5327-5333 Hermitage
Avenue
VALLEY VILLAGE, CA
OFFERING MEMORANDUM
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
CONFIDENTIALITY AND DISCLAIMER
The 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 tenants 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.
NON-ENDORSEMENT NOTICE
Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this
marketing package. The presence of any corporations 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.
5327-5333 Hermitage Avenue
TABLE OF CONTENTS
Section 1
PRICING AND FINANCIAL ANALYSIS
Section 2
PROPERTY DESCRIPTION
Section 3
RECENT LAND SALES
Section 4
RECENT APARTMENT SALES
Section 5
RENT COMPARABLES
Section 6
MARKET OVERVIEW
Section 7
DEMOGRAPHIC ANALYSIS
PRICING AND FINANCIAL ANALYSIS
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
5327-5333 Hermitage Avenue
PRICING AND FINANCIAL ANALYSIS
VALLEY VILLAGE, CA
RENT ROLL
Unit Number
Unit
Type
Current
Rent
5333
3 Bdr
1.5 Bath
$1,500
5341
3 Bdr
1 Bath
$1,400
5327-1
2 Bdr
2 Bath
$1,400
5327-2
2 Bdr
2 Bath
$1,000
5327-3
2 Bdr
2 Bath
$904
5327-4
2 Bdr
2 Bath
$1,251
5327-5
2 Bdr
2 Bath
$1,123
5327-6
2 Bdr
2 Bath
$1,209
5327-7
2 Bdr
2 Bath
$850
5339-1
Single
1 Bath
$600
5339-2
Single
1 Bath
$950
5339-3
Single
1 Bath
$735
5339-4
Single
1 Bath
$950
5339-5
Single
1 Bath
$947
5339-6
Single
1 Bath
$900
5339-7
Single
1 Bath
$900
5339-8
Single
1 Bath
$868
5339-9
Single
1 Bath
$884
TOTAL
$0
18
TOTAL
$18,371
18
TOTAL
$18,371
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
Notes
vacant
5327-5333 Hermitage Avenue
PRICING AND FINANCIAL ANALYSIS
VALLEY VILLAGE, CA
FINANCIAL OVERVIEW
Summary
Property Address
Price
Down Payment
Lot Size (SF)
Price/SF
Lot Size (Acres)
Price/Acre
Number Of Units
Price/Unit
Number Of Lots
5327-5333 Hermitage Avenue
Valley Village, CA 91607
$4,195,000
100% / $4,195,000
24,036
Financing
FIRST TRUST DEED
Loan Type
All Cash
$174.53
0.7380
$5,684,282
43
$97,558
3
Price/Lot
$1,398,333
Type of Ownership
Fee Simple
Site Description
Assessor's Parcel Number
Zoning
2347-025-005;2347025-012
LAR3
*Note: Regarding Number of Units (43) stated above,
this is the maximum allowable buildable units including
square footage from alley and 35% density bonus.
Buyer to do own investigations regarding the number
of units that can be built or the best suitable use of the
property for buyer. Broker makes no representations
or warranties relating to this property.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
PROPERTY DESCRIPTION
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
PROPERTY DESCRIPTION
INVESTMENT OVERVIEW
Investment Highlights
Pride of Ownership Development Opportunity Located in
the Desirable Valley Village Area
Rare Large Scale Development Project
Potential of Constructing 43 Apartment Units Within
Walking Distance to the Laurel Canyon Orange Line Metro
Property Consists of 3 Contiguous Lots in Two Legal Parcels
offering 24,036 Square Feet of Buildable Land
Occupancy Rates in The Area Consistently Above 95%
Property Offers Current Income from the Existing 18 Units
Ideal Land Bank Potential
Desirable Residential Neighborhood with Easy Access to
Shopping, Dining, and Entertainment Facilities and Various
Employment Bases in the Los Angeles Area
Marcus & Millichap, as the exclusive listing agent, is pleased to present a rare development opportunity to purchase 3
contiguous parcels totaling 24,036 square feet of land with alley in the back in the Valley Village submarket of the San
Fernando Valley area. The subject property is zoned LAR3 which allows the construction of up to 43 apartment units
on the site (this amount includes a 35% density bonus).* Existing improvements on the site consist of 18 apartment
units with current income during the planning and entitlement phase of development.
Valley Village is one of the most desirable neighborhoods within the Los Angeles metropolitan area nestled among the
desirable neighborhoods of Studio City, Sherman Oaks, and North Hollywood markets. The property is situated on a
tree-lined, multi-family residential neighborhood within walking distance to the Laurel Canyon MTA Orange Line
Station. Commuter access to this site is offered through the 101, 134 and 170 Freeways. The subject location is
highlighted by a multitude of dining, shopping, and entertainment facilities while offering easy access to employment
centers in Hollywood, Downtown, and West Los Angeles.
The subject development will be among the more unique developments of the area due to the impressive size and
location of the project offering competitive advantage in occupancy rates.
*Buyer to do own investigations regarding the number of units that can be built or the best suitable use of the property for
buyer. Broker makes no representations or warranties relating to this property.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
PROPERTY DESCRIPTION
PROPERTY PHOTOS
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
PROPERTY DESCRIPTION
AREA MAPS
Local Map
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
Regional Map
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
PROPERTY DESCRIPTION
PLAT MAP
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
PROPERTY DESCRIPTION
AERIAL PHOTO
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
RECENT LAND SALES
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
5327-5333 Hermitage Avenue
RECENT LAND SALES
VALLEY VILLAGE, CA
RECENT SALES MAP
1)
2)
3)
4)
5327-5333 Hermitage Avenue
5247-5253 Vantage Avenue
11108 Riverside Drive
11208-11214 Peach Grove Street
11003-11019 Otsego Street
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
10
5327-5333 Hermitage Avenue
RECENT LAND SALES
VALLEY VILLAGE, CA
RECENT SALES
5327-5333 Hermitage Avenue
Valley Village, CA 91607
Sale Price:
$4,195,000
Lot Size (SF):
24,036
Down Payment:
$4,195,000
Price/SF:
$174.53
Down Payment %:
100%
Lot Size (Acres):
0.7380
Zoning:
LAR3
Price/Acre:
$5,684,282
Lot Dimensions:
Subject Property
Comments
Maximum number of units: 43 ($97,558 per door). This includes 35% density bonus.
5247-5253 Vantage Avenue
Valley Village, CA 91607
Close of Escrow:
8/28/2014
Lot Size (SF):
16,274
Sale Price:
$1,770,000
Price/SF:
$108.76
Down Payment:
N/A
Lot Size (Acres):
0.3700
Down Payment %:
N/A
Price/Acre:
$4,783,784
Zoning:
LAR3
Lot Dimensions:
120x135
Comments
Maximum number of units: 17 ($104,117 per door).
11108 Riverside Drive
North Hollywood, CA 91602
Close of Escrow:
2/28/2014
Lot Size (SF):
7,649
Sale Price:
$725,000
Price/SF:
$94.78
Down Payment:
$725,000
Lot Size (Acres):
0.1800
Down Payment %:
100%
Price/Acre:
$4,027,778
Zoning:
LAR3
Lot Dimensions:
N/A
Comments
Maximum number of units: 9 ($80,555 per door).
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
11
5327-5333 Hermitage Avenue
RECENT LAND SALES
VALLEY VILLAGE, CA
RECENT SALES
3
11208-11214 Peach Grove Street
North Hollywood, CA 91601
Close of Escrow:
10/17/2013
Lot Size (SF):
10,000
Sale Price:
$960,000
Price/SF:
$96.00
Down Payment:
N/A
Lot Size (Acres):
0.2300
Down Payment %:
N/A
Price/Acre:
$4,173,913
Zoning:
LAR3
Lot Dimensions:
N/A
Comments
Maximum number of units: 12 ($80,000 per door).
11003-11019 Otsego Street
North Hollywood, CA 91601
Close of Escrow:
8/15/2014
Lot Size (SF):
22,150
Sale Price:
$4,100,000
Price/SF:
$185.10
Down Payment:
N/A
Lot Size (Acres):
0.5100
Down Payment %:
N/A
Price/Acre:
$8,039,216
Zoning:
LAR4
Lot Dimensions:
N/A
Comments
Maximum number of units: 55 ($74,545 per door).
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
12
RECENT APARTMENT SALES
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
5327-5333 Hermitage Avenue
RECENT APARTMENT SALES
VALLEY VILLAGE, CA
CAP RATE AND GRM
Average Cap Rate
5.00
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0.00
5056
Laurel
Canyon
Boulevard
12916
Moorpark
Street
12740
Oxnard
Street
5716
Whitsett
Avenue
12740
Oxnard
Street
5716
Whitsett
Avenue
Average GRM
18.00
16.00
14.00
12.00
10.00
8.00
6.00
4.00
2.00
0.00
5056
Laurel
Canyon
Boulevard
12916
Moorpark
Street
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
14
5327-5333 Hermitage Avenue
RECENT APARTMENT SALES
VALLEY VILLAGE, CA
PRICE PER SF AND PRICE PER UNIT
Average Price per Square Foot
300.00
270.00
240.00
210.00
180.00
150.00
120.00
90.00
60.00
30.00
0.00
5056
Laurel
Canyon
Boulevard
12916
Moorpark
Street
12740
Oxnard
Street
5716
Whitsett
Avenue
12740
Oxnard
Street
5716
Whitsett
Avenue
Average Price per Unit
600,000
550,000
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
5056
Laurel
Canyon
Boulevard
12916
Moorpark
Street
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
15
5327-5333 Hermitage Avenue
RECENT APARTMENT SALES
VALLEY VILLAGE, CA
RECENT SALES MAP
1)
2)
3)
4)
5327-5333 Hermitage Avenue
5056 Laurel Canyon Boulevard
12916 Moorpark Street
12740 Oxnard Street
5716 Whitsett Avenue
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
16
5327-5333 Hermitage Avenue
RECENT APARTMENT SALES
VALLEY VILLAGE, CA
RECENT SALES
1
5056 Laurel Canyon Boulevard
Valley Village, CA 91607
Close of Escrow:
5/27/2014
No. of Units:
12
Units
Unit Type
Year Built:
2011
3 Bdr 2 Bath
Sale Price:
$6,875,000
4 Bdr 2 Bath
Price/Unit:
$572,917
Price/SF:
$310.36
CAP Rate:
4.80%
GRM:
17.10
Unit Type
Comments
12740 Oxnard Street
2
12916 Moorpark Street
Studio City, CA 91604
Close of Escrow:
4/10/2013
No. of Units:
17
Units
Year Built:
2007
14
2 Bdr 2 Bath
Sale Price:
$5,850,000
3 Bdr 2 Bath
Price/Unit:
$344,118
Price/SF:
$212.46
CAP Rate:
4.59%
GRM:
14.11
Comments
3
12740 Oxnard Street
North Hollywood, CA 91606
Close of Escrow:
1/10/2014
No. of Units:
15
Units
Unit Type
Year Built:
2005
2 Bdr 2 Bath
Sale Price:
$4,725,000
10
3 Bdr 2 Bath
Price/Unit:
$315,000
Price/SF:
$245.00
CAP Rate:
4.91%
GRM:
13.98
Comments
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
17
5327-5333 Hermitage Avenue
RECENT APARTMENT SALES
VALLEY VILLAGE, CA
RECENT SALES
4
5716 Whitsett Avenue
Valley Village, CA 91607
Close of Escrow:
5/15/2013
No. of Units:
16
Units
Unit Type
Year Built:
2003
12
2 Bdr 2 Bath
Sale Price:
$4,500,000
3 Bdr 2 Bath
Price/Unit:
$281,250
Price/SF:
$230.53
CAP Rate:
5.20%
GRM:
13.20
Comments
No. of Units:
Units
Unit Type
Units
Unit Type
Year Built:
Sale Price:
Price/Unit:
Price/SF:
Close of Escrow:
CAP Rate:
GRM:
Comments
No. of Units:
Year Built:
Sale Price:
Price/Unit:
Price/SF:
Close of Escrow:
CAP Rate:
GRM:
Comments
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
18
RENT COMPARABLES
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
5327-5333 Hermitage Avenue
RENT COMPARABLES
VALLEY VILLAGE, CA
RENT COMPARABLES MAP
1)
2)
3)
4)
5327-5333 Hermitage Avenue
Allegro Apartments
IMT Valley Village
IMT Sherman Village
Avery Apartments
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
20
5327-5333 Hermitage Avenue
RENT COMPARABLES
VALLEY VILLAGE, CA
RENT COMPARABLES
5323-5333 Hermitage Avenue
Valley Village, CA 91607
Unit Type
Units
N/A
Rent
Subject Property
No. of Units
Occupancy:
Year Built:
N/A
Total/Wtd. Avg.
$0
Comments
Allegro Apartments
11945 Magnolia Boulevard
Valley Village, CA 91607
Unit Type
No. of Units
Occupancy:
Year Built:
97
N/A
2009
SF
Rent
2 Bdr 2 Bath
Units
1,026 - 1,162
$2,385 - $2,721
$2.33
3 Bdr 2.5 Bath
1,529 - 1,566
$3,007 - $3,400
$2.07
$2,878
$2.20
Total/ Avg.
Rent/SF
Comments
IMT Valley Village
12000 Riverside Drive
Valley Village, CA 91607
Unit Type
2 Bdr 2 Bath
No. of Units
Occupancy:
Year Built:
144
N/A
2011
Units
SF
Rent
988 - 1,476
$2,275 - $3,140
Rent/SF
$2.20
$2,707
$2.20
Total/ Avg.
Comments
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
21
5327-5333 Hermitage Avenue
RENT COMPARABLES
VALLEY VILLAGE, CA
RENT COMPARABLES
IMT Sherman Village
12629 Riverside Drive
Valley Village, CA 91607
Unit Type
1 Bdr 1 Bath
Units
2 Bdr 2 Bath
No. of Units
Occupancy:
Year Built/Renovated:
48
N/A
2013
SF
Rent
814 - 1,283
$1,925 - $2,855
Rent/SF
$2.28
1,175 - 1,433
$2,550 - $2,895
$2.09
$2,556
$2.19
Total/ Avg.
Comments
Avery Apartments
12005 Albers Street
Valley Village, CA 91607
Unit Type
No. of Units
Occupancy:
Year Built/Renovated:
121
N/A
2014
SF
Rent
Rent/SF
1 Bdr 1 Bath
Units
802
$2,023
$2.52
2 Bdr 2 Bath
1,056 - 1,293
$2,434 - $3,259
$2.42
$2,434
$2.47
Total/ Avg.
Comments
Unit Type
No. of Units
Occupancy:
Year Built/Renovated:
Units
Rent
Total/Wtd. Avg.
Comments
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to
the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any
inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. 2014 Marcus & Millichap.
All rights reserved.
22
5327-5333 Hermitage Avenue
VALLEY VILLAGE, CA
OFFERING MEMORANDUM
Offices Throughout the U.S. and Canada
www.MarcusMillichap.com
