1616 - 1620 Silver Lake by lorena.lm90

1616-1620 SILVER LAKE BLVD., LOS ANGELES, CA 90026

Exclusively Listed By: RICH JOHNS Multifamily Investment Advisor 818.432.1575 richjohns@kw.com CALBRE LIC#01432215

ADAM ZUNDER

Multifamily Investment Advisor 818.554.5560 azunder@kw.com CalBRE Lic. #01821053

CONTENTS THE OFFERING INVESTMENT HIGHLIGHTS SILVER LAKE SALE COMPARABLES

5 6 16 20

OFFERING

THE

KW Commercial, as the exclusive listing agents are pleased to present an unparalleled opportunity to acquire an outstanding Mixed-Use investment opportunity located in the highly supply constrained Silver Lake neighborhood of Los Angeles. This rare offering allows the astute investor both capital preservation certainty plus a clear path for long term wealth appreciation. 1616 - 1620 Silver Lake Blvd., located in L.A.’s historic Silver Lake neighborhood on a bustling corridor of shops and restaurants adjacent to the famous reservoir features an ideal combination of Retail / Restaurant and Apartments with +/- 9,280 SF of improvements, situated on two parcels totaling 9,996 SF of land. The commercial components include Two (2) Retail Stores and One (1) Restaurant plus a residential component featuring Six (6) Apartment units. The unique mix of commercial and residential income gives the investor two different complementary streams of revenue within an outstanding location. This offering could be considered the crown jewel of this Silver Lake neighborhood which is situated in one of the trendiest locations in Los Angeles, just north of Sunset Junction on Silver Lake Blvd. The location offers direct access to the area’s exceptional demographics of homeowners and well-heeled renters within a boutique retail and restaurant environment. The retail spaces are 100% leased and anchored by Botanica, one of Silver Lake’s most popular restaurants since it’s inception in 2017. The commercial components are rounded out with Lake Boutique, a European-inspired clothing store with a curated selection of clothing, home décor and apothecary items and Lawson Fenning, a Vintage Modern Furniture and home good store. This stretch of Silver Lake is an extremely popular destination for locals who have an affinity for the local shops and eateries which include, LAMILL Coffee Shop, Alimento, The Satellite, and Yakuza Sushi. 1616 – 1620 Silver Lake Boulevard presents an unequaled investment opportunity in an “A” location with measurable future upside. Due to the property’s premier location, combination of Retail / Restaurant and Apartments, the offering provides a unique opportunity to an investor looking stability and wealth appreciation.

INVESTMENT

HIGHLIGHTS

RARE OPPORTUNITY:

1616 – 1620 Silver Lake Boulevard, built in 1927 & 1941 is a MixedUse investment opportunity featuring Retail / Restaurant and Apartments. This rare offering in both location and significance allows the astute investor both capital preservation certainty plus a clear path toward long term wealth preservation.

STRONG EMPLOYMENT:

The Hollywood-Silver Lake submarket offers a diverse set of employers within one of nations strongest employment MSA’s. The offering provides easy access to many of the nation’s strongest companies, including Children’s Hospital, Kaiser Permanente, Netflix, numerous top law firms and major movie studios.

CAPITAL APPRECIATION:

This pride of ownership asset features healthy current income metrics along with measurable rental upside, thus providing excellent investor returns along with long term appreciation.

WELL LOCATED:

This historic Silver Lake neighborhood on a bustling corridor of shops and restaurants adjacent to the famous reservoir Silver Lake is known as a LA’s quintessential creative neighborhood. The location draws a walk score of 78 and daily traffic volume of 25,219 vehicles, per CoStar.

LACK OF HOUSING AFFORDABILITY:

There is a significant affordability gap to home ownership in the Silver Lake submarket. The median home value in Silver Lake is $1,184,000 and averages a per square foot price of $697. Silver Lake home values have risen 13.4% over the past year and are predicted to rise 9.4% within the next year. * Source: Zillow.com

LAMILL

MILK MILK is an ice cream parlor and bake shop located in the heart of Los Angeles, California. Our goal is to provide guests with an elevated ice cream experience, transporting them back to the classic ice cream parlor with shakes, floats, sundaes and ice cream novelties. All treats are hand crafted using only the freshest ingredients and locally sourced produce and dairy.

Lamill is Silver Lake’s mainstay in the coffee department. this gourmet coffee shop and cafe serves up delicious eats and drinks all day long. With a modern and elegant interior and a casual front porch where you can hang with your k9 companion, Lamill really has something for everyone, but especially those who are serious about good coffee. Some crowd favorites on the menu include the warm brioche donuts with maple espresso glaze, avocado toast with a poached egg, and the shrimp & grits with habanero-bacon jam and baby kale.

SI LV ER

L&E OYSTER BAR L&E is a local’s staple for a casual, post-work glass of wine upstairs on the patio, or a formal candlelit dinner in a Parisian atmosphere. Oysters are shipped in daily from across the country, but the other dishes are just as fresh and flavorful. Start with a half dozen oysters (Chef’s choice because Spencer Bezaire knows best) and the Crémant de Limoux Rosé before moving onto one of the main dishes.

BL VD

1616-1620

Silver Lake BLvd. Los Angeles, CA 90026

1620 Silver Lake Blvd.

Botanica Restaurant

1618 Silver Lake Blvd.

Lawson-Fenning

1618 1/2 Silver Lake Blvd.

Lake Boutique

Residential / Apartments

Plat Map

1616-1620 Silver Lake Blvd., Los Angeles, CA 90026

Property Details

A WALKABLE

1618 Silver Lake Blvd. • Los Angeles • CA 90026

1620 Silver Lake Blvd. • Los Angeles • CA 90026

(Includes addresses 1616 1/4, 1616 1/2, 1618 and 1618 1/2)

(Includes addresses 1616 3/4 - 1, 1616 3/4 - 2, 1616 3/4- 3, 1616 3/4 - 4)

Assessor’s Parcel Number Year Built Use Code Zoning Property Type

5425-023-008 1927 Comm/Ofc/Res Mixed Use LAC2 Commercial

SITE DESCRIPTION Gross Square Footage 6,920 Lot Size Square Footage 5,001 CONSTRUCTION Foundation Framing Exterior Roof

Raised Wood Frame Stucco Flat

Assessor’s Parcel Number Year Built Use Code Zoning Property Type

5425-023-009 1941 Comm/Ofc/Res Mixed Use LAC2 Commercial

SITE DESCRIPTION Gross Square Footage 2,360 Lot Size Square Footage 4,995 CONSTRUCTION Foundation Framing Exterior Roof

Raised Wood Frame Stucco Flat

THE BEST OF SILVER LAKE The subject property is located blocks away from the core of three of the most enticing neighborhoods in Los Angeles County- Hollywood, Silver Lake, and Echo Park. Due to its eclectic location and walkability, residents enjoy unparalleled access to a wide variety of employment, entertainment, and cultural experiences that few other neighborhoods in Los Angeles can match. As part of its recent restoration, Hollywood continues to set the bar in terms of being a major employment center and highly sought after location for a younger more hip clientele that is looking for a true urban experience. Moreover, with the merging of old Hollywood and today’s tech savvy startups, the area is ripe for continued success in enticing a younger renter demographic. Following this uprising of trendy and eclectic residents is a diverse base of restaurants, bars, nightclubs, and retail shops that bring a wide range of cultural experiences to the area. Within the existing location, residents have the opportunity to walk to nearby restaurants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighborhood via short commute.

Silver Lake SUNSET JUNCTION.... Sunset Junction refers to the portion of Silver Lake where Sunset Boulevard and Santa Monica Boulevard, meet. This area is known for its immense walkability, eclectic shops, low-key restaurants, and local cafes and bars that border the corridor. The Silver Lake Farmers’ Market takes place every Tuesday and Saturday and showcases vintage clothing racks, books and records, fresh produce and food vendors. Every August, there is the Sunset Junction Street Festival where thousands descend on the neighborhood for a block party.

WALK SCORE: “VERY WALKABLE”

54 48

TRANSIT SCORE: “GOOD TRANSIT”

WALK SCORE: “SOMEWHAT BIKEABLE”

FINANCIAL SUMMARYFINANCIAL SUMMARY

1616-1620 Silver Lake Blvd., Los Angeles, CA 90026

FINANCIAL SUMMARY FINANCIAL INDICATORS Offering Price ESTIMATED ANNUALIZED EXPENSES Offering Price New Property Taxes Current CAP Rate

Water, Power & Gas Utilities Market Current Waste CAP Removal Rate CAP Rate

Cost Per SF Market Property CAP Rate Insurance Current Repairs GRM & Maintenance

Market PestGRM Control Cash on Cash Return CostLandscaping Per SF Expenses Per Sq Ft CostOffsite Per Unit Management (3%) Reserves (1% of SGI) Total Estimated Expenses

BUILDING DATA Retail / Restaurant Spaces Residential Units Year Built Total Lot Sq Ft (2 parcels) Building Sq Ft Parking Spaces

FINANCIAL INDICATORSEXPENSES ESTIMATED ANNUALIZED SOURCE OF INCOME Offering Price $6,500,000 New Property Taxes Offering Price& Gas Utilities $6,500,000 Water, Power $78,000 # of Units Unit Type Current CAP 4.3% Current Waste CAP Removal RateRate $3,123 $1,080

$3,908 $6,300 $1,280 $900 $11,898 $3,966 -$110,455.24

Studio - 1 Bath 1 Bedroom - 1 Bath

Market Rate 7.0% Market Property CAPCAP Insurance 4Rate $700 Current Repairs GRM & Maintenance Cost Per3 SF

Retail / Restaurant

Total Income Market PestRental GRM Control Miscellaneous Income 4.3% Cost Landscaping Per SF Cash on Cash Return Total Monthly Income (3%) $11.90 Cost Offsite Per Unit Management Expenses Per Sq Ft Total Annual(1% Income Reserves of SGI) Total Estimated Expenses

3 6 1927 & 1941 9,996 9,280 8

EST. ANNUALIZED BUILDING DATAOPERATING DATA Scheduled Gross Income

Retail / Restaurant Spaces

Less Vacancy Residential Units Gross Operating Income YearExpenses Built Less Net Operating Total Lot SqIncome Ft (2 parcels)

Building Sq Ft Parking Spaces

Return on Investment

SOURCE OF INCOME

Notations:

$700 perESTIMATED unit, post aquisition of the property. ANNUALIZED EXPENSES as a pro forma expense of $700 per unit, post aquisition of the property. Repairs & Maintenance: Underwritten t Control1)($90/mo), Notations: # of Units 00 New Property Taxes $78,000 Unit Type

2) Contract Service: Underwritten as a pro forma expense for Pest Control ($90/mo),

$6,500,000 $78,000 $6,500,000 $3,123 4.3% $1,080

1616 -1620 Silver Lake Blvd., LosOF Angeles CA 90026 SOURCE INCOME ESTIMATED ANNUALIZED EXPENSES CURRENT RENTS Taxes MARKET RENTS New Property # of Units Unit Type Water, Power & Gas 2 Utilities Studio - 1 Bath Avg. Rent Total Avg. Rent Income Current Waste CAP Removal Rate 4 1 Bedroom - 1 Bath $2,023

$4,045

$2,110

$4,220

2.0%

($11,477) $562,393 ($110,455) $451,937

7.0% Market Property CAP Rate Insurance $3,908 3 Retail / Restaurant $2,130 $8,521 $2,700 $10,800 $6,300 Total Rental Income $700 Current Repairs GRM & Maintenance $6,760 $20,280 $10,866 $32,598 $32,845 Income $47,618 $1,280 Market Miscellaneous PestGRM Control $205 Income $205 $900 Total Monthly 4.3% CostLandscaping Per SF $33,050Income $47,823 $11,898 Total Annual $11.90 CostOffsite Per Unit Management (3%) $396,606 $573,870 $3,966 Reserves (1% of SGI) -$110,455.24 Total Estimated Expenses -$ EST. ANNUALIZED OPERATING DATA CURRENT MARKET Scheduled Gross Income $396,606 $573,870 3

6 1927 & 1941 9,996 9,280 8

2.0% Less Vacancy -$7,932 Gross$388,674 Operating Income Expenses 28.4% Less ($110,455) $278,219 Income Net Operating

19.2%

$278,219 1616 -1620 Silver Lake Blvd., $451,937 Los Angeles CA 4.3% 7.0%

Return on Investment CURRENT RENTS

Avg. Rent

Total

MARKET RENTS

1) Repairs & Maintenance: UnderwrittenStudio as a pro forma expense of $700 per unit,$2,023 post aquisition$4,045 of the property. 2 - 1 Bath 2) Contract Service: pro forma expense for Pest Control ($90/mo), 4 Underwritten as1 aBedroom - 1 Bath $2,130 $8,521 3) Utilities: Based on Actual Numbers .0% Market Property CAP Rate Insurance $3,908 3 Retail / Restaurant $6,760 $20,280 Landscaping($75/mo) and Waste Removal($120 Per unit Per Year). 4) Management Fee: Projected at 3% of Total Annual Income 700 Current Repairs GRM & Maintenance $6,300 Total Rentalon Income $32,845 3) Utilities: Based Actual Numbers 5) Real Estate Taxes: Based upon 1.22% of offering price. Market Pest GRM Control $1,280 Miscellaneous Income $205 of operating expenses and property taxes. 4) Management Fee: Projected at 3% of Total Annual Income 6) Property Insurance: Underwritten as actual 2017 expenses. .3% CostLandscaping Per SF $900 Total Monthly Income $33,050 5) Real Estate Taxes: Based upon 1.22% of offering price. 7)Per Botanica is on NNN leases and are responsible for their portion expenses property taxes. 1.90 CostOffsite Unit Management (3%) $11,898 of operating Total Annual and Income $396,606 6) Property Insurance: Underwritten as actual 2017 expenses. 8) Lake Boutique Reserves (1% of SGI)is on a Gross Lease. $3,966 7) Botanica is on NNN leases and are responsible for their portion of operating expenses and property taxes. Total Estimated Expenses -$110,455.24

00 Water, Power & Gas Utilities $3,123 Landscaping($75/mo) and Waste Removal($120 Per unit Per Year). .3% Current Waste CAP Removal Rate $1,080

8) LakeEST. Boutique is on aOPERATING Gross Lease. ANNUALIZED DATA

Scheduled Gross Income

6 1941 996 280 8

Less Vacancy Gross Operating Income Less Expenses Net Operating Income

Return on Investment

CURRENT

Avg. Rent $2,110 $2,700 $10,866

MARKET $396,606

2.0% 28.4%

-$7,932 $388,674 ($110,455) $278,219 $278,219 4.3%

2.0% 19.2%

$4 7

RENT ROLL

1616-1620 Silver Lake Blvd., Los Angeles, CA 90026

1616 -1620 Silver Lake Blvd., Los Angeles CA 90026 SOURCE OF INCOME

$78,000 $3,123 $1,080

# of Units 2 4

$3,908 RENT $6,300

ROLL

3 Total Rental Income

RETAIL 1618 1618 1/2 1620

Less Vacancy Occupied Gross Operating Income Less Expenses Occupied Net Operating Income Occupied Occupied

Return on Investment

MARKET RENTS

Unit Type Studio - 1 Bath 1 Bedroom - 1 Bath

Avg. Rent $2,023 $2,130

Total $4,045 $8,521

Avg. Rent $2,110 $2,700

Income $4,220 $10,800

Retail / Restaurant

$6,760

$20,280 $32,845

$10,866

$32,598 $47,618

Estimated Square $1,280 Unit Miscellaneous Income Status Footage * $900 Total Monthly Income $11,898APARTMENTS Total Annual Income Occupied 360 $3,966 1616 1/2 1616 1/4 Occupied 540 $110,455.24 1616 3/4 -1 Occupied 667 EST. ANNUALIZED OPERATING DATA 1616 3/4 -2 Occupied 535 Gross Income 1616 3/4 -3 ScheduledOccupied 667 1616 3/4 -4

CURRENT RENTS

539 3,308 1,798 1,070 2,147 5,015

Unit Compostion

Studio - 1 Bath 1 Bedroom - 1 Bathroom 1 Bedroom - 1 Bathroom Studio - 1 Bath 1 Bedroom - 1 Bathroom 1 Bedroom - 1 Bathroom Monthly Total - Residential Retail - Lawson Fenning ** Retail - Lake Boutique *** Restaurant - Botanica **** Monthly Total - Commercial Total - Commercial & Residential

Current Rent

$1,695 $2,335 $1,091 CURRENT $2,350 $2,500 2.0% $2,595 $12,566

28.4%

CURRENT RENT $205 Per Square Foot $33,050 $396,606

$396,606 -$7,932 $388,674 ($110,455) $278,219

$5,500 $5,392 $9,388 $278,219 $20,280 4.3% $32,845

* Square footage figures are estimates **Lawson Fenning - Lease Expiration 6/30/2019 - No Extension Options ***Lake Boutique - 11/1/2016-1/31/2020, 1 option of 36 months to be given 6-9 months in advance of lease expiration - Tenant is on a gross lease ****Botanica - 8/15/2016 - 8/14/2026, 2 options of 5 years each with notice given 9-12 months in advance of lease expiration. ****Included in Botanica rent is $1,094.97 for Tenants Share of Operating Costs and Taxes.

MARKET RENT $205

$47,823 $573,870

$4.71 $1,825 $4.32 $2,700 $1.63 $2,700 MARKET $4.39 $2,395 $3.75 $2,700 $573,870 2.0% $2,700 ($11,477) $4.81 $3.94 $15,020 $562,393 $3.06 $5.04 $4.37 $4.16

19.2%

($110,455)

$11,687 $451,937 $6,955 $13,956 $451,937 $32,598 $47,6187.0%

MARKET RENT per Square Foot

$5.07 $5.00 $4.05 $4.48 $4.05 $5.01 $4.61 $6.50 $6.50 $6.50 $6.50

SALE

COMPARABLES 1616-1620 Silver Lake Blvd. Retail Sale Comparables 1) 1626 Silver Lake Blvd. 2) 2600-2606 West Sunset Blvd. 3) 3501 West Sunset Blvd. Apartment Sale Comparables 1) 3366 Descanso Drive 2) 1633 Micheltorena Street 3) 901-903 Parkman Avenue 4) 941-943 North Vendome Street

SALE

COMPARABLES

PROPERTY

Retail Sale Comparable s

BUILT

UNITS

BLDG.SF

PRICE

CAP

1937

1,400

$1,400,000

1940

3,770

$3,300,000

1921

3,986

$3,200,000

GRM

$/SF

CLOSED

$1,000

5/31/2018

$875.33

3/7/2018

$802.81

6/20/2018

1626 Silver Lake Blvd. Los Angeles, CA 90026

2600-2606 West Sunset Blvd. Los Angeles, CA 90026

3501 West Sunset Blvd. Los Angeles, CA 90026

SALE

COMPARABLES

PROPERTY

BUILT

Apar tment Sale Comparable s

UNITS BLDG.SF

PRICE

CAP

GRM

$/UNIT

$/SF

CLOSED

1962

4,192

$2,140,000

$305,714

$510.50

10/4/2017

1965

7,250

$2,450,000

4.03%

$350,000

$337.93

6/29/2018

1949

4,852

$1,940,000

$323,333

$399.84

10/31/2017

1931

7,184

$3,150,000

4.41%

$393,750

$438.47

12/6/2017

3366 Descanso Drive Los Angeles, CA 90026

1633 Micheltorena Street Los Angeles, CA 90026

901-903 Parkman Avenue Los Angeles, CA 90026

941-943 North Vendome Street Los Angeles, CA 90026

CONFIDENTIALITY AGREEMENT All materials and information received or derived from KW Commercial its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters. Neither KW Commercial its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to determine these and other matters of significance to such party. KW Commercial will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. EACH PARTY SHALL CONDUCT ITS OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. KW Commercial does not serve as a financial advisor to any party regarding any proposed transaction All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housing and equal opportunity laws. We obtained the information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

Exclusively Listed By:

RICH JOHNS Multifamily Investment Advisor 818.432.1575 richjohns@kw.com CALBRE LIC#01432215

ADAM ZUNDER

Multifamily Investment Advisor 818.554.5560 azunder@kw.com CalBRE Lic. #01821053