1600 W. GLENOAKS BLVD.

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1 > OFFERING MEMORANDUM 1600 W. GLENOAKS BLVD. GLENDALE, CALIFORNIA TEAM GHOBADI MULTIFAMILY Real Estate Investment Services

2 PROPERTY OVERVIEW...3 FINANCIAL ANALYSIS...8 DEMOGRAPHIC ANALYSIS...13 COMPARABLES W GLENOAKS BLVD. GLENDALE, CA warranties of content, accuracy and reliability. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved.

3 PROPERTY OVERVIEW

4 PROPERTY INFORMATION Colliers International s Ghobadi Multifamily Team is proud to present the well-appointed 6-unit apartment complex at 1600 W. Glenoaks Boulevard in the city of Glendale California. Situated in a prime location the property comprise of six one-bedroom and one bathroom units, that together come to more than 3,390 square feet of rentable space on 5,490 square feet of land. Built in 1954 this complex offers six open parking spaces. Featuring an on-site laundry facility with one dryer and one washer owned by the landlord. Furthermore, the roof was replaced six years ago and the plumbing was upgraded with copper approximately ten years ago. In addition, the property is separately metered for gas and electricity. Located at the corner of west Glenoaks Boulevard and Justin Avenue, this complex is within walking distance to all restaurants and retailers venues that line Glenoaks Boulevard. Furthermore, the building sits mere minutes from the 134 and 5 Freeways. The property s prime location, coupled with upside potential, make it a fantastic investment opportunity. Address Year Built 1954 Number of Units 6 Number of Buildings 1 PROPERTY HIGHLIGHTS 1600 W Glenoaks Blvd, Glendale, CA Building Area 3,390 Land Area 5,490 Zoning GLC3* APN Roof Shingles Number of Stories 2 Number of Parking Spaces Laundry Facility 6 Yes (Owned by Landlord) 4

5 PROPERTY INFORMATION KEY HIGHLIGHTS > Prime location in the city of Glendale > Glendale is no-rent control city > Corner lot with six parking spaces > Immediate upside potential > Laundry Room > Low maintenance and easy to manage building > Walking distance to shops and restaurants > Copper plumbing Buyer to verify > Roof was replaced approximately 10 years ago > Minutes away from 134 and 5 Freeways 5

6 PROPERTY PHOTOS 6

7 PROPERTY AERIAL JUSTIN AVE 1600 W GLENOAKS BLVD W GLENOAKS BLVD W GLENOAKS BLVD 7

8 FINANCIAL ANALYSIS

9 INVESTMENT SUMMARY Investment Summary Annualized Income Actual % Actual Proforma % Pro Forma Price $2,500,000 Down Payment 100% $2,500,000 Year Built 1954 Units 6 Price/Unit $416,667 RSF 3,396 Price/RSF $ Lot Size 5,490 Zoning GLC3* APN CAP Rate 1.84% GRM Proforma CAP Rate 3.36% Proforma GRM Gross Potential Rent $83,400 $122,040 Misc. Income $900 $900 Gross Potential Income $84,300 $122,940 Less Economic Vacancy -2.00% -$1, % -$2,441 Effective Gross Income $82,632 $120,499 Less Expenses 44.22% $36, % $36,544 Net Operating Income: $46,088 $83,955 Annualized Expenses Actual % Actual Proforma % Pro Forma Real Estate Taxes 32.67% $27, % $27,000 Insurance 1.65% $1, % $1,360 Gas 0.29% $ % $240 Electric & Water (DWP) 2.90% $2, % $2,400 Repairs & Maintenance 3.63% $3, % $3,000 Pest Control 0.58% $ % $480 Gardening 1.45% $1, % $1,200 Total Expenses 44.22% $36, % $36,544 Expenses Per RSF $10.76 $10.76 Expenses Per Unit $6,091 $6,091 9

10 RENT ROLL Unit # Unit Type Notes Unit SF Actual Pro Forma #1 1+1 N/A N/A $1,000 $1,695 #2 1+1 N/A N/A $1250 $1,695 #3 1+1 N/A N/A $1,100 $1,695 #4 1+1 N/A N/A $1,200 $1,695 #5 1+2 N/A N/A $1200 $1,695 #6 1+1 N/A N/A $1,200 $1,695 6 TOTAL 3,396 6,950 10,170 Gross Scheduled Monthly Rental Income $6,950 $10,170 Gross Scheduled Annual Rental Income $83,400 $122,040 Monthly Laundry Income $75 $75 Annual Laundry Income $900 $900 TOTAL YEARLY SCHEDULED INCOME $84,300 $122,940 10

11 EXPENSES Current Per SF Per Unit Pro Forma Per SF Per Unit Current Real Estate Taxes $27,000 $7.95 $4,500 $27,000 $7.95 $4,500 Tax Rate based on new value/price Insurance $1,360 $0.40 $227 $1,360 $0.40 $227 Estimated at $0.40 / SF Gas $240 $0.07 $40 $240 $0.07 $40 Estimated at $20 / Month Electric & Water (DWP) $2,400 $0.71 $400 $2,400 $0.71 $400 Estimated at $200 / Month Repairs & Maintenance $3,000 $0.88 $500 $3,000 $0.88 $500 Estimated at $500 / Unit Pest Control $480 $0.14 $80 $480 $0.14 $80 Estimated at $40 / Month Gardening $1,200 $0.35 $200 $1,200 $0.35 $200 Estimated at $100 / Month Total Expenses $36,544 $10.76 $6,091 $36,544 $10.76 $6,091 11

12 INCOME & EXPENSES Actual Pro Forma Income Annual Per Unit Per SF % Annual Per Unit Per SF % Gross Potential Rent $83,400 $13,900 $24.56 N/A $122,040 $20,340 $35.94 N/A Laundry Income $900 $150 $ % $900 $150 $ % Gross Potential Income $84,300 $14,050 $ % $122,940 $20,490 $ % Vacancy/Collection Allowance (% of GPR) ($1,668) ($278) ($0.49) 2.0% ($2,441) ($407) ($0.72) 2.0% Effective Gross Income $82,632 $13,772 $ % $120,499 $20,083 $ % Expenses Total Expenses $36,544 $6091 $ % $36,544 $6091 $ % Net Operating Income: $46,088 $7,681 $ % $83,955 $13,993 $ % FINANCIAL MODEL Unit Mix Summary Unit Type Number of Units Rentable SF (Approx.) Total Rentable SF (Approx.) Actual Rent Per Unit Actual Rent per SF Total Actual Rent Potential Market Rent Per Unit Market Rent Per SF Total Market Rent Potential 1 Bredroom 1 Bath 6 N/A N/A $1,158 N/A $6,950 $1,695 N/A $10,170 Totals / Wtd. Averages ,396 SF $1, $2.05 SF $6,950 $1,695 $2.99 $10,170 Annual Rent Potential $83,400 $122,040 12

13 DEMOGRAPHIC ANALYSIS

14 AREA OVERVIEW Glendale is one of LA s hotspots for new multifamily construction, but robust demand has prevented any major supply-driven vacancy expansion. Vacancies have held at or near 4% for several consecutive years despite the delivery of more than 2,000 units since With roughly 1,300 more units under construction, local owners and developers are hoping demand continues to intensify. The influx of new supply is weighing on rent growth however, and Glendale now ranks in the bottom half of LA submarkets for rental gains. The average price per unit in multifamily sales remains at or near record highs, and while average cap rates have held below 4% for several straight years. This cycle has seen heavy supply deliveries in Glendale, and several more large projects are in the pipeline. The arrival of hundreds of new units in a short time has caused some short term vacancy fluctuation, but overall demand has been very encouraging. Despite record levels of new construction this cycle, the vacancy rate has generally held at or around 4%. Glendale s status as a centrally located employment hub should help continue to drive rental demand and offset pressures from this cycle s new deliveries. GLENDALE SUBMARKET HOUSING TRENDS: Rents in Glendale are slightly above the LA average. Four quarter rent growth stands at about 2.6%, ranking in the lower half of LA submarkets. More than 2,000 units have delivered since Glendale remains one of the busiest submarkets in LA for multifamily construction. Nearly 75% of apartment units in Glendale are studios or one-bedrooms, a denser concentration of small units than in most LA submarkets. 14

15 AREA DEMOGRAPHICS TENURE OF OCCIPIED HOUSING 1 MILE RADIUS POPULATION BY RACE 1 MILE RADIUS DEMOGRAPHICS (SOURCE: COSTAR) Population 1-mile 3-mile 5-mile HOUSING VALUES 1 MILE RADIUS POPULATION BY BUSINESSES 1 MILE RADIUS 2023 Projection 32, , , Estimate 31, , ,948 Growth % 2.00% 1.92% Households 2018 Estimate 11,501 70, ,987 Growth % 1.94% 1.82% 2018 Est. Occupied Housing Units Owner Occupied 4,119 24,794 72,498 Renter Occupied 7,382 45, , Est. Households by HH Income <$25,000 2,880 16,366 41,979 $25,000 - $50,000 2,278 13,576 37,772 $50,000 - $75,000 1,888 10,540 30,756 $75,000 - $100,000 1,222 9,069 24,645 $100,000 - $125,000 1,055 6,591 18,896 $125,000 - $150, ,605 11,939 $150,000 - $200, ,760 14,294 $200, ,613 17, Avg Household Income $82,824 $85,749 $90, Med Household Income $58,233 $61,901 $65,020 15

16 AMENITIES MAP Resturants/Cafes Retail 1. McDonalds 1. Chase Bank 2. El Pollo Loco 2. Gold Farms Market Plaza 3. Nersses Vanak Cents Only Store 4. Starbucks 4. 7-Eleven 5. Del Taco 5. Beauty Mark 6. Brewyard Beer Co 6. American Gun Works 7. Corner Bistro 7. Smart & Final 8. Paradise Pastry & Cafe 8. The Salvation Army 9. The Habbit Burger Grill 9. U.S. Postal Service 10. El Tapatio 10. Mickey s of Glendale 11. Papa John Pizza 11. Kinetic Lighting 12. Yum Yum Donuts 12. De Soto Sales 13. Wokcano 13. Wright s supply 14. Sushi Joint 14. The Home Depot 15. Domino s Pizza 15. CarMax 16. Jack In The Box 16. Ralphs 17. Walgreens 17. Carl s Jr. 18. Trader Joe s 18. Cafe Bravo 19. IKEA 19. Yoga-urt 20. Tesla 20. Vanila French Bakery 21. FedEx 21. Mi Corazon 22. Spectrum 23. Jons Market Entertainment 1. LA Banquets 2. Joaquin Miller Park 3. Grand View Memorial 4. Western Reservoir 5. Grandview Library 6. Robert R. park 7. Nineten 26 Bar Schools/Education 1. Thomas Jefferson Elementary 2. Balboa Elementary 3. Mark Keppel Magnet M.S W. Glenoaks Blvd W GLENOAKS BLVD 16

17 COMPARABLES

18 RENT COMPARABLES # Property Address City State Zip Unit Type Detail Unit Size SF Rent Western Ave Glendale CA $1, Western Ave Glendale CA $1, Western Ave Glendale CA $1, Linden Ave Glendale CA $1,800 Total Rent Comparables Average SF Rent 1 Bed, 1 Bath 606 $1,672 18

19 RENT COMPARABLES MAP 1600 W. Glenoaks Blvd. Glendale CA Western Ave Glendale CA Western Ave Glendale CA Western Ave Glendale CA Linden Ave Glendale CA W. Glenoaks Blvd. 19

20 SALE COMPARABLES # Property Address Property City Property County Property Zip Code Number Of Units Sale Price Price Per Unit Price Per SF Actual Cap Rate GRM Bldg SF Year Built Sale Date Irving Ave Glendale Los Angeles $3,050,000 $381,250 $ % N/A 7, /31/ Western Ave Glendale Los Angeles $3,050,000 $381,250 $ % , /8/ Allen Ave Glendale Los Angeles $3,030,000 $378,750 $ % N/A 8, /30/ W Dryden St Glendale Los Angeles $2,915,000 $291,500 $ N/A N/A 9, /20/ Justin Ave Glendale Los Angeles $2,383,000 $297,875 $ N/A N/A 7, /26/ San Rafael Ave Glendale Los Angeles $2,011,000 $335,167 $ % 18 4, /4/2017 AVERAGE $344,299 $ %

21 SALES COMPARABLES MAP 1600 W Glenoaks Blvd Glendale CA Irving Ave Glendale CA Western Ave Glendale CA Allen Ave Glendale CA W Dryden St Glendale CA Justin Ave Glendale CA San Rafael Ave Glendale CA W. Glenoaks Blvd. 21

22 DISCLAIMER This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved. 22

23 TEAM GHOBADI NORTH LOS ANGELES REZA GHOBADI SENIOR VICE PRESIDENT Lic JARED PAPAZIAN MULTIFAMILY SPECIALIST Lic ALEX FORSTER MULTIFAMILY SPECIALIST Lic ARTHUR DEDEYAN MULTIFAMILY SPECIALIST Lic IAN MORT MULTIFAMILY SPECIALIST Lic JOCELYN GARCIA MARKETING Colliers International Ventura Blvd., Suite J Encino, CA P: (818) F: (818)