5323 HERMITAGE AVEValley Village, CA 91607

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and

should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified

information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due

diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the

future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or

asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any

tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be

reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these

matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to

verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or

name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product,

service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.

PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

5323 HERMITAGE AVE

Valley Village, CA

ACT ID Z0121302

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering Summary

Regional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02

Rent Roll Summary

Rent Roll Detail

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET COMPARABLES 03

Sales Comparables

Rent Comparables

MARKET OVERVIEW 04

Market Analysis

Demographic Analysis

5323 HERMITAGE AVE

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5323 HERMITAGE AVE

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INVESTMENT

OVERVIEW

5323 HERMITAGE AVE

#

EXECUTIVE SUMMARY

OFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Disney 15,158

Walt Disney Company 9,434

Victory Studio 5,000

Warner Bros Television 5,000

Kaiser Permanente 3,000

Providence Holy Cross 2,930

Andrews International Inc 2,254

Providence St Joseph Med Ctr 2,099

Mann Theaters 2,000

PROVIDENCE HOLY CROSS FOUNDATI

2,000

Universal City Studios Prod 2,000

Homebridge Financial Services 1,700

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2017 Estimate Pop 36,999 297,416 617,623

2010 Census Pop 35,147 281,682 586,995

2017 Estimate HH 17,097 121,227 232,101

2010 Census HH 16,051 113,470 218,509

Median HH Income $58,635 $57,417 $59,515

Per Capita Income $41,985 $37,390 $36,529

Average HH Income $90,517 $91,423 $96,803

UNIT MIX

NUMBEROF UNITS

UNIT TYPEAPPROX.SQUARE FEET

2 1 Bedroom/1 Bathroom

3 2 Bedroom/1 Bathroom

1 3 Bedroom/2 Bathroom

6 Total 4,905

VITAL DATA

Price $1,800,000 CURRENT PRO-FORMA

Down Payment 100% / $1,800,000 CAP Rate 4.13% 5.59%

Loan Type All Cash GRM 14.83 12.24

Price/Unit $300,000Net Operating Income

$74,396 $100,568

Price/SF $366.97Net Cash Flow After Debt Service

4.13% / $74,396 5.59% / $100,568

Number of Units 6 Total Return 4.13% / $74,396 5.59% / $100,568

Rentable Square Feet 4,905

Year Built 1957

Lot Size 0.18 acre(s)

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5323 HERMITAGE AVE

OFFERING SUMMARY

▪ Prime Valley Village Location

▪ Major Upside in Current Rents

▪ Walking Distance to Public Transportation

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present this six (6) unit apartment building located at 5323 Hermitage Avenue in Valley Village, CA. This investment opportunity is in a

prime location, south of Chandler Blvd, in between Corteen Pl & Bellingham Ave. Valley Village is bordered on the north by North Hollywood, on the east by NoHo Arts

District, on the south by Studio City, and on the west by Sherman Oaks.

This property was built in 1957, and consists of two (2), one bedroom/one bathroom units, three (3) two bedroom/one bathroom units, and one (1) three bedroom/two

bathroom front house unit. This property is situated on a 8,011 SF lot zoned LAR3, and the building is a total of 4,905 SF per public record. This property has parking in

the rear and each unit is separately metered for gas and electric.

With substantial upside in current rents, this property provides an excellent opportunity for an operator to increase rental income through a more aggressive management

style and renovation program. This property is in an excellent location within the San Fernando Valley, and is in close proximity to the Orange Line Busway, Local Colleges,

Public Transportation, and major retail corridor.

INVESTMENT OVERVIEW

6

REGIONAL MAP

5323 HERMITAGE AVE

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LOCAL MAP

5323 HERMITAGE AVE

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AERIAL PHOTO

5323 HERMITAGE AVE

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5323 HERMITAGE AVE

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FINANCIAL

ANALYSIS

FINANCIAL ANALYSIS

5323 HERMITAGE AVE

RENT ROLL SUMMARY

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FINANCIAL ANALYSIS

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RENT ROLL DETAIL

FINANCIAL ANALYSIS

5323 HERMITAGE AVE

OPERATING STATEMENT

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FINANCIAL ANALYSIS

5323 HERMITAGE AVE

NOTES

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Income:1. Rent: Based on Seller's Rent Roll verbally as of October 2018.2. Total Vacancy: Based on estimated 3% vacancy on current and 3% vacancy allowance.3. Laundry Income: Based on estimated monthly income of $200 pro-forma.

Expenses:1. Real Estate Taxes: Property tax rate of 1.19% based on published 2017-2018 L.A. County Tax Assessor website.2. Insurance: Based on estimated annual expense of $0.40 per buildable SF.3. Utilities: Based on estimated annual expense of $120 per unit per month (includes trash).4. Repairs & Maintenance: Based on estimated annual expense of $650 per unit.5. Landscaping: Based on estimated monthly expense of $100.6. Operating Reserves: Based on estimated annual expense of $250 per unit.7. Off-Site Mgt: Based on estimated annual expense of 4% of the effective gross income.

FINANCIAL ANALYSIS

5323 HERMITAGE AVE

PRICING DETAIL

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MARCUS & MILLICHAP CAPITAL CORPORATION

CAPABILITIES

MMCC—our fully integrated, dedicated financing arm—is committed to

providing superior capital market expertise, precisely managed execution, and

unparalleled access to capital sources providing the most competitive rates and

terms.

We leverage our prominent capital market relationships with commercial banks,

life insurance companies, CMBS, private and public debt/equity funds, Fannie

Mae, Freddie Mac and HUD to provide our clients with the greatest range of

financing options.

Our dedicated, knowledgeable experts understand the challenges of financing

and work tirelessly to resolve all potential issues to the benefit of our clients.

National platform

operating

within the firm’s

brokerage

offices

$5.63 billion

total national

volume in 2017

Access to

more capital

sources than

any other firm

in the industry

Optimum financing solutions

to enhance value

Our ability to enhance

buyer pool by expanding

finance options

Our ability to enhance

seller control

• Through buyer

qualification support

• Our ability to manage buyers

finance expectations

• Ability to monitor and

manage buyer/lender

progress, insuring timely,

predictable closings

• By relying on a world class

set of debt/equity sources

and presenting a tightly

underwritten credit file

WHY MMCC?

Closed 1,707

debt and equity

financings

in 2017

ACQUISITION FINANCING

5323 HERMITAGE AVE

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5323 HERMITAGE AVE

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MARKET

COMPARABLES

5323 HERMITAGE AVE

SALES COMPARABLES MAP

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5323 HERMITAGE AVE

(SUBJECT)

5301 Vantage Ave

5055 Laurel Canyon Blvd

12207 Chandler Blvd

5451 Hermitage Avenue

12206 Magnolia Blvd

4936 Whitsett Ave

SALES COMPARABLES

1

2

3

4

5

6

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PROPERTY NAME5323 HERMITAGE AVE

SALES COMPARABLES

Avg. 4.02%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

5323

Hermitage

Ave

5301

Vantage Ave

5055 Laurel

Canyon Blvd

12207

Chandler

Blvd

5451

Hermitage

Avenue

12206

Magnolia

Blvd

4936

Whitsett

Ave

Average Cap Rate

Avg. 15.88

0.00

1.70

3.40

5.10

6.80

8.50

10.20

11.90

13.60

15.30

17.00

5323

Hermitage

Ave

5301

Vantage Ave

5055 Laurel

Canyon Blvd

12207

Chandler

Blvd

5451

Hermitage

Avenue

12206

Magnolia

Blvd

4936

Whitsett

Ave

Average GRM

SALES COMPARABLES SALES COMPS AVG

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PROPERTY NAME5323 HERMITAGE AVE

SALES COMPARABLES

Avg. $262.43

$0.00

$40.00

$80.00

$120.00

$160.00

$200.00

$240.00

$280.00

$320.00

$360.00

$400.00

5323

Hermitage

Ave

5301

Vantage Ave

5055 Laurel

Canyon Blvd

12207

Chandler

Blvd

5451

Hermitage

Avenue

12206

Magnolia

Blvd

4936

Whitsett

Ave

Average Price Per Square Foot

Avg. $289,630

$0

$40,000

$80,000

$120,000

$160,000

$200,000

$240,000

$280,000

$320,000

$360,000

$400,000

5323

Hermitage

Ave

5301

Vantage Ave

5055 Laurel

Canyon Blvd

12207

Chandler

Blvd

5451

Hermitage

Avenue

12206

Magnolia

Blvd

4936

Whitsett

Ave

Average Price Per Unit

SALES COMPARABLES SALES COMPS AVG

PROPERTY NAME

MARKETING TEAM

5323 HERMITAGE AVE

SALES COMPARABLES

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SALES COMPARABLES

Units Unit Type

Offering Price: $1,800,000 2 1 Bdr 1 Bath

Price/Unit: $300,000 3 2 Bdr 1 Bath

Price/SF: $366.97 1 3 Bdr 2 Bath

CAP Rate: 4.13%

GRM: 14.83

Total No. of Units: 6

Year Built: 1957

Underwriting Criteria

Income $117,727 Expenses $43,331

NOI $74,396 Vacancy ($3,641)

5323 HERMITAGE AVE5323 Hermitage Ave, Valley Village, CA, 91607

1

Units Unit Type

Close Of Escrow: 5/4/2018 3 1 Bdr 1 Bath

Sales Price: $1,400,000 3 2 Bdr 1 Bath

Price/Unit: $233,333

Price/SF: $273.92

Total No. of Units: 6

Year Built: 1954

5301 VANTAGE AVE5301 Vantage Ave, Valley Village, CA, 91607

Units Unit Type

Close Of Escrow: 4/24/2018 5 Studio Bath

Days On Market: 64

Sales Price: $1,500,000

Price/Unit: $300,000

Price/SF: $209.61

CAP Rate: 3.93%

GRM: 15.78

Total No. of Units: 5

Year Built: 1952

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NOTES

Unit mix not available per public record. Property was sold with several

vacant units

5055 LAUREL CANYON BLVD5055 Laurel Canyon Blvd, Valley Village, CA, 91607

PROPERTY NAME

MARKETING TEAM

5323 HERMITAGE AVE

SALES COMPARABLES

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SALES COMPARABLES

Units Unit Type

Close Of Escrow: 8/23/2018 8 1 Bdr 1 Bath

Days On Market: 134 2 2 Bdr 2 Bath

Sales Price: $3,040,000

Price/Unit: $304,000

Price/SF: $365.03

CAP Rate: 4.28%

GRM: 15.90

Total No. of Units: 10

Year Built: 1978

3

NOTES

Non rent control

12207 CHANDLER BLVD12207 Chandler Blvd, Valley Village, CA, 91607

4

Units Unit Type

Close Of Escrow: 7/25/2018 3 1 Bdr Bath

Days On Market: 47 6 2 Bdr Bath

Sales Price: $3,440,000 1 5 Bdr Bath

Price/Unit: $344,000

Price/SF: $183.02

CAP Rate: 3.86%

GRM: 15.96

Total No. of Units: 10

Year Built: 1963

NOTES

At the time of sale, 3 units were delivered vacant. Seller executed a 1031

exchange.

5451 HERMITAGE AVENUE5451 Hermitage Ave, Valley Village, CA, 91607

Units Unit Type

Close Of Escrow: 6/15/2018 3 1 Bdr Bath

Sales Price: $3,120,000 1 1 Bdr Bath

Price/Unit: $312,000 6 2 Bdr Bath

Price/SF: $320.53

CAP Rate: 4.00%

Total No. of Units: 10

Year Built: 1964

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NOTES

Both parties were involved in a 1031 exchange. The property was fully

occupied at time of sale.

12206 MAGNOLIA BLVD12206 Magnolia Blvd, Valley Village, CA, 91607

PROPERTY NAME

MARKETING TEAM

5323 HERMITAGE AVE

SALES COMPARABLES

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SALES COMPARABLES

Units Unit Type

Close Of Escrow: 5/25/2018 9 Studio Bath

Days On Market: 36

Sales Price: $2,200,000

Price/Unit: $244,444

Price/SF: $222.49

Total No. of Units: 9

Year Built: 1963

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NOTES

Unit mix unavailable per public record

4936 WHITSETT AVE4936 Whitsett Ave, Valley Village, CA, 91607

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5323 HERMITAGE AVE

RENT COMPARABLES MAP

5323 HERMITAGE AVE

(SUBJECT)

5307-5313 Vantage Ave

5301 Vantage Ave

5333 Bellingham Avenue

5330 Bellingham Ave

5330 Corteen Pl # Pt8

12410 Chandler Blvd

4

7

8

9

11

20

12

14

15

16

17

13

18

10

4

1

2

3

5

6

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PROPERTY NAME

MARKETING TEAM

5323 HERMITAGE AVE

RENT COMPARABLES

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YEAR BUILT: 1961

3

Unit Type Units SF Rent Rent/SF

3 Bdr 2 Bath 1 1,200 $2,975 $2.48

Total/Avg. 1 1,200 $2,975 $2.48

NOTES

Locatd appx. 0.1 mi from the subject property

This 3 bedroom, 2 bath apartment, in a 7 unit building features laminate

flooring, fireplace, and large private yard with fruit trees. Community

laundry.Close to public transportation and shops. Owner is providing one

month's free rent and, at tenant's request, may be willing to do some

minor renovations to the bathrooms prior to move-in.

5333 BELLINGHAM AVENUE5333 Bellingham Ave, Valley Village, CA, 91607

YEAR BUILT: 1950

4

NOTES

2 bedroom/1 bath unit with hardwood floors, gas stove, private 1 car

garage.

Unit Type Units SF Rent Rent/SF

2 Bdr 1 Bath 1 $1,995

Total/Avg. 1 $1,995

5330 BELLINGHAM AVE5330 Bellingham Ave, Valley Village, CA, 91607

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YEAR BUILT: 1963

NOTES

Locatd appx. 0.2 mi from the subject property

Beautiful 2 Bed + 1 Bath Downstairs Apartment - Beautiful 2 Bed + 1 Bath

Downstairs Apartment. Approximately 900 SQFT. Freshly Painted,

Laminate Flooring, Stove/Oven, Granite Counter-tops, Ceiling Fans, A/C, 1

Parking Space, Pet Friendly.

Unit Type Units SF Rent Rent/SF

2 Bdr 1 Bath 1 900 $1,950 $2.17

Total/Avg. 1 900 $1,950 $2.17

5330 CORTEEN PL # PT85330 Corteen Pl, Valley Village, CA, 91607

PROPERTY NAME

MARKETING TEAM

5323 HERMITAGE AVE

RENT COMPARABLES

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YEAR BUILT: 1959

6

Unit Type Units SF Rent Rent/SF

1 Bdr 1 Bath 1 $1,750

Total/Avg. 1 $1,750

NOTES

Located appx. 0.3 mi from the subject property

Quiet and cozy 1-bed in great Valley Village location. This newly

remodeled open concept unit features new hardwood floors and carpet,

new paint and more. Unit has a generously sized private balcony and the

complex features a sparkling pool, and covered parking.

12410 CHANDLER BLVD12410 Chandler Blvd, Valley Village, CA, 91607