the northmere apartmentsfiles.ctctcdn.com/5f3aa8ab001/7ac126ca-39cc-4584-a4e6-e...proforma cap rate:...

KW COMMERCIAL4061 Laurel Canyon Blvd.

Studio City, CA 91604

The Northmere Apartments

OFFERING MEMORANDUM

PRESENTED BY:

Multifamily Investment [email protected] #01432215

RICH JOHNS

PRIME LOS FELIZ, 18 UNIT ITALIAN RENAISSANCE REVIVAL APARTMENT ASSET

BROKER OPINION OF VALUE

[email protected] #00823957

KW COMMERCIAL

4061 Laurel Canyon Blvd.


CHRISTOPHER V. BONBRIGHT

BROOKFIELD PARTNERS

18801 Ventura Blvd. Ste. 310

Los Angeles, CA 91356

DARIN SPILLMANManaging Director310.592.8269darin@brook�eld-partners.comBRE #01366902


RICH JOHNS

1840 NORTH BERENDO AVE., LOS ANGELES, CA 90027

Confidentiality & Disclaimer

OFFERING MEMORANDUM

LOS ANGELES, CA

OFFERING MEMORANDUM

BROOKFIELD PARTNERS

18801 Ventura Blvd. Ste. 310


KW COMMERCIAL

4061 Laurel Canyon Blvd.


DARIN SPILLMANManaging Director310.592.8269darin@brook�eld-partners.comBRE #01366902


RICH JOHNS

All materials and information received or derived from KW Commercial its directors, o�cers, agents, advisors, a�liates and/or any third partysources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance orlack of compliance with applicable governmental requirements, developability or suitability, �nancial performance of the property, projected�nancial performance of the property for any party’s intended use or any and all other matters.

Neither KW Commercial its directors, o�cers, agents, advisors, or a�liates makes any representation or warranty, express or implied, as toaccuracy 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 todetermine these and other matters of signi�cance to such party. KW Commercial will not investigate or verify any such matters or conduct duediligence 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 inspectionsand investigations including through appropriate third party independent professionals selected by such party. All �nancial data should beveri�ed by the party including by obtaining and reading applicable documents and reports and consulting appropriate independentprofessionals. KW Commercial makes no warranties and/or representations regarding the veracity, completeness, or relevance of any �nancialdata or assumptions. KW Commercial does not serve as a �nancial advisor to any party regarding any proposed transaction.All data and assumptions regarding �nancial performance, including that used for �nancial modeling purposes, may di�er from actual data orperformance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can beestablished at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as marketconditions,vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by theparty with an attorney. Tax questions should be discussed by the party with a certi�ed public accountant or tax attorney. Title questions shouldbe discussed by the party with a title o�cer or attorney. Questions regarding the condition of the property and whether the property complieswith applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, otherconsultants and governmental agencies. All properties and services are marketed by Studio City in compliance with all applicable fair housingand equal opportunity laws.

We obtained the information above from sources we believe to be reliable. However, we have not veri�ed 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 �nancing, 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.

2www.kwcommercial.com

PRESENTED BY:

www.kwcommercial.com 3

PROPERTY INFORMATION

1 | PROPERTY INFORMATION

EXECUTIVE SUMMARY

PROPERTY DESCRIPTION

COMPLETE HIGHLIGHTS

ADDITIONAL PHOTOS

ADDITIONAL PHOTOS

ADDITIONAL PHOTOS

1

THE NORTHMERE APARTMENTS


PROPOSAL FOR COMMERCIAL SERVICES

OFFERING MEMORANDUM

http://www.kwcommercial.com

Executive Summary

THE NORTHMERE APARTMENTS 1 | PROPERTY INFORMATION


PROPERTY OVERVIEWThe Northmere Apartments, located at 1840 North Berendo Street,Los Angeles, CA 90027 was designed in 1929 by prominent architectMax Maltzman, features 18 restored and architecturally significantapartment homes in Los Feliz, one of Los Angeles's premierresidential neighborhoods.

This world class, pre-war construction asset encompasses atimeless collaboration of past and present with an elegance found invery few apartment buildings, then and since. The offering presentsa once-in-a-lifetime opportunity to acquire an architecturallysignificant apartment community with strong current and futureincome metrics in a trophy location.

The Large Apartment Floor Plans are highlighted by Restored, yetOriginal 1929 Style featuring Gleaming Hardwood Floors, WoodBeamed Ceilings, Separate Vanity Areas, Dine-In Kitchens, GlassFronted Cabinetry, Original Art Deco Tiles and extensive Closet andStorage Space.

PROPOSED OFFERING PRICE: $4,995,000

UNITS: 18

PRICE PER UNIT: $277,500

CURRENT CAP RATE: 3.5%

CURRENT GIM: 16.0

PROFORMA CAP RATE: 5.5%

PROFORMA GIM: 12.0

COST PER SF: $388

BUILDING SIZE: 12,870 SF

PARCEL SIZE: 6,752 SF

YEAR BUILT: 1929

MARKET: Los Feliz

CROSS STREETS: Franklin Avenue


PROPERTY OVERVIEWThe Northmere Apartments, designed in 1929 by prominentarchitect Max Maltzman features 18 restored andarchitecturally significant apartment homes in Los Feliz, oneof Los Angeles's premier residential neighborhoods.

The apartment homes are highlighted by an excellent unitmix consisting of Six (6) Large One Bedroom / OneBathroom and Twelve (12) Large Single ApartmentHomes featuring Gleaming Hardwood Floors, WoodenBeamed Ceilings, Vanity Areas, Eat-In Kitchens, GlassFronted Cabinetry, Original Art Deco Tiles and extensiveCloset and Storage Spaces in each unit.

Significant Building Improvements Include NEWER Roof withEnergy Efficient Coating, NEWER Dual Pane Windows,NEWER Exterior Finishes, NEWER 10 Camera MonitoringSystem, NEWER Central Water Heater and FoundationRetrofit, and LED lights upgrades in common areas andexterior.

The offering includes over 25% rental upside throughresident attrition PLUS the rental of 8 large and veryfunctional existing basement storage rooms. Furthermore,there are currently 10 apartments that are eligible forIMMEDIATE 5% rental increase.

The architect, Max Maltzman (www.maxmaltzman.com) roseto prominence as the visionary architect of many grand LosAngeles apartment communities. Some of the most notableprojects include The Ravenswood (built 1928), located at 570North Rossmore Ave. and long time residence of film legendMae West, 410 North Rossmore Avenue, built 1930 in theFrench Normandy style, 456 North Rossmore Avenue, built1930 in the Beaux Arts style, and The Vogue Apartments,built in 1930 in the Art Nouveau style.

This iconic asset has been featured in several film andtelevision productions and is currently a primary shootinglocation for the yet untitled 2016 Howard Hughes film projectwritten and directed by Warren Beatty. The production isslated to star "A" list actors including Martin Sheen, AnnetteBening, Mathew Broderick, Candice Bergen, Alec Baldwin,Ed Harris and Warren Beatty as Howard Hughes himself.

LOCATION OVERVIEW

ADD HEADERadd text...



Property Description




Complete Highlights


PROPERTY HIGHLIGHTS

• 18 Unit, Pre-War Construction Apartment Homes Built in the ItalianRenaissance Revival Style

• Designed by Prominent Architect Max Maltzman famous for The RavenswoodApartments, The Chateau Apartments, The Chateau Lamartine and TheLindbook Manor. Visit www.maxmaltzman.com for more information

• Interior Apartment Homes feature Restored, yet Original 1929 Style, featuringOriginal Hardwood Floors and Wooden Beamed Ceilings in each Unit

• Upper Apartment Homes are Highlighted by City Lights, Griffith Park and theHollywood Sign Views

• Professionally Managed Asset with Strong Current Income and SignificantFuture Income Potential

• The utilities are master metered for gas & electricity thus allowing for 5% rentalincreases annually

• Common Areas feature Decorative Passageways, Beautiful Landscaping,Garden Retreat, Onsite Laundry Facilities and Plenty of Street Parking

• Significant Improvements Include NEWER Roof with Energy Efficient Coating,NEWER Dual Pane Windows, NEWER Exterior Finishes, NEWER 10 CameraMonitoring System, NEWER Central Water Heater and Foundation Retrofit,LED lighting upgrades in common areas and exterior

• This iconic asset has been featured in several film and television productionsand is currently a primary shooting location for the yet untitled 2016 HowardHughes film project written and directed by Warren Beatty. The production isslated to star a plethora of "A" list actors including Martin Sheen, AnnetteBening, Mathew Broderick, Candice Bergen, Alec Baldwin, Ed Harris andWarren Beatty as Howard Hughes himself

• Additional Revenue Potential as a Filming Location

ECONOMIC HIGHLIGHTS

• Average Household Income Per Capita of $62,200 within 1/2 Mile

• Average Home Value of $668,819 within 1/2 Mile

LOCATION HIGHLIGHTS

• The location features a WALK SCORE of 92 with most errands beingaccomplished on foot




Additional Photos



FINANCIAL ANALYSIS

2 | FINANCIAL ANALYSIS

FINANCIAL SUMMARY

INCOME & EXPENSES

RENT ROLL

2FINANCIAL ANALYSIS




OFFERING MEMORANDUM

INVESTMENT OVERVIEW CURRENT PROFORMA

Price $4,995,000 $4,995,000

Price per Unit $277,500 $277,500

Price per SF $388 $388

GIM 16.0 12.0

CAP Rate 3.5% 5.5%

OPERATING DATA CURRENT PROFORMA

Gross Scheduled Income $308,268 $404,280

Other Income $3,646 $9.982

Total Scheduled Income $311,914 $414,262

Vacancy Cost $6,165 $8,085

Gross Income $305,749 $406,176

Estimated Annualized Expenses $132,530 $132,530

Net Operating Income $173,219 $273,646

Financial Summary

THE NORTHMERE APARTMENTS 2 | FINANCIAL ANALYSIS



INCOME SUMMARY THE NORTHMERE APARTMENTS PRO FORMA

Annualized Gross Rental Income $304,008 $404,280

Annualized Storage Income $864 $7,200

Annualized Laundry Income (owned machines) $2,160 $2,160

Annualized Reimbursements & Other Income $622 $622

GROSS INCOME $307,654 $414,262

EXPENSES SUMMARY THE NORTHMERE APARTMENTS PRO FORMA

New Property Taxes $61,250 $61,250

Insurance $4,924 $4,924

Electrical Utilities $8,798 $8,798

Gas Utilities $4,966 $4,966

Water & Sewer $4,634 $4,634

Intercom & Telephone $796 $796

Trash Disposal $1,848 $1,848

Pest Control $480 $480

Maintenance & Upgrades $14,587 $14,587

Plumbing $965 $965

Cleaning $505 $505

Painting $1,100 $1,100

Gardening $840 $840

Rental Registration / SCEP $1,220 $1,200

Taxes and Licenses $2,909 $2,909

Professional Property Management $16,848 $16,848

Reserves & Replacements $5,860 $5,860

GROSS EXPENSES $132,530 $132,530

NET OPERATING INCOME $166,031 $281,732

Income & Expenses




Rent Roll


UNITNUMBER

UNITBED

UNITBATH

LEASESTART

CURRENTRENT

MARKETRENT

101 - Available 1 1 $2,250 $2,250

102 1 1 3/1/2011 $1,577 $2,250

103 0 1 6/28/2008 $1,171 $1,550

104 0 1 9/1/2014 $1,395 $1,550

105 - Manager 0 1 8/9/2012 $508 $1,550

106 - Available 0 1 $1,550 $1,550

201 1 1 5/1/1996 $1,384 $2,350

202 - Available 1 1 $2,450 $2,450

203 0 1 3/7/2012 $1,171 $1,550

204 0 1 9/10/2015 $1,395 $1,550

205 0 1 1/19/2014 $1,395 $1,550

206 0 1 7/15/1998 $1,099 $1,550

301 1 1 3/1/2012 $1,566 $2,595

302 1 1 9/1/2014 $1,905 $2,595

303 0 1 11/6/2011 $1,206 $1,675

304 0 1 9/14/2015 $1,395 $1,675

305 0 1 1/25/2011 $1,173 $1,675

306 0 1 3/1/1996 $1,099 $1,675

$25,689 $33,690



RENT COMPARABLES

3 | RENT COMPARABLES

RENT COMPS

RENT COMPS MAP

3RENT COMPARABLES




OFFERING MEMORANDUM

Rent Comps

THE NORTHMERE APARTMENTS 3 | RENT COMPARABLES


5200 Franklin Ave.

$2.80Avg. Rent/SF: 965 SFAvg. Size:$2,700Avg. Rent:

UNIT TYPE # UNITS % OF SIZE SF RENT RENT/SF

1+1 1 100 965 $2,700 $2.80Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 1 100% 965 $2,700 $2.80

1

1 THE TOWER


1800 N Normandie Ave.




TOTAL/AVG 1 100% 715 $2,285 $3.20

2

2



Rent Comps



1030 Sanborn Avenue

100%Occupancy: $3.00Avg. Rent/SF:500 SFAvg. Size: $1,500Avg. Rent:


Single 1 100 500 $1,500 $3.00Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 1 100% 500 $1,500 $3.00

3

3


1036 Sanborn Ave.




TOTAL/AVG 1 100% 500 $1,575 $3.15

4

4



Rent Comps


THE ALEX APARTMENTS


1639 North Alexandria Aveue

1929Year Built: 1No. Units:100%Occupancy: $3.05Avg. Rent/SF:500 SFAvg. Size: $1,525Avg. Rent:



TOTAL/AVG 1 100% 500 $1,525 $3.05

Single UnitNo Parking

5

5


2050 Dracena Drive

1No. Units: 100%Occupancy:$3.39Avg. Rent/SF: 500 SFAvg. Size:$1,695Avg. Rent:



TOTAL/AVG 1 100% 500 $1,695 $3.39

Single Unit

6

6



Rent Comps



1900 North Oxford Avenue



1 100 630 $2,570 $4.08Liquid error: no implicit conversion from nil to integer

TOTAL/AVG 1 100% 630 $2,570 $4.08

SingleFurnished

7

7


2205 Hyperion Avenue




TOTAL/AVG 1 100% 500 $2,500 $5.00

SingleDeckUtilities Included

8

8



Rent Comps



2130 Griffith Park Blvd.

1955Year Built: 1No. Units:100%Occupancy: $5.60Avg. Rent/SF:625 SFAvg. Size: $3,500Avg. Rent:



TOTAL/AVG 1 100% 625 $3,500 $5.60

One BedroomLarge PatioParkingExtensively Remodeled

9

9



1840 North Berendo Street | Los Angeles, CA 90027

SUBJECT PROPERTY

Rent Comps Map


1 5200 Franklin Ave.Los Angeles, CA 90027

21800 N Normandie Ave.Los Angeles, CA 90027

THE TOWER 3 1030 Sanborn AvenueLos Angeles, CA 90029

4 1036 Sanborn Ave.Los Angeles, CA 90029

51639 North Alexandria AveueLos Angeles, CA 90027

THE ALEX APARTMENTS 6 2050 Dracena DriveLos Angeles, CA 90027

7 1900 North Oxford AvenueLos Angeles, CA 90027

8 2205 Hyperion AvenueLos Angeles, CA 90027

9 2130 Griffith Park Blvd.Los Angeles, CA 90039



LOCATION INFORMATION

4 | LOCATION INFORMATION

RENT COMPS MAP

REGIONAL MAP

LOCATION MAPS

4LOCATION INFORMATION




OFFERING MEMORANDUM

1840 North Berendo Street | Los Angeles, CA 90027

SUBJECT PROPERTY

Rent Comps Map

THE NORTHMERE APARTMENTS 4 | LOCATION INFORMATION

1 5200 Franklin Ave.Los Angeles, CA 90027

21800 N Normandie Ave.Los Angeles, CA 90027

THE TOWER 3 1030 Sanborn AvenueLos Angeles, CA 90029

4 1036 Sanborn Ave.Los Angeles, CA 90029

51639 North Alexandria AveueLos Angeles, CA 90027

THE ALEX APARTMENTS 6 2050 Dracena DriveLos Angeles, CA 90027

7 1900 North Oxford AvenueLos Angeles, CA 90027

8 2205 Hyperion AvenueLos Angeles, CA 90027

9 2130 Griffith Park Blvd.Los Angeles, CA 90039



1840 North Berendo Street

Regional Map





Location Maps



DEMOGRAPHICS

5 | DEMOGRAPHICS

DEMOGRAPHICS MAP

5DEMOGRAPHICS




OFFERING MEMORANDUM


* Demographic data derived from 2010 US Census

Demographics Map

THE NORTHMERE APARTMENTS 5 | DEMOGRAPHICS

ETHNICITY 0.5 MILES 1 MILE 2 MILES

% HISPANIC 21.0% 29.0% 43.9%

RACE 0.5 MILES 1 MILE 2 MILES

% WHITE 68.4% 62.7% 50.4%

% BLACK 3.9% 3.3% 3.8%

% ASIAN 13.7% 15.3% 14.8%

% HAWAIIAN 0.0% 0.1% 0.1%

% INDIAN 0.1% 0.1% 0.4%

% OTHER 11.5% 16.3% 27.8%

POPULATION 0.5 MILES 1 MILE 2 MILES

TOTAL POPULATION 12,414 50,427 174,312

MEDIAN AGE 39.9 39.1 36.3

MEDIAN AGE (MALE) 37.8 37.4 35.3

MEDIAN AGE (FEMALE) 41.3 40.5 37.5

HOUSEHOLDS & INCOME 0.5 MILES 1 MILE 2 MILES

TOTAL HOUSEHOLDS 6,280 23,380 72,398

# OF PERSONS PER HH 2.0 2.2 2.4

AVERAGE HH INCOME $62,200 $63,841 $64,171

AVERAGE HOUSE VALUE $668,819 $690,067 $669,664


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