offering memorandum 1506-1520

OFFER INGMEMORANDUM

WAREHOUSE/DEVELOPMENTLOCATED IN PICO-UNION

1506-1520W 12TH STREETLOS ANGELES, CA 90015

Medical Potential ConversionState Enterprise Zone

C2-1C2-1ZONINGZONING

R4-1R4-1ZONINGZONING

INVESTMENT OVERVIEW

NUMBER OF BUILDINGS 3 Structures

CONSTRUCTION TYPE Brick & Concrete Block

DRIVE-INS 4 (10'x10')

ELECTRICAL 175-800a/240v 3p 3w

CEILING HEIGHT 17 to 25 Feet

YEAR BUILT 1956/1968/1975

APN5137-029-019; 5137-029-0095137-029-027; 5137-029-028

TOC Tier 2

PARKING39 Surface Spaces1.38/1,000 SF

TENANCY Multi-Tenant

BUILDING TO LAND 0.67 FAR

FRONTAGE150' on 12th St125' on Valencia St100' on 12th Pl

LOT DIMENSIONS150' x 125'100' x 125'

FREEWAY ACCESS 110 & 10 Fwys

TRAFFIC COUNT 28,052 CPD on Valencia St

SITE DESCRIPTION EXECUTIVE SUMMARY

Hudson Partners and Compass Commercial have been retained to exclusively market a collection of parcels west of the 110 Freeway. This assemblage is located just to the West of LA live and Staples center, close to DTLA. This asset’s qualities are very rare for the DTLA industrial submarket. The offering boasts more than 28,000 SF of leasable area (14,966 of contiguous SF, 24,966 total ground floor SF) with a 3,347 SF mezzanine space comprised of mostly offices space. There are 3 roll up doors, 20+ FT ceilings, and significant power (175-800a/240v 3p 3w). The current tenancy occupies the entire premises on a month-to-month basis and the buildings be delivered vacant at the close of escrow. The property is currently being used for manufacturing and warehousing of textiles, but is adaptable to other industrial and C2 uses. This asset also lies within the state enterprise zone, creating the potential to converting a chunk of rentable square footage into medical space under this allowed parking ratio concession. This parking requirement in this qualify area for medical space is 2 spaces for every 1,000sf. Based off the most recent Certificate of Occupancy and Zoning, the property could be converted to medical space, research and development uses, or education uses such as a charter school. For developers, the property enjoys 37,458 SF of contiguous land. It is zoned C2-1 and R4-1, meaning a developer could build 94 units by right or 150 units by utilizing TOC bonuses (Tier 2). The site has no height limits and a potential maximum FAR of 4.35:1.

HIGHLIGHTS• 24,966 SF of ground floor industrial • 17-24+ SF• DTLA Adjacent. • State Enterprise Zone • TOC Tier 2 (94 Units by right, 150 TOC) • No Height Limits of Transitional Height

$13,000,000ASKING PRICE

37,458 SF($347 PSF)

LOT SIZE

28,313 SF($459 PSF)

SF AVAILABLE

C2-1 & R4-1ZONING

WaRehouSe/DeveloPment

PROPERTY TYPE

90% SBaFINANCING

DEVELOPMENT SPEC TOC ‒ TIER 2

Zoning C2-1 & R4-1

Height Limit Unlimited

No. Units By Right 94 Units

No. Units (w/ Bonus) 150 Units

Residential Linkage Fee Medium

Entitlements None

Price Per Unit $86,667/Unit

FAR Increased Up to 4.35 TOC

TOC Parking 1 per Unit

Council District CD 1 - Gilbert Cedillo

Highway Dedication No

Transitional Height None

Opportunity Zone No

State Enterprise Zone Yes

HUDSON COMMERCIAL PARTNERS, INC.1506-1520 W 12TH ST | LOS ANGELES, CA 900152 3

PROPERTY OVERVIEW

LOCATION

1508-1522 W 12th StLos Angeles, CA 90015

SITE

Located on the south side of 12th St, be-tween Union Ave and Valencia St, and northeast corner of 12th Pl and Valencia St. in the city of Los Angeles, CA.

LAND AREA

The property consists of 4 parcels (APN #5137-029-019, 5137-029-009, 5137-029-027, 5137-029-028) totaling 37,458 SF of land area.

BUILDING AREA

The subject consists of 2 building totalling 24,966 of gross SF.

FRONTAGE & ACCESS

The site features 150 linear feet of frontage along 12th St, 125 linear feet of frontage along Valencia St, and 100' along 12th Pl..

Access points into the building include 2 entrances off 12th St and 1 entrance off Valencia St.

BUILT

Built in 1956, 1968 & 1975.

ZONING

Per the city of Los Angeles, the site is cur-rently zoned as C2-1 & R4-1.

NEAREST TRANSIT

Metro Blue/Expo Line..................0.8 milesUnionn Station Commuter Rail.....3.2 milesGlendale Commuter Rail..............6.8 miles

PARCEL MAP

PARKING

Provides 39 spaces, which equates to 1.38 spaces per unit.

VA

LEN

CIA

ST

VA

LEN

CIA

ST

12TH ST12TH ST

12TH PL12TH PL

2-R4 LOTS2-R4 LOTS(INDIVIDUAL)(INDIVIDUAL)

TOTAL: 18,313 SFTOTAL: 18,313 SF

BUILDING: 14,966 SFBUILDING: 14,966 SFMEZZANINE: 3,347 SFMEZZANINE: 3,347 SF 5,000 SF5,000 SF5,000 SF5,000 SF

BUILDING 1BUILDING 1BUILDING 2BUILDING 2BUILDING 3BUILDING 3


FLOOR PLAN ‒1ST FLOOR FLOOR PLAN ‒2ND FLOOR

EXECOFFICE

STRG/OFFICE

STRG/OFFICE

STRG/OFFICE

STRG/OFFICE

STRG/OFFICE

STRG/OFFICEOFFICE

STAIRS

STAIRWELL

PRO

DU

CTI

ON

AR

EA

OFFICE

ENTRYROOM

CON

FERE

NCE

SCO

TTO

FFIC

E

BREAKROOM

BATH BATH

RECE

PTIO

N ELEC TENANT

STRGOFFICE STUDIO STUDIO

STRG

STRG

ROLL-UPDOOR 10.5'

100

'10

0'

70'

70'

11.75'11.75'

45.5'45.5'

17.7

5'

17.7

5'

13'

13'

14'14'

86.25'86.25'

152

'15

2'

50'50'80

'8

0'

10'

10'

20

'2

0'

17'17'50'50'


25' CEILING HEIGHT

BUILDING 2

20' CEILING HEIGHT

BUILDING 2


17' CEILING HEIGHT

BUILDING 3


EXTERIOR SURFACE PARKING


SUMMARY TERMS

Price $13,000,000

Down Payment (10%) $1.300,000

Gross Square Feet 28,313 SF

Price Per Foot On Building $459

Lot Size 37,458 SF

Price Per Foot On Land $347

Year Built 1956, 1968, 1975

Zoning C2-1 & R4-1

ASSUMPTIONS ‒ 90% FINANCING

SUMMARY TERMS

SBA Loan $11,700,000

Loan Type SBA Financing

Interest Rate 3.5%

Monthly Payment $58,572.96

Monthly Mortgage Cost $2.35 PSF

Operating Costs NNN $0.79 PSF

USER OCCUPANCY COSTS

VALENCIA ST

VALENCIA ST

12TH ST

12TH ST

PICO BLVDPICO BLVD

THE ALBANY HOTEL - HIGH RISE R.T.I. PROJECT

ADJACENT AMENITY


LOS ANGELES COUNTY

The County of Los Angeles holds many disticntions. L.A. is the entertainment capital of the world, a cultural mecca boasting more than 100 museums, and a paradise of idyllic weather. From tourist attractions like the Walk of Fame's collection of stars (numbering more than 2,614 and growing by one or two a month) to career opportuni-ties like those presented in the expanding tech industry, Los Angeles County is the place to be. It is the only city in North America to have hosted the Summer Olympics twice. Downtown L.A. is the largest government center outside of Washington, D.C. Los Angeles County has the only remaining wooden lighthouse in the state (located in San Pedro's Fermin Park) and the largest historical theater district on the National Register of Historic Places (located Downtown on Broadway).

SNAPSHOT: PICO-UNION

Pico-Union is a neighborhood in Los Angeles, California with a population of 40,902. Pico-Union is in Los Angeles County. Living in Pico-Union offers residents an urban feel and most residents rent their homes. In Pico-Union there are a lot of bars, restaurants, coffee shops, and parks. Many families live in Pico-Union and residents tend to be liberal.

NEIGHBORHOOD

Pico-Union

CITY

LosAngeles

REGION

LosAngeles

COUNTY

LosAngeles

METRO

LosAngeles

DEMOGRAPHICS

WEATHER 284SunnyDays

71◦Average

High

55◦Average

Low

LOS ANGELES COUNTY

284SunnyDays

83◦Average

High

50◦Average

Low

LOS ANGELES

HIGH DENSITY, LOS ANGELES DEMOGRAPHICS

• More than 3,918,800 people with a population

density of 8,362 people per sq. mi.

• More than 2,060,000 employees with an

Average Household Income exceeding $62,474

• More than 1,380,000 households with an

Average Property Value exceeding $682,400


ABOUT THE NEIGHBORHOOD

Sherman Oaks 17 mi Hollywood 7 mi DTLA 2 mi Santa Monica 13 mi

93

Walk Score

Walker's ParadiseDaily errands do not

require a car.

85

Transit Score

Excellent TransitTransit is convenient

for most trips.

58

Bike Score

BikeableFlat as a pancake, minimal bike lanes.

Los Angeles is California’s largest city, the country’s second largest (after New York) and is home to about 4 million people. Known for its sprawling layout, ethnic diversity, sunny weather and television and film industry, Los Angeles is home to many in the entertainment industry. If you want to join them, it is cheaper to live there than New York, but rental and home prices, along with the cost of living, are pricey. Save up before you move to the City of Angels.

Mountains, deserts and the Pacific Ocean surround Los Angeles. Low-rise buildings are commonplace, as are headquarters for major corporations. There is a lot of diversity in the city, and there are areas where many people from certain ethnic groups live and work, such as Koreatown, Little Tokyo and Little Ethiopia, making them a great place to try authentic cuisine.

1508-1520 W 12th St has a Walk Score of 84 out of 100.

This location is in the Pico Union neighborhood in Los Angeles. Nearby parks include South Bonnie Brae Tract Historic District, Terrace Park and Alvarado Terrace Historic District.

DOWNTOWN LOS ANGELES

The renaissance of Downtown Los Angeles that began in the late 1990’s has attracted over $17.3 billion of investment. The transformation continues today with many historic buildings having been converted into lofts, new mid- and high-rise residential buildings being built, and numerous retail businesses and restaurants choosing to locate in Downtown.

Downtown Los Angeles is well-served by the freeway network and is bounded by the Los Angeles River to the east, 101 Hollywood Freeway to the north, the 10 Santa Monica Freeway on the south and just west of the 110 Harbor Freeway on the west. It is the hub of the METRO, a network of six separate lines (the Blue, Red, Purple, Green, Gold and Expo Lines) serving 80 stations through out LA County. At 87 miles, it is the second largest light rail system in the United States.

The diverse districts of Downtown Los Angeles each have distinct characteristics and amenities. Downtown's employers, including multinational corporations AECOM, AEG and Ernst & Young, are located in the Financial District. South Park is the location of the LA Convention Center, the Staples Center and the L.A. Live entertainment complex. The city's major art institutions, among them the Walt Disney Concert Hall and the Broad Museum, are located along Grand Avenue in the Civic Center neighbor-hood which also includes City Hall. A former industrial area, today the Arts District is home to the Southern California Institute of Architecture (SCI-ARC) along with a multitude of art galleries, photography studios, and video and media companies including Warner Music Group which recently relocated its headquarters to the Arts District.


L.A. LIVE0.6 miles

L.A. Live is an entertainment complex in the South Park District of Downtown Los Angeles, California. It is adjacent to the Staples Center and Los Angeles Convention Center.

L.A. Live was developed by Anschutz Entertainment Group (AEG), Wachovia Corp, Azteca Corp, investment firm MacFarlane Partners, and with tax deferments paid by Los Angeles taxpayers. It cost approximately US$2.5 billion to build. The architectural firm responsible for the master plan and phase two buildings was Baltimore-based RTKL Associates.

ADJACENT AMENITIES ADJACENT AMENITIES

STAPLES CENTER0.6 miles

Staples Center is a multi-purpose arena in Downtown Los Angeles. Adjacent to the L.A. Live development, it is located next to the Los Angeles Convention Center complex along Figueroa Street. The arena opened on October 17, 1999.

It is owned and operated by the Arturo L.A. Arena Company and Anschutz Entertainment Group. The arena is home venue to the Los Angeles Kings of the National Hockey League (NHL), the Los Angeles Lakers and the Los Angeles Clippers of the National Basketball Association (NBA), and the Los Angeles Sparks of the Women's National Basketball Association (WNBA).


NEARBY EMPLOYMENT CENTERS EMPLOYERS WITHIN 5 MILES

EMPLOYER EMPLOYEES

1 LAC & USC Medical Center 8,000

2Kasier Permanente Los Angeles

Medical Center6,060

3 Paramount Pictures Corp 3,000

4 Ernst & Young 2,000

5 Southern California Gas Company 2,000

6 PWC 1,700

7 Good Samaritan Hospital 1,300

8 KPMG 1,300

9 Blue Shield of California 1,000

10 Gibson Dunn & Crutcher LLP 1,000

HOLLYWOOD18 minute drive

Home of the motion picture, radio and television industry, Paramount, Viacom, Capitol Records, the Academy of Motion Picture Arts and Sciences, and Technicolor are all located in Hollywood. Netflix relocated to Hollywood in 2017 and continues to expand its footprint, claiming 1.5 million SF of space in existing assets or developments underway.

BEVERLY HILLS/CENTURY CITY24 minute drive

Beverly Hills is one of the most celebrated and in-demand destinations in the world. With an economy near $20 billion annually, Beverly Hills ranks first among mid-to-large sized cities in the United States for retail sales per capita. Some of Los Angeles’ largest private equity and venture capital firms are located in Beverly Hills. Neighboring Century City is home to 20th Century Fox and the Creative Artists Agency.

DOWNTOWN LOS ANGELES6 minute drive

Downtown Los Angeles has over 30.0 million square feet of office space and nearly 500,000 employees. Downtown is home to some of the largest employers in the Greater Los Angeles region, including multinational corporations such as AEG, AECOM, Ernst & Young and Warner Music Group and companies such as Wedbush Securities, City National Bank and Oaktree Capital Management.

GLENDALE19 minute drive

Downtown Glendale has 6.7 million square feet of office space, with some of the largest employers in the region such as Nestle USA headquarters, Whole Foods Western headquarters, DreamWorks Animation SKG, The Walt Disney Company, Citibank, Avery Dennison, LegalZoom.com, Unum Group, HealthNet, Allstate, and United Healthcare.


JAY MARTINEZManaging Principal

818.212.3057 cell818.688.8140 [email protected]

4605 Lankershim Blvd. Suite 214Universal City, CA 91602

ELIZABETH CLARKSenior Vice President

310.740.7283 cell310.421.4184 [email protected]

150 S Rodeo Dr. Suite1100Beverly Hills, CA 90210


4605 Lankershim Blvd, Suite 214 | Universal City, CA 91602818.212.3057 • www.hudsonpartnersinc.com

www.hudsonpartnersinc.com

© 2020 Hudson Commercial Partners, Inc. The information contained in this document has been obtained from sources believed reliable. While Hudson Commercial Partners, Inc. does not doubt its accuracy, Hudson Commercial Partners, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors, which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.

Hudson Commercial Partners, Inc. logo are service marks of Hudson Commercial Partners, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

JAY MARTINEZManaging Principal

c: 310.658.3375p: 818.212.3057f: 818.688.8140e: [email protected]

CalBRE: 01367663

ELIZABETH CLARKSenior Vice President


CalBRE: 01811246

This Memorandum (“Offering Memorandum”) has been prepared by Hudson Commercial Partners, Inc. based on information that was furnished to us by sources we deem to be reliable. No warranty or representation is made to the accuracy thereof; subject to correction of errors, omissions, change of price, prior sale, or withdrawal from market without notice.

This Memorandum is being delivered to a limited number of parties who may be interested in and capable of purchasing the Property. By its acceptance hereof, each recipient agrees that it will not copy, reproduce or distribute to others this Memorandum in whole or in part, at any time, without the prior written consent of Hudson Commercial Partners, Inc., and it will keep permanently confidential all information contained herein not already public and will use this Confidential Memorandum only for the purpose of evaluating the possible acquisition of the Property.

This Memorandum does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information, which prospective buyers may need, or desire. All financial projections are based on assumptions relating to the general economy, competition and other factors beyond the control of the Owner and, therefore, are subject to material variation. This Memorandum does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of this Memorandum.

This Memorandum is being delivered by Hudson Commercial Partners Inc. to prospective purchasers with the understanding that all prospective purchasers will conduct their own independent investigation of those matters, which they deem appropriate in order to evaluate this offering. Additional information and an opportunity to inspect the site will be made available to interested and qualifiedprospective purchasers. Hudson Commercial Partners, Inc. reserves the right to request the return of any or all of the information enclosed.

CONNOR MACLEODSenior Associate


CalBRE: 02083085

offering memorandum 1506-1520

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