1917

10-UNIT MULTIFAMILY ECHO PARK, CA 90026

Santa Ynez StreetECHO PARK, CA 90026

Exclusively Listed By:

RICH JOHNSMultifamily Investment Advisor818.432.1575richjohns@kw.com

DRE LIC#01432215

NICK ASTRUPGAARDMultifamily Advisor818.432.1580nastrupgaard@kw.com

DRE LIC #01893466

1917 SANTA YNEZ STREETECHO PARK, CA 90026

CONTENTS04081518

PROPERTY DESCRIPTION

FINANCIAL SUMMARY

MARKET COMPARABLES

MARKET OVERVIEW

PROPERTYDESCRIPTION

Centrally located in Silver Lake, just south of Sunset Boulevard, 4509 Willow Brook Avenue is poised to capitalize on the tremendous momentum in the Hollywood-Silver Lake submarket. Furthermore, the subject property’s transit oriented and highly walkable location offers residents access to myriad entertainment venues, cultural destinations, and dining options nearby. Given the property’s location and strong income metrics, 4509 Willow Brook Avenue is an ideal investment for apartment operators seeking immediate returns along with long term wealth preservation and appreciation.

KW Commercial is pleased to present 1917 Santa Ynez Street, a one-of-a-kind 10-unit apartment community located in Echo Park (90026), one of LA’s most dynamic neighborhoods.

1917 Santa Ynez Street was built in 1924 and consists of 10 apartments. The asset offers a desirable unit mix of three (3) 2 bedroom/1 bathroom apartments, four (4) 1 bedroom/1 bathroom units and three (3) studio apartments. The property consists of five buildings, which sit on a 14,378 square foot lot. The property is well-parked with 10 parking garages as well as additional parking spaces.

The property has significant upside potential in rents, making it an ideal investment for savvy investors who can

expect good return on their investment. The expenses are low as each unit is separately metered for gas and electricity and has its own water heater.

1917 Santa Ynez is centrally located in Los Angeles in Echo Park. A short drive from Hollywood and Downtown. It is poised to capitalize on the tremendous momentum in this unique market. Furthermore, the property’s location offers residents access to a myriad of entertainment venues, cultural destinations, and dining options. Given the property’s prime location and significant value add component, 1917 Santa Ynez is an ideal investment for hands on operators seeking strong long-term returns and appreciation.

T H EOffering

THE OPPORTUNITY:1917 Santa Ynez Street is a 10-unit investment opportunity located in Echo Park, a densely populated rental submarket known for excellent rent growth and low vacancy rates.

OUTSTANDING LOCATION: 1917 Santa Ynez Street is ideally located in Echo Park. A short distance from Sunset Blvd and the attractive Echo Park Lake. Tenants will enjoy many local hotspots such as Mohawk Bend, Brite Spot, Blue Bottle Coffee, Señor Fish, Honey Hi and Dinette. Drive north just 1 mile and you are in the center of Silver Lake and go east just 1.6 miles to DTLA -- making this a dream destination for working professionals.

ONE-OF-A-KIND PROPERTY: 1917 Santa Ynez Street consists of 10 units, three (3) 2 bedroom/1 bathroom apartments, four (4) 1 bedroom/1 bathroom units and three (3) studio apartments.

LOW EXPENSES: Each unit is separately metered for gas and electricity and has its own water heater.

AMPLE PARKING: The property is well-parked with 10 parking garages and additional onsite parking.

LACK OF HOUSING AFFORDABILITY: There is a significant affordability gap to home ownership in the Echo Park. As the median home price in the area is approximately $978,700, a typical monthly mortgage payment is between 1 -2 times more than the average renovated rents at 1917 Santa Ynez Street.

NO SEISMIC RETROFIT REQUIRED: 1917 Santa Ynez Street is not on the list of buildings that require a soft-story seismic retrofit.

STRONG EMPLOYMENT: The nearby Hollywood submarket is one of the strongest employment centers in the Los Angeles MSA and offers access to a diverse set of employers.

LOCATED NEAR NEW COMMERCIAL DEVELOPMENTS: More than 2.3 million SF of commercial space is currently under development in the Echo Park-Silver Lake-Hollywood submarket representing more than $1.58B in project costs.

I N V E S T M E N THighlights

EXTERIOR

MARKETOVERVIEW

A Prime Echo Park Location

“Echo Park is simultaneously one of L.A.’s oldest and most historically significant residential districts and one of its most dynamic. - LA Times

ECHO PARK IS BOOMING200,000+ square feet of retail space is currently in development with new retailers like Lassens opening on Sunset Blvd, and the newly completed Mohawk Collective, offering Starbucks Reserve and The Habit Burger Grill, amongst others.

LOCATION FUNDAMENTALSMillennials have ditched the suburbs for a more active and dynamic urban lifestyle. Many don’t own or want to own cars, so they rely on walking, biking, Metro or Uber. There is a limited supply of housing in Los Angeles, and especially in Echo Park, which is causing upward pressure on rents. Research firm Axiometrics projects rental rates are to increase by 25% over the next five years.

MOST SEARCHED NEIGHBORHOODEcho Park was rated the “Greatest Neighborhood in Los Angeles.” It’s a stone’s throw from Chinatown, a short bike ride from downtown L.A., Silver Lake and Los Feliz. It’s also surrounded by four major freeways: The 5, The 2, The 110 and the 101. That makes for a quick jaunt to the Arclight in Hollywood, The Americana in Glendale, or even USC. It is also home to one of the largest public parks in the city — Elysian Park — the beautifully restored Echo Park lake.

URBAN LIVING WITH WALKABILITYAs one of the hippest neighborhoods in Los Angeles, Echo Park is a highly walkable submarket. Residents can travel on foot to complete their daily errands and stroll to the many restaurants, clubs, and restaurants that make up Echo Park’s vibrant nightlife. Walkscore.com sites the subject properties as “Very Walkable — Most errands can be accomplished on foot.” Echo Park is Rated A+ in Amenities by Area Vibes.

NEW YORK IN LAWith its close proximity to a multitude of public transportation options and its incredible “walkability”, Echo Park residents have an East Coast feel in Los Angeles. LA residents now have a greater choice in where they live while still being connected to major employment hubs. Residents at the subject properties are adjacent to the Metro Bus Local Line, with connectivity to other metro rail lines and surrounding submarkets like Downtown LA, Hollywood, Studio City, North Hollywood, Culver City, Santa Monica, and Pasadena.

AFFORDABILITY GAP – BUY VS. RENTThe median neighborhood home price is approximately $975,000 making home purchases out of reach for most local renters. Renting at the subject properties (post renovation) offers tenants a modern, sophisticated alternative at a fraction of the cost of home ownership. This disparity is a leading reason behind high occupancy and demand throughout the marketplace.

• Home to 37 Million SF of Multifamily, Single Family, Office, Retail, and

Other Uses.

• Recent Leasing Activity of “Class A” Product (3033 Wilshire, K2LA, The

Vermont) Suggests Clear Demand for Luxury Product at Price Points

Well Above Those Contemplated in the Financial Analysis for the

subject properties.

• Echo Park’s luxury product has largely been concentrated in larger

communities, depriving residents seeking more boutique living

experiences in smaller communities.

• Echo Park is Rated A+ in Amenities by Area Vibes.

PARKE C H O

CULTURAL• International Museums

(The Broad, MoMa)

• Small Concert Venues (Echoplex, Bootleg Theatre)

• Greek Theater

• Walt Disney Concert Hall

RECREATION• Griffith Park

• Echo Park Lake (Recently Renovated)

• LA River (Major Rejuvenation Underway)

• Elysian Park

• Grand Park

STRONG RENT GROWTH• Competing with Hollywood Rents

(Evidencing Desirability)

• Direct Path of Development

• Strong Community Pushback Prevents Future Competition

• Populated with Small Parcels Limiting Opportunities for Large Projects or Creating Long Timelines for Assemblages

POSITIVE DEMOGRAPHICS• High Affordability Gap

• Epicenter of the Creative Class

• Growth of the Lifestyle RentersFreelance Culture, Live/Work

• Growing Income Levels in the Area

DINING & NIGHTLIFE• Numerous Bars, Restaurants, and Cafes in Echo Park Such as

Mohawk Bend, 1642, Ostrich Farm, and El Prado

• Minutes from Silver Lake, Los Feliz, and Downtown LA (Host to a Plethora of Highly Rated Restaurants and Speakeasies)

• Dodger Stadium

• Staples Center

ACCESSIBILITY• Adjacent to Many of LA’s Most Vibrant Neighborhoods Including

Silver Lake, Los Feliz, and Atwater Village

• Major Employers in Koreatown, Mid-Wilshire, and Downtown

• Convenient I-5 Freeway Access to Burbank and Glendale and 101 Freeway Access to Hollywood and Universal City

Echo Park has become one of the trendiest neighborhoods in Los

Angeles. The area’s proximity to major employment centers combined with its dining scene, recreational and cultural amenities, and popular nightlife spots have made Echo Park an increasingly

desirable place to live.

Part of Echo Park’s appeal is its connectivity with other desirable neighborhoods.Because of its location amongst the city highway system, it’s easy to get from Echo Park to other parts of the city quickly and conveniently. Residents in search of apartments for rent or houses for rent can also use the LA Transit system to get around the neighborhood or the greater metro area; there are numerous bus lines that serve the Greater Echo Park Elysian neighborhood, including the Dodger Stadium Express and the #96 bus line. The neighborhood is also very pedestrian friendly.

SURROUNDING AMENETIES

1 Pizza Buona2 Bahay Kubo Restaurant3 Elf Cafe4 Kapistahan Grill5 Tawan Siam6 Sib Sob Thai Restaurant

1 Echo Park Lake2 Everette Park3 Dodger Stadium4 Elysian Park5 Vista Hermosa Park

1 Mohawk Bend2 City Sip3 Silverlake Lounge4 The Short Stop5 Little Joy Cocktails6 1642 Bar

DINING RECREATION NIGHTLIFE

1917 SANTA YNEZ

STREET

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45

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6

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3

6

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1

5

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ACCESSIBILITY

Pizza BuonaBahay Kubo RestaurantElf CafeKapistahan GrillTawan SiamSib Sob Thai RestaurantMohawk BendCity SipSilverlake LoungeThe Short StopLittle Joy Cocktails1642 BarCombo AThe HollowayBowers-AssociatesLiving GourmetOstrich FarmSteak SandwichesPatra BurgersDinetteSeñor FishKindKreme Echo ParkSage Plant Based BistroTrencherClub BahiaStinkersMelody LoungueLos Globos NightclubThe Satellite

SHORT STOP PIZZA BUONA

LITTLE JOY COCKTAILS

Restaurants and Bars Groceries and MarketsNutrition FundamentalVonsSmart & FinalJ&S Mini MarketTemple Seafood MarketEl Rancho Market Super Save Market

A WALKABLET R A N S I T- O R I E N T E D C O M M U N I T Y

The subject property are also within walking distance of a variety of highly regarded dining experiences, cafés, boutique shopping, entertainment, and nightlife options including notable popular destinations such as The Mohawk Bend, Little Joy Cocktail, and The Short Sop in addition to the local everyday necessities lo-cated along Sunset Boulevard, Echo Park Avenue, and North Alvarado Street.

1917 Santa Ynez Street boasts a staggering 94 Walk Score and 65 Transit Score, a rare combination for apartment buildings in Southern California.

WALK SCORE“WALKER’S PARADISE”

94 65WALK SCORE“GOOD TRANSIT”

WALK SCORE“BIKABLE”

69Daily errands do not require a car.

Many nearby public transportation options.

Some bike infrastructure.

Entertainment & ShoppingSpacedustToretto HouseMuseum of TrafficThree Stooges StairsLos Angeles I’m Yours StaircaseHolyland ExhibitionArt MuseumGogosha OptiqueLove and LaceLa RopaA’s American Vintage

Somewhere between the seediness of the strip and the sparkle of West Hollywood you’ll find a thriving metropolis of creative, chilled-out cool. If you want to see a little soul in the City of Angels, step away from the vegan juice bars of Sunset Boulevard, ride east in an Uber and stop when you see the Sunset Junction sign.

The Junction culminates into the semi-gentried Silverlake neigh-borhood around Sunset Junction, about six kilometers from Down-town LA. It’s here you’ll find chic gourmet institution L&E Oyster Bar, where you’ll munch on fried oyster po’boys with shaved fen-nel, lettuce and gribiche and rub shoulders with another hundred people dressed in skinny jeans and cardigans. If you take a stroll down Silverlake Boulevard you’ll find some of the best bohemian homewares.

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 restau-rants and cafes, take the metro into the heart of Hollywood, or spend the afternoon in an adjacent neighborhood via short com-mute.

SILVER LAKE

LOCATION FUNDAMENTALSMillennials have ditched the suburbs for a more active and dynamic urban lifestyle. Many don’t own or want to own cars, so they rely on walking, biking, Metro or Uber. There is a limited supply of housing in Los Angeles, and especially in Silver Lake which is causing upward pressure on rents. Research firm Axiometrics projects rental rates are to increase by 25% over the next five years.

URBAN LIVING WITH WALKABILITYAs the most densely populated area in Los Angeles, Silver Lake is a highly walkable submarket. Residents can travel on foot to complete their daily errands and stroll to the many restaurants, clubs, chic hotels and pop up shops. Score 94 out of 100, The property is located in what walkscore.com considers “Walker’s Paradise”.

FINANCIALSUMMARY

1917 Santa Ynez Street, Los Angeles, CA 90026

BUILDING DATAUnits 10

Year Built 1924

Lot Sq Ft 14,378

Bldg Gross Sq Ft 6,003

Parking Spaces 10

ESTIMATED ANNUALIZED EXPENSESNew Property Taxes $31,980

Utilities (DWP) $5,500

Property Insurance $3,002

Landscaping $1,080

Repairs & Maintenance $4,500

Rental Registration $540

Pest Control $960

3rd party Property Management $4,224

Reserves (2% of Annual Income) $2,112

Total Estimated Expenses -$53,028

SOURCE OF INCOME CURRENT RENT MARKET RENT Post Renovation

# of Units Unit Type Avg. Rent Total Avg. Rent Total

3 Studio $618 $1,854 $1,400 $4,200

4 1 Bed / 1 Bath $916 $3,665 $2,200 $8,800

3 2 Bed / 1 Bath $1,094 $3,281 $2,650 $7,950

Total Rental Income $8,800 $20,950

Total Monthly Income $8,800 $20,950 Total Annual Income $105,600 $251,400

EST. ANNUALIZED OPERATING DATA CURRENT MARKETScheduled Gross Income $105,600 $251,400

Less Vacancy 1.0% ($1,056) 2.0% ($5,028)

Gross Operating Income $104,544 $246,372

Less Expenses 50.7% ($53,028) 21% ($53,028)

Net Operating Income $51,516 $193,344

NOTATIONS:

Repairs & Maintenance: Repairs and Maintenance is underwritten as a pro forma expense of $450 per unit per year.

Contract Service: Expenses are projected for Pest Control ($80/mo), Landscaping ($120/mo) based on market rates.

Utilities: Estimated at $550 / unit / year based on market rates. Separately metered for Gas & Electrical utilities.

Management Fee: Projected at 4% of Total Annual Income

Real Estate Taxes: Taxes have been underwritten based upon a tax rate of 1.23%

Property Insurance: The Current and Pro Forma Insurance expense is based upon $0.50/SF/Year

Capital Reserves: Capital Reserves have been underwritten at 2% of Annual Gross Income.

FINANCIAL INDICATORS

Price $2,600,000

Down Payment $1,300,000

Current CAP 2.0%

Market CAP 7.4%

Current GRM 24.62

Market GRM 10.34

Cost Per Unit $260,000

Price per SF $433.12

Expenses Per Unit $5,303

Expenses Per Sq Ft $8.83

F I N A N C I A LSummary

UNIT STATUS UNIT TYPE Est. SF Rent / SF Current

Current Rent Rent / SF Market

Market Rent Post Renovation

1921 Occupied 1 Bed/1 Bath 700 $0.88 $614 $3.14 $2,200

1921 1/4 Occupied 1 Bed/1 Bath 700 $1.91 $1,338 $3.14 $2,200

1921 1/2 Occupied 2 Bed / 1 Bath 800 $1.16 $930 $3.31 $2,650

1921 3/4 Occupied 2 Bed / 1 Bath 800 $1.97 $1,576 $3.31 $2,650

1917 Occupied Studio 340 $1.85 $629 $4.12 $1,400

1917 1/4 Occupied Studio 340 $1.76 $597 $4.12 $1,400

1917 1/2 Occupied Studio 340 $1.85 $628 $4.12 $1,400

1919 Occupied 2 Bed / 1 Bath 880 $0.88 $775 $3.01 $2,650

1923* Occupied 1 Bed/1 Bath 538 $1.19 $638 $4.09 $2,200

1923 1/2 Occupied 1 Bed/1 Bath 560 $1.92 $1,075 $3.93 $2,200

$8,800 $20,950

*Section 8

R E N TRoll

1917 Santa Ynez Street, Los Angeles, CA 90026

Assessor’s Parcel Number Buildings Year Built Land Use

Zoning Stories

SITE DESCRIPTIONUnits

Gross Square Footage Lot Size Square Footage

Parking

UTILITIESWaterSewer

ElectricGas:

1 9 1 7 S A N TA Y N E Z S T R E E TProperty Details

1917 Santa Ynez Street • Los Angeles, • CA 90026

CONSTRUCTIONFoundation

Framing Exterior

Roof Topography

MECHANICALHvac

Fire ProtectionWater Heaters

Plumbing

5404-004-027Five 1924ApartmentsLARD2Two

106,00314,37810

Master Metered - LADWPMaster Metered - LADWPSeparately Metered - LADWPSeparately Metered - Gas Company

Foundation Retrofitted / Raised FoundationWood FrameStuccoPitchedFlat

Portable Air Conditioner Units / Wall HeatersSmoke DetectorsCentral BoilerMajority of horizontals updated to Copper

MARKETCOMPARABLES

1917 Santa Ynez Street

1)

2)

3)

4)

5)

6)

7)

8)

320 Columbia Ave

606 N Occidental Blvd

1216 W Court St

1510 Lake Shore Ave

1841 Griffith Park Blvd

425 N Coronado St

1735 W Silver Lake Dr

624 N Benton Way

R E N TComparables

STUDIO ONE BEDROOM TWO BEDROOM

Property UnitsYear Built Owner/Manager Rent Rent Rent

1917 Santa YnezLos Angeles, CA 90026

10 1924 Private OwnerOwner Managed

$618 $916 $1,094

1 320 Columbia Ave Los Angeles, CA 90017

9 1923 Private OwnerOwner Managed

$1,395

2 606 N Occidental BlvdLos Angeles, CA 90026

16 1927 Private OwnerOwner Managed

$1,500

3 1216 W Court St Los Angeles, CA 90026

20 1927 Private OwnerOwner Managed

$1,350

4 1510 Lake Shore Ave Los Angeles, CA 90026

1 - Private OwnerOwner Managed

$2,000

5 1841 Griffith Park Blvd Los Angeles, CA 90026

6 1957 Private OwnerOwner Managed

$2,395

6 425 N Coronado St Los Angeles, CA 90026

6 - Private OwnerOwner Managed

$2,300

7 1735 W Silver Lake Dr Los Angeles, CA 90026

2 1982 Private OwnerOwner Managed

$2,950

8 624 N Benton Way Los Angeles, CA 90026

2 1913 Private OwnerOwner Managed

$2,900

AVERAGE: $1,415 $2,232 $2,925

HIGH: $1,500 $2,395 $2,950

LOW: $1,350 $2,000 $2,900

R E N TComparables

1917 Santa Ynez Street

1)

2)

3)

4)

5)

6)

2135 Bellevue Ave

1300 Douglas St

1330 Liberty St

1120 Logan St

1920 Preston Ave

721 Silver Lake Blvd

S A L E SComparables

PROPERTY YEAR BUILT UNITS BLDG SF PRICE CAP GRM $/UNIT $/SF CLOSED

1917 Santa YnezLos Angeles, CA 90026 1924 10 6,003 $2,600,000 2% 24.62 $260,000 $433.12 -

1 2135 Bellevue AvenueLos Angeles, CA 90026 1959 12 7,674 $2,450,000 3.04% 17.09 $207,083 $323.82 5/30/2019

2 1300 Douglas StreetLos Angeles, CA 90026 1924 8 6,536 $2,313,000 4.11% 15.37 $289,125 $353.89 8/20/2019

3 1330 Liberty StreetLos Angeles, CA 90026 1951 9 5,894 $1,855,000 2.75% - $206,111 $314.73 3/22/2019

4 1120 Logan StreetLos Angeles, CA 90026 1926 8 3,894 $1,025,000 - - $128,125 $263.23 9/14/2018

5 1920 Preston AveLos Angeles, CA 90026 1945 6 2,592 $1,850,000 6.18% 11.75 $213,250 $713.73 7/19/2019

6 721 Silver Lake BlvdLos Angeles, CA 90026 1949 10 6,154 $2,600,000 4.48% 15.44 $260,000 $422.49 11/1/2019

S A L E SComparables

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 sig-nificance 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 transactionAll data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or perfor-mance. 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.

CONFIDENTIALITY AGREEMENT

Exclusively ListedBy:RICH JOHNSMultifamily Investment Advisor818.432.1575richjohns@kw.com

DRE LIC#01432215

NICK ASTRUPGAARDMultifamily Advisor818.432.1580NASTRUPGAARD@KW.COMwww.apartment-expert.com

DRE LIC #01893466

1917 SANTA YNEZ

STREET

DRE #01428774