bath (2) 2 Bed / 1 Bath

Price per Unit Unit Mix

$430,000 (7) 1 Bed / 1 Bath (3) 2 Bed / 1 Bath

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

COMPARABLES

SALES COMPARABLES

02

03

oSale Éå í Subject

1323 N. Harper Ave

1205 N. Hayworth Ave

Los Angeles, CA 90046

Close of Escrow

Los Angeles, CA 90046

9/20/2019

Close of Escrow

6/12/2019

List Price

$4,200,000

Sale Price

$3,925,000

Sale Price

$6,090,000

CAP Rate

3.98%

CAP Rate

4.18%

CAP Rate

4.25%

GRM

16.01

GRM

GRM Number of Units Year Built

10 Unnits 1951

Number of Units Year Built

10 Units 1954

Number of Units Year Built

15.50 16 Units 1958

Rentable Square Feet

9,260 SF

Rentable Square Feet

9,712 SF

Rentable Square Feet

13,965 SF

Price per Square Foot

$454

Price per Square Foot

$404

Price per Square Foot

$436

Price per Unit Unit Mix

46

Close of Escrow

oSale Éå í

1837 N. La Brea Ave

Los Angeles, CA 90046

5/16/2019

04

oSale Éå í

$420,000 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath

Price per Unit Unit Mix

$392,500 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath

Price per Unit Unit Mix

$406,000 (5) 1 Bed / 1 Bath (11) 2 Bed / 1 Bath

COMPARABLES

SALES COMPARABLES

05

oSale Éå í Subject

7631 Norton Ave Los Angeles, CA 90046

Close of Escrow List Price

$3,695,000

CAP Rate

4.11%

GRM

15.73

Number of Units Year Built

10 Units 1961

Rentable Square Feet

8,583 SF

Price per Square Foot

$431

Price per Unit Unit Mix

47

3/15/2019

$369,500 (6) 1 Bed / 1 Bath (4) 2 Bed / 1 Bath

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

SECTION SIX

JAMES CAPITAL ADVANTAGE

48

22-UNIT PORTFOLIO

Los Angeles, CA 90046

49

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

JAMES CAPITAL ADVISORS

JAMES CAPITAL ADVANTAGE 50

WHO WE ARE OUR BACKGROUND James Capital Advisors, Inc. (JCA) is a commercial real estate brokerage firm that specializes in net lease and multifamily investment sales throughout the U.S. Originally founded by Mike James as “The James Group” in 2012, the firm rebranded to “James Capital Advisors” in 2018 and set out to develop the next generation of real estate brokerage services. In the 18 months that followed, the firm experienced 400% growth and established a new flagship office in Los Angeles, CA. James Capital Advisors operates on a transparency-driven shared client management platform. This allows us to avoid duplicate agent outreach, and ensures that we provide our clients with a singular advisor-client experience. Every agent in our firm specializes in either net lease, multifamily. The firm’s dedicated focus on net lease and multifamily stems from the synergy between the two product types. With California multifamily exchange clients accounting for a significant portion of the net lease buyer pool, our Los Angeles-based team is uniquely positioned to leverage California capital.

OUR MISSION Provide a first class commercial real estate experience through collaboration, transparency and innovation.

OUR CORE VALUES Collaboration Transparency Growth Innovation

51

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

WHAT WE DO NET LEASE With fluctuating operating costs and rising e-commerce competition, net lease investors need an expert to identify a strategic approach hand-tailored to their investment portfolio.

Our net lease experts deliver two facets of specialization; tenant/brand and locational expertise.

By taking ownership of a dedicated territory, our agents are able to keep their finger on the pulse of the market and provide actionable insights. With a deep understanding of demographic trends, transitioning locality, exposure and accessibility, we deliver an unrivaled competitive edge.

Niche Expertise When it comes to national net lease investments, it is essential for property owners to partner with a singular advisor who is most adept with their respective market. Our expert advisors not only specialize in net lease transactions, but also within their dedicated territory. As a result, investors benefit from boots-on-the-ground market expertise combined with the nation’s leading investment sales team.

MULTIFAMILY James Capital’s multifamily division focuses on transactions between $1 million and $30 million in Southern California. Each broker specializes in a devoted submarket to provide clients with the highest level of expertise, and an unrivaled understanding of their dedicated zip code.

NET LEASE

With new ordinances and regulations constantly introduced in Los Angeles, investors need to be supported by a specialist who understands all aspects of the multifamily market. While each agent focuses on a core market, our collaborative approach allows advisors to leverage each other’s relationships and experiences, ensuring the best outcome for our clients.

Our undivided attention in the greater Los Angeles multifamily real estate market, backed by the national inventory of our net lease division uniquely positions James Capital to create optimal opportunities for our clients.

52

WHAT WE DO CORPORATE REAL ESTATE James Capital’s corporate real estate division provides creative solutions to public and private corporations, investment banks, private equity firms and independent sponsors.

Services • M&A Real Estate Advisory and Execution

• Financing and Debt Sourcing

• Valuation and Portfolio Advisory

• Catch & Release Real Estate Optimization

• Portfolio Sale-Leaseback Structuring & Execution

• Real Estate Tax Advisory

• Private Markets Sale-Leaseback Structuring and Execution (Individual Property Sales)

TRACK RECORD As a market leader, James Capital Advisors has sold over $5 Billion in value of real estate between Multifamily and Net Lease properties nationwide. Our specialized expertise, platform, and team of purpose-driven advisors guide us in our mission to disrupt the industry, and prove our staying power.

$6 B 3,000 60+ $6 B

TRANSACTION VOLUME

53

3,000+ Properties SOLD

60+

Investment Professionals

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

MULTIFAMILY

SPECIALIZATION James Capital’s multifamily division focuses on transactions between $1 million and $30 million in Southern California. Each broker specializes in a devoted submarket to provide clients with the highest level of expertise, and an unrivaled understanding of their dedicated zip code.

With new ordinances and regulations constantly introduced in Los Angeles, investors need to be supported by a specialist who understands all aspects of the multifamily market. While each agent focuses on a core market, our collaborative approach allows advisors to leverage each other’s relationships and experiences, ensuring the best outcome for our clients.

Our undivided attention in the greater Los Angeles multifamily real estate market, backed by the national inventory of our net lease division uniquely positions James Capital to create optimal opportunities for our clients.

Niche Expertise When it comes to the Los Angeles multifamily market, investors deserve an advisory team with extensive knowledge of each specific submarket. Our agent’s hyper-focus within their dedicated zip codes ensure that our clients receive the best possible service and execution every step of the way.

Mid-Market Minded We deliver results for institutions, developers, family-owned and private capital investors.

Exclusive Exchange Inventory The synergy between our net lease and multifamily divisions open the door to exclusive exchange opportunities for our clients. Considering an exchange? Click here to fill out a brief survey and one of our advisors will reach out to start the process.

54

MEET OUR

SENIOR LEADERSHIP Mike James

Founder, Managing Director As Founding Member and Managing Director of James Capital Advisors, Mike guides the company in its vision, dedication, work culture, and commitment to success. In his role as Managing Partner and head of the corporate M&A real estate department, he oversees and evaluates all major corporate decisions and institutional accounts.

Mike boasts an undeniable track record of success in managing large portfolio saleleaseback transactions. A graduate of the Argyros School of Business and Economics, he shares his expertise with his clients, advising them on matters great and small in the world of commercial real estate mergers and acquisitions.

(424) 325-2601 mike@jamescapitaladvisors.com CA RE Lic. 01869890

Wayne Vance Chief Financial Officer

Wayne Vance is JCA’s chief financial officer reporting to CEO Nate Barnes. As CFO, Wayne oversees the accounting, financial planning and analysis, internal audit and tax functions at JCA. Wayne joined James Capital in 2019 and has worked closely with JCA’s senior leadership since his arrival.

Wayne has nearly two decades of experince within various industries and a passion for working with high-paced, high-growth companies. He began his career in Silicon Valley as an auditor, growing a start up from $8M to $350M in revenue and 35 to 1,200 employees globally within 6 years.

(424) 325-2600 info@jamescapitaladvisors.com

55

Nate Barnes

Chief Executive Officer As James Capital Advisors CEO, Nate manages the corporate direction and strategy of the company. His responsibilities include sales and marketing leadership, business development strategy, and financial and operational oversight. With degrees in both finance and real estate from California State University, Northridge, Nate’s astute grasp on the real estate market was pivotal in the early expansion and growth of James Capital Advisors.

Before signing on with James Capital Advisors, Nate served as the managing partner for Los Angeles-based regional franchise LA Tasty Food, LLC, operating popular brands like El Pollo Loco, Carl’s Jr, and Sbarro.

(424) 325-2603 nate@jamescapitaladvisors.com CA RE Lic. 01908103

Mark Richardson Owner, Vice Chairman

An American businessman, real estate expert, and former co-owner of the Carolina Panthers, Mark is a part owner and Vice Chairman of James Capital Advisors and an integral part of the company’s breakaway success. Graduating from Clemson University in 1987, he went on to receive his Master’s of Business Administration from the University of Virginia in 1987 and in 2013 was named a lifetime trustee of Clemson University.

Mark is also a shrewd franchise investor, with more than 50 Bojangles’ Famous Chicken ‘n Biscuits restaurants under his proprietorship across the U.S. (424) 325-2600 info@jamescapitaladvisors.com

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

JAMES CAPITAL ADVANTAGE

EQUITY SPONSOR

Mark Richardson Owner, Vice Chairman

An American businessman, real estate expert, and former co-owner of the Carolina Panthers, Mark is a part owner and Vice Chairman of James Capital Advisors and an integral part of the company’s breakaway success. Graduating from Clemson University in 1983, he went on to receive his Master’s of Business Administration from the University of Virginia in 1987 and in 2013 was named a lifetime trustee of Clemson University. Mark is also a shrewd franchise investor, with more than 50 Bojangles’ Famous Chicken ‘n Biscuits restaurants under his proprietorship across the U.S. At James Capital Advisors, Mark uses his expertise as a professional real estate developer to focus on single-tenant projects in the southeast.

(424) 325-2600 info@jamescapitaladvisors.com www.jamescapitaladivsors.com

In July of 2018, Former Founder & Owner of the NFL’s Carolina Panthers, Mark Richardson, invested a significant amount of capital into JCA.

56

•

Former Owner of the Carolina Panthers

•

Extensive Real Estate Portfolio

•

50+ Unit Bojangles’ Franchisee

•

Lifetime Trustee of Clemson University

•

Co-Owner & Vice Chairman of JCA

JAMES CAPITAL ADVISORS

MARKETING CAMPAIGN

WEEK

WEEK

01

02

03

CONTROLLED LISTING

HYPERTARGETING

JCA MASS OUTREACH

Upon execution of the listing agreement, JCA will quietly distribute the offer to a strategically selected group of buyers.

Upon completion of a perfect marketing package, JCA will publish across all platforms and target tier one prospects.

Large-scale digital distribution utilizing our industry-first CRM platform, reaching 250,000+ brokers and principals.

WEEK

WEEK

WEEK

04

57

WEEK

05

06

PREMIUM PLATFORMS

BROKER RELATIONSHIPS

BUYER QUALIFICATION

Coordinated campaigns leveraging our third-party property marketing partners.

JCA maintains strong credibility with all other representatives of buyers across the country.

JCA understand the necessary questions to ask and required terms to achieve a smooth closing process.

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046

JAMES CAPITAL ADVISORS, INC.

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation

by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

58

FOR INQUIRIES

PLEASE CONTACT

elliot Hassan Senior Director

(424) 325-2643

elliot.hassan@jamescapitaladvisors.com CA RE Lic. 01481211

59

MIKE HANASSAB

JOHN KATNIK Senior Associate

Joseph Lieberman

(424) 325-2642

(424) 325-2644

(424) 325-2641

Senior Director

mike.hanassab@jamescapitaladvisors.com CA RE Lic. 01484891

john.katnik@jamescapitaladvisors.com CA RE Lic. 02002695

Associate

joseph.lieberman@jamescapitaladvisors.com CA RE Lic. 02074974

1645 COURTNEY AVE & 7706 HOLLYWOOD BLVD, LOS ANGELES, CA 90046